12260 Federal Register / Vol. 60, No. 43 / Monday, March 6, 1995 / Notices

1 15 U.S.C. 78s(b)(1) (1988).

2For a detailed description of NSCC’s Networking

Service, refer to Securities Exchange Act Release

No. 26376 (December 28, 1988), 53 FR 52544 [File

No. SR–NSCC–88–08] (order granting approval to

NSCC’s Networking Service).

3Securities Exchange Act Release No. 28608

(November 19, 1990), 55 FR 48193 [File No. NSCC–

89–13] (order granting permanent approval to

NSCC’s automated settlement of mutual fund

dividends).

4Payments made through the Networking Service

are not guaranteed by NSCC; therefore, NSCC

reserves the right to reverse any credit in the event

NSCC does not receive a corresponding payment

from a Fund member.

5NSCC will be required to file a proposed rule

change pursuant to Section 19(b) of the Act before

allowing other types of payments to be processed

through the Networking service.

6 15 U.S.C. 78s(b)(3)(A)(iii) (1988).

7 17 CFR 240.19b–4(e)(4) (1994). 8 17 CFR 200.30–3(a)(12) (1994).

[Release No. 34–35423; File No. SR–NSCC–

95–01]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Notice of Filing and

Immediate Effectiveness of Proposed

Rule Change Expanding the Types of

Payments Processed Through the

Mutual Fund Networking Service

February 28, 1995.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934 1

(‘‘Act’’), notice is hereby given that on

January 10, 1995, the National

Securities Clearing Corporation

(‘‘NSCC’’) filed with the Securities and

Exchange Commission (‘‘Commission’’)

the proposed rule change as described

in Items I, II, and III below, which items

have been prepared primarily by NSCC.

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

NSCC proposes to modify its Mutual

Fund Networking Service rules to

permit settlement of additional

payments pertaining to mutual fund

activity.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NSCC included statements concerning

the purpose of and basis for the

proposed rule change and discussed any

comments it received on the proposed

rule change. The text of these statement

may be examined at the places specified

in Item IV below. NSCC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

NSCC’s Mutual Fund Networking

Service currently enables Networking

participants to transmit mutual fund

customer account data among NSCC’s

broker-dealer and mutual fund

processing members 2 and to settle

mutual fund dividend payments.3 The

proposed rule change will modify the

Mutual Fund Networking Service to

permit settlement of other payments

pertaining to mutual fund activity in

addition to dividend payments.4 NSCC

currently proposes to allow Networking

participants to settle payments which

result from standing instructions (e.g.,

monthly) given by a customer to a

mutual fund to liquidate a certain

amount or value of shares or specific

instructions given by a customer

directly to a mutual fund to liquidate

shares.5 The proposed rule modifies the

existing Mutual Fund Networking

Service to better meet the needs of

NSCC’s Networking participants by

expanding the standardization of money

payments on an automated basis.

NSCC believes the proposed rule

change is consistent with the

requirements of the Act, and specifically

Section 17A of the Act, and the rules

and regulations thereunder, because the

proposal will facilitate the prompt and

accurate clearance and settlement of

securities transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

NSCC does not believe that the

proposed rule change will have an

impact on or impose a burden on

competition

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

No written comments have been

solicited or received. NSCC will notify

the Commission of any written

comments received by NSCC.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to Section

19(b)(3)(A)(iii) 6 of the Act and pursuant

to Rule 19b–4(e)(4) 7 promulgated

thereunder, in that the proposal effects

a change in an existing service that does

not adversely affect the safeguarding of

securities or funds in NSCC’s custody or

control and does not significantly affect

the respective rights or obligations of

NSCC or persons using NSCC’s services.

At any time within sixty days of the

filing of such rule change, the

Commission may summarily abrogate

such rule change if it appears to the

Commission that such action is

necessary or appropriate in the public

interest, for the protection of investors,

or otherwise in furtherance of the

purpose of the Act.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street NW.,

Washington, DC 20549. Copies of the

submission, all subsequent

amendments, all written statement with

respect to the proposed rule change that

are filed with the Commission, and all

written communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. 552, will be

available for inspection and copying in

the Commission’s Public Reference

Section, 450 Fifth Street NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of NSCC. All submissions should

refer to File No. SR–NSCC–95–01 and

should be submitted by March 27, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–5372 Filed 3–3–95; 8:45 am]

BILLING CODE 8010–01–M

[Investment Company Act Rel. No. 20925/

International Rel. No. 788 812–8970]

Enersis S.A.; Notice of Application

February 27, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Exemption under the Investment

Company Act of 1940 (‘‘Act’’).

APPLICANT: Enersis S.A.

RELEVANT ACT SECTION: Section 2(a)(9).

SUMMARY OF APPLICATION: Applicant

seeks an order declaring that it controls
Federal Register / Vol. 60, No. 43 / Monday, March 6, 1995 / Notices 12261

1Rule 3a–1 provides that an issuer meeting the

statutory definition of an investment company is

not an investment company if: (a) no more than

45% of the value of its total assets (exclusive or

government securities and cash items) consists of

securities other than government securities,

securities issued by employee securities companies,

securities of certain majority-owned subsidiaries,

and securities issued by companies under the

primary control of the issuer that are not investment

companies; and (b) no more than 45% of its income

after taxes (over the last four fiscal quarters

combined) is received from such securities. 2 ‘‘Electricity Czar,’’ Que Pasa, May 1992.

3Any order concerning the application will be

limited to determining whether Enersis controls

Endesa under section 2(a)(9). Enersis is not seeking

any determination as to whether it ‘‘primarily’’

controls Endesa for purposes of rule 3a–1 or

whether applicant falls within the definition of

investment company under the Act.

Empresa Nacional de Electricidad S.A.

(‘‘Endesa’’), notwithstanding that it

owns less than 25% of its voting

securities.

FILING DATE: The application was filed

on April 28, 1994 and amended on July

8, 1994 and October 6, 1994.

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 SEC’s

Secretary and serving applicant with a

copy of the request, personally or by

mail. Hearing requests should be

received by the SEC by 5:30 p.m. on

March 23, 1995, and should be

accompanied by proof of service on

applicant, 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 such notification

by writing to the SEC’s Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth

Street NW., Washington, DC 20549.

Applicant, Santo Domingo 789,

Santiago, Chile.

FOR FURTHER INFORMATION CONTACT: Fran

Pollack-Matz, Senior Attorney, at (202)

942–0570, or Barry Miller, Senior

Special Counsel, at (202) 942–0564

(Division of Investment Management,

Office of Investment Company

Regulation).

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.

Applicant’s Representations

1. Applicant is a Chilean holding

company primarily engaged through its

majority-owned subsidiaries and related

companies in the utility business.

Applicant is not registered under the

Investment Company Act by virtue of its

reliance on rule 3a–1.1

2. Endesa is a Chilean electric

generation company, Applicant owns

directly and indirectly approximately

17% of Endesa and is Endesa’s largest

shareholder. Four of the five remaining

largest shareholders of Endesa are

entities comparable to United States

pension funds. Under Chilean law, the

amount one of these entities can invest

in a company similar to Endesa is the

lesser of 7% of its assets or 7% of

Endesa’s equity. The fifth large

shareholder of Endesa is a company

owning approximately 3.4% of Endesa’s

shareholder equity. Applicant,

therefore, owns more than twice as

many shares as the next largest

shareholder.

3. Three of Endesa’s nine member

board are Enersis officers or directors.

Enersis’s equity ownership gives it the

power to elect two of Endesa’s directors;

a third Enersis official on Endesa’s

board publicly campaigned for the

position. These persons also hold the

positions of Enersis’s Chairman of the

Board, its Chief Executive Officer, and

its Director of Planning and

Development. Applicant’s Chief

Executive Officer is the Chairman of the

board of Endesa. The Chairman is

entitled to cast a second vote in the

event of a tie of Endesa’s board of

directors, thereby giving Enersis an

additional vote.

4. Enersis, previously a governmentowned utility, was privatized in 1987

and restructured to become a holding

company. Since its privatization, all of

Enersis’s stock acquisitions have been of

utility businesses. Enersis’s strategy has

been to concentrate its activities on its

core utility business and to take stock

positions in other entities only under

circumstances where it is the dominant

shareholder or where it and Endesa

together are the dominant shareholders

of the entity whose stock is being

acquired.

5. Jose Yuraszeck, Enersis’s Chief

Executive Officer, became Endesa’s

Chairman in April 1992. He is

commonly referred to as the ‘‘Electricity

Czar’’ in Chile and is identified by the

public as personifying Endesa.2 Mr.

Yuraszeck is also Chairman of Endesa’s

subsidiary formed to build, own, and

mange Endesa’s major power plant

development.

6. Endesa’s Director of Planning and

Development was assigned to Endesa at

Enersis’s direction and the planning and

development staffs of Enersis and

Endesa have collaborated on various

projects.

Applicant’s Legal Analysis

1. Section 2(a)(9) defines ‘‘control’’ as

‘‘the power to exercise a controlling

influence over the management or

policies of a company, unless such

power is solely the result of an official

position with such company.’’ Section

2(a)(9) also creates a presumption that

owners of more than 25% of a

company’s voting securities control

such company, and the owners of 25%

or less of a company’s voting securities

do not control such company. A

securityholder may obtain an SEC order

rebutting either presumption by

producing evidence to the contrary.

2. Applicant seeks an order of the SEC

declaring that it controls Endesa,

notwithstanding the presumption under

the Act that ownership of less than 25%

of a company’s voting securities is

insufficient to establish control.3

3. Applicant argues that the facts set

forth in the application are sufficient to

support a finding that applicant controls

Endesa. Applicant holds the largest

share of Endesa’s voting securities and

has significant representation on

Endesa’s board of directors.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–5334 Filed 3–3–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. IC–20926; File No. 812–9230]

The Equitable Life Assurance Society

of the United States, et al.

February 27, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’ or the

‘‘Commission’’).

ACTION: Notice of application for an

order under the Investment Company

Act of 1940 (the ‘‘1940 Act’’).

APPLICANTS: The Equitable Life

Assurance Society of the United States

(‘‘Equitable’’), Separate Account No. 45

of Equitable (the ‘‘Account’’), any other

separate account established by

Equitable in the future to support

certain deferred variable annuity

contracts and certificates issued by

equitable (‘‘Other Account’’), and

Equitable Capital Securities Corporation

(‘‘ECCS’’).

RELEVANT 1940 ACT SECTIONS: Order

requested under Section 6(c) of the 1940

Act for exemptions from Sections

2(a)(35), 26(a)(2)(C) and 27(c)(2) thereof.

SUMMARY OF APPLICATION: Applicants

seek an order to permit the deduction

of: (i) a mortality and expense risk

charge from the assets of the Account in