Exemption for the Acquisition of Securities During the Existence of An Underwriting or Selling Syndicate
OGC-97-57: Published: Aug 20, 1997. Publicly Released: Aug 20, 1997.
Pursuant to a legislative requirement, GAO reviewed the Securities and Exchange Commission's (SEC) new rule on the exemption for the acquisition of securities during the existence of an underwriting or selling syndicate. GAO noted that: (1) the rule would amend rule 10f-3 and permit registered investment companies that have certain affiliated relationships with an underwriter to purchase a greater percentage of an offering of securities during the existence of an underwriting or selling syndicate; (2) the amendments would also permit these investment companies to purchase securities in certain foreign offerings and offerings of unregistered securities; and (3) the SEC complied with applicable requirements in promulgating the rule.