[Federal Register Volume 59, Number 190 (Monday, October 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24309]
[[Page Unknown]]
[Federal Register: October 3, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-20574; 812-9186]
ACM Institutional Reserves, Inc.; Notice of Application
September 26, 1994.
Agency: Securities and Exchange Commission (``SEC'').
Action: Notice of Application for Exemption under the Investment
Company Act of 1940 (the ``Act'').
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Applicant: ACM Institutional Reserves, Inc. (``ACM'').
Relevant Act Sections: Exemption requested under section 6(c) from rule
24f-2 under the Act.
Summary of Application: ACM requests an order to permit it to pay a
share registration fee due under rule 24f-2 for its fiscal year ending
April 30, 1994 based on net sales, i.e., new sales minus redemptions,
rather than on gross sales, i.e., with no credit for redemptions.
Filing Date: The application was filed on August 19, 1994.
Hearing or Notification of Hearing: An order granting the application
will be issued unless the SEC orders a hearing. Interested parties may
request a hearing by writing to the SEC's Secretary and serving
applicant with a copy of the request, personally or by mail. Hearing
requests should be received by the SEC by 5:30 p.m. on October 20,
1994, and should be accompanied by proof of service on applicant, in
the form of an affidavit or, for lawyers, a certificate of service.
Hearing requests should state the nature of the writer's interest, the
reason for the request, and the issues contested. Persons may request
notification of a hearing by writing to the SEC's Secretary.
Addresses: Secretary, SEC, 450 5th Street, N.W., Washington, D.C.
20549. Applicant, 1345 Avenue of the Americas, New York, New York
10105.
For Further Information Contact: Fran Pollack-Matz, Senior Attorney, at
(202) 942-0570, or Robert A. Robertson, Branch Chief, at (202) 942-0564
(Division of Investment Management, Office of Investment Company
Regulation).
Supplementary Information: The following is a summary of the
application. The complete application may be obtained for a fee at the
SEC's Public Reference Branch.
Applicants' Representations
1. Applicant, a registered open-end investment company, has filed a
declaration pursuant to rule 24f-2 under the Act to register an
indefinite amount of shares under the Securities Act of 1933.
2. An investment company that has filed a declaration under rule
24f-2 must file annual notices with the SEC and pay share registration
fees for shares sold in the previous fiscal year. If the rule 24f-2
notice is filed within two months after the close of the investment
company's fiscal year, the amount of the registration fee is based on
net sales (new sales minus redemptions) in the year in question. If the
rule 24f-2 notice is not filed within two months, the registration fee
is based on gross sales (with no credit for redemptions). At the
latest, the rule 24f-2 notice along with the appropriate registration
fee must be filed within six months after the end of an investment
company's fiscal year.
3. ACM's fiscal year ends on April 30. ACM submitted the rule 24f-2
notice for the fiscal year ending April 30, 1994 to a same day courier
service on June 30, 1994, the last day of the two month filing
deadline. Because ACM had net sales during the fiscal year, the notice
was accompanied by $25,031.59, the fee payable to register the shares
sold by ACM in excess of redemptions. The filing arrived at the SEC's
filing desk after 5:30 p.m. on June 30, 1994, and was then made on July
1, 1994, but was rejected as having been filed too late to be eligible
for a registration fee based on net sales. Thus, absent relief,
applicant owes registration fees based on gross sales. For the fiscal
year ending April 30, 1994, this would amount to an additional
$573,733.41.
Applicants' Legal Analysis
1. Section 6(c) permits the SEC to exempt any person, security, or
transaction from any provisions of the Act if and to the extent the
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. In addition, the SEC
must find that an investment company was not at fault to grant an
exemption from the two month filing deadline of rule 24f-2.\1\
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\1\See Decision of the Comptroller General of the United States,
File No. B-239769.2 (July 24, 1992).
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2. ACM believes that it made a good faith effort to file the rule
24f-2 notice on a timely basis by same-day courier. ACM states that the
delay in receipt of its filing was caused by an extraordinary series of
delays precipitated by the same-day courier service.
3. ACM believes that the requested relief meets the section 6(c)
standards. Thus, ACM requests an exemption under section 6(c) from rule
24f-2 to permit them to pay registration fees based on net sales.
For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-24309 Filed 9-30-94; 8:45 am]
BILLING CODE 8010-01-M
