Federal Register / Vol. 60, No. 44 / Tuesday, March 7, 1995 / Notices 12585

11 17 CFR 200.30–3(a)(12).

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

2Securities Exchange Act Release No. 35153

(December 27, 1994), 60 FR 161.

3Telephone conversation between J. Keith Kessel,

Compliance Officer, Philadep, and Thomas C. Etter,

Continued

NASD believes these comments are fully

addressed by this proposed amendment.

The NASD believes the proposed rule

change is consistent with Sections

15A(b)(6) and 11A(a)(1)(C) of the Act

and is a particularly timely and germane

response to the recommendations

contained in the Market 2000 study.

Section 15A(b)(6) requires that the rules

of a national securities association be

designed to prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principles of

trade, to foster cooperation and

coordination with persons engaged in

regulating, clearing, settling, processing

information with respect to, and

facilitating transactions in securities, to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system and in

general to protect investors and the

public interest. Section 11A(a)(1)(C)

finds that it is in the public interest to,

among other things, assure the

availability to brokers, dealers, and

investors of information with respect to

quotations for and transactions in

securities and economically efficient

execution of securities transactions.

The SelectNet service has served as an

alternative to the telephone in times of

market stress and as a system to

broadcast orders to market makers for

economically efficient negotiations and

executions. By permitting non-members

to view those broadcast orders, the

NASD is removing impediments to

transparency of market information and

is facilitating transactions for those nonmembers who will now be able to see

all broadcast orders in the service and

timely arrange for the execution of such

orders by a member. Although the

orders in SelectNet do not represent

quotations or last sale reports, the NASD

believes that the information is valuable

to investors and market participants and

should be transparent and disseminated

to non-members.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The NASD believes that the proposed

rule change will not result in any

burden on competition that is not

necessary or appropriate in furtherance

of purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Comments were neither solicited nor

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the NASD consents, the

Commission will:

A. By order approve such proposed

rule change, or

B. Institute proceedings to determine

whether the proposed rule change

should be disapproved.

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 statements

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

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to File

Number SR–NASD–94–9 and should be

submitted by March 28, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–5462 Filed 3–6–95; 8:45 am]

BILLING CODE 8010–01–M

February 28, 1995.

Self-Regulatory Organization;

Philadelphia Depository Trust

Company; Order Approving Proposed

Rule Change Concerning Disposal of

Expired Securities Certificates of

Warrants and Rights

[Release No. 34–35426; File No. SR–

Philadep–94–05]

On October 6, 1994, the Philadelphia

Depository Trust Company (‘‘Philadep’’)

filed a proposed rule change (File No.

SR–Philadep–94–05) with the Securities

and Exchange Commission

(‘‘Commission’’) pursuant to Section

19(b) of the Securities Exchange Act of

1934 (‘‘Act’’).1 Notice of the proposal

appeared in the Federal Register on

January 3, 1995, to solicit comment from

interested persons.2 No comments were

received by the Commission. This order

approves the proposal.

I. Description of the Proposal

The proposal authorizes Philadep to

implement a program which allows it to

destroy certain expired securities

certificates, specifically expired

warrants and rights. This destruction

policy will enable Philadep to reduce

the administrative and safekeeping

expenses associated with keeping

expired warrants and rights related

certificates in its vault.

In implementing this program,

Philadep will adhere to several

procedures to help assure that Philadep

destroys only certificates for which the

warrant or rights have expired. First,

Philadep will contact the transfer agent

or the issuer of the securities after the

securities have reached their expiration

dates to verify that the respective

warrants or rights have expired. Second,

Philadep will obtain written

confirmation from the transfer agent that

the certificates representing the

warrants or rights have expired. If there

is no transfer agent, Philadep will obtain

such written confirmation from the

issuer. Philadep also will exercise such

other reasonable due diligence, as it

may deem necessary under the

circumstances, to confirm the expired

nature of the respective certificates

including consulting with Philadep’s

legal department, its internal audit

department, and its senior management.

Third, Philadep: (1) Will notify its

participants that the certificates have

expired in the judgment of the transfer

agent or of other appropriate parties

where there is no transfer agent; (2) will

delete such securities positions from its

participants’ account on or after the

thirtieth day following the date of the

notice to the participants; and (3) will

mark the securities certificates and send

them to its internal audit department for

destruction. Additionally, Philadep has

agreed to retain copies of all such

destroyed certificates on microfilm or

on other mediums for not less than one

year.3
12586 Federal Register / Vol. 60, No. 44 / Tuesday, March 7, 1995 / Notices

Jr., Senior Counsel, Division of Market Regulation,

Commission (February 27, 1995).

4 15 U.S.C. 78q–1 (1988)

5 15 U.S.C. 78q–1(b)(3)(F) (1988)

6 15 U.S.C. 78q–1(a)(1) (1988)

7The Commission is expressing no opinion here

on the means that Philadep will use for the actual

physical destruction of any certificate or on the

related standards that may apply. These are

separate matters and are not part of this rule

proposal.

8 15 U.S.C. 78s(b)(2) (1988).

9 17 CFR 200.30–3(a)(12) (1994).

II. Discussion

The Commission believes that the

proposal is consistent with the Act and

particularly with Section 17A of the

Act.4 Section 17A(b)(3)(F) of the Act 5

requires that the rules of a clearing

agency be designed to safeguard the

funds and securities which are in the

custody or control of a clearing agency

or for which it is responsible.

Additionally, Section 17A(a)(1) of the

Act 6 directs the Commission to

encourage the reduction of unnecessary

costs by persons facilitating transactions

on behalf of investors.

These new procedures provide for the

implementation of a destruction policy

that will permit Philadep to eliminate

certain expired and worthless securities

certificates rather than maintain them in

its vault. As a result, Philadep expects

to reduce its administrative expenses

that are associated with storing such

certificates. The proposal also contains

numerous safeguards concerning the

selection of the securities certificates to

be destroyed, and the Commission

believes that the safeguards in question

are reasonably designed to reduce the

risk that Philadep will select for

destruction certificates for which the

warrants or rights have not expired.7

III. Conclusion

For the reasons discussed above, the

Commission believes that the proposal

is consistent with the requirements of

the Act, particularly those of Section

17A of the Act, and the rules and

regulations thereunder.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,8 that the

above-mentioned proposed rule change

(File No. SR–Philadep–94–05) be, and

hereby is, approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–5464 Filed 3–6–95; 8:45 am]

BILLING CODE 8010–01–M

[Rel. No. IC–20930; File No. 812–9410]

Jackson National Life Insurance

Company of Michigan, et al.

February 28, 1995.

AGENCY: Securities and Exchange

Commission (‘‘Commission’’ or ‘‘SEC’’).

ACTION: Notice of Application for an

Order under the Investment Company

Act of 1940 (the ‘‘1940 Act’’).

APPLICANTS: Jackson National Life

Insurance Company of Michigan

(‘‘Company’’), Jackson Michigan

Separate Account–I (‘‘Separate

Account’’) and Jackson Financial

Services, Inc. (‘‘Distributor’’).

RELEVANT 1940 ACT SECTIONS: Order

requested under Section 6(c) of the 1940

Act granting exemptions from the

provisions of Sections 26(a)(C) and

27(c)(2) of the 1940 Act.

SUMMARY OF APPLICATION: Applicants

seek an order permitting the deduction

of a mortality and expense risk charge

from the assets of the Separate Account

and other separate accounts established

by the Company in the future in

connection with the issuance and sale of

certain flexible premium variable

annuity contracts (‘‘Contracts’’) and any

contracts that are similar in all material

respects to the Contracts (‘‘Other

Contracts’’).

FILING DATE: The application was filed

on December 30, 1994. An amended

application was filed on February 24,

1995.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the Commission orders a

hearing. Interested persons may request

a hearing by writing to the

Commission’s Secretary and servings

Applicants with a copy of the request,

personally or by mail. Hearing requests

should be received by the Commission

by 5:30 p.m. on March 27, 1995, 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 requester’s interest, the

reason for the request, and the issues

contested. Persons may request

notification of a hearing by writing to

the Commission’s Secretary.

ADDRESSES: Secretary, SEC, 450 5th

Street, NW., Washington, DC 20549.

Applicants, Mark J. Mackey, Esq.,

Routier, Mackey and Johnson, P.C., 1700

K Street, NW., Suite 1003, Washington,

DC 20006.

FOR FURTHER INFORMATION CONTACT:

Mark C. Amorosi, Attorney, or Wendy

Finck Friedlander, Deputy Chief, at

(202) 942–0670, Office of Insurance

Products (Division of Investment

Management).

SUPPLEMENTARY INFORMATION: Following

is a summary of the application; the

complete application is available for a

fee from the Commission’s Public

Reference Branch.

Applicants’ Representations

1. The Company is a stock life

insurance company organized under the

laws of the State of Michigan in

September 1992. The Company is a

wholly-owned subsidiary of Jackson

National Life Insurance Company and

an indirect wholly-owned subsidiary of

Prudential Corporation plc, London,

England. The Company is currently

admitted to do business in Michigan.

2. The Separate Account was

established by the Company as a

separate account under the laws of

Michigan on June 14, 1993 as a funding

medium for variable annuity contracts.

The Separate Account meets the

definition of a ‘‘separate account’’ under

the federal securities laws and is

registered under the 1940 Act as a unit

investment trust. The application states

that the Company will establish for each

investment option offered under the

Contracts a Separate Account

subaccount (‘‘Portfolio’’) which will

invest solely in a specific corresponding

series of the JNL Series Trust or of some

other designated investment company

(the ‘‘Funds’’). JNL Series Trust is

registered as an open-end management

investment company under the 1940

Act.

3. The Distributor, a broker-dealer

registered under the Securities

Exchange Act of 1934 and a member of

the National Association of Securities

Dealers, Inc., will serve as the

distributor and principal underwriter

for the Contracts.

4. The Contracts are flexible premium

individual deferred variable annuity

contracts offered in connection with

retirement plans that may qualify for

favorable federal income tax treatment

(‘‘Qualified Contracts’’) or on a non-tax

qualified basis (‘‘Non-Qualified

Contracts’’). Interests in the Contracts

are registered under the Securities Act

of 1933. The Contracts provide for,

among other things: (a) Certain

minimum initial and subsequent

premium payments; (b) several annuity

payment options beginning on the

annuity date; and (c) the payment of a

death benefit where the annuitant dies

during the accumulation phase, which

is equal to the greater of the contract

value or premium payments (net of

withdrawals and premium taxes).

Where permitted by state law, the

Contract will also provide an enhanced