20494 Federal Register / Vol. 65, No. 74 / Monday, April 17, 2000 / Notices

Commission, Office of Filings and

Information Services, Washington, DC

20549.

Extension:

Rule 22d–1, SEC File No. 270–275, OMB

Control No. 3235–0310

Notice is hereby given that pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission (the

‘‘Commission’’) has submitted for

extension of OMB approval Rule 22d–1

under the Investment Company Act of

1940 (‘‘Investment Company Act’’).

Rule 22d–1 [17 CFR 270.22d–1]

provides registered investment

companies that issue redeemable

securities (‘‘funds’’) an exemption from

section 22(d) of the Investment

Company Act to the extent necessary to

permit scheduled variations in or

elimination of the sales load on fund

securities for particular classes of

investors or transactions, provided

certain conditions are met. These

conditions require that (1) the

scheduled variation be applied

uniformly to all offerees in the specified

class; (2) existing shareholders and

prospective investors be furnished

adequate information concerning the

scheduled variation, as prescribed in

applicable registration statement form

requirements; (3) the fund’s prospectus

and statement of additional information

are revised to describe the new

scheduled variation before any new

sales load variation is made available to

purchasers of fund shares; and (4)

within one year of first making the

scheduled variation available, existing

shareholders are advised of any new

sales load variation (items (2) through

(4), collectively, ‘‘notice requirements’’).

The notice requirements of Rule 22d–1

are designed to ensure that all existing

and prospective investors that may be

eligible for a reduction or elimination of

the sales load receive timely notice

about it. The rule imposes an annual

burden per fund of approximately 15

minutes, so that the total burden for the

approximately 2,400 funds that might

rely on the rule is estimated to be 600

hours.

The collection of information under

Rule 22d–1 is mandatory. The

information provided by Rule 22d–1 is

not kept confidential. The Commission

may not conduct or sponsor, and a

person is not required to respond to, a

collection of information unless it

displays a currently valid OMB control

number.

The estimate of average burden hours

is made solely for the purposes of the

Paperwork Reduction Act, and is not

derived from a comprehensive or even

a representative survey or study.

General comments regarding the

above information should be directed to

the following persons: (i) Desk Officer

for the Securities and Exchange

Commission, Office of Information and

Regulatory Affairs, Office of

Management and Budget, New

Executive Office Building, Washington,

D.C. 20503; and (ii) Michael E. Bartell,

Associate Executive Director, Office of

Information Technology, Securities and

Exchange Commission, 450 Fifth Street,

N.W., Washington, D.C. 20549.

Comments must be submitted to OMB

within 30 days of this notice.

Dated: April 11, 2000.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–9484 Filed 4–14–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Requests Under Review by Office of

Management and Budget

Upon Written Request, Copies

Available From: Securities and

Exchange Commission, Office of Filings

and Information Services, Washington,

DC 20549.

Extension:

Rule 6e–2, SEC File No. 207–177, OMB

Control No. 3235–0177

Notice is hereby given that pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission

(‘‘Commission’’) has submitted to the

Office of Management and Budget a

request for approval of extension on the

following rule:

Rule 6e–2 [17 CFR 270.6e–2] under

the Investment Company Act of 1940

(‘‘Act’’) is an exemptive rule which

permits separate accounts, formed by

life insurance companies, to fund

certain variable life insurance products.

The rule exempts such separate

accounts from the registration

requirements under the Act, among

others, on condition that they comply

with all but certain designated

provisions of the Act and meet the other

requirements of the rule. The rule sets

forth several information collection

requirements.

Rule 6e–2 provides a separate account

with an exemption from the registration

provisions of section 8 of the Act if the

account files with the Commission Form

N–6EI–1, a notification of claim of

exemption.

The rule also exempts a separate

account from a number of other series

of the Act, provided that the separate

account makes certain disclosure in its

registration statements, reports to

contractholders, proxy solicitations, and

submissions to state regulatory

authorities, as prescribed by the rule.

Paragraph (b)(9) of Rule 6e–2 provides

an exemption from the requirements of

section 17(f) of the Act and imposes a

reporting burden and certain other

conditions. Section 17(f) requires that

every registered management company

meet various custody requirements for

its securities and similar investments.

Paragraph (b)(9) applies only to

management accounts that offer life

insurance contracts subject to Rule 6e–

2.

Since 1997, there have been no filings

under paragraph (b)(9) of Rule 6e–2 by

management accounts. Further, all

variable life separate accounts that have

filed post-effective amendments to their

registration statements during this

period have been structured as unit

investment trusts and thus have not

been subject to the requirements of

paragraph (b)(9) of the rule. Therefore,

since 1997, thee has been no cost or

burden to the industry regarding the

information collection requirements of

paragraph (b)(9) of Rule 6e–2.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless its displays a currently valid

control number.

Written comments regarding the

above information should be directed to

the following persons: (i) Desk Officer

for the Securities and Exchange

Commission, Office of Information and

Regulatory Affairs, Office of

Management and Budget, Room 10102,

New Executive Office Building,

Washington, DC 20503; and (ii) Michael

E. Bartell, Associate Executive Director,

Office of Information Technology,

Securities and Exchange Commission,

450 Fifth Street, NW, Washington, DC

20549. Comments must be submitted to

OMB within 30 days of this notice.

Dated: April 10, 2000.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–9485 Filed 4–14–00; 8:45 am]

BILLING CODE 8010–01–M

Federal Register / Vol. 65, No. 74 / Monday, April 17, 2000 / Notices 20495

1 Van Wagoner Funds, Inc., Investment Company

act Release Nos. 23954 (Aug. 19, 1999 (notice) and

24012 (Sept. 14, 1999) (order).

2The Portfolios are the only funds that currently

intend to rely on the Amended Order. Any Fund

that relies on Amended Order in the future will

comply with the terms and conditions of the

application.

3Applicants note that if a portfolio company

subsequently becomes a publicly traded company,

its shares held by the Funds may no longer be

illiquid securities.

SECURITIES AND EXCHANGE

COMMISSION

[Rel. No. IC–24386; 812–11936]

Van Wagoner Funds, Inc., et al.; Notice

of Application

April 10, 2000.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’ or the

‘‘Commission’’).

ACTION: Notice of an application to

amend an existing order under sections

6(c) and 17(d) of the Investment

Company Act of 1940 (the ‘‘Act’’) and

rule 17d–1 under the Act permitting

certain joint transactions.

SUMMARY OF APPLICATION: Applicants

seek to amend a prior order that permits

existing and future series (‘‘Portfolios’’)

of the Van Wagoner Funds, Inc. (the

‘‘Company’’) and Van Wagoner Capital

Management, Inc. (‘‘Van Wagoner

Capital Management’’) to co-invest in

the same issuers of securities with each

other and certain affiliates (‘‘Prior

Order’’).1 The amended order

(‘‘Amended Order’’) would permit

certain additional registered

management investment companies

advised by Van Wagoner Capital

Management, or an entity controlling,

controlled by or under common control

with Van Wagoner Capital Management

(collectively referred to as the

‘‘Adviser’’) (such companies, the ‘‘New

Funds’’), to rely on the Prior Order. The

New Funds, together with the Portfolios,

are referred to as ‘‘Funds.’’ 2

Applicants: The Company and the

Adviser.

FILING DATES: The application was filed

on January 18, 2000. Applicants have

agreed to file an amendment during the

notice period, the substance of which is

reflected in this notice.

Hearing or Notification of Hearing: An

order granting the requested relief will

be issued unless the SEC orders a

hearing. Interested persons 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

May 5, 2000, 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 who wish to be notified of a

hearing may request notification by

writing to the SEC’s Secretary.

ADDRESSES: Secretary, SEC, 450 5th

Street, N.W., Washington, DC 20549–

0609. Applicants: 345 California Street,

San Francisco, California 94104.

FOR FURTHER INFORMATION CONTACT: J.

Amanda Machen, Senior Counsel, (202)

942–7120, or Nadya B. Roytblat,

Assistant Director (202) 942–0564

(Office of Investment Company

Regulation, Division of Investment

Management).

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, 450 5th Street,

N.W., Washington, DC 20549–0102 (tel.

202–942–8090).

Applicants’ Representations

1. The Company is registered under

the Act as an open-end management

investment company and currently

offers seven Portfolios. Each Portfolio’s

investment objective is capital

appreciation, and each Portfolio may

invest up to 15% of its net assets in

illiquid securities. Applicants state that

substantially all of the illiquid securities

held by the Portfolios are venture

capital investments. The Adviser serves

as investment adviser to each Portfolio

and is registered under the Investment

Advisers Act of 1940. A majority of the

board of directors of the Company

(‘‘Board’’) are not ‘‘interested persons,’’

as defined in section 2(a)(19) of the Act

(‘‘Independent Directors’’). A New Fund

may be either an open-end or closedend management investment company

registered under the Act.

2. The Adviser or its affiliates

(‘‘Adviser Affiliates’’) also may serve as

investment adviser to other private

accounts on a discretionary basis and as

general partner and/or investment

adviser to other investment vehicles that

are exempt from the Act under section

3(c)(1) or 3(c)(7) of the Act. These

private accounts and vehicles, along

with any similar entity created, advised,

sponsored or otherwise organized by the

Adviser or Adviser Affiliates are

referred to as ‘‘Company Affiliates.’’

When acting as the general partner of a

Company Affiliate, the Adviser or

Adviser Affiliates may make a capital

contribution in connection with the

organization of the Company Affiliate

and maintain an interest in the gains,

losses, income, and expenses of the

Company Affiliate. The Adviser or

Adviser Affiliates also may be required

to make a commitment to co-invest on

a principal basis with a Company

Affiliate in an amount up to 1% of the

Company Affiliate’s investment.

3. On September 14, 1999, the SEC

issued the Prior Order to the applicants

under section 6(c) and 17(d) of the Act

and under rule 17d–1 under the Act

permitting the applicants to co-invest in

the same issuers of securities with each

other and Company Affiliates.

Applicants seek to amend the Prior

Order to extend it to the New Funds.

Applicants state that it may be

beneficial for the Funds to be able to coinvest in certain venture capital

investments with Company Affiliates.

Applicants assert that co-investment in

portfolio companies by the Funds and

Company Affiliates would increase

favorable investment opportunities for

the Funds, consistent with the Funds’

investment objectives, policies, and

restrictions. Applicants state that these

investment opportunities will not

include investments in registered

investment companies or entities

relying on section 3(c)(1) or 3(c)(7) of

the Act. Applicants also state that the

co-investments will be treated as

illiquid securities for purposes of the

15% limit on the open-end Funds’

investment in illiquid securities.3

Applicants also represent that the New

Funds will comply with the conditions

set forth below and will be bound by the

terms and provisions of the Prior Order

to the same extent as the applicants.

Applicants’ Legal Analysis

1. Section 17(d) of the Act and rule

17d–1 under the Act generally prohibit

any affiliated person of a registered

investment company, or any affiliated

person of an affiliated person, when

acting as principal, from effecting any

joint transaction in which the company

participates unless the transaction is

approved by the SEC. Rule 17d–1 under

the Act provides that in passing upon

applications under section 17(d), the

SEC will consider whether the

participation of a registered investment

company in a joint enterprise on the

basis proposed is consistent with the

provisions, policies, and purposes of the

Act and the extent to which the

company’s participation is on a basis

different from or less advantageous than

that of other participants.

2. Section 6(c) of the Act provides that

an exemptive order may be granted

where an exemption is necessary or

appropriate in the public interest and