Calculation of Yield by Certain Unit Investment Trusts

1 Investment Company Act Rel. No. 21538 (Nov. 22, 1995) [60 FR 61454 (Nov. 29, 1995)]. 2Letter from Craig S. Tyle, Vice President and Senior Counsel, Investment Company Institute, to Barry P. Barbash, Director, Division of Investment Management (Dec. 14, 1995). SECURITIES AND EXCHANGE COMMISSION 17 CFR Parts 230, 239, and 270 [Release Nos. 33–7253; IC–21663; S7–32– 95] RIN 3235–AG63 Calculation of Yield by Certain Unit Investment Trusts AGENCY: Securities and Exchange Commission. ACTION: Proposed amendments to rules and forms; extension of comment period. SUMMARY: The Commission is extending from January 29, 1996 to March 29, 1996 the comment period for Investment Company Act Release No. 21538. This release proposed for public comment rule and form amendments that would require certain unit investment trusts (‘‘UITs’’) to use a uniform formula to calculate yields quoted in their prospectuses, advertisements, and sales literature. DATES: Comments on the proposed amendments should be received on or before March 29, 1996. ADDRESSES: Comments should be submitted in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. All comment letters should refer to File No. S7–32–
95. All comments received will be
available for public inspection and copying in the Commission’s Public Reference Room, 450 Fifth Street NW., Washington, DC 20549. FOR FURTHER INFORMATION CONTACT:
Anthony R. Bosch, Senior Attorney, Office of Disclosure and Adviser Regulation, (202) 942–0721, Division of Investment Management, Securities and Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. SUPPLEMENTARY INFORMATION: On November 22, 1995 the Commission published Investment Company Act Release No. 21538 which proposed for comment rule and form amendments that would standardize the calculation of yield quoted in the prospectuses, advertisements, and sales literature of certain UITs.1 The Commission requested that comments on the proposal be received by January 29, 1996. In a letter dated December 14, 1995 the Investment Company Institute (‘‘ICI’’) requested a 60-day extension for the period for commenting on the proposal.2 The ICI requested the extension to allow additional time for further research, data generation, analysis, and discussion. To permit additional time for research, data generation, analysis, and discussion and in light of the importance of comments on this subject, the Commission believes that a 60-day extension is appropriate. The comment

Federal Register / Vol. 61, No. 13 / Friday, January 19, 1996 / Proposed Rules 1313 1 17 CFR 270.12b-1(b). 2 17 CFR 270.12b-1(b)(1) and (2). The fund’s board also must approve the continuation of the plan at least annually. 17 CFR 270.12b-1(b)(3)(i). 3 In 1992, the Division of Investment Management discontinued the practice of requiring funds to submit their rule 12b-1 plans and certain other matters to a shareholder vote following the initial public offering of the fund’s shares. See Investment Company Institute (pub. avail. Nov. 6, 1992). 4 Items 2 and 7 of Form N–1A under the Securities Act of 1933 and the Investment Company Act, 17 CFR 239.15A and 274.11A. 5The Division of Investment Management has recommended eliminating the requirement for a vote on rule 12b-1 plans by initial fund shareholders. Division of Investment Management, SEC, Protecting Investors: A Half Century of Investment Company Regulation 277–78 (1992). Commenters, including the Investment Company Institute, also have recommended eliminating this requirement. Memorandum of the Investment Company Institute, Proposals To Improve Investment Company Regulation 27 (July 19, 1995). 6The proposed amendment would continue to require shareholder approval of a plan that is adopted after the sale of the fund’s securities to persons who are not affiliates of the fund or its sponsor. Thus, for example, a plan would have to be approved by shareholders if adopted following the distribution of securities to persons other than fund insiders who provide the fund’s ‘‘seed capital’’ required by section 14 of the Investment Company Act [15 U.S.C. 80a-14], without regard to whether the offering was registered under the Securities Act of 1933 [15 U.S.C. 77a]. period for responding to Investment Company Act Release No. 21538 is extended to March 29, 1996. Dated: January 11, 1996. By the Commission. Margaret H. McFarland, Deputy Secretary. [FR Doc. 96–540 Filed 1–18–96; 8:45 am] BILLING CODE 8010–01–P