Status of Investment Advisory Programs Under the Investment Company Act of 1940

Résumé

The Commission is publishing for public comment revised proposed rule 3a-4 under the Investment Company Act of 1940, which would provide a nonexclusive safe harbor from the definition of investment company for certain programs under which investment advisory services are provided to clients. Programs that are organized and operated in a manner consistent with the rule's conditions would not be required to register under the Investment Company Act or to comply with the Act's substantive requirements. The Commission also is proposing Form N-3a4 under the Investment Company Act, which would be filed with the Commission by sponsors of programs intending to rely on rule 3a-4. The rule and form are intended to provide guidance regarding the status of investment advisory programs under the Investment Company Act, and to facilitate Commission examination of persons involved in the operation of these programs. Finally, in connection with the preparation of an interpretive release, the Commission is requesting comment regarding the application of certain provisions of the Investment Advisers Act of 1940 to investment advisers participating in investment advisory programs.