[14115]
November 8, 2001
TO: SEC RULES COMMITTEE No. 88-01
RE: POSSIBLE SUBMISSION OF REGULATORY PROPOSALS TO SEC
At the SEC Rules Committee meeting held on October 30, 2001, Institute staff reported
that SEC Chairman Harvey Pitt has invited the industry to make recommendations for possible
regulatory changes in connection with the Chairman’s plans to conduct a review of the
securities laws. We asked Committee members at the meeting if there are regulatory proposals
that the Institute should consider submitting to the Commission. Members made the following
suggestions: (1) liberalization of the staff’s position concerning the liquidity of commercial
paper issued under Section 4(2) of the Securities Act of 1933; (2) elimination of the requirement
under Rule 10f-3 under the Investment Company Act (concerning acquisition of securities
during the existence of an underwriting or selling syndicate) that issuers, with respect to certain
types of securities offerings covered by the rule, must have been in continuous operation for at
least three years; (3) simplification of Rule 11a-3 under the Investment Company Act
(concerning exchange offers); (4) possible relief from Rule 12d3-1 under the Investment
Company Act (concerning investments in securities-related issuers); and (5) modernization of
the procedural requirements of Rule 17f-2 under the Investment Company Act (the “self-
custody” rule).
Committee members were encouraged to inform us of any issues involving undue
restrictions on affiliated transactions that were not raised in the Institute’s December 1998
submission to the SEC (a copy of which is attached). If there are additional affiliated
transactions issues or other regulatory issues that you would like us to consider addressing in a
regulatory reform submission to the SEC, please contact me by Wednesday, November 21st at
202/326-5822 or by email to frances@ici.org.
Frances M. Stadler
Deputy Senior Counsel
Attachment (in .pdf format)