Notice2021-19820
High Income Securities Fund
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 15, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 176 (Wednesday, September 15, 2021)</title>
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[Federal Register Volume 86, Number 176 (Wednesday, September 15, 2021)]
[Notices]
[Pages 51397-51398]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-19820]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 34373; File No. 812-15230]
High Income Securities Fund
September 9, 2021.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice.
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Notice of an application under section 6(c) of the Investment
Company Act of 1940 (``Act'') for an exemption from section 19(b) of
the Act and rule 19b-1 under the Act to permit a registered closed-end
investment company to make periodic distributions of long-term capital
gains more frequently than permitted by section 19(b) or rule 19b-1.
Applicant: High Income Securities Fund, a Massachusetts business
trust that is an internally managed registered closed-end diversified
management investment company (the ``Fund'' or the ``Applicant'').\1\
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\1\ Applicants request that the order also apply to any
successor in interest to the Fund. A successor in interest is
limited to entities that result from a reorganization into another
jurisdiction or a change in the type of business organization.
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Filing Dates: The application was filed on May 13, 2021, and
amended on July 7, 2021.
Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by emailing the Commission's
Secretary at <a href="/cdn-cgi/l/email-protection#0f5c6a6c7d6a7b6e7d767c22406969666c6a4f7c6a6c21686079"><span class="__cf_email__" data-cfemail="aefdcbcddccbdacfdcd7dd83e1c8c8c7cdcbeeddcbcd80c9c1d8">[email protected]</span></a> and serving applicants with a
copy of the request by email. Hearing requests should be received by
the Commission by 5:30 p.m. on October 4, 2021, and should be
accompanied by proof of service on applicants, in the form of an
affidavit or, for lawyers, a certificate of service. Pursuant to rule
0-5 under the Act, hearing requests should state the nature of the
writer's interest, any facts bearing upon the desirability of a hearing
on the matter, the reason for the request, and the issues contested.
Persons who wish to be notified of a hearing may request notification
by emailing the Commission's Secretary at <a href="/cdn-cgi/l/email-protection#b9eadcdacbdccdd8cbc0ca94f6dfdfd0dadcf9cadcda97ded6cf"><span class="__cf_email__" data-cfemail="fba89e98899e8f9a898288d6b49d9d92989ebb889e98d59c948d">[email protected]</span></a>.
ADDRESSES: The Commission: <a href="/cdn-cgi/l/email-protection#9ccff9ffeef9e8fdeee5efb1d3fafaf5fff9dceff9ffb2fbf3ea"><span class="__cf_email__" data-cfemail="cb98aea8b9aebfaab9b2b8e684adada2a8ae8bb8aea8e5aca4bd">[email protected]</span></a>. Applicants: c/o
Thomas R. Westle, Esq., Blank Rome LLP, <a href="/cdn-cgi/l/email-protection#2f5b584a5c5b434a6f4d434e41445d40424a014c4042"><span class="__cf_email__" data-cfemail="681c1f0d1b1c040d280a040906031a07050d460b0705">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Deepak T. Pai, Senior Counsel, at
(202) 551-6876 or Trace W. Rakestraw,
[[Page 51398]]
Branch Chief, at (202) 551-6825 (Division of Investment Management,
Chief Counsel's Office).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's website by searching for the file number, or for an
applicant using the Company name box, at <a href="http://www.sec.gov/search/search.htm">http://www.sec.gov/search/search.htm</a>, or by calling (202) 551-8090.
Summary of the Application:
1. Section 19(b) of the Act generally makes it unlawful for any
registered investment company to make long-term capital gains
distributions more than once every twelve months. Rule 19b-1 under the
Act limits to one the number of capital gain dividends, as defined in
section 852(b)(3)(C) of the Internal Revenue Code of 1986 (``Code,''
and such dividends, ``distributions''), that a registered investment
company may make with respect to any one taxable year, plus a
supplemental distribution made pursuant to section 855 of the Code not
exceeding 10% of the total amount distributed for the year, plus one
additional capital gain dividend made in whole or in part to avoid the
excise tax under section 4982 of the Code.
2. Applicant believes that investors in certain closed-end funds
may prefer an investment vehicle that provides regular current income
through a fixed distribution policy (``Distribution Policy'').
Applicant proposes that the Fund be permitted to adopt a Distribution
Policy, pursuant to which the Fund would distribute periodically to its
shareholders a fixed percentage of the market price of the Fund's
common shares at a particular point in time or a fixed percentage of
net asset value (``NAV'') at a particular time or a fixed amount per
share of common shares, any of which may be adjusted from time to time.
3. Applicant requests an order under section 6(c) of the Act
granting an exemption from section 19(b) of the Act and rule 19b-1 to
permit a Fund to distribute periodic capital gain dividends (as defined
in section 852(b)(3)(C) of the Code) as frequently as twelve times in
any one taxable year in respect of its common shares (and as often as
specified by, or determined in accordance with the terms of, any
preferred shares issued by the Fund).\2\ Section 6(c) of the Act
provides, in relevant part, that the Commission may exempt any person
or transaction from any provision of the Act to the extent that such
exemption is necessary or appropriate in the public interest and
consistent with the protection of investors and the purposes fairly
intended by the policy and provisions of the Act.
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\2\ Although the Fund does not currently intend to issue
preferred shares, the board may authorize the issuance of preferred
shares in the future.
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4. Applicant states that any order granting the requested relief
will be subject to the terms and conditions stated in the application,
which generally are designed to address the concerns underlying section
19(b) and rule 19b-1, including concerns about proper disclosures and
shareholders' understanding of the source(s) of a Fund's distributions
and concerns about improper sales practices. Among other things, such
terms and conditions require that (1) the board of trustees of the Fund
(the ``Board'') request and evaluate, and the Fund will furnish, such
information as may be reasonably necessary to make an informed
determination of whether to adopt the proposed Distribution Policy and
that the Board periodically review the amount of the distributions in
light of the investment experience of the Fund, and (2) that the Fund's
shareholders receive appropriate disclosures concerning the
distributions.
For the Commission, by the Division of Investment Management,
under delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-19820 Filed 9-14-21; 8:45 am]
BILLING CODE 8011-01-P
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