January 5, 1995
TO: CLOSED-END FUND COMMITTEE No. 1-95
RE: NYSE MEMORANDUM ON MAILINGS TO SHAREHOLDERS
______________________________________________________________________________
As we previously informed you, the Institute recently submitted a letter to the New
York Stock Exchange (NYSE) to alert it to the problem that some closed-end funds were
experiencing in connection with the delivery to beneficial shareholders of semi-annual and
annual reports that include information about the fund’s dividend reinvestment plan. (See
Memorandum to Closed-End Fund Committee No. 37-94, dated December 27, 1994.) Shortly
thereafter, we learned that other NYSE listed companies had complained of this problem, and
that the NYSE was already working to resolve it.
To address this problem, the NYSE last week issued an Information Memo to its
members, which states:
[NYSE] Rule 465 ("Transmission of Interim Report and Other Material") requires that
member organizations, when so requested by an issuer, transmit copies of interim
reports and other material to beneficial owners upon satisfactory assurance of
reimbursement of all out-of-pocket expenses. The Exchange has concluded that "other
material" includes, but is not limited to, research reports and dividend reinvestment
program material, which must be transmitted to beneficial owners upon issuer request.
A copy of the NYSE Information Memo is attached.
Amy B.R. Lancellotta
Associate Counsel
Attachment