Supporting Statute

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TITLE 15—COMMERCE AND TRADE

each subsequent certificate year the reserve
payment or payments shall amount to at least
96 per centum of each such year’s required gross
annual payment: Provided, That such aggregate
reserve payments shall amount to at least 93 per
centum of the aggregate gross annual payments
required to be made by the holder to obtain the
maturity of the certificate. The company may
at its option take as loading from the gross payment or payments for a certificate year, as and
when made by the certificate holder, an amount
or amounts equal in the aggregate for such year
to not more than the excess, if any, of the gross
payment or payments required to be made by
the holder for such year, over and above the percentage of the gross annual payment required
herein for such year for reserve purposes. Such
loading may be taken by the company prior to
or after the setting up of the reserve payment or
payments for such year and the reserve payment
or payments for such year may be graduated and
adjusted to correspond with the amount of the
gross payment or payments made by the certificate holder for such year less the loading so
taken.
(2) Notwithstanding paragraphs (1) and (2) of
subsection (d) of this section, (A) in respect of
any certificate of the installment type, during
the first certificate year, the holder of the certificate, upon surrender thereof, shall be entitled to a value payable in cash not less than 80
per centum of the amount of the gross payments
made on the certificate; and (B) in respect of
any certificate of the installment type, at any
time after the expiration of the first certificate
year and prior to maturity, the holder of the
certificate, upon surrender thereof, shall be entitled to a value payable in cash not less than
the then amount of the reserve for such certificate required by clauses (1) and (2) of subparagraph (D) of paragraph (2) of subsection (a) of
this section, less a surrender charge that shall
not exceed 2 per centum of the face or maturity
amount of the certificate, or 15 per centum of
the amount of such reserve, whichever is the
lesser, but in no event shall such value be less
than 80 per centum of the gross payments made
on the certificate. The amount of the surrender
value for the end of each certificate year shall
be set out in the certificate.
(Aug. 22, 1940, ch. 686, title I, § 28, 54 Stat. 829;
Pub. L. 91–547, § 17, Dec. 14, 1970, 84 Stat. 1426;
Pub. L. 100–181, title VI, §§ 620, 621, Dec. 4, 1987,
101 Stat. 1262.)
REFERENCES IN TEXT
For the effective date of this subchapter, referred to
in subsecs. (a), (b), (d), (e), and (f), see section 80a–52 of
this title.
For the effective date of this chapter, referred to in
subsecs. (a)(2)(C), (g), and (h), see sections 80a–52 and
80b–21 of this title.
For the effective date of this subsection, referred to
in subsec. (i), as the day upon expiration of 6 months
after Dec. 14, 1970, see section 30(3) of Pub. L. 91–547, set
out as a note under section 80a–52 of this title.
AMENDMENTS
1987—Subsec. (a)(2)(B). Pub. L. 100–181, § 620, substituted ‘‘paragraph’’ for ‘‘subsection’’.
Subsec. (d)(2). Pub. L. 100–181, § 621, inserted ‘‘of’’ before ‘‘subsection (a)’’.

§ 80a–29

1970—Subsec. (i). Pub. L. 91–547 added subsec. (i).
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91–547 effective on expiration
of six months after Dec. 14, 1970, see section 30(3) of
Pub. L. 91–547, set out as a note under section 80a–2 of
this title.
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, §§ 1, 2,
eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under
section 78d of this title.

§ 80a–29. Reports and financial statements of investment companies and affiliated persons
(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

§ 80a–29

TITLE 15—COMMERCE AND TRADE

(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.

Page 520

(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 closedend 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

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TITLE 15—COMMERCE AND TRADE

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.
(Aug. 22, 1940, ch. 686, title I, § 30, 54 Stat. 836;
Pub. L. 104–290, title II, § 206, title V, § 508(g),
Oct. 11, 1996, 110 Stat. 3430, 3449; Pub. L. 105–353,
title III, § 301(c)(5), Nov. 3, 1998, 112 Stat. 3237.)
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 (§ 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
(§ 78a et seq.) of this title. For complete classification
of this Act to the Code, see section 78a of this title and
Tables.
AMENDMENTS
1998—Subsec. (b)(1). Pub. L. 105–353, § 301(c)(5)(A), inserted ‘‘and’’ after semicolon at end.
Subsec. (e). Pub. L. 105–353, § 301(c)(5)(B), substituted
‘‘semiannually’’ for ‘‘semi-annually’’ in introductory
provisions.
Subsecs. (g) to (j). Pub. L. 105–353, § 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, § 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 semiannual 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, § 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, § 206(2), (4), added subsec.
(f). Former subsec. (f) redesignated (h).
Subsec. (g). Pub. L. 104–290, § 508(g), added subsec. (g),
relating to disclosure to church plan participants.
Pub. L. 104–290, § 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, § 508(g), added subsec. (h),
relating to notice to Commission.
Pub. L. 104–290, § 206(2), redesignated subsec. (f), relating to duties and liabilities of affiliated persons, as (h).
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, §§ 1, 2,
eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under
section 78d of this title.

§ 80a–30. Accounts and records
(a) Maintenance of records
(1) In general
Each registered investment company, and
each underwriter, broker, dealer, or invest-

§ 80a–30

ment adviser that is a majority-owned subsidiary of such a company, shall maintain and
preserve such records (as defined in section
78c(a)(37) of this title) for such period or periods as the Commission, by rules and regulations, may prescribe as necessary or appropriate in the public interest or for the protection of investors. Each investment adviser
that is not a majority-owned subsidiary of,
and each depositor of any registered investment company, and each principal underwriter
for any registered investment company other
than a closed-end company, shall maintain
and preserve for such period or periods as the
Commission shall prescribe by rules and regulations, such records as are necessary or appropriate to record such person’s transactions
with such registered company. Each person
having custody or use of the securities, deposits, or credits of a registered investment company shall maintain and preserve all records
that relate to the custody or use by such person of the securities, deposits, or credits of the
registered investment company for such period or periods as the Commission, by rule or
regulation, may prescribe, as necessary or appropriate in the public interest or for the protection of investors.
(2) Minimizing compliance burden
In exercising its authority under this subsection, the Commission shall take such steps
as it deems necessary or appropriate, consistent with the public interest and for the protection of investors, to avoid unnecessary recordkeeping by, and minimize the compliance burden on, persons required to maintain records
under this subsection (hereafter in this section
referred to as ‘‘subject persons’’). Such steps
shall include considering, and requesting public comment on—
(A) feasible alternatives that minimize the
recordkeeping burdens on subject persons;
(B) the necessity of such records in view of
the public benefits derived from the independent scrutiny of such records through
Commission examination;
(C) the costs associated with maintaining
the information that would be required to be
reflected in such records; and
(D) the effects that a proposed recordkeeping requirement would have on internal
compliance policies and procedures.
(b) Examinations of records
(1) In general
All records required to be maintained and
preserved in accordance with subsection (a) of
this section shall be subject at any time and
from time to time to such reasonable periodic,
special, and other examinations by the Commission, or any member or representative
thereof, as the Commission may prescribe.
(2) Availability
For purposes of examinations referred to in
paragraph (1), any subject person shall make
available to the Commission or its representatives any copies or extracts from such records
as may be prepared without undue effort, expense, or delay as the Commission or its representatives may reasonably request.