January 28, 1993
TO: CLOSED-END FUND COMMITTEE NO. 3-93
RE: MEMORANDUM ON ISSUANCE OF LONG-TERM WARRANTS BY CLOSED-END
FUNDS
__________________________________________________________
At the October meeting of the Closed-End Fund Committee,
there was a discussion of the possibility of seeking changes to
Section 18 of the Investment Company Act of 1940 to permit
closed-end investment companies to issue long-term stock
warrants. Following that meeting, the Institute asked outside
counsel to prepare a memorandum examining the current regulatory
scheme and its history, possible regulatory or legislative
changes that the Institute might propose to enable closed-end
funds to issue such warrants, and the prospects for success for
any such changes. A copy of that memorandum is enclosed for your
review. We will discuss it at the February 2 Committee meeting.
Frances M. Stadler
Assistant Counsel
Enclosure