[Federal Register: December 21, 2006 (Volume 71, Number 245)]
[Proposed Rules]
[Page 76618]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de06-12]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 76618]]
SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 270
[Release No. IC-27600; File No. S7-03-04]
RIN 3235-AJ05
Investment Company Governance
AGENCY: Securities and Exchange Commission.
ACTION: Request for additional comment.
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SUMMARY: The Commission is reopening the comment period on its June
2006 request for comment regarding amendments to investment company
(``fund'') governance provisions. The purpose of the additional comment
period is to permit public comment on two papers prepared by the Office
of Economic Analysis on this topic that will be made public by
including them in the comment file. The comments the Commission
receives will be used to inform our further consideration of the
matter.
DATES: Comments must be received on or before 60 days after publication
of the second of the two staff economic papers in the public comment
file. When the second of the two staff economic papers in the public
comment file is published, the Commission will publish a document
announcing the comment deadline.
ADDRESSES: To help us process and review your comments more
efficiently, comments should be sent by one method only.
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/proposed.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number S7-03-04 on the subject line; or
Use the Federal eRulemaking Portal (http://www.regulations.gov
). Follow the instructions for submitting comments.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549.
All submissions should refer to File Number S7-03-04. The Commission
will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/proposed.shtml
). Comments are also available for
public inspection and copying in the Commission's Public Reference
Room, 100 F Street, NE., Washington, DC 20549. All comments received
will be posted without change; we do not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT: Jonathan Sokobin, Deputy Chief
Economist, Office of Economic Analysis, (202) 551-6600 or Vincent
Meehan, Staff Attorney, or Penelope Saltzman, Branch Chief, Office of
Regulatory Policy, (202) 551-6792, Division of Investment Management,
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549.
SUPPLEMENTARY INFORMATION: In June 2006, the Commission requested
additional comment \1\ regarding amendments to fund governance
provisions of rules under the Investment Company Act.\2\ We received
many comments in response to our request, some of which provided
information on the costs of the provisions. Few, however, directly
addressed in a meaningful way the economic implications of the
provisions. Before considering further rulemaking on this matter, the
Commission wishes to develop a more comprehensive record and a more
thorough understanding of the economic consequences of the provisions.
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\1\ Investment Company Governance, Investment Company Act
Release No. 27395 (June 13, 2006) [71 FR 35366 (June 19, 2006)].
\2\ 15 U.S.C. 80a.
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To that end, the Commission invites comment on any aspect of the
two staff economic papers that will be published shortly after the
issuance of this release. Specifically, our staff economists have
reviewed existing relevant economic literature related to conflicts of
interest that advisers have with regard to mutual funds they advise, as
well as literature related to mutual fund governance, independent
chairmen, and board independence. Our staff economists also have
performed an analysis of the statistical properties of mutual fund
returns and potential limitations inherent in any empirical analysis
designed to identify a relationship between those returns and fund
governance. We will include their papers in the public comment file,
and we request comment on them. In addition, in order to facilitate our
assessment of the economic implications of the fund governance
provisions and any alternative approaches available to us, we also seek
comment on any other extant analyses, and we request that commenters
provide us their best assessment of these.
Dated: December 15, 2006.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E6-21903 Filed 12-20-06; 8:45 am]
BILLING CODE 8011-01-P