January 30, 1991
TO: ACCOUNTING/TREASURERS MEMBERS NO. 2-91
CLOSED-END FUND MEMBERS NO. 3-91
OPERATIONS MEMBERS NO. 2-91
SEC RULES MEMBERS NO. 3-91
UNIT INVESTMENT TRUST MEMBERS NO. 3-91
RE: CORRECTION TO MEMO ON GENERIC COMMENT LETTER
__________________________________________________________
Our memo transmitting the Division of Investment
Management’s second generic comment letter (Memorandum to
Accounting/Treasurers Members No. 1-91, Closed-End Fund Members
No. 2-91, Operations Members No. 1-91, SEC Rules Members No. 2-91
and Unit Investment Trust Members No. 2-91, dated January 22,
1991) contained an error in the paragraph titled "Undertakings"
under the section titled "Procedural Comments" (on page 2 of the
memo). The staff’s position is that a fund must undertake to
hold its initial meeting of public shareholders (or its required
meeting of public shareholders when adding a new series) within
sixteen months of the date of effectiveness, not, as the memo
stated, within sixteen months of the later of the effective date
or the date of commencement of operations. However, the staff
has stated that it will consider granting no-action relief to
permit funds to delay this shareholders’ meeting in cases where
it can be demonstrated that it is not practicable to commence
operations soon after the effective date. (See Memorandum to SEC
Rules Members No. 84-90, dated December 11, 1990.)
Please retain this memo or correct your copy of the earlier
memo accordingly.
Craig S. Tyle
Associate General Counsel