[10938]
April 28, 1999
TO: BOARD OF GOVERNORS No. 35-99
RE: SIA PROPOSES AMENDMENT TO SECTION 17(a) OF THE INVESTMENT
COMPANY ACT
______________________________________________________________________________
The Securities Industry Association recently submitted to Senate Banking Committee Chairman
Phil Gramm a package of proposed amendments to the federal securities laws. (A copy of the proposals
is attached.) Included at pages 11-12 is an amendment to Section 17(a) of the Investment Company Act
of 1940, to permit an affiliate of a mutual fund to engage in principal transactions with the fund where
the fund has adopted policies designed to determine that the price reflects current market value and the
transaction reflects such value.
The Institute has sent the attached letter to the SIA expressing the Institute’s strong opposition
to the proposed amendment.
This matter will be discussed at the next Board of Governors meeting on Friday, May 7th.
Matthew P. Fink
President
Attachments