SEC Proposes Regulations to Implement Sudan Accountability and Divestment Act of 2007
FOR IMMEDIATE RELEASE
Washington, D.C., Feb. 12, 2008 - The Securities and Exchange Commission has proposed requiring registered investment companies to disclose when they divest, in accordance with the Sudan Accountability and Divestment Act of 2007, from securities of issuers that the investment company determines conduct or have direct investments in certain business operations in Sudan. The Sudan Accountability and Divestment Act requires the Commission to prescribe regulations requiring this disclosure by April 29, 2008.
On Dec. 31, 2007, the President signed the Sudan Accountability and Divestment Act into law. Among other things, the Act provides that no person may bring any civil, criminal, or administrative action against any registered investment company, or any employee, officer, director, or investment adviser of the investment company, based solely upon the investment company divesting from securities issued by persons that the investment company determines, using credible information that is available to the public, conduct or have direct investments in certain business operations in Sudan. This limitation on actions does not apply unless the investment company makes disclosures in accordance with regulations prescribed by the Commission.
To implement the Act, the Commission on Feb. 11, 2008, proposed to require each registered investment company that divests securities in accordance with the Act to disclose the divestment on the next Form N-CSR or Form N-SAR (forms that registered investment companies currently use to file periodic reports) that it files following the divestment. Management investment companies would provide the disclosure on Form N CSR, and unit investment trusts would provide it on Form N-SAR. The proposed amendments would require disclosure of the issuer's name; exchange ticker symbol; CUSIP number; total number of shares or, for debt securities, principal amount divested; and dates that the securities were divested.
Public comment on these proposed form amendments should be received by the Commission no later than 30 days after their publication in the Federal Register.
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The full text of the detailed release concerning these proposed form changes have been posted to the SEC Web site at http://www.sec.gov/rules/proposed/2008/34-57306.pdf.
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