SEC Proposes Amendments to Fund Merger Rules

Washington, DC, November 13, 2001 - The Securities and Exchange Commission has proposed amendments to Rule 17a-8 under the Investment Company Act of 1940, the rule that permits mergers and other business combinations between affiliated investment companies. The proposed amendments would expand the types of business combinations exempted by the rule, largely codifying the relief provided in prior Commission exemptive orders. The proposed amendments also would make the rule available for mergers between registered investment companies and certain unregistered entities. Under the Commission's proposal, reliance on Rule 17a-8 would be subject to various conditions that relate to:

Comments on the proposed amendments to Rule 17a-8 are due to the Commission by January 18, 2002.