Notice2022-18101
Merrill Lynch Corporate Dividend Fund, Inc., et al.
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
August 23, 2022
Issuing agencies
Securities and Exchange Commission
Abstract
The Commission intends to rescind an order issued on April 9, 1985, on an application filed by Merrill Lynch Corporate Dividend Fund, Inc., et al. (the "Applicants"), which granted exemptions from sections 18(f)(1) and 17(f) of the Act (the "Exemptive Order").\1\ ---------------------------------------------------------------------------
Full Text
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<title>Federal Register, Volume 87 Issue 162 (Tuesday, August 23, 2022)</title>
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[Federal Register Volume 87, Number 162 (Tuesday, August 23, 2022)]
[Notices]
[Pages 51722-51723]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18101]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 34678; 812-05867]
Merrill Lynch Corporate Dividend Fund, Inc., et al.
August 17, 2022.
AGENCY: Securities and Exchange Commission (the ``Commission'').
ACTION: Notice of the Commission's intention to rescind an order
pursuant to section 38(a) of the Investment Company Act of 1940 (the
``Act'').
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SUMMARY: The Commission intends to rescind an order issued on April 9,
1985, on an application filed by Merrill Lynch Corporate Dividend Fund,
Inc., et al. (the ``Applicants''), which granted exemptions from
sections 18(f)(1) and 17(f) of the Act (the ``Exemptive Order'').\1\
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\1\ Merrill Lynch Corporate Dividend Fund, Merrill Lynch
Corporate Bond Fund, Inc., Merrill Lynch Municipal Bond Fund, Inc.,
Merrill Lynch Federal Securities Trust, Merrill Lynch Asset
Management, Inc. (``MLAM''), Fund Asset Management, Inc. (``FAMI''),
and any other registered investment companies advised at the time of
the notice, or which in the future may be advised, by MLAM or FAMI,
and which may engage in the trading activities described in the
application, Investment Company Act Release Nos. 14415 (Mar. 13,
1985) (notice) and 14462 (Apr. 9, 1985) (order). The Merrill Lynch
Corporate Bond Fund, Inc. and Merrill Lynch Municipal Bond Fund,
Inc. are currently reporting to the Commission as the BlackRock Bond
Fund, Inc. and the BlackRock Municipal Bond Fund, Inc. respectively.
The Merrill Lynch Federal Securities Trust has deregistered. The
adviser applicants are no longer registered with the Commission.
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Hearing or Notification of Hearing: An order rescinding the
Exemptive Order 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#5407313726312035262d27791b32323d3731142731377a333b22"><span class="__cf_email__" data-cfemail="8fdceaecfdeafbeefdf6fca2c0e9e9e6eceacffceaeca1e8e0f9">[email protected]</span></a>. Hearing requests should be
received by the Commission by 5:30 p.m. on September 12, 2022. Hearing
requests should state the nature of the writer's interest, 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#f9aa9c9a8b9c8d988b808ad4b69f9f909a9cb98a9c9ad79e968f"><span class="__cf_email__" data-cfemail="a8fbcdcbdacddcc9dad1db85e7cecec1cbcde8dbcdcb86cfc7de">[email protected]</span></a>.
ADDRESSES: Secretary, Commission, <a href="/cdn-cgi/l/email-protection#2e7d4b4d5c4b5a4f5c575d03614848474d4b6e5d4b4d00494158"><span class="__cf_email__" data-cfemail="9ecdfbfdecfbeaffece7edb3d1f8f8f7fdfbdeedfbfdb0f9f1e8">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Jessica Leonardo, Senior Counsel, at
202-551-7125 (Division of Investment Management, Chief Counsel's
Office).
SUPPLEMENTARY INFORMATION: The Commission issued the Exemptive Order
exempting the Applicants from the provisions of section 18(f)(1) and
section 17(f) of the Act to the extent necessary to permit the
Applicants to trade interest rate futures contracts, stock index
futures contracts, municipal bond index futures contracts, and related
options. The Exemptive Order was expressly subject to compliance with
the undertakings made in the application.
On November 2, 2020, the Commission adopted rule 18f-4, which
provides an updated and more comprehensive approach to the regulation
of registered investment company (``fund'') and business development
company use of derivatives and certain other transactions by replacing
existing Commission and staff guidance with a codified, consistent
regulatory framework.\2\ The undertakings of the
[[Page 51723]]
Exemptive Order relating to section 18(f)(1) and the Applicants'
investments in certain futures contracts and related options, are
superseded by rule 18f-4, which became effective on February 19, 2021,
and with which funds will have to comply as of August 19, 2022. In
addition, as a general matter, a fund trading in exchange-traded
futures and commodity options can rely on rule 17f-6, which permits
funds to maintain their assets with futures commission merchants in
connection with futures contracts and commodity options traded on U.S.
and foreign exchanges.\3\
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\2\ See Use of Derivatives by Registered Investment Companies
and Business Development Companies, Investment Company Act Release
No. 34084 (Nov. 2, 2020) at <a href="https://www.sec.gov/rules/final/2020/ic-34084.pdf">https://www.sec.gov/rules/final/2020/ic-34084.pdf</a>.
\3\ See 17 CFR 270.17f-6; Custody of Investment Company Assets
with Futures Commissions Merchants and Commodity Clearing
Organizations, Investment Company Act Release No. 22389 (Dec. 11,
1996), <a href="https://www.sec.gov/rules/final/ic-22389.txt">https://www.sec.gov/rules/final/ic-22389.txt</a>. We also note
that based on filings on Form N-CEN, no fund has reported that it
relies on the Exemptive Order.
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Section 38(a) of the Act states, in relevant part, that the
Commission shall have authority to rescind an order as is necessary or
appropriate to the exercise of the powers conferred upon the Commission
elsewhere in the Act.\4\ On the basis of rules 18f-4 and 17f-6 and the
discussions in the releases adopting each of those rules, and on the
authority granted to the Commission in section 38(a) of the Act, the
Commission intends to rescind the Exemptive Order.
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\4\ 15 U.S.C 80a-37(a). (stating in relevant part, ``[t]he
Commission shall have authority from time to time to make, issue,
amend, and rescind such rules and regulations and such orders as are
necessary or appropriate . . . .'').
By the Commission,
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2022-18101 Filed 8-22-22; 8:45 am]
BILLING CODE 8011-01-P
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