FOR IMMEDIATE RELEASE 97-40 SEC TO CONSIDER TWO ITEMS AT OPEN MEETING Washington, D.C., May 9, 1997 -- The Securities and Exchange Commission will consider two items at an open meeting conducted under the Government in the Sunshine Act on Monday, May 12, at 2:00 p.m. The meeting will be held in Room 1C30, at the Commission's headquarters building, 450 Fifth Street, N.W., Washington, D.C. The items for discussion are: - whether to adopt amendments to Rule 17f-5 under the Investment Company Act. This rule governs the custody of assets of registered management investment companies (funds) outside the United States. The amendments would revise the findings that must be made in connection with foreign custody arrangements, permit fund boards of directors to delegate their responsibilities to select and monitor foreign custodians, and expand the class of eligible foreign custodians. - whether to adopt rules and rule amendments under the Investment Advisers Act to implement certain provisions of the Investment Advisers Supervision Coordination Act (Coordination Act). The Coordination Act amended the Advisers Act to, among other things, reallocate the responsibilities for regulating investment advisers between the Commission and the securities regulatory authorities of the states. Generally, the Coordination Act provides for Commission regulation of advisers with $25 million or more of assets under management, and state regulation of advisers with less than $25 million of assets under management. The rules and rule amendments would establish the process by which advisers that are currently registered with the Commission determine their status as Commission- or state-registered advisers after July 8, 1997, the effective date of the Coordination Act; amend Form ADV to require advisers to report annually to the Commission information relevant to their status as Commission-registered advisers; relieve advisers of the burden of having frequently to register and then de- register with the Commission as a result of changes in the amount of their assets under management; provide certain exemptions from the prohibition on registration with the Commission; define certain terms used in the Coordination Act; and clarify how advisers should count clients for purposes of both the new national de minimis exemption from state regulation and the federal de minimis exemption from Commission registration. # # # Any member of the public who requires auxiliary aids such as a sign-language interpreter or material on tape to attend a public meeting should contact Rochelle Franks, Office of Administrative and Personnel Management, to make arrangements. Ms. Franks can be reached at (202) 942-9558, or at a TTY number, (202) 942-4075. Staff members at the Commission are encouraged to contact Ms. Frank if they receive inquiries on availability of auxiliary aids.