AIG SunAmerica Life Assurance Company, et al., Notice of Application, 69995-69998 [E5-6377]
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Federal Register / Vol. 70, No. 222 / Friday, November 18, 2005 / Notices
Room 10230, New Executive Office
Building, Washington, DC 20503.
SECURITIES AND EXCHANGE
COMMISSION
Charles Mierzwa,
Clearance Officer.
[FR Doc. 05–22908 Filed 11–17–05; 8:45 am]
[Release No. IC–27145; File No. 812–13204]
BILLING CODE 7905–01–P
AIG SunAmerica Life Assurance
Company, et al., Notice of Application
November 10, 2005.
Securities and Exchange
Commission (‘‘SEC’’).
ACTION: Notice of Application for an
Order pursuant to section 26(c) of the
Investment Company Act of 1940
(‘‘1940 Act’’).
AGENCY:
RAILROAD RETIREMENT BOARD
Agency Forms Submitted for OMB
Review
69995
FOR FURTHER INFORMATION CONTACT:
Jeffrey Foor, Senior Counsel, or Zandra
Bailes, Branch Chief, Office of Insurance
Products, Division of Investment
Management, at (202) 551–6795.
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained for a fee from the SEC’s
Public Reference Branch, 100 F Street,
NE., Room 1580, Washington, DC 20549
(telephone (202) 551–5850).
Applicants’ Representations
1. AIG SunAmerica is a stock life
insurance company originally organized
Applicants: AIG SunAmerica Life
under the laws of the state of California
Assurance Company (‘‘AIG
in April 1965. AIG SunAmerica
SunAmerica’’), and the Variable
(previously known as Anchor National
Separate Account of AIG SunAmerica
Life Insurance Company), through a
Life Assurance Company (collectively,
series of transactions, redomesticated
the ‘‘Applicants’’).
under the laws of the state of Arizona
Summary of the Application: The
Summary of Proposal(s)
Applicants request an order pursuant to on January 1, 1996. AIG SunAmerica is
a wholly-owned subsidiary of
Section 26(c) of the 1940 Act to permit
(1) Collection title: Continuing
the substitution of shares of the Nations SunAmerica Life Insurance Company,
Disability Report.
an Arizona corporation, which is, in
International Value Portfolio (the ‘‘NIV
(2) Form(s) submitted: G–254, G–254a.
turn, wholly-owned by AIG Retirement
Portfolio’’ or the ‘‘Replaced Portfolio’’),
(3) OMB Number: 3220–0187.
Services, a Delaware corporation, which
one Portfolio of the Nations Separate
(4) Expiration date of current OMB
Account Trust (‘‘NSAT’’), with shares of is, in turn, wholly-owned by American
International Group, Inc. AIG
clearance: January 31, 2006.
the International Growth and Income
SunAmerica is authorized to write
Portfolio (the ‘‘IGI Portfolio’’) and the
(5) Type of request: Revision of a
annuities and life insurance in the
International Diversified Equities
currently approved collection.
District of Columbia and all states
Portfolio (the ‘‘IDE Portfolio,’’ with the
(6) Respondents: Individuals or
except New York.
Households, Business or other for-profit. IGI Portfolio, collectively the
2. The Variable Separate Account of
‘‘Replacement Portfolios’’), two
(7) Estimated annual number of
AIG SunAmerica (the ‘‘Separate
Portfolios of the SunAmerica Series
respondents: 1,500.
Account’’) was established by AIG
Trust (‘‘SAST’’) (the ‘‘Substitution’’).
SunAmerica on June 25, 1981, in
(8) Total annual responses: 3,000.
Filing Date: The application was filed
accordance with the laws of the state of
(9) Total annual reporting hours: 748. on June 24, 2005, and amended and
California and is currently authorized
(10) Collection description: Under the restated on November 1, 2005 and
under the laws of the state of Arizona.
amended November 10, 2005.
Railroad Retirement Act, a disability
The Separate Account is registered as a
Hearing or Notification of Hearing: An
annuity can be reduced or not paid,
unit investment trust under the 1940
order granting the application will be
depending on the amount of earnings
Act. The Separate Account is used to
issued unless the SEC orders a hearing.
and type of work performed. The
fund the Contracts and other annuity
Interested persons may request a
collection obtains information about a
contracts issued by AIG SunAmerica
hearing on the application by writing to and is currently divided into a total of
disabled annuitant’s employment and
the Secretary of the SEC and serving
earnings.
160 subaccounts (the ‘‘Variable
Additional Information or Comments: Applicants with a copy of the request,
Accounts’’). Each of the available
personally or by mail. Hearing requests
Copies of the forms and supporting
Variable Accounts invests in and
must be received by the SEC by 5:30
documents can be obtained from
reflects the investment performance of
p.m. on December 5, 2005, and should
Charles Mierzwa, the agency clearance
specific portfolios in which the Variable
be accompanied by proof of service on
officer (312–751–3363) or
Accounts invest. One of the Variable
Applicants in the form of an affidavit or, Accounts currently invests in the
Charles.Mierzwa@rrb.gov.
for lawyers, a certificate of service.
Replaced Portfolio (referred to hereafter
Comments regarding the information
Hearing requests should state the nature as the ‘‘Variable Account’’).
collection should be addressed to
of the writer’s interest, the reason for the
3. The Contracts, PolarisAmerica and
Ronald J. Hodapp, Railroad Retirement
request, and the issues contested.
Polaris Choice, issued by AIG
Board, 844 North Rush Street, Chicago,
Persons who wish to be notified of a
SunAmerica through its Separate
Illinois, 60611–2092 or
hearing may request notification by
Account, are fixed and variable flexible
Ronald.Hodapp@rrb.gov and to the
writing to the Secretary of the SEC.
premium deferred non-participating
OMB Desk Officer for the RRB, at the
ADDRESSES: Secretary, Securities and
variable annuity contracts that currently
Office of Management and Budget,
utilize the Replaced Portfolio as one of
Exchange Commission, 100 F Street,
Room 10230, New Executive Office
many underlying investments. AIG
NE., Washington, DC 20549–9303.
Building, Washington, DC 20503.
SunAmerica discontinued new
Applicants: c/o Jorden Burt LLP, 1025
Charles Mierzwa,
allocations into the Replaced Portfolio
Thomas Jefferson Street, NW., East
Clearance Officer.
under both Contracts as of the close of
Lobby, Suite 400, Washington, DC
[FR Doc. 05–22909 Filed 11–17–05; 8:45 am]
business on September 30, 2002,
20007–5208, Attention: Joan E. Boros,
consistent with the Replaced Portfolio
Esq.
BILLING CODE 7905–01–P
In accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the Railroad
Retirement Board (RRB) has submitted
the following proposal(s) for the
collection of information to the Office of
Management and Budget for review and
approval.
SUMMARY:
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Federal Register / Vol. 70, No. 222 / Friday, November 18, 2005 / Notices
advising that it was no longer accepting
new investments. As a result, the
ReplacedPortfolio is not actively
marketed in either Contract. The
Contracts are the only contracts to
utilize the Variable Accounts that invest
in the Replaced Portfolio. Neither of the
Contracts continues to be actively
marketed. Applicants were recently
informed of NSAT’s intention to
liquidate the Replaced Portfolio on
December 9, 2005.
4. The Replaced Portfolio, which
offers a single class of shares,
constitutes a separate series available
through NSAT. NSAT was organized as
a Delaware business trust on November
24, 1997, and prior to May 1, 2001, was
named National Annuity Trust. NSAT is
registered as a diversified, open-end
management investment company
under the 1940 Act (File No. 811–
08481), and its shares are registered as
securities under the Securities Act of
1933 (the ‘‘1933 Act’’) (File No. 333–
40265). NSAT was established and
serves to provide a funding medium for
certain variable annuity accounts and/or
variable life insurance separate accounts
issued by leading life insurance
companies. The inception date of the
Replaced Portfolio was July 7, 2000, and
as of September 30, 2002, it is no longer
accepting investments from current or
prospective investors and will be
liquidated on December 9, 2005.
5. The Separate Account buys and
sells shares of the Replaced Portfolio at
net asset value that is net of the advisory
fee of 0.90% based on average daily net
assets, paid to the Investment Adviser,
Banc of America Capital Management,
LLC (‘‘BACAP’’), to manage the
Business affairs of the Replaced
Portfolio and to provide administrative
services pursuant to a written
investment advisory agreement
(‘‘NSAT’s Investment Advisory
Agreement’’); BACAP Distributors is
paid .25% of average daily net assets for
performing distribution services and
other shareholder servicing functions
pursuant to a written agreement (‘‘Rule
12b-1 Plan’’). The Replaced Portfolio’s
other expenses were .61% for the fiscal
year ended December 31, 2004. The
Replaced Portfolio’s total annual
operating expenses for this period were
1.76%, subject to fee waivers and
expense reimbursement by BACAP and
other service providers of (0.51%) that
provided for Total Annual Net Expenses
of 1.25%. Brandes Investment Partners,
L.P. (‘‘Brandes’’) serves as subadviser to
the Replaced Portfolio. BACAP and
Brandes are not affiliated with AIG
SunAmerica.
6. SAST was organized as a
Massachusetts business trust on
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September 11, 1992. SAST was
established and serves to provide a
funding medium for the Variable
Accounts that are its sole shareholders.
SAST is registered as an open-end
management investment company
under the 1940 Act (File No. 811–
07238), and its offering of its shares is
registered under the 1933 Act (File No.
033–52742). The Replaced Portfolio is a
portfolio in which the Separate Account
invests under the PolarisAmerica
Contract as one of 27 subaccount
investment alternatives and under the
Polaris Choice Contract as one of 38
subaccount investment alternatives. The
Substitution will result in the reduction
of the respective numbers of investment
alternatives by one.
7. If the requested Substitution Order
is granted, Class 1 shares 1 in the
PolarisAmerica Contract and Class 2 2
shares in the Polaris Choice Contract of
the Replacement Portfolios will be
substituted for shares of the Replaced
Portfolio as set forth below:
Replaced portfolio
of NSAT
Replacement portfolios of SAST
Nations International Value
Portfolio
‰
Nations International Value
Portfolio
‰
International
Growth and Income Portfolio
(Class 1)
(PolarisAmerica
Contract)
International Diversified Equities
Portfolio (Class
2) (Polaris
Choice Contract)
8. Shares of the IGI Portfolio and the
IDE Portfolio, which the Variable
Account will purchase, will be offered
at net asset value that is net of the IGI
Portfolio’s Advisory Fee of .95%, and
the IDE Portfolio’s Advisory Fee of
.84%, each of which are paid to AIG
SunAmerica Asset Management Corp.
(‘‘SAAMCO’’), to manage the business
affairs of the SAST and to provide
administrative services pursuant to an
investment advisory agreement. The IDE
Portfolio’s Advisory Fee levels reflect
the fact that the SAST Board of Trustees
has approved a new advisory fee
schedule, effective October 3, 2005,
based on breakpoints at the following
asset levels: At $250 million the
advisory fee is reduced to 0.85%; at the
next $250 million in assets the advisory
fee is reduced to .80%; and at $500
million or greater the advisory fee is
reduced to 0.75%. Based on the current
level of assets under management, the
1 The PolarisAmerica Replacement Portfolio also
offers Class 2 and Class 3 shares.
2 The Polaris Choice Replacement Portfolio also
offers Class 1 and Class 3 shares.
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IDE Portfolio’s advisory fee was reduced
from 1.00% to 0.84% beginning on
October 3, 2005. The IGI Portfolio paid
AIG SunAmerica Capital Services, Inc.
(the ‘‘Distributor’’) .02% of average daily
net assets for Class 1 shares and the IDE
Portfolio paid AIG SunAmerica .15% for
Class 2 shares for distribution services
pursuant to a Rule 12b–1 Plan for the
period ended December 31, 2004.
Effective November 30, 2004, the .02%
distribution fee of the IGI Portfolio was
terminated when SAST’s Board of
Directors approved new policies and
procedures as a result of changes by the
SEC to Rule 12b–1 under the 1940 Act,
which no longer permits the IGI
Portfolio to charge a distribution fee for
directed brokerage. The IGI Portfolio’s
other expenses were .27% and the IDE
Portfolio’s other expenses were .25% for
this period. The IGI Portfolio’s total
annual operation expenses for this
period were 1.24% for Class 1 shares.
The IDE Portfolio’s total annual
operation expenses, prior to the
Advisory Fee changes, for this period
was 1.40% and would been 1.24% had
the fee reduction been in effect for that
period.
9. Putnam Investment Management,
LLC (‘‘Putnam’’) serves as the
Subadviser to the IGI Portfolio. Morgan
Stanley Investment Mangement, under
the name Van Kampen, serves as the
Subadviser to the IDE Portfolio.
SAAMCO is affiliated with AIG
SunAmerica, but Putnam and Van
Kampen are not affiliated with AIG
SunAmerica.
10. The application covers a single
Portfolio in which the Separate Account
invests under the Contracts. When AIG
SunAmerica was recently informed of
the intention of NSAT to liquidate the
Replaced Portfolio effective December 9,
2005, AIG SunAmerica undertook to
review the various alternative
investment portfolios to determine
which would be a suitable replacement
for the Replaced Portfolio. AIG
SunAmerica determined that the
Replacement Portfolios are appropriate
and suitable replacements for the
Replaced Portfolio.
11. The Applicants represent that the
Replacement Portfolios have investment
objectives, policies, and restrictions
substantially similar in all material
respects to those of to those of the
Replaced Portfolio.
12. Applicants also represent that the
Replaced Portfolio takes on higher
investment risk than the Replacement
Portfolios when compared with a
common benchmark, and the
investments of the Replaced Portfolio
are concentrated in a substantially more
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limited number of securities than the
Replacement Portfolios.
13. The Replacement Portfolios have
lower total annual expense ratios than
the Replaced Portfolio. The IGI Portfolio
has lower total annual expenses than
the Replaced Portfolio prior to and after
fee waivers and reimbursements by the
Replaced Portfolio with respect to the
Class 1 shares. The IDE Portfolio has
lower total annual expenses than the
Replaced Portfolio prior to and after fee
waivers and reimbursements by the
Replaced Portfolio with respect to the
Class 2 shares.
14. Applicants state that the
Replacement Portfolios have
significantly larger asset bases than the
Replaced Portfolio. The IGI Portfolio’s
assets at March 31, 2005, were
approximately $327 million, and at June
30, 2005, were approximately $312
million and the IDE Portfolio’s assets at
March 31, 2005 were approximately
$343 million, and at June 30, 2005 were
approximately $341 million while the
Replaced Portfolio’s assets at March 31,
2005 were approximately $7.4 million,
and at June 30, 2005, were
approximately $6.6 million. The larger
asset bases of the IGI Portfolio and IDE
Portfolio provide the potential for a
future reduction in the total annual
expenses of all its share classes, in
addition to providing potential
enhanced performance.
15. The Applicants will effect the
proposed Substitution by first
redeeming shares of the Replaced
Portfolio in cash at net asset value and
then immediately contributing those
assets to the Replacement Portfolios to
purchase their shares. As a result, at all
times, before and after the Substitution,
monies attributable to the owners of the
Contracts (‘‘Owners’’) then invested in
the Replaced Portfolio will remain fully
invested and will result in no change in
the amount of any Owner’s Contract
value, death benefit or investment in the
Replaced Portfolio so that the full net
asset value of the redeemed shares held
by the Variable Account will be
reflected in the Owners’ accumulation
values or annuity unit values following
the Substitution. In addition, AIG
SunAmerica assumes all applicable
expenses relating to the Substitution,
including brokerage commissions and
legal accounting, and other fees and
expenses so that the full net asset value
of redeemed shares of the Replaced
Portfolio held by the Variable Account
will be reflected in the Owners’
accumulation values or annuity unit
values following the Substitution.
16. Owners will not incur any fees or
charges as a result of the Substitution,
nor will the rights of Owners or
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obligations of AIG SunAmerica under
the Contracts be altered in any way. The
proposed Substitution will not have any
adverse tax consequences to Owners.
The proposed Substitution will not
cause Contract fees and charges
currently being paid by existing Owners
to be greater after the proposed
Substitution than before the proposed
Substitution. The proposed Substitution
will not be treated as a transfer for the
purpose of transfer limits or assessing
transfer charges, and after the
Substitution, AIG SunAmerica will treat
each of the Variable Accounts currently
invested in a Replaced Portfolio as
currently invested in the Replacement
Portfolios.
17. AIG SunAmerica will schedule
the Substitution to occur after issuance
of the requested order and any required
state insurance department approvals.
Further, although the Substitution will
result in the replacement of the
Replaced Portfolio as the investment of
the Variable Account under the
Contracts, AIG SunAmerica will not
exercise any right it may have under the
Contracts to collect transfer fees or
impose any additional restrictions on
Owners who may wish to make transfers
from the Variable Account among the
other available Variable Accounts for a
period of at least thirty (30) days
following mailing of the Notice, as
defined below, of the proposed
Substitution (the ‘‘Free Transfer
Period’’). During the Free Transfer
Period, transfers among the other
available Variable Accounts will be
permitted without those transfers being
counted against any limit on free
transfers under the Contracts, or any
requirements for the method of
submitting transfer requests.
18. Upon filing the application, AIG
SunAmerica supplemented the
prospectus for the Contracts to reflect
the proposed Substitution. Within five
days after the Substitution, AIG
SunAmerica will send to its Owners
written notice of the Substitution
identifying the shares of the Replaced
Portfolio that have been eliminated and
the shares of the Replacement Portfolios
that have been substituted. AIG
SunAmerica will include in the mailing
the applicable prospectus supplement
for the Contracts describing the
Substitution. AIG SunAmerica will also
mail a copy of the prospectus for the
Replacement Portfolios to Owners who
have not already received a copy of that
prospectus in the ordinary course. The
Notice will further advise Owners that
during the Free Transfer Period, Owners
may transfer all assets, as substituted,
from the Variable Account to the other
available Variable Accounts without
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69997
limit or charge and without those
transfers being counted against any limit
on free transfers under their Contracts,
or any requirements for the method of
submitting transfer requests.
Applicable Law
1. Section 26(c) of the 1940 Act
provides that ‘‘[I]t shall be unlawful for
any depositor or trustee of a registered
unit investment trust holding the
security of a single issuer to substitute
another security for such security unless
the [SEC] shall have approved such
substitution.’’
2. Applicants represent that the
proposed Substitution involves a
substitution of securities within the
meaning of meaning of section 26(c) of
the 1940 Act. The Applicants, therefore,
request an order from the SEC pursuant
to section 26(c) approving the proposed
Substitution.
3. Applicants represent that the
Substitution does not present the type of
costly forced redemption or other harms
that section 26(c) was intended to guard
against and is consistent with the
protection of investors and the purposes
fairly intended by the 1940 Act for the
following reasons:
a. The Substitution will continue to
fulfill Owners’ objectives and risk
expectations, because each of the
Replacement Portfolios has substantially
similar objectives, policies, and
restrictions in all material respects to
the objectives, policies, and restrictions
of the Replaced Portfolio and favorable
comparative risk characteristics.
b. After receipt of the Notice
informing an Owner of the Substitution,
an Owner may request that his or her
assets be reallocated among the other
available Variable Accounts at any time
during the Free Transfer Period without
any limit or charge and without those
transfers being counted against any limit
on free transfers under the Contract, or
any requirements for the method of
submitting transfer requests. This right
also will be granted to Owners, if any,
who are receiving variable payments
based on the Replaced Portfolio.
c. The Substitution will be at net asset
value of the respective shares, without
the imposition of any transfer or similar
charge.
d. AIG SunAmerica has undertaken to
assume all expenses and transaction
costs, including, but not limited to, legal
and accounting fees and any brokerage
commissions, in connection with the
Substitution involving the Variable
Account.
e. The Substitution will in no way
alter the contractual obligations of AIG
SunAmerica or the rights and privileges
of Owners under the Contracts.
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f. The Substitution will in no way
alter the tax benefits to Owners.
g. The Substitution is expected to
confer certain future economic benefits
on Owners by virtue of greater asset
base or lower expenses.
h. At the time of the Substitution, the
total annual expenses of the IGI
Portfolio’s shares and the IDE Portfolio’s
shares are expected to be lower than the
Replaced Portfolio.
i. The Substitution will be effected by
redeeming shares of the Replaced
Portfolio in cash to be conveyed
immediately to each of the Replacement
Portfolios to purchase its respective
shares.
j. For those Owners invested in the
subaccount corresponding to the
Replaced Portfolio on the date of the
Substitution (the ‘‘Affected Contracts’’),
AIG SunAmerica will reimburse, on the
last business day of each fiscal period
(not to exceed a fiscal quarter) during
the twenty-four months following the
date of the Substitution (the
‘‘Substitution Date’’), the subaccount
value attributable to investing in the
Replacement Portfolio such that the sum
of the Replacement Portfolio’s operating
expenses (taking into account fee
waivers and expense reimbursements)
and subaccount expenses (asset-based
fees and charges deducted on a daily
basis from subaccount assets and
reflected in the calculation of
subaccount unit values) for such period
will not exceed with respect, on an
annualized basis, the sum of the
Replaced Portfolio’s operating expenses
(taking into account fee waivers and
expense reimbursements) and
subaccount expenses for the fiscal year
preceding the Substitution Date.
4. Because the liquidation of the
Replaced Portfolio was pursuant to a
determination by NSAT in which AIG
did not participate, AIG SunAmerica
represents that the proposed
Substitution involving the Replaced
Portfolio and its selection of the
Replacement Portfolios was not
motivated by any financial
consideration paid or to be paid to it or
to any of its affiliates by the
Replacement Portfolios, their adviser,
sub-adviser or underwriters, or by
affiliates of the Replacement Portfolios,
their adviser or underwriters.
5. AIG SunAmerica has determined
that each of the Replacement Portfolios
is an appropriate replacement for the
Replaced Portfolio. The Replacement
Portfolios have investment objectives,
policies, and restrictions substantially
similar in all material respects to the
Replaced Portfolio. Over the past three
years, the Replacement Portfolios have
taken on investment risks to a
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significantly lesser extent than risks that
have been assumed by the Replaced
Portfolio, whereby the Replacement
Portfolios’ portfolio securities are
significantly less concentrated than
those of the Replaced Portfolio.
Conclusion
For the reasons and upon the facts set
forth in the application, the Applicants
state that the proposed Substitution
meets the standards of section 26(c) of
the 1940 Act and request that the SEC
issue an order of approval pursuant to
section 26(c) of the 1940 Act.
For the commission, by the Division of
Investment Management, pursuant to
delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6377 Filed 11–17–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52754; File No. SR–Amex–
2005–113]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
the Elimination of the Equity Option
Transaction Fee Discount for Member
Firms Facilitating Customer Orders
November 9, 2005.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
1, 2005, the American Stock Exchange
LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Amex filed the proposed rule
change pursuant to section
19(b)(3)(A)(ii) of the Act,3 and Rule
19b–4(f)(2) thereunder,4 which renders
the proposal effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Amex proposes to eliminate the
equity option transaction fee discount
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
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for member firms facilitating customer
orders.5 The text of the proposed rule
change is available on the Amex’s Web
site (https://www.amex.com), at the
Amex’s Office of the Secretary, and
atthe Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Amex has prepared summaries, set forth
in sections A, B, and C below, of the
most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In April 2000, the Exchange
eliminated its transaction, clearance,
and floor brokerage fees for customer
equity options transactions.6 To offset
this fee elimination, the Exchange
increased certain fees charged for equity
options transactions of members.
Specifically, the transaction fee for
member firm proprietary orders was
increased from $0.07 to $0.19 per
contract side. However, the Exchange
determined at that time to keep the
transaction fee at $0.07 for those
member firm proprietary orders that
facilitated a customer equity options
order.7 A facilitation occurs when a
member firm crosses an order for its
own account by buying from or selling
to an order from its customer. The
Exchange chose to keep the fee for these
types of transactions lower in order to
encourage member firms to continue to
send these types of orders to the
Exchange.
5 The Exchange clarified that the option
transaction fee discount applies only to equity
options. Telephone conversation between Claire P.
McGrath, Senior Vice President and General
Counsel, Amex, and Jennifer Dodd, Special
Counsel, and Ted Venuti, Attorney, Division of
Market Regulation, Commission, November 7, 2005
(‘‘November 7, 2005 Telephone Conversation’’).
6 See Securities Exchange Act Release No. 42675
(April 13, 2000), 65 FR 21223 (April 20, 2000)
(Notice of Filing and Immediate Effectiveness of
File No. SR–Amex–00–15).
7 The Exchange clarified that this $.07 transaction
fee applies only to equity options. See November
7, 2005 Telephone Conversation, supra note 5.
E:\FR\FM\18NON1.SGM
18NON1
]]>Agencies
[Federal Register Volume 70, Number 222 (Friday, November 18, 2005)]
[Notices]
[Pages 69995-69998]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6377]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-27145; File No. 812-13204]
AIG SunAmerica Life Assurance Company, et al., Notice of
Application
November 10, 2005.
AGENCY: Securities and Exchange Commission (``SEC'').
ACTION: Notice of Application for an Order pursuant to section 26(c) of
the Investment Company Act of 1940 (``1940 Act'').
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Applicants: AIG SunAmerica Life Assurance Company (``AIG
SunAmerica''), and the Variable Separate Account of AIG SunAmerica Life
Assurance Company (collectively, the ``Applicants'').
Summary of the Application: The Applicants request an order
pursuant to Section 26(c) of the 1940 Act to permit the substitution of
shares of the Nations International Value Portfolio (the ``NIV
Portfolio'' or the ``Replaced Portfolio''), one Portfolio of the
Nations Separate Account Trust (``NSAT''), with shares of the
International Growth and Income Portfolio (the ``IGI Portfolio'') and
the International Diversified Equities Portfolio (the ``IDE
Portfolio,'' with the IGI Portfolio, collectively the ``Replacement
Portfolios''), two Portfolios of the SunAmerica Series Trust (``SAST'')
(the ``Substitution'').
Filing Date: The application was filed on June 24, 2005, and
amended and restated on November 1, 2005 and amended November 10, 2005.
Hearing or Notification of Hearing: An order granting the
application will be issued unless the SEC orders a hearing. Interested
persons may request a hearing on the application by writing to the
Secretary of the SEC and serving Applicants with a copy of the request,
personally or by mail. Hearing requests must be received by the SEC by
5:30 p.m. on December 5, 2005, and should be accompanied by proof of
service on Applicants in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Secretary of the SEC.
ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-9303. Applicants: c/o Jorden Burt LLP, 1025
Thomas Jefferson Street, NW., East Lobby, Suite 400, Washington, DC
20007-5208, Attention: Joan E. Boros, Esq.
FOR FURTHER INFORMATION CONTACT: Jeffrey Foor, Senior Counsel, or
Zandra Bailes, Branch Chief, Office of Insurance Products, Division of
Investment Management, at (202) 551-6795.
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee from
the SEC's Public Reference Branch, 100 F Street, NE., Room 1580,
Washington, DC 20549 (telephone (202) 551-5850).
Applicants' Representations
1. AIG SunAmerica is a stock life insurance company originally
organized under the laws of the state of California in April 1965. AIG
SunAmerica (previously known as Anchor National Life Insurance
Company), through a series of transactions, redomesticated under the
laws of the state of Arizona on January 1, 1996. AIG SunAmerica is a
wholly-owned subsidiary of SunAmerica Life Insurance Company, an
Arizona corporation, which is, in turn, wholly-owned by AIG Retirement
Services, a Delaware corporation, which is, in turn, wholly-owned by
American International Group, Inc. AIG SunAmerica is authorized to
write annuities and life insurance in the District of Columbia and all
states except New York.
2. The Variable Separate Account of AIG SunAmerica (the ``Separate
Account'') was established by AIG SunAmerica on June 25, 1981, in
accordance with the laws of the state of California and is currently
authorized under the laws of the state of Arizona. The Separate Account
is registered as a unit investment trust under the 1940 Act. The
Separate Account is used to fund the Contracts and other annuity
contracts issued by AIG SunAmerica and is currently divided into a
total of 160 subaccounts (the ``Variable Accounts''). Each of the
available Variable Accounts invests in and reflects the investment
performance of specific portfolios in which the Variable Accounts
invest. One of the Variable Accounts currently invests in the Replaced
Portfolio (referred to hereafter as the ``Variable Account'').
3. The Contracts, PolarisAmerica and Polaris Choice, issued by AIG
SunAmerica through its Separate Account, are fixed and variable
flexible premium deferred non-participating variable annuity contracts
that currently utilize the Replaced Portfolio as one of many underlying
investments. AIG SunAmerica discontinued new allocations into the
Replaced Portfolio under both Contracts as of the close of business on
September 30, 2002, consistent with the Replaced Portfolio
[[Page 69996]]
advising that it was no longer accepting new investments. As a result,
the ReplacedPortfolio is not actively marketed in either Contract. The
Contracts are the only contracts to utilize the Variable Accounts that
invest in the Replaced Portfolio. Neither of the Contracts continues to
be actively marketed. Applicants were recently informed of NSAT's
intention to liquidate the Replaced Portfolio on December 9, 2005.
4. The Replaced Portfolio, which offers a single class of shares,
constitutes a separate series available through NSAT. NSAT was
organized as a Delaware business trust on November 24, 1997, and prior
to May 1, 2001, was named National Annuity Trust. NSAT is registered as
a diversified, open-end management investment company under the 1940
Act (File No. 811-08481), and its shares are registered as securities
under the Securities Act of 1933 (the ``1933 Act'') (File No. 333-
40265). NSAT was established and serves to provide a funding medium for
certain variable annuity accounts and/or variable life insurance
separate accounts issued by leading life insurance companies. The
inception date of the Replaced Portfolio was July 7, 2000, and as of
September 30, 2002, it is no longer accepting investments from current
or prospective investors and will be liquidated on December 9, 2005.
5. The Separate Account buys and sells shares of the Replaced
Portfolio at net asset value that is net of the advisory fee of 0.90%
based on average daily net assets, paid to the Investment Adviser, Banc
of America Capital Management, LLC (``BACAP''), to manage the Business
affairs of the Replaced Portfolio and to provide administrative
services pursuant to a written investment advisory agreement (``NSAT's
Investment Advisory Agreement''); BACAP Distributors is paid .25% of
average daily net assets for performing distribution services and other
shareholder servicing functions pursuant to a written agreement (``Rule
12b-1 Plan''). The Replaced Portfolio's other expenses were .61% for
the fiscal year ended December 31, 2004. The Replaced Portfolio's total
annual operating expenses for this period were 1.76%, subject to fee
waivers and expense reimbursement by BACAP and other service providers
of (0.51%) that provided for Total Annual Net Expenses of 1.25%.
Brandes Investment Partners, L.P. (``Brandes'') serves as subadviser to
the Replaced Portfolio. BACAP and Brandes are not affiliated with AIG
SunAmerica.
6. SAST was organized as a Massachusetts business trust on
September 11, 1992. SAST was established and serves to provide a
funding medium for the Variable Accounts that are its sole
shareholders. SAST is registered as an open-end management investment
company under the 1940 Act (File No. 811-07238), and its offering of
its shares is registered under the 1933 Act (File No. 033-52742). The
Replaced Portfolio is a portfolio in which the Separate Account invests
under the PolarisAmerica Contract as one of 27 subaccount investment
alternatives and under the Polaris Choice Contract as one of 38
subaccount investment alternatives. The Substitution will result in the
reduction of the respective numbers of investment alternatives by one.
7. If the requested Substitution Order is granted, Class 1 shares
\1\ in the PolarisAmerica Contract and Class 2 \2\ shares in the
Polaris Choice Contract of the Replacement Portfolios will be
substituted for shares of the Replaced Portfolio as set forth below:
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\1\ The PolarisAmerica Replacement Portfolio also offers Class 2
and Class 3 shares.
\2\ The Polaris Choice Replacement Portfolio also offers Class 1
and Class 3 shares.
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Replaced portfolio of NSAT Replacement portfolios of SAST
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Nations International Value >
