Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Modify DTC's Fee Schedule, 31121-31122 [E7-10768]
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Federal Register / Vol. 72, No. 107 / Tuesday, June 5, 2007 / Notices
jlentini on PROD1PC65 with NOTICES
the Adviser, or an affiliated person of
the Adviser, other than any advisory
fees paid to the Adviser or its affiliated
person by the Unaffiliated Fund, in
connection with the investment by the
Fund of Funds in the Unaffiliated Fund.
Any Sub-Adviser will waive fees
otherwise payable to the Sub-Adviser,
directly or indirectly, by the Fund of
Funds in an amount at least equal to any
compensation received by the SubAdviser, or an affiliated person of the
Sub-Adviser, from an Unaffiliated Fund,
other than any advisory fees paid to the
Sub-Adviser or its affiliated person by
the Unaffiliated Investment Company,
in connection with the investment by
the Fund of Funds in the Unaffiliated
Investment Company made at the
direction of the Sub-Adviser. In the
event that the Sub-Adviser waives fees,
the benefit of the waiver will be passed
through to the Fund of Funds.
11. With respect to Registered
Separate Accounts that invest in a Fund
of Funds, no sales load will be charged
at the Fund of Funds level or at the
Underlying Fund level. Other sales
charges and service fees, as defined in
NASD Conduct Rule 2830, if any, will
be charged at the Fund of Funds level
or at the Underlying Fund level, not
both. With respect to other investments
in a Fund of Funds, any sales charges
and/or service fees charged with respect
to shares of a Funds of Funds will not
exceed the limits applicable to a funds
of funds set forth in NASD Conduct
Rule 2830.
12. No Underlying Fund will acquire
securities of any other investment
company or company relying on section
3(c)(1) or 3(c)(7) of the Act in excess of
the limits contained in section
12(d)(1)(A) of the Act, except to the
extent that such Underlying Fund: (a)
Receives securities of another
investment company as a dividend or as
a result of a plan of reorganization of a
company (other than a plan devised for
the purpose of evading section 12(d)(1)
of the Act); or (b) acquires (or is deemed
to have acquired) securities of another
investment company pursuant to
exemptive relief from the Commission
permitting such Underlying Fund to: (i)
Acquire securities of one or more
affiliated investment companies for
short-term cash management purposes,
or (ii) engage in interfund borrowing
and lending transactions.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–10752 Filed 6–4–07; 8:45 am]
BILLING CODE 8010–01–P
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55829; File No. SR–DTC–
2006–20]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Modify
DTC’s Fee Schedule
May 30, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 20, 2006, The Depository
Trust Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I, II, and III
below, which items have been prepared
primarily by DTC. DTC filed the
proposed rule change pursuant to
Section 19(b)(3)(A)(ii) and Rule 19b–
4(f)(2) thereunder so that the proposed
rule change was effective upon filing
with the Commission.2 The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change would revise fees for certain
services provided by DTC, including (1)
decreases to certain fees related to
settlement services as part of DTC’s
continuing efforts to more closely align
fees with costs, (2) increases to certain
fees related to securities processing,
custody and asset servicing, and
underwriting services to realign fees
with costs, (3) introduction of fees for to
discourage certain activities that
increase industry inefficiencies, and (4)
introduction of new fees related to cost
recovery for certain manually intensive
services, systems development, or use of
Investor’s Voluntary Redemptions and
Sales Service (‘‘IVORS’’).3
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC 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
1 15
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(ii) and 17 CFR 240.19b–
4(f)(2).
3 The text of the DTC’s specific fee changes is set
forth in its filing, which can be found at https://
www.dtc.org/impNtc/mor/#2006.
PO 00000
Frm 00072
Fmt 4703
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31121
may be examined at the places specified
in Item IV below. DTC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.4
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
DTC is revising its fees for certain
services provided by DTC. These
changes include (1) Decreases to certain
settlement services fees as part of DTC’s
continuing efforts to more closely align
fees with costs and (2) increases to
certain fees related to securities
processing, custody and asset servicing,
and underwriting services to realign fees
with costs.
In addition, DTC is implementing fees
to discourage activities which increase
industry inefficiencies. Changes in these
fees for 2007 include fee increases for
(1) Withdrawal by transfer (in
connection with DTC’s continuing
efforts to discourage use of physical
certificates), (2) deposit services (to
encourage the use of the paperless legal
deposit services), and (3) custody
services (to encourage the elimination of
positions in nontransferable securities).
DTC is introducing new fees for (1)
manually intensive photocopy and
research requests performed in the
reorganization service, (2) cost recovery
relating to the ongoing development of
the new issue information
dissemination service under DTC’s
underwriting services, and (3)
transactions processed using the
rollover feature of the IVORS.5
These proposed fee revisions are
consistent with DTC’s overall pricing
philosophy to align service fees with
underlying costs, to discourage manual
and exception processing, and to
encourage immobilization and
dematerialization of securities. The
effective date for these fee adjustments
was January 2, 2007.
DTC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder that are applicable to DTC
because it clarifies and updates DTC’s
fee schedule. As such, the rule change
provides for the equitable allocation of
fees among its participants.
4 The Commission has modified the text of the
summaries prepared by the DTC.
5 For more information on the IVORS rollover
feature, see Exchange Act Release No. 34–50279
(August 27, 2004) 69 FR 50279 (September 7, 2004)
[File No. SR–DTC–2004–08].
6 15 U.S.C. 78q–1.
E:\FR\FM\05JNN1.SGM
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31122
Federal Register / Vol. 72, No. 107 / Tuesday, June 5, 2007 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
DTC does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments relating to the
proposed rule change have been
solicited or received. DTC will notify
the Commission of any written
comments received by the DTC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(ii) of the Act 7 and Rule 19b–
4(f)(2) 8 thereunder because it is
establishing or changing a due, fee, or
other charge applicable only to a
participant. At any time within sixty
days of the filing of such rule change,
the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
jlentini on PROD1PC65 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–DTC–2006–20 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–DTC–2006–20. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Section, 100 F Street, NE., Washington,
DC 20549. Copies of such filings also
will be available for inspection and
copying at the principal office of DTC
and on DTC’s Web site, https://
www.dtcc.com. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–DTC–
2006–20 and should be submitted on or
before June 26, 2007.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.9
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7–10768 Filed 6–4–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55830, File No. SR–MSRB–
2006–09]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Order Approving Proposed
Rule Change and Amendment No. 1
Thereto Relating to MSRB Rule G–21,
on Advertising, and MSRB Rule G–27,
on Supervision
May 30, 2007.
On November 21, 2006, the Municipal
Securities Rulemaking Board (‘‘MSRB’’),
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 a
proposed rule change consisting of (i)
Amendments to Rule G–21, on
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
7 15
U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4(f)(2).
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advertising, and Rule G–27, on
supervision, and (ii) an interpretation
(the ‘‘proposed interpretive notice’’) on
general advertising disclosures, blind
advertisements and annual reports
relating to municipal fund securities.
The MSRB amended the proposed rule
change on February 12, 2007
(‘‘Amendment No. 1’’). The proposed
rule change and Amendment No. 1
thereto were published for comment in
the Federal Register on February 23,
2007.3 The Commission received one
comment letter regarding the proposal.4
On May 14, 2007, the MSRB filed a
response to the comment letter.5 This
order approves the proposed rule
change as modified by Amendment No.
1.
The proposed rule change consists of
(i) Amendments to Rule G–21, on
advertising, and Rule G–27, on
supervision, and (ii) an interpretation
(the ‘‘proposed interpretive notice’’) on
general advertising disclosures, blind
advertisements and annual reports
relating to municipal fund securities. In
2005, the MSRB adopted new section (e)
of Rule G–21 that established specific
standards for advertisements by brokers,
dealers and municipal securities dealers
of municipal fund securities, including
interests in 529 college savings plans.6
This section of the rule was modeled in
part on Rule 482 adopted by the SEC
under the Securities Act of 1933, as
amended, and also codified previous
MSRB interpretive guidance on
advertisements of municipal fund
securities. On May 12, 2006, the MSRB
published interpretive guidance on
certain elements of amended Rule G–21
as they apply to advertisements of 529
plans.7
3 See Securities Exchange Act Release No. 55302
(February 15, 2007), 72 FR 8222 (February 23, 2007)
(‘‘Commission’s Notice’’).
4 See letter from Jacqueline T. Williams, Chair,
College Savings Plans Network, dated March 16,
2007.
5 See letter from Ernesto A. Lanza, Senior
Associate General Counsel, MSRB, to Nancy M.
Morris, Secretary, Commission, dated May 14, 2007
(‘‘MSRB’s Response Letter’’).
6 Municipal fund securities are defined in Rule
D–12. 529 college savings plans are established by
states under Section 529(b)(A)(ii) of the Internal
Revenue Code as ‘‘qualified tuition programs’’
through which individuals make investments for
the purpose of accumulating savings for qualifying
higher education costs of beneficiaries. Section 529
of the Internal Revenue Code also permits the
establishment of so-called prepaid tuition plans by
states and higher education institutions. All
references to 529 plans are intended to encompass
only 529 college savings plans established under
Section 529(b)(A)(ii).
7 See Rule G–21 Interpretive Letter—529 College
Savings Plan Advertisements, MSRB Interpretation
of May 12, 2006, published in MSRB Notice 2006–
13 (May 15, 2006) (the ‘‘May 2006 Interpretation’’).
The proposed rule change supersedes this May
2006 Interpretation.
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]]>Agencies
[Federal Register Volume 72, Number 107 (Tuesday, June 5, 2007)]
[Notices]
[Pages 31121-31122]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-10768]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55829; File No. SR-DTC-2006-20]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Modify DTC's Fee Schedule
May 30, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 20, 2006, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change described
in Items I, II, and III below, which items have been prepared primarily
by DTC. DTC filed the proposed rule change pursuant to Section
19(b)(3)(A)(ii) and Rule 19b-4(f)(2) thereunder so that the proposed
rule change was effective upon filing with the Commission.\2\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(ii) and 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change would revise fees for
certain services provided by DTC, including (1) decreases to certain
fees related to settlement services as part of DTC's continuing efforts
to more closely align fees with costs, (2) increases to certain fees
related to securities processing, custody and asset servicing, and
underwriting services to realign fees with costs, (3) introduction of
fees for to discourage certain activities that increase industry
inefficiencies, and (4) introduction of new fees related to cost
recovery for certain manually intensive services, systems development,
or use of Investor's Voluntary Redemptions and Sales Service
(``IVORS'').\3\
---------------------------------------------------------------------------
\3\ The text of the DTC's specific fee changes is set forth in
its filing, which can be found at https://www.dtc.org/impNtc/mor/
index.html#2006.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DTC 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. DTC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\4\
---------------------------------------------------------------------------
\4\ The Commission has modified the text of the summaries
prepared by the DTC.
---------------------------------------------------------------------------
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
DTC is revising its fees for certain services provided by DTC.
These changes include (1) Decreases to certain settlement services fees
as part of DTC's continuing efforts to more closely align fees with
costs and (2) increases to certain fees related to securities
processing, custody and asset servicing, and underwriting services to
realign fees with costs.
In addition, DTC is implementing fees to discourage activities
which increase industry inefficiencies. Changes in these fees for 2007
include fee increases for (1) Withdrawal by transfer (in connection
with DTC's continuing efforts to discourage use of physical
certificates), (2) deposit services (to encourage the use of the
paperless legal deposit services), and (3) custody services (to
encourage the elimination of positions in nontransferable securities).
DTC is introducing new fees for (1) manually intensive photocopy and
research requests performed in the reorganization service, (2) cost
recovery relating to the ongoing development of the new issue
information dissemination service under DTC's underwriting services,
and (3) transactions processed using the rollover feature of the
IVORS.\5\
---------------------------------------------------------------------------
\5\ For more information on the IVORS rollover feature, see
Exchange Act Release No. 34-50279 (August 27, 2004) 69 FR 50279
(September 7, 2004) [File No. SR-DTC-2004-08].
---------------------------------------------------------------------------
These proposed fee revisions are consistent with DTC's overall
pricing philosophy to align service fees with underlying costs, to
discourage manual and exception processing, and to encourage
immobilization and dematerialization of securities. The effective date
for these fee adjustments was January 2, 2007.
DTC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \6\ and the rules and
regulations thereunder that are applicable to DTC because it clarifies
and updates DTC's fee schedule. As such, the rule change provides for
the equitable allocation of fees among its participants.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
[[Page 31122]]
B. Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments relating to the proposed rule change have been
solicited or received. DTC will notify the Commission of any written
comments received by the DTC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \8\
thereunder because it is establishing or changing a due, fee, or other
charge applicable only to a participant. At any time within sixty days
of the filing of such rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml) or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-DTC-2006-20 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-DTC-2006-20. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filings also will be
available for inspection and copying at the principal office of DTC and
on DTC's Web site, https://www.dtcc.com. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-DTC-2006-20 and should be submitted on
or before June 26, 2007.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7-10768 Filed 6-4-07; 8:45 am]
BILLING CODE 8010-01-P
