August 8, 1990
TO: SEC RULES COMMITTEE NO. 42-90
CLOSED-END FUND COMMITTEE NO. 17-90
BOARD OF GOVERNORS NO. 55-90
PORTFOLIO MANAGER DISCLOSURE AD HOC COMMITTEE
RE: INSTITUTE SUBMITS REVISED PROPOSAL FOR PORTFOLIO MANAGER
DISCLOSURE
__________________________________________________________
On May 24, 1990, the Institute staff met with members of
the SEC's Division of Investment Management to discuss the SEC's
proposed revisions to Form N-1A. One of the issues that was
discussed was the SEC's proposal to require disclosure regarding
"all persons who make or are expected to make significant
contributions to the investment advice provided to the
registrant." (The SEC has proposed the same requirement in
connection with the Form N-2).
At the meeting, the staff acknowledged that the SEC's
proposed disclosure standard could be overly broad. However, the
staff also commented that the test set forth in the Institute's
comment letter (i.e., "the success of the fund may be, to a large
extent, contingent upon retaining such person") was too
restrictive since there could be too many instances where there
would not be anyone named. In this respect, the staff stated
that one problem with the Institute's proposal was that the
standard focused on the fund's performance.
The staff suggested that if the Institute wished to revise
and resubmit its proposal, the staff would consider it when
developing its final recommendations to the Commission. The
Institute, with the assistance of an ad hoc committee of members,
revised its proposal to take into consideration the staff's
concerns expressed at the meeting.
Attached is a copy of our revised proposal. We will keep
you informed of any developments.
Amy B. Rosenblum
Assistant General Counsel
Attachment