1 See SEC Release No. IC-23201 (May 21, 1998). The extension is effective upon publication of the release in the Federal
Register.
[9961]
May 22, 1998
TO: PRIMARY CONTACTS - MEMBER COMPLEX No. 42-98
SEC RULES COMMITTEE No. 48-98
RULE 17f-5 WORKING GROUP
RE: SEC EXTENDS COMPLIANCE DATE FOR RULE 17f-5 AMENDMENTS
______________________________________________________________________________
We are pleased to report that, as the Institute requested, the Securities and Exchange
Commission has extended the compliance date for the 1997 amendments to Rule 17f-5 under the
Investment Company Act of 1940.1 A copy of the SEC’s release announcing the extension is attached.
Although the effective date of the amendments remains June 16, 1998, the new compliance date is
February 1, 1999, with one exception. The compliance date for the amended definition of an “eligible
foreign custodian” remains June 16, 1998.
The SEC’s release indicates that the extension of the compliance date will give the Commission
time to review a proposal to be submitted by the Institute and the Association of Custodian Banks
addressing issues related to “compulsory depositories” and determine whether further refinements to the
1997 amendments are needed. It states that until February 1, 1999, a fund may either:
` continue to comply with Rule 17f-5 as it existed before the 1997 amendments (except that it
may also select a custodian that is an eligible foreign custodian under the amended
definition); or
` comply entirely with Rule 17f-5 as amended by the 1997 amendments.
The release specifically notes that a fund may not seek to comply by meeting certain
requirements of the old rule and certain requirements of the amended rule (other than the amended
definition of eligible foreign custodian).
Marguerite C. Bateman
Associate Counsel
Attachment