December 21, 1989
TO: SEC RULES COMMITTEE NO. 80-89
RE: LETTER TO SEC REGARDING PENDING MATTERS
__________________________________________________________
As you may recall, the Institute assembled last spring a
list of pending matters that had not yet been addressed by the
SEC staff. In March we met with the staff and gave them a list
of the five items that were our highest priority for resolution.
Since that time, one of the priority items, the need for rules
regarding fund investment in foreign banks and foreign securities
firms, has been addressed by two recent rule proposals (proposed
Rules 12d1-1 and 12d3-1).
However, the following four other priority items have not
yet been addressed by the staff: 1) a revision of the investment
company proxy rules, particularly the staff's current
interpretation regarding the date of the adviser's balance sheet;
2) a revision of the staff's current position on the ability of a
mutual fund to reserve the freedom to concentrate; 3) a change in
the staff position that a fund using the term "tax-exempt" in its
name can invest no more that 20 percent of its portfolio in
obligations subject to the alternative minimum tax; and 4) a rule
exempting investment companies and advisers from the provisions
limiting investment in public utility companies and public
utility holding companies. The attached letter reminds the staff
of these pending items and urges prompt resolution.
We will keep you informed of developments.
Catherine L. Heron
Deputy General Counsel
Attachment