Page:United States Statutes at Large Volume 84 Part 2.djvu/83

 84 STAT.]

1413

PUBLIC LAW 91-547-DEC. 14, 1970

Public Law 91-547 AN ACT To amend the Investment Company Act of 1940 and the Investment Advisers Act of 1940 to define the equitable standards governing relationships between investment companies and their investment advisers and principal underwriters, and for other purposes.

Be it enacted by the Senate and House of RepresentatlceH of the United States of America in Congress assembled, That this Act may be cited as the "Investment Company Amendments Act of 1970". SEC. 2. (a) Section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)) is amended as follows: (1) Paragraph (5) is amended by striking out "under section 11(k) of the Federal Reserve Act, as amended" and inserting in lien thereof "under the authority of the Comptroller of the Currency". (2) Paragraphs (19) through (.35) are redesignated as paragraphs (20) through (36), respectively, and paragraphs (36) through (42) are redesignated as paragraphs (38) through (44), respectively. (3) A new paragraph is inserted immediately after paragraph (18) to read as follows: " (19) 'Interested person" of another person means— " (A) when used with respect to an investment company— " (i) any affiliated person of such company, "(ii) any member of the immediate family of any natural person who is an affiliated person of such company, "(iii) any interested person of any investment adviser of or principal underwriter for such company, "(iv) any person or partner or employee of any person who at any time since the beginning of the last two fiscal years of such company has acted as legal counsel for such company, "(v) any broker or dealer registered under the Securities Exchange Act of 1934 or any affiliated person of such a broker or dealer, and "(vi) any natural person whom the Commission by order shall have determined to be an interested person by reason of having had, at any time since the beginning of the last two fiscal years of such company, a material business or professional relationship with such company or with the principal executive officer of such company or with any other investment company having the same investment adviser or principal underwriter or with the principal executive officer of such other investment company: Provided, That no person shall be deemed to be an interested person of an investment company solely by reason of (aa) his being a member of its board of directors or advisory board or an owner of its securities, or (bb) his membership in the immediate family of any person specified in clause (aa) of this proviso; and " (B) when used with respect to an investment adviser of or principal underwriter for any investment company— "(i) any affiliated person of such investment adviser or principal underwriter, "(ii) any member of the immediate family of any natural person who is an affiliated person of such investment adviser or principal underwriter, "(iii) any person who knowingly has any direct or indirect beneficial interest in, or who is designated as trustee, executor, or guardian of any legal interest in, any security issued either by such investment adviser or principal underwriter or by a controlling person of such investment adviser or principal underwriter,

December 14, 1S'70 [S.2224]

Investment Company Amendments Act of 1970. 54 Stat. 790.

"Interested person."

48 Stat. 8 8 1. 15 USC 78a.

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