December 2, 2008

Commodity futures trading - "Switching of open-end investment company securities and those of unit investment trusts and of face-amount certificate companies on a basis permitting reloading is prohibited in the absence of an order or ruling by the Commission.

The Investment Company Act also regulates the sales load that may be charged on periodic-payment-plan certificates and prescribes the form of trust indentures to be used and the charges which may be made by trustees and sponsors of unit investment trusts, including those issuing periodic-payment-plan certificates. A number of other important provisions are designed to eliminate temptations. Limitations and prohibitions are imposed on the eligibility and activity of persons affiliated with investment companies and on the transactions of such affiliated persons with those companies. Persons convicted of certain crimes involving security transactions or enjoined from specific activities because of similar misconduct may not serve as officers or directors of, or perform certain other functions for, registered investment companies. With certain exceptions, the Investment Company Act prohibits an affiliated person, promoter, or principal underwriter to sell to, or buy or borrow property from, the investment company or any other company it controls. The Commission is empowered to seek an injunction against any person for gross misconduct or gross abuse of trust in respect to an investment company served by such person in any of certain designated capacities.


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