What is Section 19 of the Investment Company Act?
Section 19(a) of the Investment Company Act of 1940 requires the payment of any distribution to be accompanied by a written notice that discloses the sources of a payment if it is made from any source other than the fund's net income.
Section 19(a) of the 1940 Act generally prohibits a fund from making a distribution from any source other than the fund's net income, unless that payment is accom- panied by a written statement that adequately discloses the source or sources of the payment.
Under Section 19(b), investment companies are limited to one distribution per year of long-term capital gains (as defined in the Internal Revenue Code), subject to certain exceptions contained in Rule 19b-1.
Closed-End Fund Tax Information — Section 19 Notices
The following 19a-1 Notices disclose, among other things, estimated portions of a closed-end fund's distribution consisting of net investment income, capital gains and return of capital.
A company whose total assets (exclusive of government securities and cash items) comprise at least 40% “investment securities” (which is more broadly defined under the 1940 Act than “securities” are defined under the Securities Act of 1933).
The purpose of rule 19a–1 is to afford fund shareholders adequate disclosure of the sources from which distribution payments are made. The rule is intended to prevent shareholders from confusing income dividends with distributions made from capital sources.
The 3(c)(7) exemption refers to the Investment Company Act of 1940's section permitting qualifying private funds exemption from some SEC regulations. Private funds must not plan to issue an IPO, and their investors must be qualified purchasers to qualify for the 3C7 exemption.
Section 19(b)(2) of the Act provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding, or as to which the self- ...
SEC Form 19b-4 is used by covered self-regulatory organizations (SROs) to record a rule change with the SEC. Many stock exchanges and financial regulatory bodies are SROs, and so their bylaws, rules, and regulations must be filed with the SEC for public recordkeeping.
Independent Directors
Under the Investment Company Act, at least 40 percent of a fund's board must be directors who are not affiliated with the fund, its investment adviser or its principal underwriter.
What is distribution notice?
Distribution Notice means a notice received by the Company from the Superintendent notifying the Company that it is entitled to receive the amount indicated therein from the New York paid family leave risk adjustment pool in respect of the most recently completed calendar year.
3C1 refers to a portion of the Investment Company Act of 1940 that allows private investment companies to be considered exceptions to certain regulations and reporting requirements stipulated by the Securities and Exchange Commission (SEC).
Abstract: Rule 32a-4 exempts a fund from the requirements of section 32(a)(2) of the Investment Company Act -- that shareholders ratify or reject the selection of the fund's independent public accountant -- if, among other things, the fund has an audit committee composed wholly of independent directors.
In order to further strengthen the CCO's independence, rule 38a-1 stipulates that an investment company's officers, directors, employees, investment adviser and principal underwriter, or any person acting under the direction of these persons, are prohibited from directly or indirectly taking any action to coerce, ...
Section 31 of the Investment Company Act of 1940 requires all registered investment companies, and all underwriter, broker, dealer, or investment advisers who are a majority-owned subsidiary of an investment company to maintain records, as defined in Section 3(a)(37) of the Securities Exchange Act of 1934, for a period ...
Section 17(f)(2) of the Investment Company Act authorizes the Commission to adopt rules that establish conditions under which a "registered management company or any ... custodian" may deposit securities with a securities depository.
Section 12D-1, under the Investment Company Act of 1940, restricts investment companies from investing in one another. The rule was enacted to prevent fund of funds arrangements from one fund acquiring control of another fund to benefit its investors at the expense of the shareholders of the acquired fund.
Jurisdiction. The Investment Company Act applies to all investment companies, but exempts several types of investment companies from the act's coverage. The most common exemptions are found in Sections 3(c)(1) and 3(c)(7) of the act and include hedge funds.
The legislation in the Investment Company Act of 1940 is enforced and regulated by the Securities and Exchange Commission (SEC). Companies seeking to avoid the product obligations and requirements of the Act may be eligible for an exemption.
If an investment company is organized or otherwise created under the laws of the United States or of a State, meets the definition of an investment company, and cannot rely on an exception or an exemption from registration, generally it must register with the Commission under the Investment Company Act and must ...
What is Section 19 G )( 1 of the Securities Exchange Act of 1934?
Section 19(g)(1) of the Exchange Act, among other things, requires FINRA to comply with the Exchange Act, the rules and regulations thereunder, and FINRA's own rules and, absent reasonable justification or excuse, to enforce compliance by its members and persons associated with its members with such provisions.
Section 20 (codified in 15 U.S.C. § 78t) provides for joint and several liability for people who control or abet violators of the Exchange act, thus increasing the chance that an investor will be able to collect any damages that are awarded.
Rule 19b-4(e) permits a self-regulatory organization to list and trade new derivative securities products, subject to existing trading rules, regulations, surveillance procedures, and listing standards, without submitting a rule filing for Commission approval pursuant to Section 19(b) of the Securities Exchange Act of ...
What Is SEC Form 4: Statement of Changes in Beneficial Ownership? SEC Form 4: Statement of Changes in Beneficial Ownership is a document that must be filed with the Securities and Exchange Commission (SEC) whenever there is a material change in the holdings of company insiders.
What's a Form 4? In most cases, when an insider executes a transaction, he or she must file a Form 4. With this form filing, the public is made aware of the insider's various transactions in company securities, including the amount purchased or sold and the price per share.
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