Approval of Investment Adviser Registration Depository Filing Fees, 65900-65901 [E8-26307]
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65900
Federal Register / Vol. 73, No. 215 / Wednesday, November 5, 2008 / Notices
cannot be effected at a price that is
disadvantageous to either the Replaced
Fund or the New Fund. Contract owners
will not suffer any adverse tax
consequences as a result of the
Substitution. Fees and charges under
the Contracts will not increase because
of the Substitution. Even though they
may not rely on Rule 17a–7 under the
1940 Act, the section 17 Applicants
submit that the Rule’s conditions
outline the type of safeguards that result
in transactions that are fair and
reasonable to registered investment
company participants and preclude
overreaching in connection with an
investment company by its affiliated
persons.
9. The board of the VIP Trust has
adopted procedures, as required by
paragraph (e)(1) of Rule 17a–7 under the
1940 Act, pursuant to which the New
Fund may purchase and sell securities
to and from its affiliates. The section 17
Applicants will carry out the proposed
in-kind purchases in conformity with all
of the conditions of Rule 17a–7 and the
New Fund’s procedures thereunder,
except that the consideration paid for
the securities being purchased or sold
may not be entirely cash. Nevertheless,
the circumstances surrounding the
proposed Substitution will be such as to
offer to the New Fund the same degree
of protection from overreaching that
Rule 17a–7 provides to the New Fund
generally in connection with its
purchase and sale of securities under
that Rule in the ordinary course of its
business. In particular, Allianz Life and
Allianz NY (or any of their affiliates)
cannot effect the proposed transactions
at a price that is disadvantageous to the
New Fund. Although the transactions
may not be entirely for cash, each will
be effected based upon (1) the
independent market price of the
portfolio securities valued as specified
in paragraph (b) of Rule 17a–7, and (2)
the net asset value per share of each
Fund involved valued in accordance
with the procedures disclosed in its
respective registration statement and as
required by Rule 22c–1 under the 1940
Act. No brokerage commission, fee, or
other remuneration will be paid to any
party in connection with the proposed
transactions. Further, the transactions
will be reviewed by the Chief
Compliance Officer of the VIP Trust on
behalf of the VIP Trust’s Board of
Trustees and will be reported to VIP
Trust’s Board of Trustees in the same
manner as any other Rule 17a–7
transaction involving the New Fund
would be reported.
10. The proposed transactions also are
reasonable and fair in that they will be
effected in a manner consistent with the
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17:24 Nov 04, 2008
Jkt 217001
public interest and the protection of
investors. Contract owners will be fully
informed of the terms of the
Substitution and they will be provided
a prospectus for the New Fund. In
addition, contract owners will have the
opportunity to make a free transfer from
the New Fund to any other available
Investment Option offered under their
Contract, subject to any Investment
Option allocation restrictions under
their Contract, during the Free Transfer
Period.
11. The section 17 Applicants also
submit that the Substitution is
consistent with the policies of the
Replaced Fund and the VIP Trust as
recited in the current registration
statement and reports filed under the
1940 Act.
12. In addition, section 17 Applicants
submit that the proposed Substitution is
consistent with the general purposes of
the 1940 Act as stated in the Findings
and Declaration of Policy in section 1 of
the 1940 Act. The proposed transactions
do not present any of the conditions or
abuses that the 1940 Act was designed
to prevent. Securities to be paid out as
redemption proceeds from the Replaced
Fund and subsequently contributed to
the New Fund to effect the
contemplated in-kind purchases of
shares will be valued in accordance
with the requirements of Rule 17(a)–7.
Therefore, there will be no change in
value to any contract owner as a result
of the Substitution.
Conclusion
For the reasons and upon the facts set
forth above, the Applicants and the
section 17 Applicants believe that the
requested order meets the standards set
forth in section 26(c) and section 17(b),
respectively, and should therefore, be
granted.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26390 Filed 11–4–08; 8:45 am]
is, for nine months, waiving Investment
Adviser Registration Depository annual
and initial filing fees for all advisers.
Effective Date: The order will
become effective on November 1, 2008.
DATES:
FOR FURTHER INFORMATION CONTACT:
Keith Kanyan, IARD System Manager, at
202–551–6737, Daniel S. Kahl, Branch
Chief, at 202–551–6730, or
Iarules@sec.gov, Office of Investment
Adviser Regulation, Division of
Investment Management, Securities and
Exchange Commission, 100 F Street,
NE., Washington, DC 20549–5041.
Discusson
Section 204(b) of the Investment
Advisers Act of 1940 (‘‘Advisers Act’’)
authorizes the Commission to require
investment advisers to file applications
and other documents through an entity
designated by the Commission, and to
pay reasonable costs associated with
such filings.1 In 2000, the Commission
designated the Financial Industry
Regulatory Authority Regulation
(‘‘FINRA’’) as the operator of the
Investment Adviser Registration
Depository (‘‘IARD’’) system. At the
same time, the Commission approved,
as reasonable, filing fees.2 The
Commission later required advisers
registered or registering with the SEC to
file Form ADV through the IARD.3 Over
11,000 advisers now use the IARD to
register with the SEC and make state
notice filings electronically through the
Internet.
Commission staff, representatives of
the North American Securities
Administrators Association, Inc.
(‘‘NASAA’’),4 and representatives of
FINRA periodically hold discussions on
IARD system finances. In the early years
of operations, SEC-associated IARD
revenues exceeded projections while
SEC-associated IARD expenses were
lower than estimated, resulting in a
surplus. In 2005, FINRA wrote a letter
to SEC staff recommending a waiver of
annual fees for a one year period. The
Commission concluded that this was
BILLING CODE 8011–01–P
1 15
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IA–2806]
Approval of Investment Adviser
Registration Depository Filing Fees
Securities and Exchange
Commission.
ACTION: Order.
AGENCY:
SUMMARY: The Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’)
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
U.S.C. 80b–4(b).
of NASD Regulation, Inc., to
Establish and Maintain the Investment Adviser
Registration Depository; Approval of IARD Fees,
Investment Advisers Act Release No. 1888 (July 28,
2000) [65 FR 47807 (Aug. 3, 2000)]. FINRA is
formerly known as NASD.
3 Electronic Filing by Investment Advisers;
Amendments to Form ADV, Investment Advisers
Act Release No. 1897 (Sept. 12, 2000) [65 FR 57438
(Sept. 22, 2000)].
4 The IARD system is used by both advisers
registering or registered with the SEC and advisers
registered or registering with one or more state
securities authorities. NASAA represents the state
securities administrators in setting IARD filing fees
for state-registered advisers.
2 Designation
E:\FR\FM\05NON1.SGM
05NON1
Federal Register / Vol. 73, No. 215 / Wednesday, November 5, 2008 / Notices
appropriate and waived annual fees.5 In
2006, FINRA wrote to the staff again,
this time recommending a two-year
waiver of all fees to continue to reduce
the surplus. The Commission agreed
and issued another order waiving all
IARD fees.6 As a result of these two
waivers, the surplus was reduced from
• million in 2005 to $5 million.
FINRA has again written to
Commission staff, recommending that
the waiver of annual IARD fees and the
waiver of initial IARD filing fees for
SEC-registered advisers be extended for
an additional nine months to July 31,
2009.7 Based on projections of expected
SEC-associated IARD revenues and SECassociated IARD expenses for the next
nine months, the Commission believes
that the current SEC-associated surplus
exceeds the amount needed for
operations and system enhancements
during this period, and accordingly
believes that an extension of the current
waiver of both annual and initial filing
fees through July 31, 2009 is appropriate
in order to continue reducing the SECassociated surplus. This action is
expected to waive approximately $4
million in IARD system fees that SECregistered advisers would incur, and
should reduce the SEC-associated
surplus to approximately $3.7 million.
The fee waiver will apply to all annual
updating amendments filed by SECregistered advisers from November 1,
2008 through July 31, 2009 and to all
initial applications for registration filed
by advisers applying for SEC
registration from November 1, 2008
through July 31, 2009.
It is therefore ordered, pursuant to
sections 204(b) and 206(A) of the
Investment Advisers Act of 1940, that:
For annual updating amendments to
Form ADV filed from November 1, 2008
through July 31, 2009, the fee otherwise
due from SEC-registered advisers is
waived, and for initial applications to
register as an investment adviser with
the SEC filed from November 1, 2008
through July 31, 2009, the fee otherwise
due from the applicant is waived.
By the Commission.
Dated: October 30, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26307 Filed 11–4–08; 8:45 am]
hsrobinson on PROD1PC76 with NOTICES
BILLING CODE 8011–01–P
5 Approval of Investment Adviser Registration
Depository Filing Fees, Investment Advisers Act
Release No. 2439 (Oct. 7, 2005)
6 Approval of Investment Adviser Registration
Depository Filing Fees, Investment Advisers Act
Release No. 2564 (Oct. 26, 2006).
7 The recommendation to waive fees through July
2009 corresponds to the expiration of the SEC’s
contract with FINRA to operate the IARD.
VerDate Aug<31>2005
17:24 Nov 04, 2008
Jkt 217001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58872; File No. SR–BATS–
2008–008]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Limitation of
Liability
October 28, 2008.
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 October
20, 2008, BATS Exchange, Inc. (‘‘BATS’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. BATS has designated
the proposed rule change as constituting
a non-controversial rule change under
Rule 19b–4(f)(6) under the Act,3 which
renders the proposal effective upon
filing with the Commission. BATS has
requested that the Commission waive
the 5-day notice requirement and the
30-day pre-operative waiting period
contained in Rule 19b–4(f)(6)(iii) under
the Act.4 If such waivers are granted by
the Commission, the Exchange will
implement this rule proposal
immediately upon commencement of its
operations as a national securities
exchange. 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 Exchange is proposing to amend
BATS Rule 11.16, entitled
‘‘LIMITATION OF LIABILITY,’’ to
codify that it may provide a form of
compensation for losses sustained in
relation to an Exchange system failure
or a negligent act or omission of an
Exchange employee.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 Id.
2 17
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
65901
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 those
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 11.16 to establish a procedure to
compensate Members 5 in relation to
Exchange systems failures or a negligent
act or omission of an Exchange
employee. The Exchange recognizes that
the current industry practice of
exchanges that function as SROs is to
provide a form of compensation for
losses sustained in relation to the use of
the exchanges’ systems, and that some
exchanges also provide a form of
compensation for negligence by the
exchanges’ employees. As such, the
Exchange seeks to amend BATS Rule
11.16 to conform to current industry
practice.
Pursuant to the proposed amendment
to Rule 11.16, the Exchange would
compensate Members for losses
resulting directly from: (i) The
malfunction of the Exchange’s physical
equipment, devices, and/or
programming, or (ii) the negligent acts
or omissions of the Exchange’s
employees.6 Under this proposed rule
change, for such malfunctions or
negligence, the Exchange would cap its
liability: (i) To a single Member at the
greater of $100,000 or the amount
recovered under any applicable
insurance policy on a single trading day,
(ii) to all Members at the greater of
$250,000 or the amount recovered under
any applicable insurance policy on a
single trading day, and (iii) to all
Members at the greater of $500,000 or
the amount recovered under any
5 A Member is any registered broker or dealer that
has been admitted to membership in the Exchange.
6 The Exchange represents that the determination
as to whether a Member is compensated or not will
be made on an equitable and non-discriminatory
basis without regard to the status of that Member,
e.g., regardless of whether that Member is registered
as a Market Maker with the Exchange.
E:\FR\FM\05NON1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 215 (Wednesday, November 5, 2008)]
[Notices]
[Pages 65900-65901]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26307]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. IA-2806]
Approval of Investment Adviser Registration Depository Filing
Fees
AGENCY: Securities and Exchange Commission.
ACTION: Order.
-----------------------------------------------------------------------
SUMMARY: The Securities and Exchange Commission (``Commission'' or
``SEC'') is, for nine months, waiving Investment Adviser Registration
Depository annual and initial filing fees for all advisers.
DATES: Effective Date: The order will become effective on November 1,
2008.
FOR FURTHER INFORMATION CONTACT: Keith Kanyan, IARD System Manager, at
202-551-6737, Daniel S. Kahl, Branch Chief, at 202-551-6730, or
Iarules@sec.gov, Office of Investment Adviser Regulation, Division of
Investment Management, Securities and Exchange Commission, 100 F
Street, NE., Washington, DC 20549-5041.
Discusson
Section 204(b) of the Investment Advisers Act of 1940 (``Advisers
Act'') authorizes the Commission to require investment advisers to file
applications and other documents through an entity designated by the
Commission, and to pay reasonable costs associated with such
filings.\1\ In 2000, the Commission designated the Financial Industry
Regulatory Authority Regulation (``FINRA'') as the operator of the
Investment Adviser Registration Depository (``IARD'') system. At the
same time, the Commission approved, as reasonable, filing fees.\2\ The
Commission later required advisers registered or registering with the
SEC to file Form ADV through the IARD.\3\ Over 11,000 advisers now use
the IARD to register with the SEC and make state notice filings
electronically through the Internet.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 80b-4(b).
\2\ Designation of NASD Regulation, Inc., to Establish and
Maintain the Investment Adviser Registration Depository; Approval of
IARD Fees, Investment Advisers Act Release No. 1888 (July 28, 2000)
[65 FR 47807 (Aug. 3, 2000)]. FINRA is formerly known as NASD.
\3\ Electronic Filing by Investment Advisers; Amendments to Form
ADV, Investment Advisers Act Release No. 1897 (Sept. 12, 2000) [65
FR 57438 (Sept. 22, 2000)].
---------------------------------------------------------------------------
Commission staff, representatives of the North American Securities
Administrators Association, Inc. (``NASAA''),\4\ and representatives of
FINRA periodically hold discussions on IARD system finances. In the
early years of operations, SEC-associated IARD revenues exceeded
projections while SEC-associated IARD expenses were lower than
estimated, resulting in a surplus. In 2005, FINRA wrote a letter to SEC
staff recommending a waiver of annual fees for a one year period. The
Commission concluded that this was
[[Page 65901]]
appropriate and waived annual fees.\5\ In 2006, FINRA wrote to the
staff again, this time recommending a two-year waiver of all fees to
continue to reduce the surplus. The Commission agreed and issued
another order waiving all IARD fees.\6\ As a result of these two
waivers, the surplus was reduced from million in 2005 to $5
million.
---------------------------------------------------------------------------
\4\ The IARD system is used by both advisers registering or
registered with the SEC and advisers registered or registering with
one or more state securities authorities. NASAA represents the state
securities administrators in setting IARD filing fees for state-
registered advisers.
\5\ Approval of Investment Adviser Registration Depository
Filing Fees, Investment Advisers Act Release No. 2439 (Oct. 7, 2005)
\6\ Approval of Investment Adviser Registration Depository
Filing Fees, Investment Advisers Act Release No. 2564 (Oct. 26,
2006).
---------------------------------------------------------------------------
FINRA has again written to Commission staff, recommending that the
waiver of annual IARD fees and the waiver of initial IARD filing fees
for SEC-registered advisers be extended for an additional nine months
to July 31, 2009.\7\ Based on projections of expected SEC-associated
IARD revenues and SEC-associated IARD expenses for the next nine
months, the Commission believes that the current SEC-associated surplus
exceeds the amount needed for operations and system enhancements during
this period, and accordingly believes that an extension of the current
waiver of both annual and initial filing fees through July 31, 2009 is
appropriate in order to continue reducing the SEC-associated surplus.
This action is expected to waive approximately $4 million in IARD
system fees that SEC-registered advisers would incur, and should reduce
the SEC-associated surplus to approximately $3.7 million. The fee
waiver will apply to all annual updating amendments filed by SEC-
registered advisers from November 1, 2008 through July 31, 2009 and to
all initial applications for registration filed by advisers applying
for SEC registration from November 1, 2008 through July 31, 2009.
---------------------------------------------------------------------------
\7\ The recommendation to waive fees through July 2009
corresponds to the expiration of the SEC's contract with FINRA to
operate the IARD.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to sections 204(b) and 206(A) of
the Investment Advisers Act of 1940, that:
For annual updating amendments to Form ADV filed from November 1,
2008 through July 31, 2009, the fee otherwise due from SEC-registered
advisers is waived, and for initial applications to register as an
investment adviser with the SEC filed from November 1, 2008 through
July 31, 2009, the fee otherwise due from the applicant is waived.
By the Commission.
Dated: October 30, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26307 Filed 11-4-08; 8:45 am]
BILLING CODE 8011-01-P
