[Federal Register Volume 65, Number 172 (Tuesday, September 5, 2000)]
[Notices]
[Pages 53788-53792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22663]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. IC-24629; File No. 812-12098]


Aetna Life insurance and Annuity Company, et al.

August 30, 2000.
AGENCY: Securities and Exchange Commission (``SEC'' or ``Commission'').

ACTION: Notice of application for an order under Section 6(c) of the 
Investment Company Act of 1940 (``Act'') granting exemptions from the 
provisions of Sections 2(a)(32), 22(c) and 27(i)(2)(A) of the Act and 
Rule 22c-1 thereunder.

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    Applicants: Aetna Life Insurance and Annuity Company (``ALIAC'') 
and its Variable Annuity Account B (``VA B''), Aetna Insurance Company 
of America (``AICA,'' and together with ALIAC, ``Aetna''), and any 
other separate accounts of ALIAC or AICA (``Future Accounts'') that 
support in the future variable annuity contracts and certificates that 
are substantially similar in all material respects to the VA B 
contracts described (collectively, ``Applicants'').
SUMMARY OF APPLICATION: Applicants seek an order under Section 6(c) of 
the Act to the extent necessary to permit, under specified 
circumstances, the recapture of bonuses (defined below) applied to 
purchase payments made under: (i) deferred variable annuity contracts 
and certificates, described herein, that ALIAC will issue through VA B 
(the contracts and certificates, including certificate data pages and 
endorsements, are collectively referred to herein as ``VA B 
Contracts''), and (ii) deferred variable annuity contracts and 
certificates, including certificate data pages and endorsements, that 
Aetna may issue in the future through VA B or any Future Account 
(collectively, ``Accounts'') that are substantially similar in all 
material respects to the VA B Contracts (``Future Contracts,'' and 
together with the VA B Contracts, ``Contracts''). Applicants also 
request that the order being sought extend to any National Association 
of Securities Dealers, Inc. (``NASD'') member broker-dealer controlling 
or controlled by, or under common control with, Aetna, whether existing 
or created in the future, that serves as a distributor or principal 
underwriter of the Contracts offered through the Accounts (collectively 
``Aetna Broker-Dealers'').

FILING DATE: The application was filed on May 16, 2000, and amended and 
restated on August 25, 2000. Applicants represent that they will file 
an amended and restated application during the notice period to conform 
to the representations set forth herein.
    Hearing or Notification of Hearing: An order granting the 
application will be issued unless the SEC orders a hearing. Interested 
persons may request a hearing by writing to the Secretary and serving 
Applicants with a copy of the request, personally or by mail. Hearing 
requests must be received by the SEC by 5:30 p.m. on September 19, 2000 
and should be accompanied by proof of service on the 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 who wish to be 
notified of a hearing may request notification by writing to the 
Secretary of the SEC.

ADDRESSES: Secretary, SEC, 450 5th Street, N.W., Washington, D.C. 
20549-0609. Applicants, c/o Aetna Insurance Company of America, 151 
Farmington Avenue, TS31, Hartford, Connecticut 06156, Attn: J. Neil 
McMurdie, Esq.

FOR FURTHER INFORMATION CONTACT: Ann L. Vlcek, Senior Counsel, or Lorna 
MacLeod, Branch Chief, Office of Insurance Products, Division of 
Investment Management, at (202) 942-0670.

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained for a fee from 
the SEC's Public Reference Branch, 450 Fifth St., NW., Washington, D.C. 
20549-0102 (tel. (202) 942-8090).

Applicants' Representations

    1. ALIAC is a stock life insurance company organized under the 
insurance laws of the State of Connecticut in 1976. ALIAC serves as 
depositor for VA B, which was established in 1976 pursuant to authority 
granted under a resolution of ALIAC's Board of Directors. ALIAC also 
serves as depositor for several currently existing Future Accounts, one 
or more of which may support obligations under Future Contracts. ALIAC 
may establish one or more additional Future Accounts for which it will 
serve as depositor.
    2. AICA is a stock life insurance company organized under the 
insurance

[[Page 53789]]

laws of the State of Connecticut in 1990 and redomesticated under the 
laws of the State of Florida on January 5, 2000. AICA serves as 
depositor for several currently existing Future Accounts, one or more 
of which may support obligations under Future Contracts. AICA may 
establish one or more additional Future Accounts for which it will 
serve as depositor.
    3. ALIAC is the principal underwriter of VA B and is registered 
with the Commission as a broker-dealer under the Securities Exchange 
Act of 1934, as amended (the ``1934 Act''), and is a member of the 
NASD. ALIAC or a successor Aetna Broker-Dealer acting as principal 
underwriter will enter into arrangements with one or more registered 
broker-dealers, which may or may not be affiliated with ALIAC or a 
successor Aetna Broker-Dealer, to offer and sell VA B Contracts. ALIAC 
or a successor Aetna Broker-Dealer acting as principal underwriter also 
may enter into these arrangements with banks that may be acting as 
broker-dealers without separate registration under the 1934 Act 
pursuant to legal and regulatory exceptions. Further, ALIAC or 
successor Aetna Broker-Dealer may distribute VA B Contracts directly. 
ALIAC or a successor Aetna Broker-Dealer may enter into similar 
arrangement for Future Contracts. ALIAC may act as principal 
underwriter for Future Accounts and distributor for Future Contracts. A 
successor Aetna Broker-Dealer also may act as principal underwriter for 
any of the Accounts and distributor for any of the Contracts.
    4. VA B is a segregated asset account of ALIAC. VA B is registered 
with the Commission as a unit investment trust under the Act. VA B will 
fund the variable benefits available under the VA B Contracts. Units of 
interest in VA B under the VA B Contracts it funds will be registered 
under the Securities Act of 1933 (the ``1933 Act''). ALIAC and AICA may 
issue Future Contracts through the Accounts. That portion of the assets 
of VA B that is equal to the reserves and other VA B Contract 
liabilities with respect to VA B is not chargeable with liabilities 
arising out of any other business of ALIAC. Any income, gains or 
losses, realized or unrealized, from assets allocated to VA B are, in 
accordance with the VA B Contracts, credited to or charged against VA 
B, without regard to other income, gains or losses of ALIAC. The same 
will be true of any Future Account of ALIAC or AAICA.
    The following is a discussion of the VA B Contracts. Future 
Contracts funded by VA B or any Future Account of ALIAC or AICA will be 
substantially similar in all material respects to the VA B Contracts. 
Certain anticipated differences between VA B Contracts and Future 
Contracts are noted below. VA B Contracts will be sold by registered 
representatives of ALIAC, Aetna Broker-Dealers, and affiliated or 
unaffiliated broker-dealers with which ALIAC or a successor Aetna 
Broker-Dealer enters into selling agreements, as indicated above. ALIAC 
or a successor Aetna Broker-Dealer enters into selling agreements, as 
indicated above. ALIAC may issue VA B Contracts as individual or group 
flexible premium deferred variable annuity contracts. ALIAC may issue 
VA B Contracts in connection with retirement plans that qualify for 
favorable federal income tax treatment under Section 403 of the 
Internal Revenue Code of 1986 (``Code'') as a tax sheltered annuity or 
Section 408 of the Code as an individual retirement annuity 
(``Qualified Contracts''). ALIAC also may issue VA B Contracts on a 
non-tax qualified basis (``Non-Qualified Contracts''). VA B Contracts 
may be used for other purposes in the future, or offered only as 
Qualified Contracts or Non-qualified Contracts.
    6. A non-Qualified Contract may be purchased with an initial 
payment of at least $15,000 (under Option Package I), or $5,000 (under 
Option Package II or Option Package III) (the Option Packages are 
defined below). The minimum initial purchase payment for a Qualified 
Contract is $1,500. Subsequent purchase payments must be at least $50 
(ALIAC may change this amount from time to time). ALIAC will accept 
purchase payments of more that $1,000,000 subject to ALIAC's consent. 
The maximum age of any owner or annuitant on the date ALIAC establishes 
the Contract owner's account is 90. ALIAC does not accept subsequent 
purchase payments after the annuity date.
    7. An owner can allocate purchase payments or account value to one 
or more sub-accounts of VA B, each of which will invest in a 
corresponding portfolio of a mutual fund. In addition, VA B Contracts 
will permit purchase payments to be allocated to fixed interest options 
funded through the ALIAC Guaranteed Account (the ``Guaranteed 
Account'') and the fixed account which provide a guarantee of the 
purchase payment allocated thereto and interest for specified periods. 
A positive or negative adjustment, or ``market value adjustment'' 
(``MVA''), will be made to the account value in the Guaranteed Account 
upon a withdrawal, surrender or transfer from the Guaranteed Account 
prior to the end of the guaranteed term. When a death benefit is paid 
under a VA B Contract within six months of the date of death, only a 
positive aggregate MVA amount, if any, is applied to the account value 
attributable to amounts withdrawn from the Guaranteed Account. This 
provision does not apply upon the death of a spousal beneficiary or 
joint contract owner who continued the account after the first death. 
Because of the MVA feature, fixed interest option interests are 
registered under the 1933 Act pursuant to a Form S-2 Registration 
Statement. Contract owners may receive income phase payments after 
annuitization on a fixed or variable basis. Under the terms of the VA B 
Contracts, Contract owners may not annuitize, i.e., commence income 
phase payments, during the first account year.
    8. At the time of application, a Contract owner may elect the 
premium bonus option (a ``bonus owner''). The election is irrevocable. 
The premium bonus option may not be available under all Contracts or in 
all states. For each purchase payment made by a bonus owner during the 
first account year, measured from the date ALIAC establishes the bonus 
owner's account (``Year 1 Payment''), ALIAC will credit a premium bonus 
(``bonus'') to the bonus owner's account. No bonus will be credited on 
amounts reinvested following a full withdrawal. Presently, ALIAC 
intends to offer a 4% bonus, which will subject the bonus owner to a 
0.50% annual bonus option charge. In the future, ALIAC may offer 
reduced bonuses and/or reduced bonus option charges. ALIAC will 
allocate bonuses among the Investment Options (defined below) in the 
same proportion as the corresponding purchase payments are allocated by 
the bonus owner. ALIAC will fund bonuses from its general account 
assets.
    ALIAC will recapture the bonus under the following circumstances: 
(i) ALIAC will recapture all bonuses if the bonus owner returns a VA B 
Contract to ALIAC for a refund during the 10 day (or longer, if 
required) ``free-look'' period; (ii) the amount of any account value, 
step-up value or roll-up value death benefit will not include any bonus 
credited to the bonus owner's account after or within 12 months of the 
date of death; and (iii) unless prohibited by state law, ALIAC will 
recapture all or part of the bonus if the bonus owner withdraws any 
Year 1 Payment during the first seven account years. The amount of the 
bonus forfeited will equal the amount of the bonus, multiplied by the 
Year 1 Payment(s) withdrawn that are subject to a withdrawal charge 
(defined below), divided by total Year 1 Payments. For Contracts issued 
in New

[[Page 53790]]

York, the amount of the bonus forfeited will be calculated by: (i) 
determining the amount of the bonus that is subject to forfeiture 
according to the following table:

 
------------------------------------------------------------------------
                                                           \1\Amount of
                                                          premium bonus
 Completed account years at the time of the withdrawal      subject to
                                                         forfeiture  (in
                                                             percent)
------------------------------------------------------------------------
Less than 5............................................              100
5 or more but less than 6..............................               75
6 or more but less than 7..............................               50
7 or more..............................................                0
------------------------------------------------------------------------

and (ii) multiplying that amount by the Year 1 Payment(s) withdrawn 
that are subject to a withdrawal charge divided by total Year 1 
Payments. Applicants represent that the amounts recaptured will never 
exceed the bonuses, but any gain would remain part of the Contract's 
value.
    The early withdrawal charge is calculated separately for each 
purchase payment withdrawn. For purposes of calculating early 
withdrawal charges, ALIAC considers that a Contract owner's first 
purchase payment to the account (first in) is the first withdrawn 
(first out). Earnings may be withdrawn after all purchase payments have 
been withdrawn. There is no early withdrawal charge for withdrawal of 
earnings.
    9. Thirty-seven sub-accounts of VA B will be available under the VA 
B Contracts following the effectiveness of the Form N-4 registration 
statement related to such Contracts. Each sub-account will invest in 
shares of a corresponding portfolio (``Portfolio'') of an open-end, 
diversified series management investment company registered under the 
Act (each a ``Fund,'' collectively, the ``Funds''). The Funds currently 
available under the VA B Contracts are managed by various entities 
affiliated and unaffiliated with Aetna. The sub-accounts and the fixed 
interest options will comprise the initial ``Investment Options'' under 
the VA B Contracts.
    10. ALIAC, at a later date, may determine to create an additional 
sub-account or sub-accounts of VA B to invest in any additional 
Portfolio or Portfolios, or other such underlying portfolios or other 
investments as may now or in the future be available. Similarly, sub-
accounts of VA B may be combined or eliminated from time to time. 
Future Contracts may offer Funds managed by the same as well as other 
investment advisers.
    11. Three options packages (``Option Package I,'' ``Option Package 
II,'' and ``Option Package III,'' collectively, ``Option Packages'') 
are available under the VA B Contracts. Contract owners select an 
Option Package at the time of application. The premium bonus option may 
be elected with any of the Option Packages. The principal differences 
among the Option Packages relate to the mortality and expense risk 
charge, death benefit on death of the annuitant, minimum initial 
purchase payment, free withdrawals, and availability of certain 
withdrawal charge waivers.
    12. The VA B contracts also provide for various withdrawal options, 
annuity benefits and payout annuity options, as well as transfer 
privileges among Investment Options and Option Packages, dollar cost 
averaging, and other features. VA B Contracts have a withdrawal charge, 
calculated as a percentage of purchase payments. The withdrawal charge 
schedule for VA B Contracts issued outside New York is as follows: 7% 
in years less than two (from receipt of the purchase payment), 6% in 
years two or more but less than four, 5% in year four or more but less 
than five, 4% in year five or more but less than six, 3% in year six or 
more but less than seven, and 0% in years seven or more. The withdrawal 
charge schedule for VA B Contracts issued in New York is as follows: 7% 
in year less than one, 6% in year one or more but less than two, 5% in 
year two or more but less than three, 4% in year three or more but less 
than four, 3% in year four or more but less than five, 2% in year five 
or more but less than six, 1% in year six or more but less than seven, 
and 0% in years seven or more. A different withdrawal charge schedule 
applies to certain Roth IRA contracts issued through VA B outside the 
state of New York before the effectiveness of the Form N-4 registration 
statement related to the VA B Contracts. In any one account year, 
Contract owners may withdraw free of withdrawal charge 10% of the 
account value as of the beginning of such account year. Under Option 
Package III, Contract owners may carry forward into successive account 
years any unused percentage of the 10% free withdrawal amount, up to 
30% of the account value.
    VA B Contracts also have (i) an asset-based mortality and expense 
risk charge at the annual rate of 0.80% for Option Package I, 1.10% for 
Option Package II, and 1.25% for Option Package III during the 
accumulation phase, and 1.25% during the income phase (all Option 
Packages) assessed against the net assets of each sub-account; and (ii) 
an asset-based administrative expense charge at an annual rate of 0.15% 
during the accumulation phase for administration expenses (up to 0.25% 
during the income phase, but currently not deducted) assessed against 
the net assets of each sub-account. Also, each year during the 
accumulation phase, a $30 annual maintenance fee is deducted 
proportionately from each Investment Option. The annual maintenance fee 
will be waived if the Contract owner's account value is $50,000 or 
greater on the date this fee is due. The underlying Funds each impose 
investment management fees and charges for other expenses.
    Contract owners who elect the premium bonus option will pay, during 
the first seven account years, an annual premium bonus option charge 
equal to 0.50% of the account value allocated to the sub-accounts. 
ALIAC may also deduct this charge from amounts allocated to the fixed 
interest options.
    When sales of the VA B Contracts are made to individuals or a group 
of individuals in a manner that results in savings of sales or 
administrative expenses, ALIAC may reduce or eliminate the early 
withdrawal charge, annual maintenance fee, mortality and expense risk 
charge, administrative expense charge, or premium bonus option charge. 
Charges that apply under Future Contracts will be described in the 
related Form N-4 registration statements for such Contracts.
    13. Applicants seek exemption pursuant to Section 6(c) of the Act 
from Sections 2(a)(32), 22(c), and 27(i)(2)(A) of the Act and Rule 22c-
1 thereunder to the extent deemed necessary to permit Aetna to 
recapture bonuses credited under Contracts in the following three 
instances: (i) Aetna will recapture all bonuses if the bonus owner 
returns the Contract to Aetna for a refund during the 10-day (or 
longer, if required) free-look period; (ii) the amount of any account 
value, step-up value or roll-up value death benefit will not include 
any bonus credited to a bonus owner's account after or within 12 months 
of the date of death; and (iii) unless prohibited by state law, ALIAC 
will recapture the bonus according to the forfeiture schedule described 
above if the bonus owner withdraws Year 1 Payment(s) during the first 
seven account years.

Applicants' Legal Analysis

    1. Section 6(c) of the Act authorizes the Commission to exempt any 
person, security or transaction, or any class or classes of persons, 
securities or transactions from the provisions of the Act and the rules 
promulgated 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 Act. Applicants

[[Page 53791]]

request that the Commission, pursuant to Section 6(c) of the Act, grant 
the exemptions summarized above with respect to the VA B Contracts and 
any Future Contracts funded by VA B or Future Accounts, that are issued 
by Aetna and underwritten or distributed by ALIAC or any Aetna Broker-
Dealers. Applicants undertake that Future Contracts funded by VA B or 
any Future Account, in the future, will be substantially similar in all 
material respects to the VA B Contracts. Applicants believe that the 
requested exemptions are 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.
    2. Applicants represent that it is not administratively feasible to 
track the bonus amount in the Accounts after the bonus is applied. 
Applicants explain that, accordingly, the asset-based charges 
applicable to the Accounts will be assessed against the entire amounts 
held in the Accounts, including the bonus amount, during the period 
when the bonus owner's interest in the bonus is not completely vested. 
Applicants state that, therefore, during such periods, the aggregate 
asset-based charges assessed against a bonus owner's annuity account 
value will be higher than those that would be charged if the bonus 
owner's annuity account value did not include the bonus.
    3. Subsection (i) of Section 27 provides that Section 27 does not 
apply to any registered separate account funding variable insurance 
contracts, or to the sponsoring insurance company and principal 
underwriter of such account, except as provided in paragraph (2) of the 
subsection. Paragraph (2) provides that it shall be unlawful for such a 
separate account or sponsoring insurance company to sell a contract 
funded by the registered separate account unless, among other things, 
such contract is a redeemable security. Section 2(a)(32) defines 
``redeemable security'' as any security, other than short-term paper, 
under the terms of which the holder, upon presentation to the issuer, 
is entitled to receive approximately his proportionate share of the 
issuer's current net assets, or the cash equivalent thereof.
    4. Applicants submit that the bonus recapture provisions summarized 
herein would not deprive a bonus owner of his or her proportionate 
share of the issuer's current net assets. Applicants state that a bonus 
owner's interest in the amount of the bonus allocated to his or her 
annuity account upon receipt of a Year 1 Payment is not vested until 
the applicable free-look period has expired without return of the 
Contract. Similarly, Applicants state that a bonus owner's interest in 
any bonus amount credited on Year 1 Payments that are withdrawn during 
the first seven account years, or credited to the account after or 
within 12 months of the date of death, also is not vested. Until or 
unless the amount of any bonus is vested, Applicants submit that Aetna 
retains the right and interest in the bonus amount, although not in any 
earnings attributable to that amount. Thus, Applicants argue that, when 
Aetna recaptures any bonus, it is simply retrieving its own assets and, 
because a bonus owner's interest in the bonus is not vested, the bonus 
owner has not been deprived of a proportionate share of the applicable 
Account's assets, i.e., a share of the applicable Account's assets 
proportionate to the bonus owner's annuity account value (taking into 
account the investment experience attributable to the bonus).
    5. In addition, with respect to bonus recapture upon the exercise 
of the free-look privilege, Applicants state that it would be patently 
unfair to allow a bonus owner exercising that privilege to retain a 
bonus amount under a Contract that has been returned for a refund after 
a period of only a few days. Applicants state that, if Aetna could not 
recapture the bonus, individuals could purchase a Contract with no 
intention of retaining it, and simply return it for a quick profit.
    6. Furthermore, Applicants state that the recapture of any bonus 
amount credited to the account after or within 12 months of the date of 
death is designed to provided Aetna with a measure of protection from 
``anti-selection.'' Applicants state that the risk here is that, rather 
than spreading purchase payments over a number of years, a bonus owner 
will make Year 1 Payment(s) shortly before death, thereby leaving Aetna 
less time to recover the cost of a bonus, to its financial detriment.
    7. Applicants assert that the bonus will be attractive to and in 
the interest of investors because it will permit bonus owners to put an 
amount greater than their Year 1 Payment(s) to work for them in the 
selected Investment Options and because bonus owners will retain any 
earning attributable to the bonus and, unless any of the contingencies 
summarized above apply, the principal amount of the bonus.
    8. Applicants submit that the provisions for recapture of any 
applicable bonus under the VA B Contracts do not, and any such Future 
Contract provisions will not, violate Sections 2(a)(32) and 27(i)(2)(A) 
of the Act. Nevertheless, to avoid any uncertainties, Applicants 
request an exemption from those Sections, to the extent deemed 
necessary, to permit the recapture of any bonus under the circumstances 
described herein with respect to the Contracts, without the loss of the 
relief from Section 27 provided by Section 27(i).
    9. Section 22(c) of the Act authorizes the Commission to make rules 
and regulations applicable to registered investment companies and to 
principal underwriters of, and dealers in, the redeemable securities of 
any registered investment company, whether or not members of any 
securities association, to the same extent, covering the same subject 
matter, and for the accomplishment of the same ends as are prescribed 
in Section 22(a) in respect of the rules which may be made by a 
registered securities association governing its members. Rule 22c-1 
thereunder prohibits a registered investment company issuing any 
redeemable security, a person designated in such issuer's prospectus as 
authorized to consummate transactions in any such security, and a 
principal underwriter of, or dealer in, such security, from selling, 
redeeming, or repurchasing any such security except at a price based on 
the current net asset value of such security which is next computed 
after receipt of a tender of such security for redemption or of an 
order to purchase or sell such security.
    10. Arguably, Aetna's recapture of the bonus might be viewed as 
resulting in the redemption of redeemable securities for a price other 
than one based on the current net asset value of the Accounts. 
Applicants contend, however, that the recapture of the bonus is not 
violative of Section 22(c) and rule 22c-1. Applicants argue that the 
recapture of the bonus does not involve either of the evils that Rule 
22c-1 was intended to eliminate or reduce, namely: (i) the dilution of 
the value of outstanding redeemable securities of registered investment 
companies through their sale at a price below net asset value or their 
redemption or repurchase at a price above it, and (ii) other unfair 
results, including speculative trading practices. Applicants state 
that, to effect a recapture of a bonus, Aetna will redeem interests in 
a bonus owner's annuity account at a price determined on the basis of 
the current net asset value of the respective Accounts. Applicants 
represent that the amount recaptured will never exceed the amount of 
the bonus that Aetna paid out of its general account assets. Applicants 
further state that, although bonus

[[Page 53792]]

owners will be entitled to retain any investment gain attributable to 
the bonus, the amount of such gain will be determined on the basis of 
the current net asset value of the respective Accounts. Applicants 
assert that, therefore, no dilution will occur upon the recapture of 
the bonus. Applicants also submit that the second harm that rule 22c-1 
was designed to address, namely, speculative trading practices 
calculated to take advantage of backward pricing, will not occur as a 
result of the recapture of the bonus. However, to avoid any uncertainty 
as to full compliance with the Act, Applicants requested an exemption 
from the provisions of Section 22(c) and Rule 22c-1 to the extent 
deemed necessary to permit them to recapture the bonus under the 
Contracts.

Conclusion

    Applicants submit, based on the grounds summarized above, that 
their exemptive request meets the standards set out in Section 6(c) of 
the Act, namely, that the exemptions requested are 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, and that, therefore, the Commission should grant 
the requested order.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-22663 Filed 9-1-00; 8:45 am]
BILLING CODE 8010-01-M