February 25, 1997
TO: CLOSED-END INVESTMENT COMPANY COMMITTEE No. 4-97
COMPLIANCE ADVISORY COMMITTEE No. 6-97
SEC RULES COMMITTEE No. 22-97
UNIT INVESTMENT TRUST COMMITTEE No. 12-97
RE: SUMMARY OF NON-1940 ACT INVESTMENT RESTRICTIONS
______________________________________________________________________________
At the suggestion of a member of the Institutes Compliance Advisory Committee, the
Institute has prepared the attached summary of various federal and state laws and regulations
that may restrict investments by registered investment companies in, for example, certain
regulated industries. The provisions described in the Summary generally limit, prohibit, or
require prior regulatory approval of, acquisitions of shares of particular types of issuers in
excess of specified percentage amounts. The consequences of exceeding the specified amounts
can include, for example, subjecting the acquiror to an additional regulatory scheme (e.g., the
Bank Holding Company Act). The Summary is not comprehensive but rather highlights some
areas in which it may be necessary or advisable to monitor the level of fund investments for
compliance with applicable limits.
As indicated in the preface to the Summary, we plan to update the Summary
periodically, and we encourage members to comment on how it might be expanded or
otherwise improved. If you have any comments or questions on the Summary, please call me
at (202) 326-5822.
Frances M. Stadler
Associate Counsel
Attachment (in .pdf format)