Page:United States Statutes at Large Volume 110 Part 5.djvu/353

 PUBLIC LAW 104-290—OCT. 11, 1996 110 STAT. 3427 "(I) the acquired company and the acquiring company are part of the same group of investment companies; "(II) the securities of the acquired company, securities of other registered open-end investment companies and registered unit investment trusts that are part of the same group of investment companies. Government securities, and short-term paper are the only investments held by the acquiring company; "(III) with respect to— "(aa) securities of the acquired company, the acquiring company does not pay and is not assessed any charges or fees for distribution-related activities, unless the acquiring company does not charge a sales load or other fees or charges for distribution-related activities; or "(bb) securities of the acquiring company, any sales loads and other distribution-related fees charged, when aggregated with any sales load and distribution-related fees paid by the acquiring company with respect to securities of the acquired fund, are not excessive under rules adopted pursuant to section 22(b) or section 22(c) by a securities association registered under section 15A of the Securities Exchange Act of 1934, or the Commission; "(IV) the acquired company has a policy that prohibits it from acquiring any securities of registered open-end investment companies or registered unit investment trusts in reliance on this subparagraph or subparagraph (F); and "(V) such acquisition is not in contravention of such rules and regulations as the Commission may from time to time prescribe with respect to acquisitions in accordance with this subparagraph, as necessary and appropriate for the protection of investors. "(ii) For purposes of this subparagraph, the term 'group of investment companies' means any 2 or more registered investment companies that hold themselves out to investors as related companies for purposes of investment and investor services."; and (5) by adding at the end the following new subparagraph: "(J) The Commission, by rule or regulation, upon its own motion or by order upon application, may conditionally or unconditionally exempt any person, security, or transaction, or any class or classes of persons, securities, or transactions from any provision of this subsection, if and to the extent that such exemption is consistent with the public interest and the protection of investors.". SEC. 203. FLEXIBLE REGISTRATION OF SECURITIES. (a) AMENDMENTS TO REGISTRATION STATEMENTS.— Section 24(e) of the Investment Company Act of 1940 (15 U.S.C. 80a-24(e)) is amended— (1) by striking paragraphs (1) and (2); (2) by striking "(3) For" and inserting "For"; and (3) by striking "pursuant to this subsection or otherwise". (b) REGISTRATION OF INDEFINITE AMOUNT OF SECURITIES.— Section 24(f) of the Investment Company Act of 1940 (15 U.S.C. 80a-24(f)) is amended to read as follows: "(f) REGISTRATION OF INDEFINITE AMOUNT OF SECURITIES. — "(1) REGISTRATION OF SECURITIES.—Upon the effective date of its registration statement, as provided by section 8 of the Securities Act of 1933, a face-amount certificate company, open- 2&-194O- 96 - 12:QL3Part5

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