[Federal Register Volume 59, Number 175 (Monday, September 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22380]


[[Page Unknown]]

[Federal Register: September 12, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-20527; 812-9088]

 

Kidder, Peabody Premium Account Fund, et al.; Notice of 
Application

September 2, 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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APPLICANTS: Kidder, Peabody Premium Account Fund (the ``Premium Account 
Fund'') and Kidder, Peabody Government Money Fund, Inc. (the ``Money 
Fund'').

Relevant Act Sections: Order requested under section 6(c) for an 
exemption from rule 24f-2 under the Act.

Summary of Application: Applicants request an order to permit them 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 July 1, 1994, and amended on 
August 31, 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 
applicants 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 27, 
1994, and should be accompanied by proof of service on applicants, 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, NW., Washington, DC 20549. 
Applicants, 60 Broad Street, New York, New York 10004-2350.

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.

Applicants' Representations

    1. Applicants, registered open-end investment companies, have filed 
declarations 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. Applicants' fiscal years end on March 31. An officer of 
applicants mailed applicants' rule 24f-2 notices for fiscal year 1993 
on May 15, 1994, fifteen days before the two-month deadline. Because 
the Premium Account Fund had net sales in 1993, the notices were 
accompanied by $5,288.99, the fee payable to register the shares sold 
by the Premium Account Fund in excess of redemptions. The Money Fund 
had net redemptions in 1993 and, accordingly, no registration fee was 
due. However, the filings were not received in the SEC's mail room 
until June 6, 1994, and were rejected as having been filed too late to 
be eligible for a registration fee based on net sales. Thus, absent 
relief, applicants owe registration fees based on gross sales. For 
fiscal year 1993, this would amount to an additional $1,496,343.19 for 
the Premium Account Fund and $492,673.54 for the Money Fund.

Applicants' 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. 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.\1\
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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. Applicants believe that they acted in good faith in mailing 
their rule 24f-2 notice fifteen days before the filing deadline. 
Applicants state that, except for ``an extraordinary delay in the 
mails,'' the filings should have been received by the SEC well before 
the deadline.
    3. Applicants believe that the requested relief meets the section 
6(c) standards. Thus, applicants request an exemption under section 
6(c) from rule 24f-2 to permit them to pay registration fees based on 
net sales.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-22380 Filed 9-9-94; 8:45 am]
BILLING CODE 8010-01-M