October 10, 1989
TO: SEC RULES MEMBERS NO. 57-89
RE: SEC STAFF WITHDRAWS CHASE FUND OF BOSTON NO-ACTION LETTER
__________________________________________________________
The staff of the Division of Investment Management has
withdrawn a no-action letter issued in 1980, Chase Fund of
Boston, effective October 23, 1989. The Chase Fund of Boston
letter deemed an exchange offer with a $5.00 administrative fee
to be at net asset value. As we previously informed you, the
Commission had announced that it would withdraw the letter after
the effective date of Rule 11a-3, which establishes various
conditions for mutual fund exchange offers. That Rule has been
adopted and will be effective October 23. (See Memorandum to SEC
Rules Members No. 37-89, dated August 7, 1989.)
As a result, all fund groups that impose an administrative
fee on exchanges will be required to fully comply with the
conditions of Rule 11a-3, including those pertaining to
administrative fees.
A copy of the staff's withdrawal of the Chase Fund of
Boston letter is attached.
Craig S. Tyle
Associate General Counsel
Attachment