Symmetry Panoramic Trust and Symmetry Partners, LLC, 2466-2468 [2021-00330]
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2466
Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
for Docket ID NRC–2020–0221. A copy
of the collection of information and
related instructions may be obtained
without charge by accessing Docket ID
NRC–2020–0221 on this website.
• NRC’s Agencywide Documents
Access and Management System
(ADAMS): You may obtain publicly
available documents online in the
ADAMS Public Documents collection at
https://www.nrc.gov/reading-rm/
adams.html. To begin the search, select
‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, please contact
the NRC’s Public Document Room (PDR)
reference staff at 1–800–397–4209, 301–
415–4737, or by email to pdr.resource@
nrc.gov. A copy of the collection of
information and related instructions
may be obtained without charge by
accessing ADAMS Accession No.
ML20205L413. The supporting
statement is available in ADAMS under
Accession No. ML20335A465.
• Attention: The PDR, where you may
examine and order copies of public
documents is currently closed. You may
submit your request to the PDR via
email at pdr.resource@nrc.gov or call 1–
800–397–4209 or 301–415–4737,
between 8:00 a.m. and 4:00 p.m. (EST),
Monday through Friday, except Federal
holidays.
• NRC’s Clearance Officer: A copy of
the collection of information and related
instructions may be obtained without
charge by contacting the NRC’s
Clearance Officer, David Cullison,
Office of the Chief Information Officer,
U.S. Nuclear Regulatory Commission,
Washington, DC 20555–0001; telephone:
301–415–2084; email:
Infocollects.Resource@nrc.gov.
B. Submitting Comments
The NRC encourages electronic
comment submission through the
Federal Rulemaking website (https://
www.regulations.gov). Please include
Docket ID NRC–2020–0221 in your
comment submission.
The NRC cautions you not to include
identifying or contact information that
you do not want to be publicly
disclosed in your comment submission.
The NRC will post all comment
submissions at https://
www.regulations.gov as well as enter the
comment submissions into ADAMS.
The NRC does not routinely edit
comment submissions to remove
identifying or contact information.
If you are requesting or aggregating
comments from other persons for
submission to the OMB, then you
should inform those persons not to
include identifying or contact
information that they do not want to be
publicly disclosed in their comment
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17:09 Jan 11, 2021
Jkt 253001
submission. Your request should state
that comment submissions are not
routinely edited to remove such
information before making the comment
submissions available to the public or
entering the comment into ADAMS.
II. Background
Under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the NRC recently
submitted a request for renewal of an
existing collection of information to
OMB for review entitled, NRC Form
483, ‘‘Registration Certificate—In Vitro
Testing with Byproduct Material Under
General License.’’ The NRC hereby
informs potential respondents that an
agency may not conduct or sponsor, and
that a person is not required to respond
to, a collection of information unless it
displays a currently valid OMB control
number.
The NRC published a Federal
Register notice with a 60-day comment
period on this information collection on
October 8, 2020 (85 FR 63591).
1. The title of the information
collection: NRC Form 483, ‘‘Registration
Certificate—In Vitro Testing with
Byproduct Material Under General
License.’’
2. OMB approval number: 3150–0038.
3. Type of submission: Extension.
4. The form number if applicable:
NRC Form 483.
5. How often the collection is required
or requested: There is a one-time
submittal of information to receive a
validated copy of the NRC Form 483
with an assigned registration number. In
addition, any changes in the
information reported on the NRC Form
483 must be reported in writing to the
NRC within 30 days after the effective
date of the change.
6. Who will be required or asked to
respond: Any physician, veterinarian in
the practice of veterinary medicine,
clinical laboratory, or hospital which
desires a general license to receive,
acquire, possess, transfer, or use
specified units of byproduct material in
certain in vitro clinical or laboratory
tests.
7. The estimated number of annual
responses: 6 responses.
8. The estimated number of annual
respondents: 6 respondents.
9. An estimate of the total number of
hours needed annually to comply with
the information collection requirement
or request: 1.12 hours.
10. Abstract: Section 31.11 of title 10
of the Code of Federal Regulations (10
CFR), established a general license
authorizing any physician, clinical
laboratory, veterinarian in the practice
of veterinary medicine, or hospital to
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Sfmt 4703
possess certain small quantities of
byproduct material for in vitro clinical
or laboratory tests not involving the
internal or external administration of
the byproduct material or the radiation
therefrom to human beings or animals.
Possession of byproduct material under
10 CFR 31.11 is not authorized until the
physician, clinical laboratory,
veterinarian in the practice of veterinary
medicine, or hospital has filed the NRC
Form 483 and received from the
Commission a validated copy of the
NRC Form 483 with a registration
number. The licensee can use the
validated copy of the NRC Form 483 to
obtain byproduct material from a
specifically licensed supplier. The NRC
incorporates this information into a
database which is used to verify that a
general licensee is authorized to receive
the byproduct material.
Dated: January 6, 2021.
For the Nuclear Regulatory Commission.
David C. Cullison,
NRC Clearance Officer, Office of the Chief
Information Officer.
[FR Doc. 2021–00331 Filed 1–11–21; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
34165; File No. 812–15066]
Symmetry Panoramic Trust and
Symmetry Partners, LLC
January 6, 2021.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Notice of an application for an order
pursuant to: (a) Section 6(c) of the
Investment Company Act of 1940
(‘‘Act’’) granting an exemption from
sections 18(f) and 21(b) of the Act; (b)
section 12(d)(1)(J) of the Act granting an
exemption from section 12(d)(1) of the
Act; (c) sections 6(c) and 17(b) of the
Act granting an exemption from sections
17(a)(1), 17(a)(2) and 17(a)(3) of the Act;
and (d) section 17(d) of the Act and rule
17d–1 under the Act to permit certain
joint arrangements and transactions.
Applicants request an order that would
permit certain registered management
investment companies to participate in
a joint lending and borrowing facility.
Applicants: Symmetry Panoramic
Trust, a Delaware statutory trust
registered under the Act as an open-end
management investment company with
multiple series, and Symmetry Partners,
LLC (‘‘Symmetry Partners’’), a
Connecticut limited liability company
E:\FR\FM\12JAN1.SGM
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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
that is registered as an investment
adviser under the Investment Advisers
Act of 1940.
Filing Dates: The application was
filed on September 4, 2019, and
amended on May 28, 2020, September 4,
2020, and December 18, 2020.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by emailing the
Commission’s Secretary at SecretarysOffice@sec.gov and serving Applicants
with a copy of the request by email.
Hearing requests should be received by
the Commission by 5:30 p.m. on
February 1, 2021, and should be
accompanied by proof of service on
Applicants, in the form of an affidavit,
or, for lawyers, a certificate of service.
Pursuant to Rule 0–5 under the Act,
hearing requests should state the nature
of the writer’s interest, any facts bearing
upon the desirability of a hearing on the
matter, the reason for the request, and
the issues contested. Persons who wish
to be notified of a hearing may request
notification by emailing the
Commission’s Secretary at SecretarysOffice@sec.gov.
ADDRESSES: The Commission:
Secretarys-Office@sec.gov. Applicants:
Mark C. Amorosi, Esq., mark.amorosi@
klgates.com (with a copy to Philip R.
McDonald, pmcdonald@
SymmetryPartners.com).
FOR FURTHER INFORMATION CONTACT:
Laura J. Riegel, Senior Counsel, or Trace
W. Rakestraw, Branch Chief, at (202)
551–6825 (Division of Investment
Management, Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
website 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.
Summary of the Application:
1. Applicants request an order that
would permit the Applicants to
participate in an interfund lending
facility where each Fund could lend
money directly to and borrow money
directly from other Funds to cover
unanticipated cash shortfalls, such as
unanticipated redemptions or sales
fails.1 The Funds will not borrow under
1 Applicants request that the order apply to the
Applicants and to any registered open-end
management investment company or series thereof
for which Symmetry Partners or any successor
thereto, or an investment adviser controlling,
controlled by, or under common control with
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17:09 Jan 11, 2021
Jkt 253001
the facility for leverage purposes and
the loans’ duration will be no more than
7 days.2
2. Applicants anticipate that the
proposed facility would provide a
borrowing Fund with a source of
liquidity at a rate lower than the bank
borrowing rate at times when the cash
position of the Fund is insufficient to
meet temporary cash requirements. In
addition, Funds making short-term cash
loans directly to other Funds would
earn interest at a rate higher than they
otherwise could obtain from investing
their cash in repurchase agreements or
certain other short term money market
instruments. Thus, Applicants assert
that the facility would benefit both
borrowing and lending Funds.
3. Applicants agree that any order
granting the requested relief will be
subject to the terms and conditions
stated in the application. Among others,
the Adviser, through a designated
committee, would administer the
facility as a disinterested fiduciary as
part of its duties under the investment
advisory and administrative services
agreements with the Funds and would
receive no additional fee as
compensation for its services in
connection with the administration of
the facility. The facility would be
subject to oversight and certain
approvals by the Funds’ Board,
including, among others, approval of the
interest rate formula and of the method
for allocating loans across Funds, as
well as review of the process in place to
evaluate the liquidity implications for
the Funds. A Fund’s aggregate
outstanding interfund loans will not
exceed 15% of its net assets at the time
of the loan, and the Fund’s loans to any
one Fund will not exceed 5% of the
lending Fund’s net assets.3
4. Applicants assert that the facility
does not raise the concerns underlying
section 12(d)(1) of the Act given that the
Funds are part of the same group of
investment companies and there will be
no duplicative costs or fees to the
Funds.4 Applicants also assert that the
Symmetry Partners or any successor thereto, serves
as investment adviser (each such investment
company or series thereof, a ‘‘Fund’’ and
collectively the ‘‘Funds,’’ and each such investment
adviser, an ‘‘Adviser’’). For purposes of the
requested order, ‘‘successor’’ is limited to any entity
that results from a reorganization into another
jurisdiction or a change in the type of a business
organization.
2 Any Fund, however, will be able to call a loan
on one business day’s notice.
3 Under certain circumstances, a borrowing Fund
will be required to pledge collateral to secure the
loan.
4 Applicants state that the obligation to repay an
interfund loan could be deemed to constitute a
security for the purposes of sections 17(a)(1) and
12(d)(1) of the Act.
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Fmt 4703
Sfmt 4703
2467
proposed transactions do not raise the
concerns underlying sections 17(a)(1),
17(a)(3), 17(d) and 21(b) of the Act as
the Funds would not engage in lending
transactions that unfairly benefit
insiders or are detrimental to the Funds.
Applicants state that the facility will
offer both reduced borrowing costs and
enhanced returns on loaned funds to all
participating Funds and each Fund
would have an equal opportunity to
borrow and lend on equal terms based
on an interest rate formula that is
objective and verifiable. With respect to
the relief from section 17(a)(2) of the
Act, Applicants note that any collateral
pledged to secure an interfund loan
would be subject to the same conditions
imposed by any other lender to a Fund
that imposes conditions on the quality
of or access to collateral for a borrowing
(if the lender is another Fund) or the
same or better conditions (in any other
circumstance).5
5. Applicants also believe that the
limited relief from section 18(f)(1) of the
Act that is necessary to implement the
facility (because the lending Funds are
not banks) is appropriate in light of the
conditions and safeguards described in
the application and because the Funds
would remain subject to the
requirement of section 18(f)(1) that all
borrowings of the Fund, including
combined interfund loans and bank
borrowings, have at least 300% asset
coverage.
6. Section 6(c) of the Act permits the
Commission to exempt any persons or
transactions from any provision of 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 policy and provisions of
the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision of section 12(d)(1) if the
exemption is consistent with the public
interest and the protection of investors.
Section 17(b) of the Act authorizes the
Commission to grant an order
permitting a transaction otherwise
prohibited by section 17(a) if it finds
that (a) the terms of the proposed
transaction, including the compensation
to be paid or received, are fair and
reasonable and do not involve
overreaching on the part of any person
concerned; (b) the proposed transaction
is consistent with the policies of each
5 Applicants state that any pledge of securities to
secure an interfund loan could constitute a
purchase of securities for purposes of section
17(a)(2) of the Act.
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12JAN1
2468
Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
registered investment company
involved; and (c) the proposed
transaction is consistent with the
general purposes of the Act. Rule 17d–
1(b) under the Act provides that in
passing upon an application filed under
the rule, the Commission will consider
whether the participation of the
registered investment company in a
joint enterprise, joint arrangement or
profit sharing plan on the basis
proposed is consistent with the
provisions, policies and purposes of the
Act and the extent to which such
participation is on a basis different from
or less advantageous than that of the
other participants.
For the Commission, by the Division of
Investment Management, under delegated
authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–00330 Filed 1–11–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
The text of the proposed rule change
has been annexed as Exhibit 5 [sic].
[Release No. 34–90862; File No. SR–LCH
SA–2020–007]
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
Self-Regulatory Organizations; LCH
SA; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Amendments
of the CDSClear Fee Grid
January 6, 2021.
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 December
31, 2020, Banque Centrale de
Compensation, which conducts
business under the name LCH SA (‘‘LCH
SA’’), 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 by LCH SA. LCH SA
filed the proposed rule change pursuant
to Section 19(b)(3)(A) of the Act,3 and
Rule 19b–4(f)(2) 4 thereunder, so that the
proposed rule change was effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change is to review
and modify the current CDSClear fee
grid applied by LCH SA.
In its filing with the Commission,
LCH SA 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. LCH SA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of these statements.
A. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
The purpose of the proposed fee
changes is for LCH SA CDSClear to
revise the (i) fees under the Unlimited
Tariff for General Members,5 (ii) fees for
Corporates and Financials Index and
Single Name CDS under the
Introductory Tariff for both General and
Select Members, (iii) fees set up for the
Options clearing service for both
General and Select Members and Clients
as well and introduce (iv) new fee
conditions for Affiliates clearing as
client.
LCH SA is currently applying the
below fee grid for CDSClear members:
CURRENT SELF-CLEARING TARIFF FOR CORPORATES AND FINANCIALS INDEX AND SINGLE NAME CDS
Self-clearing/variable fees
Membership
Annual fixed fee
EUR
indices
General Member—Unlimited
Tariff.
Ö 1,300,000 .................................
No Variable Fee
General Member—Introductory Tariff.
Ö200,000 if the total annual
gross notional cleared is under
Ö15 billion.
Ö3.5 Per million
gross notional
cleared.
Ö10 Per million
gross notional
cleared.
$4.5 Per million
gross notional
cleared.
$13 Per million
gross notional
cleared.
Ö400,000 if the total annual
gross notional cleared is over
Ö15 billion.
Ö250,000 if the total annual
gross notional cleared is under
Ö25 billion.
Ö450,000 if the total annual
gross notional cleared is over
Ö25 billion.
Ö3.5 Per million
gross notional
cleared.
Ö4 Per million
gross notional
cleared.
Ö10 Per million
gross notional
cleared.
Ö10 Per million
gross notional
cleared.
$4.5 Per million
gross notional
cleared.
$5 Per million
gross notional
cleared.
$13 Per million
gross notional
cleared.
$13 Per million
gross notional
cleared.
khammond on DSKJM1Z7X2PROD with NOTICES
Select Member ..
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
17:09 Jan 11, 2021
3 15
4 17
Jkt 253001
PO 00000
EUR
single names
USD
single names
Covers all self-clearing Corporate
and Financials Index and Single Name activity for a Clearing Member and its affiliates.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00089
USD
indices
Fmt 4703
Cap on total annual self-clearing
fees (fixed + variable) of EUR
1,300,000 after which all further trades cleared in the calendar year are subject to a fee
holiday.
5 All capitalized terms not defined herein have
the same definition as the CDSClearing Rule Book,
Supplement or Procedures, as applicable.
Sfmt 4703
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12JAN1
]]>Agencies
[Federal Register Volume 86, Number 7 (Tuesday, January 12, 2021)]
[Notices]
[Pages 2466-2468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00330]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 34165; File No. 812-15066]
Symmetry Panoramic Trust and Symmetry Partners, LLC
January 6, 2021.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
Notice of an application for an order pursuant to: (a) Section 6(c)
of the Investment Company Act of 1940 (``Act'') granting an exemption
from sections 18(f) and 21(b) of the Act; (b) section 12(d)(1)(J) of
the Act granting an exemption from section 12(d)(1) of the Act; (c)
sections 6(c) and 17(b) of the Act granting an exemption from sections
17(a)(1), 17(a)(2) and 17(a)(3) of the Act; and (d) section 17(d) of
the Act and rule 17d-1 under the Act to permit certain joint
arrangements and transactions. Applicants request an order that would
permit certain registered management investment companies to
participate in a joint lending and borrowing facility.
Applicants: Symmetry Panoramic Trust, a Delaware statutory trust
registered under the Act as an open-end management investment company
with multiple series, and Symmetry Partners, LLC (``Symmetry
Partners''), a Connecticut limited liability company
[[Page 2467]]
that is registered as an investment adviser under the Investment
Advisers Act of 1940.
Filing Dates: The application was filed on September 4, 2019, and
amended on May 28, 2020, September 4, 2020, and December 18, 2020.
Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by emailing the Commission's
Secretary at [email protected] and serving Applicants with a
copy of the request by email. Hearing requests should be received by
the Commission by 5:30 p.m. on February 1, 2021, and should be
accompanied by proof of service on Applicants, in the form of an
affidavit, or, for lawyers, a certificate of service. Pursuant to Rule
0-5 under the Act, hearing requests should state the nature of the
writer's interest, any facts bearing upon the desirability of a hearing
on the matter, the reason for the request, and the issues contested.
Persons who wish to be notified of a hearing may request notification
by emailing the Commission's Secretary at [email protected].
ADDRESSES: The Commission: [email protected]. Applicants: Mark
C. Amorosi, Esq., [email protected] (with a copy to Philip R.
McDonald, [email protected]).
FOR FURTHER INFORMATION CONTACT: Laura J. Riegel, Senior Counsel, or
Trace W. Rakestraw, Branch Chief, at (202) 551-6825 (Division of
Investment Management, Chief Counsel's Office).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's website 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.
Summary of the Application:
1. Applicants request an order that would permit the Applicants to
participate in an interfund lending facility where each Fund could lend
money directly to and borrow money directly from other Funds to cover
unanticipated cash shortfalls, such as unanticipated redemptions or
sales fails.\1\ The Funds will not borrow under the facility for
leverage purposes and the loans' duration will be no more than 7
days.\2\
---------------------------------------------------------------------------
\1\ Applicants request that the order apply to the Applicants
and to any registered open-end management investment company or
series thereof for which Symmetry Partners or any successor thereto,
or an investment adviser controlling, controlled by, or under common
control with Symmetry Partners or any successor thereto, serves as
investment adviser (each such investment company or series thereof,
a ``Fund'' and collectively the ``Funds,'' and each such investment
adviser, an ``Adviser''). For purposes of the requested order,
``successor'' is limited to any entity that results from a
reorganization into another jurisdiction or a change in the type of
a business organization.
\2\ Any Fund, however, will be able to call a loan on one
business day's notice.
---------------------------------------------------------------------------
2. Applicants anticipate that the proposed facility would provide a
borrowing Fund with a source of liquidity at a rate lower than the bank
borrowing rate at times when the cash position of the Fund is
insufficient to meet temporary cash requirements. In addition, Funds
making short-term cash loans directly to other Funds would earn
interest at a rate higher than they otherwise could obtain from
investing their cash in repurchase agreements or certain other short
term money market instruments. Thus, Applicants assert that the
facility would benefit both borrowing and lending Funds.
3. Applicants agree that any order granting the requested relief
will be subject to the terms and conditions stated in the application.
Among others, the Adviser, through a designated committee, would
administer the facility as a disinterested fiduciary as part of its
duties under the investment advisory and administrative services
agreements with the Funds and would receive no additional fee as
compensation for its services in connection with the administration of
the facility. The facility would be subject to oversight and certain
approvals by the Funds' Board, including, among others, approval of the
interest rate formula and of the method for allocating loans across
Funds, as well as review of the process in place to evaluate the
liquidity implications for the Funds. A Fund's aggregate outstanding
interfund loans will not exceed 15% of its net assets at the time of
the loan, and the Fund's loans to any one Fund will not exceed 5% of
the lending Fund's net assets.\3\
---------------------------------------------------------------------------
\3\ Under certain circumstances, a borrowing Fund will be
required to pledge collateral to secure the loan.
---------------------------------------------------------------------------
4. Applicants assert that the facility does not raise the concerns
underlying section 12(d)(1) of the Act given that the Funds are part of
the same group of investment companies and there will be no duplicative
costs or fees to the Funds.\4\ Applicants also assert that the proposed
transactions do not raise the concerns underlying sections 17(a)(1),
17(a)(3), 17(d) and 21(b) of the Act as the Funds would not engage in
lending transactions that unfairly benefit insiders or are detrimental
to the Funds. Applicants state that the facility will offer both
reduced borrowing costs and enhanced returns on loaned funds to all
participating Funds and each Fund would have an equal opportunity to
borrow and lend on equal terms based on an interest rate formula that
is objective and verifiable. With respect to the relief from section
17(a)(2) of the Act, Applicants note that any collateral pledged to
secure an interfund loan would be subject to the same conditions
imposed by any other lender to a Fund that imposes conditions on the
quality of or access to collateral for a borrowing (if the lender is
another Fund) or the same or better conditions (in any other
circumstance).\5\
---------------------------------------------------------------------------
\4\ Applicants state that the obligation to repay an interfund
loan could be deemed to constitute a security for the purposes of
sections 17(a)(1) and 12(d)(1) of the Act.
\5\ Applicants state that any pledge of securities to secure an
interfund loan could constitute a purchase of securities for
purposes of section 17(a)(2) of the Act.
---------------------------------------------------------------------------
5. Applicants also believe that the limited relief from section
18(f)(1) of the Act that is necessary to implement the facility
(because the lending Funds are not banks) is appropriate in light of
the conditions and safeguards described in the application and because
the Funds would remain subject to the requirement of section 18(f)(1)
that all borrowings of the Fund, including combined interfund loans and
bank borrowings, have at least 300% asset coverage.
6. Section 6(c) of the Act permits the Commission to exempt any
persons or transactions from any provision of 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
policy and provisions of the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may exempt any person, security, or
transaction, or any class or classes of persons, securities, or
transactions, from any provision of section 12(d)(1) if the exemption
is consistent with the public interest and the protection of investors.
Section 17(b) of the Act authorizes the Commission to grant an order
permitting a transaction otherwise prohibited by section 17(a) if it
finds that (a) the terms of the proposed transaction, including the
compensation to be paid or received, are fair and reasonable and do not
involve overreaching on the part of any person concerned; (b) the
proposed transaction is consistent with the policies of each
[[Page 2468]]
registered investment company involved; and (c) the proposed
transaction is consistent with the general purposes of the Act. Rule
17d-1(b) under the Act provides that in passing upon an application
filed under the rule, the Commission will consider whether the
participation of the registered investment company in a joint
enterprise, joint arrangement or profit sharing plan on the basis
proposed is consistent with the provisions, policies and purposes of
the Act and the extent to which such participation is on a basis
different from or less advantageous than that of the other
participants.
For the Commission, by the Division of Investment Management,
under delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-00330 Filed 1-11-21; 8:45 am]
BILLING CODE 8011-01-P
