June 20, 1990
TO: INVESTMENT ADVISERS COMMITTEE NO. 21-90
RE: SEC ISSUES CONCEPT RELEASE ON REFORM OF
THE REGULATION OF INVESTMENT COMPANIES
__________________________________________________________
Attached for your information is a concept release issued
by the SEC on June 15, 1990 concerning its study of investment
company regulation. In the release, 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
are primarily concerned with the structure and operations of
investment companies. These topics 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, regulation of insurance products
and bank involvement with investment companies. The release also
raises questions about possible exemptions from certain 1940 Act
provision for institutional funds, regulation of series
companies, treatment of fund complexes, affiliated transactions
and the size of investment companies.
There is very little in the release directly concerning
investment advisers, except with respect to internationalization.
In that section, the SEC discusses several of the existing
barriers to cross border sales of investment adviser services and
requests comment on, among other things, proposals on how to
eliminate those barriers.
As a part of its ongoing project described above, the
Institute is preparing a regulatory report on investment company
regulation in the 1990s. It is anticipated that this report will
form the basis of the Institute's comments to the SEC.
Amy B. Rosenblum
Assistant General Counsel
Attachment