82 FR 8966 - StrongVest ETF Trust, et al.; Notice of Application
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 20 (February 1, 2017)
Federal Register Volume 82, Issue 20 (February 1, 2017)
| Page Range | 8966-8968 | |
| FR Document | 2017-02080 |
[Federal Register Volume 82, Number 20 (Wednesday, February 1, 2017)] [Notices] [Pages 8966-8968] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-02080] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 32453; 812-14700] StrongVest ETF Trust, et al.; Notice of Application January 26, 2017. AGENCY: Securities and Exchange Commission (``Commission''). ACTION: Notice of an application for an order under section 6(c) of the Investment Company Act of 1940 (the ``Act'') for an exemption from sections 2(a)(32), 5(a)(1), 22(d), and 22(e) of the Act and rule 22c-1 under the Act, under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and 17(a)(2) of the Act, and under section 12(d)(1)(J) for an exemption from sections 12(d)(1)(A) and 12(d)(1)(B) of the Act. The requested order would permit (a) index- based series of certain open-end management investment companies (``Funds'') to issue shares redeemable in large aggregations only (``Creation Units''); (b) secondary market transactions in Fund shares to occur at negotiated market prices rather than at net asset value (``NAV''); (c) certain Funds to pay redemption proceeds, under certain circumstances, more than seven days after the tender of shares for redemption; (d) certain affiliated persons of a Fund to deposit securities into, and receive securities from, the Fund in connection with the purchase and redemption of Creation Units; (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the Funds (``Funds of Funds'') to acquire shares of the Funds; and (f) certain Funds (``Feeder Funds'') to create and redeem Creation Units in-kind in a master-feeder structure. ----------------------------------------------------------------------- Applicants: StrongVest ETF Trust (the ``Trust''), a Delaware statutory trust, which will be registered under the Act as an open-end management investment company with multiple series, StrongVest Global Advisors, LLC (the ``Initial Adviser''), a Delaware limited liability company, which will be registered as an investment adviser under the Investment Advisers Act of 1940, and Quasar Distributors, LLC (the ``Distributor''), a Delaware limited liability company and broker- dealer registered under the Securities Exchange Act of 1934 (``Exchange Act''). Filing Dates: The application was filed on September 20, 2016 and amended on January 12, 2017. 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 February 21, 2017, and should be accompanied by proof of service on 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, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090; Applicants: The Trust and Initial Adviser, 106 Corporate Park Drive, Mooresville, NC 28117; the Distributor, 615 East Michigan Street, Milwaukee, WI 53202. FOR FURTHER INFORMATION CONTACT: Hae-Sung Lee, Attorney-Adviser, at (202) 551-7345, or Mary Kay Frech, Branch [[Page 8967]] Chief, at (202) 551-6821 (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. Summary of the Application 1. Applicants request an order that would allow Funds to operate as index-based exchange traded funds (``ETFs'').\1\ Fund shares will be purchased and redeemed at their NAV in Creation Units only. All orders to purchase Creation Units and all redemption requests will be placed by or through an ``Authorized Participant'', which will have signed a participant agreement with the Distributor. Shares will be listed and traded individually on a national securities exchange, where share prices will be based on the current bid/offer market. Certain Funds may operate as Feeder Funds in a master-feeder structure. Any order granting the requested relief would be subject to the terms and conditions stated in the application. --------------------------------------------------------------------------- \1\ Applicants request that the order apply to the existing series of the Trust that are index-based ETFs and any additional series of the Trust, and any other open-end management investment company or existing or future series thereof that may be created in the future (each, included in the term ``Fund'') each of which will operate as an ETF and will track a specified index comprised of domestic or foreign equity and/or fixed income securities (each, an ``Underlying Index''). Any Fund will (a) be advised by the Initial Adviser or an entity controlling, controlled by, or under common control with the Initial Adviser (such entity or any successor thereto is included in the term ``Adviser'') and (b) comply with the terms and conditions of the application. --------------------------------------------------------------------------- 2. Each Fund will hold investment positions selected to correspond generally to the performance of an Underlying Index. In the case of Self-Indexing Funds, an affiliated person, as defined in section 2(a)(3) of the Act (``Affiliated Person''), or an affiliated person of an Affiliated Person (``Second-Tier Affiliate''), of the Trust or a Fund, of the Adviser, of any sub-adviser to or promoter of a Fund, or of the Distributor will compile, create, sponsor or maintain the Underlying Index.\2\ --------------------------------------------------------------------------- \2\ Each Self-Indexing Fund will post on its Web site the identities and quantities of the investment positions that will form the basis for the Fund's calculation of its NAV at the end of the day. Applicants believe that requiring Self-Indexing Funds to maintain full portfolio transparency will help address, together with other protections, conflicts of interest with respect to such Funds. --------------------------------------------------------------------------- 3. Shares will be purchased and redeemed in Creation Units and generally on an in-kind basis. Except where the purchase or redemption will include cash under the limited circumstances specified in the application, purchasers will be required to purchase Creation Units by depositing specified instruments (``Deposit Instruments''), and shareholders redeeming their shares will receive specified instruments (``Redemption Instruments''). The Deposit Instruments and the Redemption Instruments will each correspond pro rata to the positions in the Fund's portfolio (including cash positions) except as specified in the application. 4. Because shares will not be individually redeemable, applicants request an exemption from section 5(a)(1) and section 2(a)(32) of the Act that would permit the Funds to register as open-end management investment companies and issue shares that are redeemable in Creation Units only. 5. Applicants also request an exemption from section 22(d) of the Act and rule 22c-1 under the Act as secondary market trading in shares will take place at negotiated prices, not at a current offering price described in a Fund's prospectus, and not at a price based on NAV. Applicants state that (a) secondary market trading in shares does not involve a Fund as a party and will not result in dilution of an investment in shares, and (b) to the extent different prices exist during a given trading day, or from day to day, such variances occur as a result of third-party market forces, such as supply and demand. Therefore, applicants assert that secondary market transactions in shares will not lead to discrimination or preferential treatment among purchasers. Finally, applicants represent that share market prices will be disciplined by arbitrage opportunities, which should prevent shares from trading at a material discount or premium from NAV. 6. With respect to Funds that effect creations and redemptions of Creation Units in kind and that are based on certain Underlying Indexes that include foreign securities, applicants request relief from the requirement imposed by section 22(e) in order to allow such Funds to pay redemption proceeds within fifteen calendar days following the tender of Creation Units for redemption. Applicants assert that the requested relief would not be inconsistent with the spirit and intent of section 22(e) to prevent unreasonable, undisclosed or unforeseen delays in the actual payment of redemption proceeds. 7. Applicants request an exemption to permit Funds of Funds to acquire Fund shares beyond the limits of section 12(d)(1)(A) of the Act; and the Funds, and any principal underwriter for the Funds, and/or any broker or dealer registered under the Exchange Act, to sell shares to Funds of Funds beyond the limits of section 12(d)(1)(B) of the Act. The application's terms and conditions are designed to, among other things, help prevent any potential (i) undue influence over a Fund 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. 8. Applicants request an exemption from sections 17(a)(1) and 17(a)(2) of the Act to permit persons that are Affiliated Persons, or Second Tier Affiliates, of the Funds, solely by virtue of certain ownership interests, to effectuate purchases and redemptions in-kind. The deposit procedures for in-kind purchases of Creation Units and the redemption procedures for in-kind redemptions of Creation Units will be the same for all purchases and redemptions and Deposit Instruments and Redemption Instruments will be valued in the same manner as those investment positions currently held by the Funds. Applicants also seek relief from the prohibitions on affiliated transactions in section 17(a) to permit a Fund to sell its shares to and redeem its shares from a Fund of Funds, and to engage in the accompanying in-kind transactions with the Fund of Funds.\3\ The purchase of Creation Units by a Fund of Funds directly from a Fund will be accomplished in accordance with the policies of the Fund of Funds and will be based on the NAVs of the Funds. --------------------------------------------------------------------------- \3\ The requested relief would apply to direct sales of shares in Creation Units by a Fund to a Fund of Funds and redemptions of those shares. Applicants, moreover, are not seeking relief from section 17(a) for, and the requested relief will not apply to, transactions where a Fund could be deemed an Affiliated Person, or a Second-Tier Affiliate, of a Fund of Funds because an Adviser or an entity controlling, controlled by or under common control with an Adviser provides investment advisory services to that Fund of Funds. --------------------------------------------------------------------------- 9. Applicants also request relief to permit a Feeder Fund to acquire shares of another registered investment company managed by the Adviser having substantially the same investment objectives as the Feeder Fund (``Master Fund'') beyond the limitations in section 12(d)(1)(A) and permit the Master Fund, and any principal underwriter for the Master [[Page 8968]] Fund, to sell shares of the Master Fund to the Feeder Fund beyond the limitations in section 12(d)(1)(B). 10. 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. 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 fair and reasonable 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. For the Commission, by the Division of Investment Management, under delegated authority. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-02080 Filed 1-31-17; 8:45 am] BILLING CODE 8011-01-P
![8966 Federal Register / Vol. 82, No. 20 / Wednesday, February 1, 2017 / Notices
material, non-public information by its commence delisting procedures under under certain circumstances, more than
employees.32 NYSE Arca Equities Rule 5.5(m). seven days after the tender of shares for
(13) Prior to the commencement of This approval order is based on all of redemption; (d) certain affiliated
trading, the Exchange will inform its the Exchange’s representations, persons of a Fund to deposit securities
Equity Trading Permit Holders (‘‘ETP including those set forth above and in into, and receive securities from, the
Holders’’) in an Information Bulletin Amendments No. 1, No. 2, and No. 3. Fund in connection with the purchase
(‘‘Bulletin’’) of the special For the foregoing reasons, the and redemption of Creation Units; (e)
Commission finds that the proposed certain registered management
characteristics and risks associated with
rule change is consistent with Section investment companies and unit
trading the Shares of the Fund.
6(b)(5) of the Exchange Act 34 and investment trusts outside of the same
Specifically, the Bulletin will discuss
Section 11A(a)(1)(C)(iii) of the Exchange group of investment companies as the
the following: (a) The procedures for
Act 35 and the rules and regulations Funds (‘‘Funds of Funds’’) to acquire
purchases and redemptions of Shares in
thereunder applicable to a national shares of the Funds; and (f) certain
Creation Units (as defined in
securities exchange. Funds (‘‘Feeder Funds’’) to create and
Amendment No. 1) (and that Shares are redeem Creation Units in-kind in a
not individually redeemable); (b) NYSE IV. Conclusion master-feeder structure.
Arca Equities Rule 9.2(a), which It is therefore ordered, pursuant to
imposes a duty of due diligence on its Section 19(b)(2) of the Exchange Act,36 APPLICANTS: StrongVest ETF Trust (the
ETP Holders to learn the essential facts that the proposed rule change (SR– ‘‘Trust’’), a Delaware statutory trust,
relating to every customer prior to NYSEArca–2016–100), as modified by which will be registered under the Act
trading the Shares; (c) the risks involved Amendments No. 1, No. 2, and No. 3, as an open-end management investment
in trading the Shares during the be, and hereby is, approved. company with multiple series,
Opening and Late Trading Sessions (as StrongVest Global Advisors, LLC (the
defined in Amendment No. 1) when an For the Commission, by the Division of
Trading and Markets, pursuant to delegated ‘‘Initial Adviser’’), a Delaware limited
updated IIV or Index value will not be liability company, which will be
authority.37
calculated or publicly disseminated; (d) registered as an investment adviser
Eduardo A. Aleman,
how information regarding the IIV and under the Investment Advisers Act of
Index value is disseminated; (e) the Assistant Secretary.
1940, and Quasar Distributors, LLC (the
requirement that ETP Holders deliver a [FR Doc. 2017–02089 Filed 1–31–17; 8:45 am]
‘‘Distributor’’), a Delaware limited
prospectus to investors purchasing BILLING CODE 8011–01–P
liability company and broker-dealer
newly issued Shares prior to or registered under the Securities
concurrently with the confirmation of a Exchange Act of 1934 (‘‘Exchange Act’’).
transaction; and (f) trading information. SECURITIES AND EXCHANGE
FILING DATES: The application was filed
COMMISSION
(14) All statements and on September 20, 2016 and amended on
representations made in this filing [Investment Company Act Release No. January 12, 2017.
regarding (a) the description of the 32453; 812–14700] HEARING OR NOTIFICATION OF HEARING:
portfolio, (b) limitations on portfolio An order granting the requested relief
holdings or reference assets, or (c) the StrongVest ETF Trust, et al.; Notice of
will be issued unless the Commission
applicability of Exchange rules and Application
orders a hearing. Interested persons may
surveillance procedures, shall constitute January 26, 2017. request a hearing by writing to the
continued listing requirements for Commission’s Secretary and serving
AGENCY: Securities and Exchange
listing the Shares on the Exchange. applicants with a copy of the request,
Commission (‘‘Commission’’).
(15) The issuer has represented to the personally or by mail. Hearing requests
ACTION: Notice of an application for an
Exchange that it will advise the should be received by the Commission
order under section 6(c) of the by 5:30 p.m. on February 21, 2017, and
Exchange of any failure by the Fund to Investment Company Act of 1940 (the
comply with the continued listing should be accompanied by proof of
‘‘Act’’) for an exemption from sections service on applicants, in the form of an
requirements, and, pursuant to its 2(a)(32), 5(a)(1), 22(d), and 22(e) of the
obligations under Section 19(g)(1) of the affidavit, or for lawyers, a certificate of
Act and rule 22c–1 under the Act, under service. Pursuant to rule 0–5 under the
Act, the Exchange will monitor 33 for sections 6(c) and 17(b) of the Act for an
compliance with the continued listing Act, hearing requests should state the
exemption from sections 17(a)(1) and nature of the writer’s interest, any facts
requirements. If the Fund is not in 17(a)(2) of the Act, and under section
compliance with the applicable listing bearing upon the desirability of a
12(d)(1)(J) for an exemption from hearing on the matter, the reason for the
requirements, the Exchange will sections 12(d)(1)(A) and 12(d)(1)(B) of request, and the issues contested.
the Act. The requested order would Persons who wish to be notified of a
32 See id. at 15. permit (a) index-based series of certain hearing may request notification by
33 The Commission notes that certain other
proposals for the listing and trading of shares of
open-end management investment writing to the Commission’s Secretary.
other exchange-traded products include a companies (‘‘Funds’’) to issue shares
ADDRESSES: Secretary, Securities and
representation that the exchange will ‘‘surveil’’ for redeemable in large aggregations only
compliance with the continued listing Exchange Commission, 100 F Street NE.,
(‘‘Creation Units’’); (b) secondary market
requirements. See, e.g., Securities Exchange Act Washington, DC 20549–1090;
transactions in Fund shares to occur at
Release No. 77499 (April 1, 2016), 81 FR 20428, Applicants: The Trust and Initial
sradovich on DSK3GMQ082PROD with NOTICES
20432 (April 7, 2016) (SR–BATS–2016–04). In the negotiated market prices rather than at
Adviser, 106 Corporate Park Drive,
context of this representation, it is the net asset value (‘‘NAV’’); (c) certain
Commission’s view that ‘‘monitor’’ and ‘‘surveil’’ Mooresville, NC 28117; the Distributor,
Funds to pay redemption proceeds,
both mean ongoing oversight of the Fund’s 615 East Michigan Street, Milwaukee,
compliance with the continued listing 34 15 U.S.C. 78f(b)(5).
WI 53202.
requirements. Therefore, the Commission does not
35 15 U.S.C. 78k–1(a)(1)(C)(iii). FOR FURTHER INFORMATION CONTACT: Hae-
view ‘‘monitor’’ as a more or less stringent
obligation than ‘‘surveil’’ with respect to the 36 15 U.S.C. 78s(b)(2). Sung Lee, Attorney-Adviser, at (202)
continued listing requirements. 37 17 CFR 200.30–3(a)(12). 551–7345, or Mary Kay Frech, Branch
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![8968 Federal Register / Vol. 82, No. 20 / Wednesday, February 1, 2017 / Notices
Fund, to sell shares of the Master Fund (15 U.S.C. 78a et seq.) every person who SECURITIES AND EXCHANGE
to the Feeder Fund beyond the is directly or indirectly the beneficial COMMISSION
limitations in section 12(d)(1)(B). owner of more than 10 percent of any
[Release No. 34–79884; File No. SR–
10. Section 6(c) of the Act permits the class of any equity security (other than BatsBZX–2016–61]
Commission to exempt any persons or an exempted security) which registered
transactions from any provision of the pursuant to Section 12 of the Exchange Self-Regulatory Organizations; Bats
Act if such exemption is necessary or Act, or who is a director or an officer of BZX Exchange, Inc.; Order Granting
appropriate in the public interest and the issuer of such security (collectively Approval of Proposed Rule Change, as
consistent with the protection of ‘‘reporting persons’’), must file Modified by Amendment No. 1, To
investors and the purposes fairly statements setting forth their security Amend Exchange Rule 11.23,
intended by the policy and provisions of holdings in the issuer with the Auctions, To Enhance the Reopening
the Act. Section 12(d)(1)(J) of the Act Auction Process Following a Trading
Commission. Form 5 (17 CFR 249.105)
provides that the Commission may Halt Declared Pursuant to the Plan To
is an annual statement of beneficial
exempt any person, security, or Address Extraordinary Market
ownership of securities. Approximately
transaction, or any class or classes of Volatility Pursuant to Rule 608 of
persons, securities, or transactions, from 3,904 reporting persons file Form 5
Regulation NMS
any provision of section 12(d)(1) if the annually and we estimate that it takes
exemption is consistent with the public approximately one hour to prepare the January 26, 2017.
interest and the protection of investors. form for a total of 3,904 annual burden
I. Introduction
Section 17(b) of the Act authorizes the hours.
On October 13, 2016, Bats BZX
Commission to grant an order Written comments are invited on: (a) Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’)
permitting a transaction otherwise Whether this proposed collection of filed with the Securities and Exchange
prohibited by section 17(a) if it finds information is necessary for the proper Commission (‘‘Commission’’), pursuant
that (a) the terms of the proposed performance of the functions of the to Section 19(b)(1) of the Securities
transaction are fair and reasonable and agency, including whether the Exchange Act of 1934 (‘‘Act’’),1 and
do not involve overreaching on the part information will have practical utility; Rule 19b–4 thereunder,2 a proposed rule
of any person concerned; (b) the (b) the accuracy of the agency’s estimate change related to the Exchange’s re-
proposed transaction is consistent with of the burden imposed by the collection opening process following a trading halt
the policies of each registered of information; (c) ways to enhance the declared pursuant to the National
investment company involved; and (c) quality, utility, and clarity of the Market System Plan to Address
the proposed transaction is consistent Extraordinary Market Volatility
information collected; and (d) ways to
with the general purposes of the Act. (‘‘Plan’’). The proposed rule change was
minimize the burden of the collection of
For the Commission, by the Division of information on respondents, including published for comment in the Federal
Investment Management, under delegated through the use of automated collection Register on November 1, 2016.3 On
authority. December 14, 2016, the Commission
techniques or other forms of information
Eduardo A. Aleman, extended the time period within which
technology. Consideration will be given
Assistant Secretary.
to comments and suggestions submitted to approve the proposed rule change,
[FR Doc. 2017–02080 Filed 1–31–17; 8:45 am] in writing within 60 days of this disapprove the proposed rule change, or
BILLING CODE 8011–01–P institute proceedings to determine
publication.
whether to disapprove the proposed
An agency may not conduct or rule change to January 30, 2017.4 On
SECURITIES AND EXCHANGE sponsor, and a person is not required to January 24, 2017, the Exchange filed
COMMISSION respond to, a collection of information Amendment No. 1 to the proposed rule
unless it displays a currently valid change.5 The Commission received no
Proposed Collection; Comment control number.
Request 1 15 U.S.C. 78s(b)(1).
Please direct your written comment to 2 17 CFR 240.19b–4.
Upon Written Request Copies Available Pamela Dyson, Director/Chief 3 See Securities Exchange Act Release No. 79162
From: Securities and Exchange Information Officer, Securities and (October 26, 2016), 81 FR 75875 (‘‘Notice’’).
Commission, Office of FOIA Services, Exchange Commission, c/o Remi Pavlik- 4 See Securities Exchange Act Release No. 79552,
100 F Street NE., Washington, DC Simon, 100 F Street NE., Washington, 81 FR 92928 (December 20, 2016).
5 In Amendment No. 1, the Exchange stated that
20549–2736. DC 20549 or send an email to: PRA_ it anticipates implementing the proposed rule
Extension: Mailbox@sec.gov. change in the second half of 2017, and most likely
Form 5; SEC File No. 270–323, OMB within the third quarter, assuming the Securities
Dated: January 25, 2017.
Control No. 3235–0362. Information Processors have implemented their
Eduardo A. Aleman, changes and the other primary listing exchanges are
Notice is hereby given that, pursuant Assistant Secretary. able to implement their proposed rule changes
to the Paperwork Reduction Act of 1995 simultaneously with the Exchange. The Exchange
[FR Doc. 2017–02098 Filed 1–31–17; 8:45 am] also updated the text of BZX Rule 11.23(d)(2)(E) to
(44 U.S.C. 3501 et seq.), the Securities reflect the changes made by SR–BatsBZX–2016–81.
BILLING CODE 8011–01–P
and Exchange Commission See Securities Exchange Act Release No. 79467
(‘‘Commission’’) is soliciting comments (December 5, 2016), 81 FR 89176 (December 9,
on the collection of information 2016). The Exchange stated that the changes from
sradovich on DSK3GMQ082PROD with NOTICES
SR–BatsBZX–2016–81 do not impact the same
summarized below. The Commission language as the current proposal and do not conflict
plans to submit this existing collection with the current proposal. Because Amendment No.
of information to the Office of 1 does not materially alter the substance of the
Management and Budget for extension proposed rule change or raise unique or novel
regulatory issues, Amendment No. 1 is not subject
and approval. to notice and comment. Amendment No. 1 is
Under Section 16(a) of the Securities available at: https://www.sec.gov/comments/sr-
Exchange Act of 1934 (‘‘Exchange Act’’) batsbzx-2016-61/batsbzx201661.htm.
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Document Created: 2017-02-01 00:05:57
Document Modified: 2017-02-01 00:05:57
| 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 6(c) of the Investment Company Act of 1940 (the ``Act'') for an exemption from sections 2(a)(32), 5(a)(1), 22(d), and 22(e) of the Act and rule 22c-1 under the Act, under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and 17(a)(2) of the Act, and under section 12(d)(1)(J) for an exemption from sections 12(d)(1)(A) and 12(d)(1)(B) of the Act. The requested order would permit (a) index- based series of certain open-end management investment companies (``Funds'') to issue shares redeemable in large aggregations only (``Creation Units''); (b) secondary market transactions in Fund shares to occur at negotiated market prices rather than at net asset value (``NAV''); (c) certain Funds to pay redemption proceeds, under certain circumstances, more than seven days after the tender of shares for redemption; (d) certain affiliated persons of a Fund to deposit securities into, and receive securities from, the Fund in connection with the purchase and redemption of Creation Units; (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the Funds (``Funds of Funds'') to acquire shares of the Funds; and (f) certain Funds (``Feeder Funds'') to create and redeem Creation Units in-kind in a master-feeder structure. | |
| Dates | The application was filed on September 20, 2016 and amended on January 12, 2017. | |
| Contact | Hae-Sung Lee, Attorney-Adviser, at (202) 551-7345, or Mary Kay Frech, Branch Chief, at (202) 551-6821 (Division of Investment Management, Chief Counsel's Office). | |
| FR Citation | 82 FR 8966 |
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