supporting statute

15 USC Sec. 80a-29 01/03/2007

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS

SUBCHAPTER I - INVESTMENT COMPANIES

-HEAD-

Sec. 80a-29. Reports and financial statements of investment

companies and affiliated persons

-STATUTE-

(a) Annual report by company

Every registered investment company shall file annually with the

Commission such information, documents, and reports as investment

companies having securities registered on a national securities

exchange are required to file annually pursuant to section 13(a) of

the Securities Exchange Act of 1934 [15 U.S.C. 78m(a)] and the

rules and regulations issued thereunder.

(b) Semi-annual or quarterly filing of information; copies of

periodic or interim reports sent to security holders

Every registered investment company shall file with the

Commission -

(1) such information, documents, and reports (other than

financial statements), as the Commission may require to keep

reasonably current the information and documents contained in the

registration statement of such company filed under this

subchapter; and

(2) copies of every periodic or interim report or similar

communication containing financial statements and transmitted to

any class of such company's security holders, such copies to be

filed not later than ten days after such transmission.

Any information or documents contained in a report or other

communication to security holders filed pursuant to paragraph (2)

of this subsection may be incorporated by reference in any report

subsequently or concurrently filed pursuant to paragraph (1) of

this subsection.

(c) Minimizing reporting burdens

(1) The Commission shall take such action as it deems necessary

or appropriate, consistent with the public interest and the

protection of investors, to avoid unnecessary reporting by, and

minimize the compliance burdens on, registered investment companies

and their affiliated persons in exercising its authority -

(A) under subsection (f) of this section; and

(B) under subsection (b)(1) of this section, if the Commission

requires the filing of information, documents, and reports under

that subsection on a basis more frequently than semiannually.

(2) Action taken by the Commission under paragraph (1) shall

include considering, and requesting public comment on -

(A) feasible alternatives that minimize the reporting burdens

on registered investment companies; and

(B) the utility of such information, documents, and reports to

the Commission in relation to the costs to registered investment

companies and their affiliated persons of providing such

information, documents, and reports.

(d) Reports under this section in lieu of reports under other

provisions of law

The Commission shall issue rules and regulations permitting the

filing with the Commission, and with any national securities

exchange concerned, of copies of periodic reports, or of extracts

therefrom, filed by any registered investment company pursuant to

subsections (a) and (b) of this section, in lieu of any reports and

documents required of such company under section 13 or 15(d) of the

Securities Exchange Act of 1934 [15 U.S.C. 78m or 78o(d)].

(e) Semiannual reports to stockholders

Every registered investment company shall transmit to its

stockholders, at least semiannually, reports containing such of the

following information and financial statements or their equivalent,

as of a reasonably current date, as the Commission may prescribe by

rules and regulations for the protection of investors, which

reports shall not be misleading in any material respect in the

light of the reports required to be filed pursuant to subsections

(a) and (b) of this section:

(1) a balance sheet accompanied by a statement of the aggregate

value of investments on the date of such balance sheet;

(2) a list showing the amounts and values of securities owned

on the date of such balance sheet;

(3) a statement of income, for the period covered by the

report, which shall be itemized at least with respect to each

category of income and expense representing more than 5 per

centum of total income or expense;

(4) a statement of surplus, which shall be itemized at least

with respect to each charge or credit to the surplus account

which represents more than 5 per centum of the total charges or

credits during the period covered by the report;

(5) a statement of the aggregate remuneration paid by the

company during the period covered by the report (A) to all

directors and to all members of any advisory board for regular

compensation; (B) to each director and to each member of an

advisory board for special compensation; (C) to all officers; and

(D) to each person of whom any officer or director of the company

is an affiliated person; and

(6) a statement of the aggregate dollar amounts of purchases

and sales of investment securities, other than Government

securities, made during the period covered by the report:

Provided, That if in the judgment of the Commission any item

required under this subsection is inapplicable or inappropriate to

any specified type or types of investment company, the Commission

may by rules and regulations permit in lieu thereof the inclusion

of such item of a comparable character as it may deem applicable or

appropriate to such type or types of investment company.

(f) Additional information

The Commission may, by rule, require that semiannual reports

containing the information set forth in subsection (e) of this

section include such other information as the Commission deems

necessary or appropriate in the public interest or for the

protection of investors.

(g) Certificate of independent public accountants

Financial statements contained in annual reports required

pursuant to subsections (a) and (e) of this section, if required by

the rules and regulations of the Commission, shall be accompanied

by a certificate of independent public accountants. The certificate

of such independent public accountants shall be based upon an audit

not less in scope or procedures followed than that which

independent public accountants would ordinarily make for the

purpose of presenting comprehensive and dependable financial

statements, and shall contain such information as the Commission

may prescribe, by rules and regulations in the public interest or

for the protection of investors, as to the nature and scope of the

audit and the findings and opinion of the accountants. Each such

report shall state that such independent public accountants have

verified securities owned, either by actual examination, or by

receipt of a certificate from the custodian, as the Commission may

prescribe by rules and regulations.

(h) Duties and liabilities of affiliated persons

Every person who is directly or indirectly the beneficial owner

of more than 10 per centum of any class of outstanding securities

(other than short-term paper) of which a registered closed-end

company is the issuer or who is an officer, director, member of an

advisory board, investment adviser, or affiliated person of an

investment adviser of such a company shall in respect of his

transactions in any securities of such company (other than short-

term paper) be subject to the same duties and liabilities as those

imposed by section 16 of the Securities Exchange Act of 1934 [15

U.S.C. 78p] upon certain beneficial owners, directors, and officers

in respect of their transactions in certain equity securities.

(i) Disclosure to church plan participants

A person that maintains a church plan that is excluded from the

definition of an investment company solely by reason of section 80a-

3(c)(14) of this title shall provide disclosure to plan

participants, in writing, and not less frequently than annually,

and for new participants joining such a plan after May 31, 1996, as

soon as is practicable after joining such plan, that -

(1) the plan, or any company or account maintained to manage or

hold plan assets and interests in such plan, company, or account,

are not subject to registration, regulation, or reporting under

this subchapter, the Securities Act of 1933 [15 U.S.C. 77a et

seq.], the Securities Exchange Act of 1934 [15 U.S.C. 78a et

seq.], or State securities laws; and

(2) plan participants and beneficiaries therefore will not be

afforded the protections of those provisions.

(j) Notice to Commission

The Commission may issue rules and regulations to require any

person that maintains a church plan that is excluded from the

definition of an investment company solely by reason of section 80a-

3(c)(14) of this title to file a notice with the Commission

containing such information and in such form as the Commission may

prescribe as necessary or appropriate in the public interest or

consistent with the protection of investors.

-SOURCE-

(Aug. 22, 1940, ch. 686, title I, Sec. 30, 54 Stat. 836; Pub. L.

104-290, title II, Sec. 206, title V, Sec. 508(g), Oct. 11, 1996,

110 Stat. 3430, 3449; Pub. L. 105-353, title III, Sec. 301(c)(5),

Nov. 3, 1998, 112 Stat. 3237.)

-REFTEXT-

REFERENCES IN TEXT

The Securities Act of 1933, referred to in subsec. (i)(1), is act

May 27, 1933, ch. 38, title I, 48 Stat. 74, as amended, which is

classified generally to subchapter I (Sec. 77a et seq.) of chapter

2A of this title. For complete classification of this Act to the

Code, see section 77a of this title and Tables.

The Securities Exchange Act of 1934, referred to in subsec.

(i)(1), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended,

which is classified principally to chapter 2B (Sec. 78a et seq.) of

this title. For complete classification of this Act to the Code,

see section 78a of this title and Tables.

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(1). Pub. L. 105-353, Sec. 301(c)(5)(A),

inserted "and" after semicolon at end.

Subsec. (e). Pub. L. 105-353, Sec. 301(c)(5)(B), substituted

"semiannually" for "semi-annually" in introductory provisions.

Subsecs. (g) to (j). Pub. L. 105-353, Sec. 301(c)(5)(C),

redesignated subsecs. (g) and (h), relating to disclosure to church

plan participants and notice to Commission, respectively, as (i)

and (j), respectively.

1996 - Subsec. (b)(1). Pub. L. 104-290, Sec. 206(1), added par.

(1) and struck out former par. (1) which read as follows: "such

information and documents (other than financial statements) as the

Commission may require, on a semi-annual or quarterly basis, to

keep reasonably current the information and documents contained in

the registration statement of such company filed under this

subchapter; and".

Subsecs. (c) to (e). Pub. L. 104-290, Sec. 206(2), (3), added

subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and

(e), respectively. Former subsec. (e) redesignated (g).

Subsec. (f). Pub. L. 104-290, Sec. 206(2), (4), added subsec.

(f). Former subsec. (f) redesignated (h).

Subsec. (g). Pub. L. 104-290, Sec. 508(g), added subsec. (g),

relating to disclosure to church plan participants.

Pub. L. 104-290, Sec. 206(2), (5), redesignated subsec. (e),

relating to certificate of independent public accountants, as (g),

and substituted "pursuant to subsections (a) and (e) of this

section" for "pursuant to subsections (a) and (d) of this section".

Subsec. (h). Pub. L. 104-290, Sec. 508(g), added subsec. (h),

relating to notice to Commission.

Pub. L. 104-290, Sec. 206(2), redesignated subsec. (f), relating

to duties and liabilities of affiliated persons, as (h).

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions of Securities and Exchange Commission,

with certain exceptions, to Chairman of such Commission, see Reorg.

Plan No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,

64 Stat. 1265, set out under section 78d of this title.

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