October 19, 2006
In reference to this proposal, American Century Investments asks the Commission to consider adding additional response options to two specific questions on the proposed electronic version of the TA-2 form.
Question 8(c) reads: During the reporting period, did the Registrant file all quarterly reports regarding buy-ins with its ARA, required by Rule 17Ad-11(c)(2) of the Act?
The response choices are limited to YES and NO.
As we understand it, buy-ins relate only to the issuance of negotiable stock certificates, which is a service that American Century does not offer. Therefore, the question does not apply to us. However, given the limitations of the current proposed electronic version of the form, we would be forced to select between YES and NO. Neither answer is appropriate and the choice of either one could suggest a negative connotation. We request that the Commission add a third response option of "DOES NOT APPLY" or "NOT APPLICABLE."
If the Commission declines to add this third proposed response option, American Century requests that the Commission otherwise provide guidance on which answer response should be chosen by Registrants such as ourselves to which it does not apply.
Question 9(a) reads: During the reporting period, has the Registrant always been in compliance with the turnaround time for routine items as set forth in Rule 17Ad-2 of the Act?
The response choices again are limited to YES and NO.
As an investment company registered under Section 8 of the Investment Company Act of 1940, Rule 17Ad-2 does not apply to American Century. (See Rule 17Ad-4 of the Act.) We request that the Commission consider adding a third response option of "DOES NOT APPLY" or "NOT APPLICABLE."
If the Commission declines to add this third proposed response option, American Century believes its only option is to choose the "YES" response to question 9(a), since choosing "NO" would be even more inappropriate and misleading, and leads to the requirement that further questions be answered to explain any failures.
Thank you for considering these suggestions to the proposal.