[Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
[Notices]
[Pages 31193-31197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15509]



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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-22014; No. 812-9968]


Fortis Benefits Insurance Company, et al.; Notice of Application 
for an Order Pursuant to the Investment Company Act of 1940

June 13, 1996.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of application for an order pursuant to the Investment 
Company Act of 1940 (the ``1940 Act'').

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APPLICANTS: Fortis Benefits Insurance Company (``Fortis Benefits''), 
Variable Account C of Fortis Benefits Insurance Company (``Fortis 
Benefits Account'') and Fortis Investors, Inc. (``Investors'').

RELEVANT 1940 ACT SECTIONS: Order requested pursuant to Section 6(c) of 
the 1940 Act granting exemptions from the provisions of Sections 
2(a)(32), 22(c), 27(a)(3), 27(c)(1) and 27(d) thereof, and Rules 22c-1, 
6e-3(T)(b)(12), 6e-3(T)(b)(13) and 6e-3(T)(d)(1)(ii) thereunder.

SUMMARY OF APPLICATION: Applicants seek exemptive relief to the extent 
necessary to permit them to issue flexible premium surviorship variable 
life insurance policies (``Policies'') that enable Fortis Benefits to: 
(1) credit the Policy owner's account with ``premium based bonuses'' 
and ``Policy value bonuses''; (2) include in the surrender charge of 
the Policies any premium tax charge not previously recovered; and (3) 
deduct sales charges in a manner that may result in such deductions 
taken in one period being considered to be higher than those taken in a 
prior period.

FILING DATE: The application was filed on January 30, 1996, and amended 
on June 11, 1996.

HEARING OR NOTIFICATION OF HEARING: An order granting the application 
will be issued unless the Commission orders a hearing. Interested 
persons may request a hearing by writing to the Secretary of the 
Commission and serving Applicants with a copy of the request, 
personally or by mail. Hearing requests must be received by the 
Commission by 5:30 p.m. on July 8, 1996, and must 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 Secretary of the Commission.

ADDRESSES: Secretary, Securities and Exchange Commission, 450 5th 
Street, N.W., Washington, D.C. 20549. Applicants, c/o Douglas R. Lowe, 
Esq., Fortis Benefits Insurance Company, 500 Bielenberg Drive, 
Woodbury, Minnesota 55125.

FOR FURTHER INFORMATION CONTACT:
Kevin M. Kirchoff, Senior Counsel, or Patrice M. Pitts, Special 
Counsel, Office of Insurance Products (Division of Investment 
Management), at (202) 942-0670.

SUPPLEMENTARY INFORMATION: Following is a summary of the application; 
the complete application is available for a fee from the Public 
Reference Branch of the Commission.

Applicants' Representations

    1. Fortis Benefits, a Minnesota corporation, is qualified to sell 
life insurance in the District of Columbia and in all states except New 
York. It is

[[Page 31194]]

an indirect, wholly-owned subsidiary of Fortis, Inc., which is itself 
indirectly owned by N.V. AMEV (50 percent) and by Compaignie Financiere 
et de Reassurance de Group AG (50 percent).
    2. Fortis Benefits established the Fortis Benefits Account under 
the laws of the State of Minneota as a segregated investment account 
for the purpose of funding variable life insurance policies, including 
the Policies. The Fortis Benefits Account is registered as a unit 
investment trust under the 1940 Act, and currently consists of twelve 
subaccounts (``Subaccounts''), each of which invests exclusively in 
shares of a corresponding portfolio of Fortis Series Fund, Inc., a 
registered management investment company.
    3. Investors, an indirect wholly-owned subsidiary of Fortis, Inc., 
is the principal underwriter for the Policies. Investors is registered 
as a broker-dealer under the Securities Exchange Act of 1934, and is a 
member of the National Association of Securities Dealers, Inc.
    4. The Policies are last survivor flexible premium variable life 
insurance policies. Under the Policy a death benefit is payable upon 
the death of the second to die of two insured persons named in the 
application for the Policy. The Policy permits the Policy owner to 
select between, and change from time to time, two death benefit 
options. Under one of these options (``Option B''), but not the other, 
the amount at work earning a return for the Policy owner (the ``Policy 
value'') is added to the Policy's ``face amount'' of insurance coverage 
for purposes of computing the death benefit. The Policy owner also may 
change the face amount from time to time, subject to certain 
restrictions.
    5. The Policy owner may allocate the Policy value to one or more of 
the Subaccounts and/or to the general account of Fortis Benefits.
    6. The Policy may be fully surrendered at any time for its 
``surrender value,'' and, generally after the first Policy year, the 
Policy owner may make a partial withdrawal of surrender value once a 
year. The Policy owner also may take out Policy loans and has 
considerable flexibility to vary the frequency and amount of premium 
payments.
    7. The Policy generally is guaranteed not to lapse until 10 years, 
20 years, or the Policy anniversary following the younger insured's age 
85 (subject to certain limitations if the younger insured is age 65 or 
more at issue or if either insured is in a substandard mortality risk 
class), if certain minimum premium payments are made.
    8. Unless prohibited by applicable state insurance law, Fortis 
Benefits intends to pay a premium based bonus on the last day of the 
7th and each subsequent Policy year. The amount of the bonus is a 
percentage of the lesser of (a) or (b) (below), the result divided by 
the number of years that the Policy has been in force, where, as of the 
date of the credit:
    (a) is the sum of all premiums paid under the Policy less any 
withdrawals and loans taken out by the Policy owner; and
    (b) is the sum of all ``Maximum Bonus Premiums'' to date.
For this purpose, a Maximum Bonus Premium generally is the hypothetical 
estimated monthly premium payment that would keep the Policy in force 
to the younger insured's age 85, without regard to substandard risks or 
riders. A face amount increase or decrease requested by the Policy 
owner will cause an increase or decrease, respectively, in the size of 
future Maximum Bonus Premiums.
    9. The applicable percentage depends on the age of the younger 
insured at issue and the number of years the Policy has been in force. 
The current percentages and durations are as follows:

------------------------------------------------------------------------
                                                      End of policy year
           Age of younger insured at issue           -------------------
                                                      0-6   7    8    9+
------------------------------------------------------------------------
                                                                        
(3) Percentages                                                         
18-50...............................................    0    2    4    4
51-60...............................................    0    2    4    7
61-70...............................................    0    5    7   10
71-85...............................................    0    5    5    5
------------------------------------------------------------------------

    Premium based bonuses at the foregoing rates are not guaranteed, 
and Fortis Benefits reserves the right to reduce them, subject to 
guaranteed minimum rates. The guaranteed rates are as follows, and are 
guaranteed only to the extent allowed by state insurance law:

------------------------------------------------------------------------
                                                      End of policy year
           Age of younger insured at issue           -------------------
                                                      0-6   7    8    9+
------------------------------------------------------------------------
                                                                        
(3) Percentages                                                         
18-50...............................................    0    2    4    4
51-60...............................................    0    2    4    7
61-70...............................................    0    2    4    7
71-85...............................................    0    2    4    5
------------------------------------------------------------------------

    No further premium based bonuses are credited to a Policy 
subsequent to the time that the younger insured reaches age 100.
    10. All premium based bonuses will be allocated among the general 
account and the Subaccounts on a pro rata basis: i.e., in proportion to 
the amount of Policy value in each, exclusive of amounts transferred to 
the general account as a result of Policy loans. This is referred to 
hereinafter as the ``unloaded policy value.'' Following such 
allocation, these amounts will be credited with investment performance, 
and otherwise will be treated the same as any other amounts of Policy 
value.
    11. Unless prohibited in a state by applicable insurance law, each 
Policy will be credited with an increase in Policy value in the form of 
a ``Policy value bonus'' paid by Fortis Benefits on each monthly Policy 
anniversary. The Policy value bonus is computed as a percentage of the 
unloaned policy value after the ``Monthly Deduction,'' described below. 
The percentage depends on the face amount ``band,'' the death benefit 
option in effect, the amount of surrender value, and the length of time 
the Policy has been in force as of the date of the bonus. The 
percentages, expressed as annual rates, are as follows:

                  Annual Rate of Policy Value Bonuses as a Percent of Unloaned Policy Value \1\                 
----------------------------------------------------------------------------------------------------------------
                                                Band 1 & 2                Band 3                  Band 4        
                                         -----------------------------------------------------------------------
Surrender value on date of monthly bonus    Policy     Years 20     Policy     Years 20     Policy     Years 20 
                                          years 1-19   and later  years 1-19   and later  years 1-19   and later
----------------------------------------------------------------------------------------------------------------
$0-$9,999...............................         .00         .35         .00         .35         .00         .35
$10,000-$49,000.........................         .00         .35         .05         .40         .05         .40
$50,000-$99,000.........................         .05         .40         .10         .45         .10         .45
$100,000 or more........................         .10         .45         .15         .50         .20         .55
----------------------------------------------------------------------------------------------------------------
\1\ If the Option B death benefit is in effect under the Policy, .30 percent of the applicable unloaned Policy  
  value is added to the otherwise applicable bonus, regardless of the band or Policy year of the Policy,        
  provided that the surrender value on the date of the bonus is at least $10,000.                               


[[Page 31195]]


    12. There are four face amount bands for the Policies. Policies 
with a minimum face amount of $5,000,000 are band 4 Policies; Policies 
with a minimum face amount of $1,000,000 but less than $5,000,000 are 
band 3 Policies; Policies with a minimum face amount of $500,000 but 
less than $1,000,000 are band 2 Policies and Policies with a minimum 
face amount of less than $500,000 are band 1 Policies. For purposes of 
calculating the Policy value bonus percentage, the average face amount 
of the Policy from issuance to the point of the bonus payment will be 
used to determine the Policy band. Policy value bonuses at the 
foregoing rates are guaranteed, to the extent such guarantees are 
allowed by the state in which the Policy is issued, except that after 
the 19th Policy year, Fortis Benefits reserves the right, in its sole 
discretion, to reduce the otherwise applicable bonus by an amount equal 
to up to .35 percent of the unloaned policy value. All Policy value 
bonuses will be allocated among the general account and the subaccounts 
on a pro-rata basis. These amounts will be credited with investment 
performance and otherwise will be treated the same as any other amounts 
of Policy value.
    13. Fortis Benefits has designed premium based bonuses and Policy 
value bonuses and their method of operation so as to address certain 
state regulatory concerns. All sales illustrations used by Fortis 
Benefits specifically will disclose the rates of any premium based 
bonuses and Policy value advances that are assumed by any 
illustrations.
    14. A premium tax charge in the amount of 2.2 percent of all 
premium payments is assessed through monthly and daily deductions from 
Policy value under the Policy. Any portion of such amount that is not 
recovered by Fortis Benefits pursuant to the monthly and daily 
deductions may be deducted as part of the surrender charge.
    15. A sales charge in the amount of 9 percent of all premium 
payments is also assessed through the monthly and daily deductions from 
Policy value under the Policy. Any amount of this sales charge that is 
not recovered by Fortis Benefits through these monthly and daily 
deductions may be deducted as a contingent deferred sales charge that 
would be assessed as part of the surrender charge.
    16. The monthly deduction under the Policy for premium tax and 
sales charges totals $4.00 per month (deducted as part of the ``Monthly 
Deduction'' referred to below), and the daily deduction for these 
purposes is at an aggregate annual rate of .35 percent of the value of 
the Policy's net assets in the Fortis Benefits Account. These 
deductions will be waived to the extent that the cumulative amount of 
all such deductions, plus any premium tax or sales charges that may in 
the future be deducted from premiums would exceed 11.2 percent (9 
percent for sales charges and 2.2 percent for premium tax charges) of 
all premium payments made to date. This maximum may be slightly less in 
any state that limits premium tax charges to less than 2.2 percent.
    17. Fortis Benefits reserves the right to increase the premium tax 
charge to not more than 3 percent, in which the case the 11.2 percent 
maximum for the monthly and daily deductions would be increased by a 
corresponding amount up to a maximum of 12 percent. Fortis Benefits 
also reserves the right to deduct a premium tax charge or a sales 
charge directly from premium payments. The maximum amount of such 
deductions from premium payments will be 7.5 percent (a maximum of 2.5 
percent for premium tax charges and 5 percent for sales charges), in 
which case the 11.2 percent maximum referred to above for monthly and 
daily deductions would be decreased by at least a corresponding amount.
    18. A monthly charge for Policy issuance expenses at the rate set 
out below is imposed and deducted as part of the Monthly Deduction for 
the first ten Policy years following issuance of the Policy.

------------------------------------------------------------------------
                                                           Monthly rate 
                                                          per $1,000 of 
                                                          face amount at
                      Face amount                         issue (or face
                                                              amount    
                                                            increase)   
------------------------------------------------------------------------
Band 1.................................................             0.10
Band 2.................................................             0.08
Band 3.................................................             0.05
Band 4.................................................             0.03
------------------------------------------------------------------------

    This charge will also be imposed for the first ten Policy years 
following a face amount increase. Any uncollected charges are deducted, 
if at all, only as part of the surrender charge, discussed below. 
Applicants represent that this charge will not exceed the amount 
permitted by Rule 6e-3(T)(b)(13)(iii)(A).
    19. A surrender charge may be assessed on lapse or full surrender 
of a Policy before the tenth Policy anniversary (or the tenth 
anniversary of a face amount increase requested by the Policy owner). 
The surrender charge equals any portion of the Policy issuance expense 
charge, premium tax charge and the sales charge that has not yet been 
collected through the monthly and daily deductions therefor (or, in the 
case of premium tax or sales charges, deducted from premiums, as 
described above). No surrender charge is deducted upon a partial 
withdrawal of Policy value or a face amount decrease.
    20. The entire surrender charge is subject to an overall upper 
limit or ``cap'' as set forth in the table below.

------------------------------------------------------------------------
                                                         Overall ``cap''
                                                           on surrender 
                                                           charge (per  
 Adjusted age at time of policy issuance or face amount      thousand   
                        increase                         dollars of face
                                                          amount or face
                                                              amount    
                                                            increase)   
------------------------------------------------------------------------
18-24 years............................................             1.90
25-29..................................................             3.30
30-34..................................................             4.50
35-39..................................................             6.00
40-44..................................................             8.25
45-49..................................................            10.75
50-54..................................................            14.25
55-59..................................................            19.00
60-64..................................................            25.20
65-69..................................................            33.60
70-85..................................................            41.00
------------------------------------------------------------------------

    The ``Adjusted Age'' referred to in the foregoing table is the age 
of the younger insured plus \1/3\ of the lesser of (a) the difference 
in age between the younger and older insured or (b) 20. If both 
insureds are over age 80, the maximum surrender charge is $33 per 
thousand. The overall cap (and each amount of increase therein) 
decreases at a constant rate on the first and each subsequent Policy 
anniversary (or anniversary of a face amount increase, as the case may 
be) until it is zero for surrenders and lapses as of the tenth Policy 
anniversary (or increase anniversary). There will be no surrender 
charge on surrenders or lapses as of the later of the tenth Policy 
anniversary or the tenth anniversary of any face amount increase.
    21. The Monthly Deduction from Policy value includes: (a) the 
above-described monthly premium tax, sales charges and Policy issue 
expense deductions; (b) cost of insurance charge; (c) a charge for any 
optional insurance benefits added by rider; and (d) a monthly 
administrative expense charge of $6.00 per Policy. Fortis Benefits 
reserves the right to raise the monthly administrative expense charge 
to not more than $7.50 per month, and to impose an additional monthly 
administrative expense charge of up to $.13 per thousand dollars of 
face amount then in force. Applicants represent that the administrative 
charges under the Policies will not exceed the amount permitted by Rule 
6e-3(T)(b)(13)(iii)(A). After the tenth Policy year, the Monthly 
Deduction under a Policy as to which the no-lapse

[[Page 31196]]

guarantee is still in effect will also include a charge for that 
guarantee.
    22. A daily charge at an annual rate of 1.00 percent of the average 
daily value of the net assets in the Fortis Benefits Account that are 
attributable to the Policy is made for mortality and expense risks 
assumed by Fortis Benefits.
    23. Fortis Benefits reserves the right to deduct: (a) charges to 
defray its administrative expenses in effecting transfers of Policy 
value or partial withdrawals; and (b) charges for any federal income 
taxes that it may incur.

Applicants' Request for Relief and Legal Analysis

    1. Section 6(c) of the 1940 Act, in pertinent part, provides that 
the Commission may, by order upon application, conditionally or 
unconditionally exempt any person, security or transaction, or any 
classes thereof from any provisions of the 1940 Act or rules 
thereunder, if and to the extent that such 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 1940 Act.

Exemptive Relief To Permit Deduction of Remaining Premium Taxes in 
Surrender Charge

    2. Applicants request exemptions from Sections 2(a)(32), 22(c), 
27(c)(1) and 27(d) of the 1940 Act and Rules 6e-3(T)(b)(12), 6e-
3(T)(b)(13) and 22c-1 thereunder to the extent necessary to permit the 
amount of any premium tax charges that have not been previously 
collected by means of a deduction from Policy value to be included in 
the surrender charge.
    3. Sections 2(a)(32), 27(c)(1) and 27(d) of the 1940 Act prohibit 
Applicants from selling interests under a Policy unless they are 
redeemable securities, entitling a Policy owner, upon surrender, to 
receive approximately his or her proportionate share of the Fortis 
Benefits Account's current net assets. Section 27(c)(1) provides that 
no issuer of a periodic payment plan certificate shall sell such 
certificate unless the certificate is a ``redeemable security.'' 
Section 2(a)(32) defines a ``redeemable security'' as any security 
which entitles the holder, upon its presentation to the issuer, to 
receive approximately a proportionate share of the issuer's current net 
asset value, or the cash equivalent thereof. Section 27(d) requires 
that the holder of a periodic payment plan certificate be able to 
surrender the certificate under certain circumstances and recover 
certain amounts of sales charges.
    4. Rule 22c-1 prohibits Applicants from redeeming interests under a 
Policy except at a price based on the current net asset value that is 
next computed after receipt of the request for full or partial 
redemption of interests under the Policy.
    5. Rule 6e-3(T)(b)(13) provides an exemption from Section 27(d), 
and like Rule 6e-3(T)(b)(12) provides exemptions from Sections 22(c) 
and 27(c)(1) and Rule 22c-1 to the extent necessary for the payment of 
a flexible contract's cash value to be regarded as satisfying the 
requirements of those provisions, if specified conditions are 
satisfied. Applicants represent that the Policy satisfies all of such 
conditions.
    6. Applicants assert that contingent deferred sales charges for 
premium taxes were not contemplated at the time the 1940 Act was 
enacted and are not specifically contemplated by any of the rule 
provisions referenced in the preceding paragraph. Accordingly, Sections 
2(a)(32), 22(c), 27(c)(1) and 27(d) and Rules 22c-1, 6e-3(T)(b)(12) and 
6e-3(T)(b)(13) may be deemed to be inconsistent with the deduction of a 
contingent deferred charge for premium taxes from the cash proceeds 
that are, in effect, required by those provisions to be paid to Policy 
owners under various circumstances.
    7. Applicants assert that the method adopted under the Policy for 
deducting all or part of the charges for premium taxes on a basis other 
than from premium payments is more favorable to investors because more 
Policy value is available to earn a return for the investor. Applicants 
represent that:
    (a) no premium tax charge will be designed to yield a profit;
    (b) the total amount charged for premium taxes, including any 
amount of premium tax charge that Fortis Benefits may in the future 
decide to deduct from premium payments, will be no greater than if all 
such charges were taken from premiums when paid; and
    (c) the premium tax charges will not take into account the ``time 
value'' of money, which would increase the charge to factor in the 
investment cost to Fortis Benefits of deferring collection of the 
charge.

Exemptive Relief From ``Stair Step'' Requirements

    8. Applicants also request an exemption from the ``stair step'' 
requirements of Section 27(a)(3) of the 1940 Act and Rules 6e-
3(T)(b)(13)(ii) and 6e-3(T)(d)(1)(ii) thereunder.
    9. Section 27(a)(3) prohibits the sale of the Policy if the sales 
load deducted from any one of the first twelve monthly payments thereon 
``exceeds proportionately the amount deducted from any other such 
payment, or the amount deducted from any subsequent payment exceeds 
proportionately the amount deducted from any other subsequent 
payment.''
    10. Rule 6e-3(T)(b)(13)(ii) provides an exemption from Section 
27(a)(3), ``provided that the proportionate amount of sales load 
deducted from any payment shall not exceed the proportionate amount 
deducted from any prior payment.'' Rule 6e-3(T)(d)(1)(ii)(A) provides, 
in pertinent part, that, with respect to sales charges deducted other 
than from premiums (excluding asset-based sales charges), Rule 6e-
3(T)(b)(13)(ii) is deemed satisfied if ``the amount of sales load 
deducted pursuant to any method * * * does not exceed the proportionate 
amount of sales load deducted prior thereto pursuant to the same 
method.'' Rule 6e-3(T)(d)(1)(ii)(B) provides comparable relief for 
asset-based sales charges, provided that ``the percentage of assets 
taken as sales load does not exceed any of the percentages previously 
taken pursuant to the same method.''
    11. Applicants request an exemption from these ``stair step'' 
requirements because of the following three aspects of the Policies. 
First, part of the $4.00 monthly charge deducted pursuant to each 
Policy is a sales charge. While this charge will not change from month-
to-month, it will vary from month-to-month as a percentage of premiums 
paid and as a percentage of the Policy value. Applicants assert that 
assessing part of the sales charge as a flat monthly deduction rather 
than deducting it from premium payments is beneficial to Policy owners 
because: (a) a greater amount is available to earn an investment 
return; (b) deductions will be more predictable than deducting the 
entire sales charge through a daily percentage charge; and (c) Policy 
owners will have an enhanced ability to plan based on expected amounts 
of sales charge deductions.
    12. Second, the monthly and/or daily sales charge deductions may 
cease for certain periods of time and subsequently be resumed. These 
charges are suspended when the maximum amount of such charges, as a 
percentage of premium payments, has been reached. Such charges also 
will cease if additional deductions would cause sales charges to exceed 
permitted maximums, as a percentage of premiums actually paid. This 
creates a question regarding compliance with the requirements in Rule 
6e-3(T)(d)(1)(ii) (A) and (B) that

[[Page 31197]]

the proportionate or percentage amount of sales charges deducted not 
exceed the proportionate or percentage amount previously deducted 
pursuant to the same method.
    13. Applicants assert that, if Section 27(a)(3) and the related 
provisions of Rule 6e-3(T) were interpreted to prevent the resumption 
of sales charge deductions from contract assets once the deduction of 
such charges has ceased for any reason, the utility of policy designs 
that deduct sales charges from contract assets would be greatly 
reduced. Applicants submit that deducting part of the sales charges 
from Policy value, rather than from premium payments, is advantageous 
to Policy owners because more assets are put to work as Policy value 
with the potential of earning a return for the Policy owner's benefit.
    14. Third, Rule 6e-3(T)(c)(4) defines ``sales load'' for any 
contract period as the excess of premium payments over changes in 
``cash value'' (other than from investment performance) and certain 
enumerated charges. Applicants submit that because premium based 
bonuses and Policy value bonuses affect the Policy's cash value in the 
contract period during which they are credited, such bonuses could be 
deemed to result in sales charges that vary from one contract period to 
the next, relative to the amount of premium payments paid in such 
periods. The stair step provisions could apply to the extent that the 
sales load, as a percentage of premium payments made in a contract 
period, were thereby deemed to be more than that in a prior contract 
period. Applicants submit that the Policy's charge structure complies 
with the spirit and apparent purposes of Rule 6e-3(T)(b)(13)(ii) and 
6e-3(T)(d)(1)(ii).
    15. The stair step issues under the Policies result from the 
imposition of deferred sales charges in the form of monthly and/or 
daily deductions and, in the case of Policies that are surrendered or 
lapse before a certain time, the surrender charge. The stair step 
issues under the Policies do not result from early deduction of front-
end charges. Although sales charges will be deducted through several 
different types of deductions, the rate of these charges will not 
increase.

Conclusion

    For the reasons summarized above, Applicants represent that the 
exemptions requested are necessary and appropriate in the public 
interest and consistent with the protection of investors and the 
purposes fairly intended by the policy and provisions of the 1940 Act.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-15509 Filed 6-18-96; 8:45 am]
BILLING CODE 8010-01-M