§ 270.12d1-3 Exemptions for investment companies relying on section 12(d)(1)(F) of the Act.

Exemption from sales charge limits.1/2(a) A registered investment company (“acquiring fund”) that relies on section 12(d)(1)(F) of the Act (15 U.S.C. 80a-12(d)(1)(F)) to acquire securities issued by an investment company (“acquired fund”) may offer or sell any security it issues through a principal underwriter or otherwise at a public offering price that includes a sales load of more than 1 percent if any sales charges and service fees charged with respect to the acquiring fund's securities do not exceed the limits set forth in FINRA Rule 2341 applicable to a fund of funds.

Definitions.fund of funds,service fee(b) For purposes of this section, the terms sales charge, and have the same meanings as in FINRA Rule 2341(b).

[71 FR 36655, June 27, 2006, as amended at 88 FR 37987, June 12, 2023]