[Federal Register Volume 59, Number 168 (Wednesday, August 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21414]


[[Page Unknown]]

[Federal Register: August 31, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Rel. NO. IC-20503; 812-9040]

 

Invesco Treasurer's Series Trust: Notice of Application

August 25, 1994.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION: Notice of Application for Exemption under the Investment 
Company Act of 1940 (the ``Act'').

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Applicant: Invesco Treasurer's Series Trust (``Invesco'').

Relevant Act Sections: Exemption requested under section 6(c) from rule 
24f-2 under the Act.

Summary of Application: Invesco requests an order to permit it to pay a 
share registration fee due under rule 24f-2 for its 1993 fiscal year 
based on net sales, i.e., new sales minus redemptions, rather than on 
gross sales, i.e., with no credit for redemptions.

Filing Date: The application was filed on June 7, 1994.

Hearing or Notification of Hearing: An order granting the application 
will be issued unless the SEC orders a hearing. Interested parties may 
request a hearing by writing to the SEC's Secretary and serving 
applicant with a copy of the request, personally or by mail. Hearing 
requests should be received by the SEC by 5:30 p.m. on September 19, 
1994, and should be accompanied by proof of service on applicant, in 
the form of an affidavit or, for lawyers, a certificate of service. 
Hearing requests should state the nature of the writer's interest, the 
reason for the request, and the issues contested. Persons may request 
notification of a hearing by writing to the SEC's Secretary.

ADDRESSES: Secretary, SEC, 450 5th Street, N.W., Washington, DC 20549. 
Applicant, 7800 E. Union Ave., Suite 800, Denver, Colorado 80237.

FOR FURTHER INFORMATION CONTACT:
Elaine M. Boggs, Staff Attorney, at (202) 942-0572, or Robert A. 
Robertson, Branch Chief, at (202) 942-0564 (Division of Investment 
Management, Office of Investment Company Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained for a fee at the 
SEC's Public Reference Branch.

Applicant's Representations

    1. Invesco, a registered open-end investment company, filed a 
declaration pursuant to rule 24f-2 under the Act to register an 
indefinite amount of shares under the Securities Act of 1933.
    2. An investment company that has filed a declaration under rule 
24f-2 must file annual notices with the SEC and pay share registration 
fees for shares sold in the previous fiscal year. If the rule 24f-2 
notice is filed within two months after the close of the investment 
company's fiscal year, the amount of the registration fee is based on 
net sales (new sales minus redemptions) in the year in question. If the 
rule 24f-2 notice is not filed within two months, the registration fee 
is based on gross sales (with no credit for redemptions). At the 
latest, the rule 24f-2 notice along with the appropriate registration 
fee must be filed within six months after the end of an investment 
company's fiscal year.
    3. Invesco's fiscal year ends on December 31. Invesco's transfer 
agent mailed Invesco's rule 24f-2 notice for fiscal year 1993 on 
February 21, 1994, seven days before the deadline. The filing was not 
received in the SEC's mail room until March 1, 1994, however, and was 
rejected as being too late to be eligible for a registration fee based 
on net sales. If Invesco had filed the rule 24f-2 notice within the two 
month period, it would not have been required to pay any registration 
fee because of net redemptions in fiscal year 1993. Since its filing 
was late, the rule requires Invesco to pay a registration fee based on 
gross sales, which would equal $252,007.

Legal Analysis

    1. Section 6(c) permits the SEC to exempt any person, security, or 
transaction from any provisions of the Act if and to the extent the 
exemption is necessary or appropriate in the public interest and 
consistent with the protection of investors and the purposes fairly 
intended by the policy and provisions of the Act.\1\ In addition, the 
SEC must find that an investment company was not at fault to grant an 
exemption from the two month filing deadline of rule 24f-2.
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    \1\See Decision of the Comptroller General of the United States, 
File No. B-239769.2 (July 24, 1992).
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    2. Invesco believes that its agent acted reasonably and in good 
faith in mailing its rule 24f-2 notice seven days before the filing 
deadline. Invesco states that the delay in receipt of its filing was 
caused by the fact that at the time the rule 24f-2 notice was mailed, 
the United States Postal Service's performance in delivering the mail 
was ``comparatively poor.'' According to Invesco, this resulted, in 
part, from extreme weather conditions in the early part of 1994. 
Invesco believes that it was reasonable to assume that mailing the rule 
24f-2 notice seven days before the filing deadline would assure timely 
receipt by the SEC.\2\
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    \2\The United States Postal Service recently reported that 95.3% 
of first class letters are delivered within four days (USPS, Origin-
Destination Info. Sys. Q. Stat. Rep. Postal Quarter II (1994). If 
the requested order is granted, the Division of Investment 
Management will apply a four day standard in evaluating future 
exemptive requests in which an investment company used the Postal 
Service to deliver its rule 24f-2 notice and the notice was not 
timely delivered.
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    3. Rule 24e-2 under the Act permits open-end investment companies 
to register a definite number of shares, in addition to the indefinite 
number or amount registered under rule 24f-2. For a nominal amount, an 
investment company that had redemptions during the prior fiscal year, 
but missed the rule 24f-2 two month deadline, may register a definite 
number of shares under rule 24e-2 equal to the number of shares 
redeemed. Shares registered under rule 24e-2 then can be used in future 
years to offset registration fees due under rule 24f-2 when the company 
has net sales. Invesco, however, does not believe that its net sales in 
the foreseeable future will be close to the level necessary to use such 
a credit fully.
    4. Invesco also believes that it is appropriate in the public 
interest not to burden Invesco and its shareholders with a registration 
fee based on gross sales. Thus, Invesco requests an exemption under 
section 6(c) from rule 24f-2 to permit it to pay the registration fee 
based on net sales even though their rule 24f-2 notice for fiscal year 
1993 was not filed by February 28, 1994.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-21414 Filed 8-30-94; 8:45 am]
BILLING CODE 8010-01-M