81 FR 1656 - Investment Company Act Release No. 31953; File No. 812-14411 Columbia Funds Series Trust I, et al.; Notice of Application

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 8 (January 13, 2016)

Page Range		1656-1657
FR Document		2016-00470

Federal Register, Volume 81 Issue 8 (Wednesday, January 13, 2016)

[Federal Register Volume 81, Number 8 (Wednesday, January 13, 2016)]
[Notices]
[Pages 1656-1657]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00470]


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SECURITIES AND EXCHANGE COMMISSION


Investment Company Act Release No. 31953; File No. 812-14411 
Columbia Funds Series Trust I, et al.; Notice of Application

January 7, 2016.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 12(d)(1)(J) 
of the Investment Company Act of 1940 (the ``Act'') for an exemption 
from sections 12(d)(1)(A) and (B) of the Act and under sections 6(c) 
and 17(b) of the Act for an exemption from sections 17(a)(1) and (2) of 
the Act. The requested order would permit certain registered open-end 
investment companies to acquire shares of certain registered open-end 
investment companies and unit investment trusts (collectively, 
``Underlying Funds'') that are within and outside the same group of 
investment companies as the acquiring investment companies, in excess 
of the limits in section 12(d)(1) of the Act.

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APPLICANTS: Columbia Funds Series Trust I and Columbia Funds Variable 
Insurance Trust, each Massachusetts business trusts registered under 
the Act as an open-end management investment company with multiple 
series, Columbia Management Investment Advisers, LLC (the ``Adviser''), 
a Minnesota limited liability company registered as an investment 
adviser under the Investment Advisers Act of 1940 and Columbia 
Management Investment Distributors, Inc. (the ``Distributor''), a 
Delaware Corporation registered as a broker-dealer under the Securities 
Exchange Act of 1934 (``Exchange Act'').

DATES: Filing Dates: The application was filed on January 6, 2015, and 
amended on May 27, 2015 and December 24, 2015.

HEARING OR NOTIFICATION OF HEARING: An order granting the requested 
relief will be issued unless the Commission orders a hearing. 
Interested persons may request a hearing by writing to the Commission's 
Secretary and serving applicants with a copy of the request, personally 
or by mail. Hearing requests should be received by the Commission by 
5:30 p.m. on Tuesday, February 2, 2016 and should be accompanied by 
proof of service on the applicants, in the form of an affidavit, or, 
for lawyers, a certificate of service. Pursuant to Rule 0-5 under the 
Act, hearing requests should state the nature of the writer's interest, 
any facts bearing upon the desirability of a hearing on the matter, the 
reason for the request, and the issues contested. Persons who wish to 
be notified of a hearing may request notification by writing to the 
Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F 
Street NE., Washington, DC 20549-1090. Applicants: c/o Brian D. McCabe, 
Esq. and Nathan D. Somogie, Esq., Ropes & Gray LLP, Prudential Tower, 
800 Boylston Street, Boston, MA 02199-3600.

FOR FURTHER INFORMATION CONTACT: Michael S. Didiuk, Senior Counsel, at 
(202) 551-6839, or Holly Hunter-Ceci, Branch Chief, at (202) 551-6825 
(Division of Investment Management, Chief Counsel's Office).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained via the 
Commission's Web site by searching for the file number, or for an 
applicant using the Company name box, at http://www.sec.gov/search/search.htm, or by calling (202) 551-8090.

[[Page 1657]]

Summary of the Application

    1. Applicants request an order to permit (a) a Fund \1\ (each a 
``Fund of Funds'') to acquire shares of Underlying Funds \2\ in excess 
of the limits in sections 12(d)(1)(A) and (B) of the Act and (b) each 
Underlying Fund that is a registered open-end investment company or 
series thereof, the Distributor or any principal underwriter and any 
broker or dealer registered under the Exchange Act to sell shares of 
the Underlying Fund to the Fund of Funds in excess of the limits in 
section 12(d)(1)(B) of the Act. Applicants also request an order of 
exemption under sections 6(c) and 17(b) of the Act from the prohibition 
on certain affiliated transactions in section 17(a) of the Act to the 
extent necessary to permit the Underlying Funds to sell their shares 
to, and redeem their shares from, the Funds of Funds.\3\ Applicants 
state that such transactions will be consistent with the policies of 
each Fund of Funds and each Underlying Fund and with the general 
purposes of the Act and will be based on the net asset values of the 
Underlying Funds.
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    \1\ Applicants request that the order apply to each existing and 
future series of Columbia Funds Series Trust I and Columbia Funds 
Variable Insurance Trust, and to each existing and future registered 
open-end management investment company or series thereof which is 
advised by the Adviser or any entity controlling, controlled by or 
under common control with the Adviser and which is part of the same 
``group of investment companies'' as Columbia Funds Series Trust I 
and Columbia Funds Variable Insurance Trust (each, a ``Fund''). For 
purposes of the request for relief, the term ``group of investment 
companies'' means any two or more investment companies that hold 
themselves out to investors as related companies for purposes of 
investment and investor services.
    \2\ Certain of the Underlying Funds have obtained exemptions 
from the Commission necessary to permit their shares to be listed 
and traded on a national securities exchange at negotiated prices 
and, accordingly, to operate as exchange-traded funds (``ETFs'').
    \3\ A Fund of Funds generally would purchase and sell shares of 
an Unaffiliated Fund that operates as an ETF through secondary 
market transactions rather than through principal transactions with 
the Unaffiliated Fund. To the extent that a Fund of Funds purchases 
or redeems shares from an ETF that is an affiliated person of the 
Fund of Funds in exchange for a basket of specified securities as 
described in the Application for the exemptive order upon which the 
ETF relies, Applicants also request relief from Section 17(a) for 
those in-kind transactions. Applicants are not seeking relief from 
Section 17(a) for, and the requested relief will not apply to, 
transactions where an ETF could be deemed an affiliated person, or 
an affiliated person of an affiliated person, of a Fund of Funds 
because an investment adviser to the ETF is also an investment 
adviser to the Fund of Funds.
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    2. Applicants agree that any order granting the requested relief 
will be subject to the terms and conditions stated in the application. 
Such terms and conditions are designed to, among other things, help 
prevent any potential (i) undue influence over an Underlying Fund that 
is not in the same ``group of investment companies'' as the Fund of 
Funds through control or voting power, or in connection with certain 
services, transactions, and underwritings, (ii) excessive layering of 
fees, and (iii) overly complex fund structures, which are the concerns 
underlying the limits in sections 12(d)(1)(A) and (B) of the Act.
    3. Section 12(d)(1)(J) of the Act provides that the Commission may 
exempt any person, security, or transaction, or any class or classes of 
persons, securities, or transactions from any provision of section 
12(d)(1) if the exemption is consistent with the public interest and 
the protection of investors. Section 17(b) of the Act authorizes the 
Commission to grant an order permitting a transaction otherwise 
prohibited by section 17(a) if it finds that (a) the terms of the 
proposed transaction are reasonable and fair and do not involve 
overreaching on the part of any person concerned; (b) the proposed 
transaction is consistent with the policies of each registered 
investment company involved; and (c) the proposed transaction is 
consistent with the general purposes of the Act. Section 6(c) of the 
Act permits the Commission to exempt any persons or transactions from 
any provision of the Act if such exemption is necessary or appropriate 
in the public interest and consistent with the protection of investors 
and the purposes fairly intended by the policy and provisions of the 
Act.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00470 Filed 1-12-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 8 / Wednesday, January 13, 2016 / Notices 1657

Summary of the Application (i) undue influence over an Underlying ‘‘Act’’),1 and Rule 19b-4 thereunder,2
1. Applicants request an order to Fund that is not in the same ‘‘group of notice is hereby given that on December
permit (a) a Fund 1 (each a ‘‘Fund of investment companies’’ as the Fund of 29, 2015, BATS Exchange, Inc. (the
Funds’’) to acquire shares of Underlying Funds through control or voting power, ‘‘Exchange’’ or ‘‘BATS’’) filed with the
Funds 2 in excess of the limits in or in connection with certain services, Securities and Exchange Commission
sections 12(d)(1)(A) and (B) of the Act transactions, and underwritings, (ii) (‘‘Commission’’) the proposed rule
and (b) each Underlying Fund that is a excessive layering of fees, and (iii) change as described in Items I, II, and
registered open-end investment overly complex fund structures, which III below, which Items have been
company or series thereof, the are the concerns underlying the limits prepared by the Exchange. The
Distributor or any principal underwriter in sections 12(d)(1)(A) and (B) of the Exchange has designated this proposal
and any broker or dealer registered Act. as a ‘‘non-controversial’’ proposed rule
under the Exchange Act to sell shares of 3. Section 12(d)(1)(J) of the Act change pursuant to Section 19(b)(3)(A)
the Underlying Fund to the Fund of provides that the Commission may of the Act 3 and Rule 19b–4(f)(6)(iii)
Funds in excess of the limits in section exempt any person, security, or thereunder,4 which renders it effective
12(d)(1)(B) of the Act. Applicants also transaction, or any class or classes of upon filing with the Commission. The
request an order of exemption under persons, securities, or transactions from Commission is publishing this notice to
sections 6(c) and 17(b) of the Act from any provision of section 12(d)(1) if the solicit comments on the proposed rule
the prohibition on certain affiliated exemption is consistent with the public change from interested persons.
transactions in section 17(a) of the Act interest and the protection of investors. I. Self-Regulatory Organization’s
to the extent necessary to permit the Section 17(b) of the Act authorizes the Statement of the Terms of the Substance
Underlying Funds to sell their shares to, Commission to grant an order of the Proposed Rule Change
and redeem their shares from, the Funds permitting a transaction otherwise
of Funds.3 Applicants state that such prohibited by section 17(a) if it finds The Exchange filed a proposal to
transactions will be consistent with the that (a) the terms of the proposed amend Rules 11.5, Registration of
policies of each Fund of Funds and each transaction are reasonable and fair and Market Makers, 11.6, Obligations of
Underlying Fund and with the general do not involve overreaching on the part Market Maker Authorized Traders, 11.7,
purposes of the Act and will be based of any person concerned; (b) the Registration of Market Makers in a
on the net asset values of the proposed transaction is consistent with Security, and 11.8, Obligations of
Underlying Funds. the policies of each registered Market Makers, in order to update
2. Applicants agree that any order investment company involved; and (c) certain provisions and conform to the
granting the requested relief will be the proposed transaction is consistent rules of EDGA Exchange, Inc. (‘‘EDGA’’),
subject to the terms and conditions with the general purposes of the Act. EDGX Exchange, Inc. (‘‘EDGX’’),
stated in the application. Such terms Section 6(c) of the Act permits the Exchange’s equity options trading
and conditions are designed to, among Commission to exempt any persons or platform (‘‘BZX Options’’), EDGX’s
other things, help prevent any potential transactions from any provision of the equity options trading platform (‘‘EDGX
Act if such exemption is necessary or Options’’), and the Nasdaq Stock Market
1 Applicants request that the order apply to each
appropriate in the public interest and LLC (‘‘Nasdaq’’).5
existing and future series of Columbia Funds Series consistent with the protection of The text of the proposed rule change
Trust I and Columbia Funds Variable Insurance is available at the Exchange’s Web site
Trust, and to each existing and future registered investors and the purposes fairly
open-end management investment company or intended by the policy and provisions of at www.batstrading.com, at the
series thereof which is advised by the Adviser or the Act. principal office of the Exchange, and at
any entity controlling, controlled by or under the Commission’s Public Reference
common control with the Adviser and which is part For the Commission, by the Division of Room.
of the same ‘‘group of investment companies’’ as Investment Management, pursuant to
Columbia Funds Series Trust I and Columbia Funds delegated authority. II. Self-Regulatory Organization’s
Variable Insurance Trust (each, a ‘‘Fund’’). For Statement of the Purpose of, and
purposes of the request for relief, the term ‘‘group
Robert W. Errett,
of investment companies’’ means any two or more Deputy Secretary. Statutory Basis for, the Proposed Rule
investment companies that hold themselves out to [FR Doc. 2016–00470 Filed 1–12–16; 8:45 am] Change
investors as related companies for purposes of
investment and investor services. BILLING CODE 8011–01–P In its filing with the Commission, the
2 Certain of the Underlying Funds have obtained Exchange included statements
exemptions from the Commission necessary to concerning the purpose of and basis for
permit their shares to be listed and traded on a SECURITIES AND EXCHANGE the proposed rule change and discussed
national securities exchange at negotiated prices COMMISSION
and, accordingly, to operate as exchange-traded
any comments it received on the
funds (‘‘ETFs’’). [Release No. 34–76849; File No. SR–BATS– proposed rule change. The text of these
3 A Fund of Funds generally would purchase and
2015–121] statements may be examined at the
sell shares of an Unaffiliated Fund that operates as places specified in Item IV below. The
an ETF through secondary market transactions Self-Regulatory Organizations; BATS Exchange has prepared summaries, set
rather than through principal transactions with the
Unaffiliated Fund. To the extent that a Fund of Exchange, Inc.; Notice of Filing and forth in Sections A, B, and C below, of
Funds purchases or redeems shares from an ETF Immediate Effectiveness of a Proposed the most significant parts of such
that is an affiliated person of the Fund of Funds in Rule Changes to Rules 11.5, statements.
asabaliauskas on DSK5VPTVN1PROD with NOTICES

exchange for a basket of specified securities as Registration of Market Makers, 11.6,
described in the Application for the exemptive
order upon which the ETF relies, Applicants also Obligations of Market Maker 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
request relief from Section 17(a) for those in-kind Authorized Traders, 11.7, Registration
3 15 U.S.C. 78s(b)(3)(A).
transactions. Applicants are not seeking relief from of Market Makers in a Security, and 4 17 CFR 240.19b–4(f)(6)(iii).
Section 17(a) for, and the requested relief will not 11.8, Obligations of Market Makers
apply to, transactions where an ETF could be 5 See EDGA and EDGX Rules 11.17, 11.18, 11.19,

deemed an affiliated person, or an affiliated person January 7, 2016. and 11.20; BZX Options Rule 22.6(d)(4), (5), and (7);
of an affiliated person, of a Fund of Funds because EDGX Options Rule 22.6(d)(4), (5), and (7); and
an investment adviser to the ETF is also an Pursuant to Section 19(b)(1) of the Nasdaq Rules Rule 4613(a)(2)(ii) [sic], 4613(a)(2)(D)
investment adviser to the Fund of Funds. Securities Exchange Act of 1934 (the and (E).

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Document Created: 2016-01-13 01:01:19
Document Modified: 2016-01-13 01:01:19

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of an application for an order under section 12(d)(1)(J) of the Investment Company Act of 1940 (the ``Act'') for an exemption from sections 12(d)(1)(A) and (B) of the Act and under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and (2) of the Act. The requested order would permit certain registered open-end investment companies to acquire shares of certain registered open-end investment companies and unit investment trusts (collectively, ``Underlying Funds'') that are within and outside the same group of investment companies as the acquiring investment companies, in excess of the limits in section 12(d)(1) of the Act.
Contact		Michael S. Didiuk, Senior Counsel, at (202) 551-6839, or Holly Hunter-Ceci, Branch Chief, at (202) 551-6825 (Division of Investment Management, Chief Counsel's Office).
FR Citation		81 FR 1656