September 26, 1989
TO: SEC RULES COMMITTEE NO. 56-89
RE: INSTITUTE DRAFT COMMENT LETTER ON PROPOSED AMENDMENTS TO
RULE 12D3-1
__________________________________________________________
As we previously informed you, the SEC has proposed
amendments to Rule 12d3-1 under the Investment Company Act that
would facilitate the acquisition by a registered investment
company of equity securities of foreign securities firms. (See
Memorandum to SEC Rules Committee No. 48-89, dated August 9,
1989.)
Attached is a draft of the Institute's comment letter. In
the letter, the Institute argues that there should be no "quality
standards" imposed on the acquisition of securities issued by
firms engaged in the securities business (domestic and foreign),
as such a limitation is not supported by the policies underlying
Section 12(d)(3). The letter states that if the Commission is,
however, unwilling to remove quality standards from the rule,
certain of the conditions on the acquisition of foreign equity
securities should be relaxed, including the requirement that such
securities be listed on a "qualified foreign exchange" and
satisfy other conditions specific to the issuer and the security
itself.
Comments on the proposed amendments are due October 10. If
you have any comments on the Institute's draft please call me at
202/955-3522 no later than 12:00 noon on Friday, October 6.
Craig S. Tyle
Assistant General Counsel
Attachment