Securities and Exchange Commission April 8, 2011 The SEC released a no-action letter allowing a 501(c)(3) tax-exempt microfinance charity to offer and sell certain notes without registration under the Securities Act or the Investment Company Act, and without qualification under the Trust Indenture Act. Cross References Securities Act Section 3(a)(4); Trust Indenture Act Section 304(a)(4)(A); Investment Company Act Section 3(c)(10)(A)(i)
The SEC yesterday released a public statement by Commissioner Luis A. Aguilar regarding the Investor Advisory Committee. He called upon the Committee for input on regulatory priorities, on disclosure and other regulatory issues, on initiatives to protect investor interest, and on initiatives to promote investor confidence and the integrity of the securities marketplace, among other issues he hopes the Committee will address in the future. View speech in full here (links externally to SEC website).
The SEC's Office of Investor Education and Advocacy issued an Investor Bulletin to inform investors of recent safeguards approved by the SEC to address market volatility in U.S. equity markets. The Bulletin discusses the SEC's new rules relating to circuit breakers and to limit up and limit down mechanisms. For additional information, see the SEC's orders: National Market System Plan Approval Order Market-Wide Circuit Breaker Approval Order View release in full here (links externally to SEC website).
The SEC Division of Investment Management stated that it would not recommend enforcement against an adviser under Advisers Act Section 206(4) (Prohibited Transactions by Investment Advisers) and Rule 206(4)-2 ("Custody Rule") if the adviser treats a state-created 529 plan trust that is a college savings plan for which the adviser is a Program Manager as a "pooled investment vehicle" for purposes of the Custody Rule. In light of the relief granted by the letter, advisers are not required to have a surprise audit on their activities relating to 529 plans. The relief, however, is subject to
Wells Fargo filed an application requesting an exemption from section 12(d)(1)(A) and (B) (Functions and activities of investment companies), section 17(a)(1) and (2) (Transactions of certain affiliated persons and underwriters), and rule 12d1- 2(a) (Exemptions for Investment Companies Relying on Section 12(d)(1)(G)) under the Investment Company Act. The requested order would (i) permit certain registered open-end management investment companies to acquire shares of other registered open-end management investment companies and unit investment trusts (‘‘UITs’’) that are within and outside the