ICI Files Comment Letter on SEC Proposed Amendments Regarding Interim Adviser Contracts

Washington, DC, October 7, 1998 - The Institute recently filed with the Securities and Exchange Commission a comment letter on the Commission's proposed amendments to Rule 15a-4 under the Investment Company Act of 1940. The rule permits an investment adviser to a fund, in certain circumstances, to serve temporarily under an interim contract that has not received shareholder approval. The proposed amendments would, among other things, extend the rule to adviser mergers and increase the time period during which the adviser may serve under a contract without shareholder approval from 120 days to 150 days. The Institute's letter generally supports the Commission's proposal, but recommends certain changes.