June 18, 1990
TO: BOARD OF GOVERNORS NO. 43-90
SEC RULES MEMBERS NO. 43-90
MEMBERS - ONE PER COMPLEX NO. 23-90
CLOSED-END FUND MEMBERS - ONE PER COMPLEX
UNIT INVESTMENT TRUST MEMBERS - ONE PER COMPLEX
RE: SEC ISSUES CONCEPT RELEASE ON REFORM OF REGULATION OF
INVESTMENT COMPANIES
__________________________________________________________
As you know, the Institute has initiated its 1990s project
to consider, among other things, proposing legislative and/or
regulatory changes to modernize the structure and regulation of
pooled investment vehicles. Recently, the SEC began its own
study of investment company regulation. Through a related
concept release issued on June 15, 1990 (a copy of which is
attached), the SEC is soliciting comments on reform of the
regulation of investment companies under the Investment Company
Act of 1940, the Investment Advisers Act of 1940, the Securities
Act of 1933 and the Securities Exchange Act of 1934. The release
raises a number of specific topics and questions and invites
comments on these and any other issues that commenters believe
relevant.
The specific broad topics addressed in the SEC's release
include internationalization of the securities markets,
alternative pooled vehicles (such as the unitary investment
fund), asset-backed arrangements, distribution of open-end
investment company shares, closed-end funds and repurchases of
shares, transactions in options and futures contracts, Securities
Act issues (including Rule 482 ads, unit investment trust
secondary market sales and prospectus delivery requirements for
open-end funds), regulation of insurance products and bank
involvement with investment companies. The release also raises
questions about possible exemptions from certain 1940 Act
provisions for institutional funds, regulation of series
companies, treatment of fund complexes, affiliated transactions
and the size of investment companies.
As a part of its ongoing project described above, the
Institute is preparing a regulatory report on the 1990s. It is
anticipated that this report will form the basis of the
Institute's comments to the SEC. The comment period expires on
September 4, 1990. Please send us any comments you may have by
August 1, 1990.
Frances M. Stadler
Assistant General Counsel
Attachment