Kinetics Mutual Funds, Inc., et al.; Notice of Application, 28665-28667 [2010-12260]
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Federal Register / Vol. 75, No. 98 / Friday, May 21, 2010 / Notices
endangered species, socioeconomic
factors and environmental justice,
cultural and historical resources, air
quality, non-radiological human health
and nonradioactive waste. In addition,
the staff has determined that there are
no significant radiological health
impacts associated with the proposed
action.
III. Finding of No Significant Impact
On the basis of the EA, the NRC has
concluded that there are no significant
environmental impacts from the
proposed amendment and has
determined not to prepare an
environmental impact statement.
IV. Further Information
emcdonald on DSK2BSOYB1PROD with NOTICES
Documents related to this action,
including the application for
amendment and supporting
documentation, are available
electronically at the NRC’s Electronic
Reading Room at https://www.nrc.gov/
reading-rm/adams.html. The NRC’s
Agencywide Document Access and
Management System (ADAMS), which
provides text and image files of NRC’s
public documents, may be accessed
from this site. The ADAMS accession
numbers for the documents related to
this notice are: The application dated
April 20, 2010, as supplemented by
letters dated April 23, 28, May 5, 10,
and 13, 2010 is available at
ML101120089, ML101160531,
ML101230337, ML101270283,
ML101330141, and ML101340649
respectively. The Environmental
Assessment and Finding of No
Significant Impact evaluation is
available at ML101380114. Persons who
do not have access to ADAMS or who
encounter problems in accessing the
documents located in ADAMS should
contact the NRC Public Document Room
(PDR) Reference staff by telephone at 1–
800–397–4209, 301–415–4737 or by email to pdr.resource@nrc.gov.
These documents may also be viewed
electronically on the public computers
located at the NRC’s Public Document
Room (PDR), O 1 F21, One White Flint
North, 11555 Rockville Pike Rockville,
MD 20852. The PDR reproduction
contractor will copy documents for a
fee.
Dated at Rockville, Maryland this 18th day
of May, 2010.
For the Nuclear Regulatory Commission.
Jeffrey Cruz,
Branch Chief, AP1000 Branch1, Division of
New Reactors Licensing, Office of New
Reactors.
[FR Doc. 2010–12365 Filed 5–20–10; 8:45 am]
BILLING CODE 7590–01–P
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SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 17Ad–10; SEC File No. 270–265;
OMB Control No. 3235–0273.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget a
request for approval of extension of the
previously approved collection of
information provided for in Rule 17Ad–
10 (17 CFR 240.17Ad–10), under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 17Ad–10 requires a registered
transfer agent to create and maintain
minimum information on
securityholders’ ownership of an issue
of securities for which it performs
transfer agent functions, including the
purchase, transfer and redemptions of
securities. In addition, the rule also
requires transfer agents that maintain
securityholder records to keep
certificate detail that has been deleted
from those records for a minimum of six
years and to maintain and keep current
an accurate record of the number of
shares or principal dollar amount of
debt securities that the issuer has
authorized to be outstanding (a ‘‘control
book’’). These recordkeeping
requirements assist in the creation and
maintenance of accurate securityholder
records, the ability to research errors,
and ensure the transfer agent is aware of
the number of securities that are
properly authorized by the issuer,
thereby avoiding overissuance.
There are approximately 565
registered transfer agents. The staff
estimates that the average number of
hours necessary for each transfer agent
to comply with Rule 17Ad–10 is
approximately 20 hours per year,
totaling 11,300 hours industry-wide.
The average cost per hour is
approximately $50 per hour, with the
industry-wide cost estimated at
approximately $565,000. However, the
information required by Rule 17Ad–10
generally already is maintained by
registered transfer agents. The amount
of time devoted to compliance with
Rule 17Ad–10 varies according to
differences in business activity.
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28665
The retention period for the
recordkeeping requirements under Rule
17Ad–10 is six years for certificate
detail that has been deleted and to
maintain and keep current an accurate
record of the number of shares or
principal dollar amount of debt
securities that the issuer has authorized
to be outstanding. The recordkeeping
requirement under Rule 17Ad–10 is
mandatory to ensure accurate
securityholder records and to assist the
Commission and other regulatory
agencies with monitoring transfer agents
and ensuring compliance with the rule.
This rule does not involve the collection
of confidential information. Persons
should note that an agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid control number.
Comments should be directed to: (i)
Desk Officer for the Securities and
Exchange Commission, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Room 10102, New Executive Office
Building, Washington, DC 20503, or by
sending an e-mail to:
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher Director/Chief
Information Officer, Securities and
Exchange Commission, Shirley
Martinson, 6432 General Green Way,
Alexandria, VA 22312 or send an e-mail
to: PRA_Mailbox@sec.gov. Comments
must be submitted to OMB within 30
days of this notice.
Dated: May 17, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–12261 Filed 5–20–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
29270; 812–13745]
Kinetics Mutual Funds, Inc., et al.;
Notice of Application
May 17, 2010.
AGENCY: Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application under
section 6(c) of the Investment Company
Act of 1940 (‘‘Act’’) for an exemption
from rule 12d1–2(a) under the Act.
SUMMARY OF APPLICATION: Applicants
request an order to permit registered
open-end investment companies relying
on rule 12d1–2 under the Act to invest
in certain financial instruments.
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Federal Register / Vol. 75, No. 98 / Friday, May 21, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
APPLICANTS: Kinetics Mutual Funds, Inc.
(‘‘Company’’), Kinetics Portfolios Trust
(‘‘Trust’’), Kinetics Asset Management,
Inc. (‘‘Adviser’’), and Kinetics Funds
Distributor, Inc. (‘‘KFDI’’).
FILING DATES: The application was filed
on January 19, 2010, and amended on
May 12, 2010.
HEARING OR NOTIFICATION OF HEARING: An
order granting the application will be
issued unless the Commission orders a
hearing. Interested persons may request
a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on June 11, 2010 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
Commission’s Secretary.
ADDRESSES: Secretary, Securities and
Exchange Commission, 100 F Street,
NE., Washington, DC 20549–1090;
Applicants, c/o Jay H. Kesslen, Kinetics
Asset Management, Inc., 555 Taxter
Road, Suite 175, Elmsford, NY 10523.
FOR FURTHER INFORMATION CONTACT:
Keith A. Gregory, Senior Counsel, at
(202) 551–6815, or Mary Kay Frech,
Branch Chief, at (202) 551–6821
(Division of Investment Management,
Office of Investment Company
Regulation).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm, or by
calling (202) 551–8090.
Applicants’ Representations
1. The Company is organized as a
Maryland corporation and the Trust is
organized as a Delaware statutory trust
and each is registered under the Act as
an open-end management investment
company. The Adviser is a New York
corporation registered as an investment
adviser under the Investment Advisers
Act of 1940, as amended, and currently
serves as investment adviser to the The
Tactical Paradigm Fund, a series of the
Company, and to each series of the
Trust. KFDI is a New York corporation
registered as a broker-dealer under the
Securities Exchange Act of 1934, as
amended (‘‘Exchange Act’’), that serves
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as the distributor for the Company and
all of its series and as the private
placement agent for the Trust and all of
its series.
2. Applicants request the exemption
to the extent necessary to permit any
existing or future registered open-end
management investment company or
series thereof (i) that is advised by the
Adviser or an entity controlling,
controlled by, under common control
with the Adviser (each, an ‘‘Adviser’’)
that is in the same group of investment
companies as defined in section
12(d)(1)(G) of the Act and (ii) that
invests in other registered open-end
management investment companies in
reliance on section 12(d)(1)(G) of the
Act, and (iii) that is also eligible to
invest in securities (as defined in
section 2(a)(36) of the Act) in reliance
on rule 12d1–2 under the Act (together
with such series of the Company and
the Trust, the ‘‘Funds of Funds’’) to also
invest, to the extent consistent with its
investment objective, policies, strategies
and limitations, in financial instruments
that may not be securities within the
meaning of section 2(a)(36) of the Act
(‘‘Other Investments’’).1
3. Consistent with its fiduciary
obligations under the Act, each Fund of
Fund’s board of directors or trustees
will review the advisory fees charged by
the Fund of Fund’s investment adviser
to ensure that they are based on services
provided that are in addition to, rather
than duplicative of, services provided
pursuant to the advisory agreement of
any investment company in which the
Fund of Funds may invest.
Applicants’ Legal Analysis
1. Section 12(d)(1)(A) of the Act
provides that no registered investment
company (‘‘acquiring company’’) may
acquire securities of another investment
company (‘‘acquired company’’) if such
securities represent more than 3% of the
acquired company’s outstanding voting
stock or more than 5% of the acquiring
company’s total assets, or if such
securities, together with the securities of
other investment companies, represent
more than 10% of the acquiring
company’s total assets. Section
12(d)(1)(B) of the Act provides that no
registered open-end investment
company may sell its securities to
1 Applicants also request that the order exempt
any entity controlling, controlled by or under
common control with the Adviser or KFDI that now
or in the future acts as principal underwriter with
respect to the transactions described in the
application. Every existing entity that currently
intends to rely on the requested order is named as
an applicant. Any existing or future entity that
relies on the order in the future will do so only in
accordance with the terms and condition in the
application.
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another investment company if the sale
will cause the acquiring company to
own more than 3% of the acquired
company’s voting stock, or cause more
than 10% of the acquired company’s
voting stock to be owned by investment
companies and companies controlled by
them.
2. Section 12(d)(1)(G) of the Act
provides that section 12(d)(1) will not
apply to securities of an acquired
company purchased by an acquiring
company if: (i) The acquiring company
and acquired company are part of the
same group of investment companies;
(ii) the acquiring company holds only
securities of acquired companies that
are part of the same group of investment
companies, government securities, and
short-term paper; (iii) the aggregate sales
loads and distribution-related fees of the
acquiring company and the acquired
company are not excessive under rules
adopted pursuant to section 22(b) or
section 22(c) of the Act by a securities
association registered under section 15A
of the Exchange Act or by the
Commission; and (iv) the acquired
company has a policy that prohibits it
from acquiring securities of registered
open-end management investment
companies or registered unit investment
trusts in reliance on section 12(d)(1)(F)
or 12(d)(1)(G) of the Act.
3. Rule 12d1–2 under the Act permits
a registered open-end investment
company or a registered unit investment
trust that relies on section 12(d)(1)(G) of
the Act to acquire, in addition to
securities issued by another registered
investment company in the same group
of investment companies, government
securities, and short-term paper: (1)
Securities issued by an investment
company that is not in the same group
of investment companies, when the
acquisition is in reliance on section
12(d)(1)(A) or 12(d)(1)(F) of the Act; (2)
securities (other than securities issued
by an investment company); and (3)
securities issued by a money market
fund, when the investment is in reliance
on rule 12d1–1 under the Act. For the
purposes of rule 12d1–2, ‘‘securities’’
means any security as defined in section
2(a)(36) of the Act.
4. Section 6(c) of the Act provides that
the Commission may exempt any
person, security, or transaction from any
provision of the Act, or from any rule
under the Act, if such exemption is
necessary or appropriate in the public
interest and consistent with the
protection of investors and the purposes
fairly intended by the policies and
provisions of the Act.
5. Applicants state that the proposed
arrangement would comply with the
provisions of rule 12d1–2 under the Act,
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Federal Register / Vol. 75, No. 98 / Friday, May 21, 2010 / Notices
but for the fact that the Funds of Funds
may invest a portion of their assets in
Other Investments. Applicants request
an order under section 6(c) of the Act
for an exemption from rule 12d1–2(a) to
allow the Funds of Funds to invest in
Other Investments. Applicants assert
that permitting the Funds of Funds to
invest in Other Investments as described
in the application would not raise any
of the concerns that the requirements of
section 12(d)(1) were designed to
address.
Applicants’ Condition
Applicants agree that the order
granting the requested relief will be
subject to the following condition:
Applicants will comply with all
provisions of rule 12d1–2 under the Act,
except for paragraph (a)(2) to the extent
that it restricts any Fund of Funds from
investing in Other Investments as
described in the application.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Florence E. Harmon,
Deputy Secretary.
Commission’s Web site at https://
www.sec.gov.
The roundtable will consist of a series
of panels. Panelists will consider a
range of market structure topics, such as
the appropriate metrics for assessing the
performance and fairness of the market
structure, particularly in light of the
extraordinary price volatility of May 6.
Panelists also will analyze the tools and
strategies of high frequency trading and
the role of undisplayed liquidity in
today’s market structure.
DATES: The roundtable discussion will
take place on June 2, 2010. The
Commission will accept comments
regarding issues addressed at the
roundtable until June 23, 2010.
Comments may be
submitted by any of the following
methods:
ADDRESSES:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/other.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number 4–602 on the subject line.
[FR Doc. 2010–12260 Filed 5–20–10; 8:45 am]
BILLING CODE 8010–01–P
Paper Comments
SECURITIES AND EXCHANGE
COMMISSION
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
[Release No. 34–62115; File No. 4–602]
Market Structure Roundtable
emcdonald on DSK2BSOYB1PROD with NOTICES
AGENCY: Securities and Exchange
Commission.
ACTION: Notice of roundtable discussion;
request for comment.
SUMMARY: The Securities and Exchange
Commission will host a one-day
roundtable to solicit the views of
investors, issuers, exchanges, alternative
trading systems, financial services firms,
high frequency traders, and the
academic community regarding the
current securities market structure. The
roundtable will focus on market
structure performance, including the
events of May 6, metrics for evaluating
market structure performance, high
frequency trading, and undisplayed
liquidity.
The roundtable discussion will be
held in the auditorium of the Securities
and Exchange Commission headquarters
at 100 F Street, NE., in Washington, DC
on June 2, 2010 from 9:30 a.m. to
approximately 4:30 p.m. The public is
invited to observe the roundtable
discussion. Seating will be available on
a first-come, first-served basis. The
roundtable discussion also will be
available via webcast on the
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Jkt 220001
All submissions should refer to File
Number 4–602. This file number should
be included on the subject line if e-mail
is used. To help us 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). Comments are also
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. All comments received
will be posted without change; we do
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT:
Arisa Tinaves, Special Counsel, at (202)
551–5676 or Gary M. Rubin, Attorney, at
(202) 551–5669, Division of Trading and
Markets, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–7010.
By the Commission.
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28667
Dated: May 18, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–12303 Filed 5–20–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 334–62114; File No. 265–26–
01]
COMMODITY FUTURES TRADING
COMMISSION
Joint CFTC–SEC Advisory Committee
on Emerging Regulatory Issues
AGENCIES: Securities and Exchange
Commission (‘‘SEC’’) and Commodity
Futures Trading Commission (‘‘CFTC’’)
(each, an ‘‘Agency,’’ and collectively,
‘‘Agencies’’).
ACTION: Notice of meeting of Joint
CFTC–SEC Advisory Committee on
Emerging Regulatory Issues.
SUMMARY: The Joint CFTC–SEC
Advisory Committee on Emerging
Regulatory Issues is providing notice
that it will hold a public meeting on
Monday, May 24, 2010, in the
Auditorium, Room L–002, at the SEC’s
main offices, 100 F Street, NE.,
Washington, DC. The meeting will begin
at 9 a.m. (EST) and will be open to the
public. The Committee meeting will be
Webcast on the SEC’s Web site at
https://www.sec.gov. Persons needing
special accommodations to take part
because of a disability should notify a
contact person listed below. The public
is invited to submit written statements
to the Committee.
The agenda for the meeting includes:
(i) Opening remarks; (ii) the
introduction of Committee members,
(iii) discussion of Committee agenda
and organization; (iv) discussion of the
Joint CFTC–SEC report on the market
events of May 6, 2010; and (v)
discussion of next steps and closing
comments.
Pursuant to 41 CFR 102–3.150(b), the
Agencies are providing less than fifteen
days notice of the meeting so that
Committee members can quickly begin
to conduct a review of the market events
of May 6, 2010, and make
recommendations related to market
structure issues that may have
contributed to the volatility, as well as
disparate trading conventions and rules
across various markets.
DATES: Written statements should be
received on or before noon on Friday,
May 21, 2010.
ADDRESSES: Because the Agencies will
jointly review all comments submitted,
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]]>Agencies
[Federal Register Volume 75, Number 98 (Friday, May 21, 2010)]
[Notices]
[Pages 28665-28667]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-12260]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 29270; 812-13745]
Kinetics Mutual Funds, Inc., et al.; Notice of Application
May 17, 2010.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of an application under section 6(c) of the Investment
Company Act of 1940 (``Act'') for an exemption from rule 12d1-2(a)
under the Act.
-----------------------------------------------------------------------
SUMMARY OF APPLICATION: Applicants request an order to permit
registered open-end investment companies relying on rule 12d1-2 under
the Act to invest in certain financial instruments.
[[Page 28666]]
APPLICANTS: Kinetics Mutual Funds, Inc. (``Company''), Kinetics
Portfolios Trust (``Trust''), Kinetics Asset Management, Inc.
(``Adviser''), and Kinetics Funds Distributor, Inc. (``KFDI'').
FILING DATES: The application was filed on January 19, 2010, and
amended on May 12, 2010.
HEARING OR NOTIFICATION OF HEARING: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving applicants with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on June 11, 2010 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 Commission's Secretary.
ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090; Applicants, c/o Jay H. Kesslen,
Kinetics Asset Management, Inc., 555 Taxter Road, Suite 175, Elmsford,
NY 10523.
FOR FURTHER INFORMATION CONTACT: Keith A. Gregory, Senior Counsel, at
(202) 551-6815, or Mary Kay Frech, Branch Chief, at (202) 551-6821
(Division of Investment Management, Office of Investment Company
Regulation).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box, at https://www.sec.gov/search/search.htm, or
by calling (202) 551-8090.
Applicants' Representations
1. The Company is organized as a Maryland corporation and the Trust
is organized as a Delaware statutory trust and each is registered under
the Act as an open-end management investment company. The Adviser is a
New York corporation registered as an investment adviser under the
Investment Advisers Act of 1940, as amended, and currently serves as
investment adviser to the The Tactical Paradigm Fund, a series of the
Company, and to each series of the Trust. KFDI is a New York
corporation registered as a broker-dealer under the Securities Exchange
Act of 1934, as amended (``Exchange Act''), that serves as the
distributor for the Company and all of its series and as the private
placement agent for the Trust and all of its series.
2. Applicants request the exemption to the extent necessary to
permit any existing or future registered open-end management investment
company or series thereof (i) that is advised by the Adviser or an
entity controlling, controlled by, under common control with the
Adviser (each, an ``Adviser'') that is in the same group of investment
companies as defined in section 12(d)(1)(G) of the Act and (ii) that
invests in other registered open-end management investment companies in
reliance on section 12(d)(1)(G) of the Act, and (iii) that is also
eligible to invest in securities (as defined in section 2(a)(36) of the
Act) in reliance on rule 12d1-2 under the Act (together with such
series of the Company and the Trust, the ``Funds of Funds'') to also
invest, to the extent consistent with its investment objective,
policies, strategies and limitations, in financial instruments that may
not be securities within the meaning of section 2(a)(36) of the Act
(``Other Investments'').\1\
---------------------------------------------------------------------------
\1\ Applicants also request that the order exempt any entity
controlling, controlled by or under common control with the Adviser
or KFDI that now or in the future acts as principal underwriter with
respect to the transactions described in the application. Every
existing entity that currently intends to rely on the requested
order is named as an applicant. Any existing or future entity that
relies on the order in the future will do so only in accordance with
the terms and condition in the application.
---------------------------------------------------------------------------
3. Consistent with its fiduciary obligations under the Act, each
Fund of Fund's board of directors or trustees will review the advisory
fees charged by the Fund of Fund's investment adviser to ensure that
they are based on services provided that are in addition to, rather
than duplicative of, services provided pursuant to the advisory
agreement of any investment company in which the Fund of Funds may
invest.
Applicants' Legal Analysis
1. Section 12(d)(1)(A) of the Act provides that no registered
investment company (``acquiring company'') may acquire securities of
another investment company (``acquired company'') if such securities
represent more than 3% of the acquired company's outstanding voting
stock or more than 5% of the acquiring company's total assets, or if
such securities, together with the securities of other investment
companies, represent more than 10% of the acquiring company's total
assets. Section 12(d)(1)(B) of the Act provides that no registered
open-end investment company may sell its securities to another
investment company if the sale will cause the acquiring company to own
more than 3% of the acquired company's voting stock, or cause more than
10% of the acquired company's voting stock to be owned by investment
companies and companies controlled by them.
2. Section 12(d)(1)(G) of the Act provides that section 12(d)(1)
will not apply to securities of an acquired company purchased by an
acquiring company if: (i) The acquiring company and acquired company
are part of the same group of investment companies; (ii) the acquiring
company holds only securities of acquired companies that are part of
the same group of investment companies, government securities, and
short-term paper; (iii) the aggregate sales loads and distribution-
related fees of the acquiring company and the acquired company are not
excessive under rules adopted pursuant to section 22(b) or section
22(c) of the Act by a securities association registered under section
15A of the Exchange Act or by the Commission; and (iv) the acquired
company has a policy that prohibits it from acquiring securities of
registered open-end management investment companies or registered unit
investment trusts in reliance on section 12(d)(1)(F) or 12(d)(1)(G) of
the Act.
3. Rule 12d1-2 under the Act permits a registered open-end
investment company or a registered unit investment trust that relies on
section 12(d)(1)(G) of the Act to acquire, in addition to securities
issued by another registered investment company in the same group of
investment companies, government securities, and short-term paper: (1)
Securities issued by an investment company that is not in the same
group of investment companies, when the acquisition is in reliance on
section 12(d)(1)(A) or 12(d)(1)(F) of the Act; (2) securities (other
than securities issued by an investment company); and (3) securities
issued by a money market fund, when the investment is in reliance on
rule 12d1-1 under the Act. For the purposes of rule 12d1-2,
``securities'' means any security as defined in section 2(a)(36) of the
Act.
4. Section 6(c) of the Act provides that the Commission may exempt
any person, security, or transaction from any provision of the Act, or
from any rule under the Act, if such exemption is necessary or
appropriate in the public interest and consistent with the protection
of investors and the purposes fairly intended by the policies and
provisions of the Act.
5. Applicants state that the proposed arrangement would comply with
the provisions of rule 12d1-2 under the Act,
[[Page 28667]]
but for the fact that the Funds of Funds may invest a portion of their
assets in Other Investments. Applicants request an order under section
6(c) of the Act for an exemption from rule 12d1-2(a) to allow the Funds
of Funds to invest in Other Investments. Applicants assert that
permitting the Funds of Funds to invest in Other Investments as
described in the application would not raise any of the concerns that
the requirements of section 12(d)(1) were designed to address.
Applicants' Condition
Applicants agree that the order granting the requested relief will
be subject to the following condition:
Applicants will comply with all provisions of rule 12d1-2 under the
Act, except for paragraph (a)(2) to the extent that it restricts any
Fund of Funds from investing in Other Investments as described in the
application.
For the Commission, by the Division of Investment Management,
under delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-12260 Filed 5-20-10; 8:45 am]
BILLING CODE 8010-01-P
