| Fund Democracy |
Gramm-Leach-Bliley Act
Title II
Section 213
SEC. 213. INDEPENDENT DIRECTORS.
(a) IN GENERAL.-Section 2(a)(19)(A) of the Investment Com-pany Act of 1940 (15 U.S.C. 80a-2(a)(19)(A)) is amended-
(1) by striking clause (v) and inserting the following new clause:
''(v) any person or any affiliated person of a person (other than a registered investment company) that, at any time during the 6-month period preceding the date of the determination of whether that person or affiliated person is an interested person, has executed any portfolio transactions for, engaged in any principal transactions with, or distributed shares for-
''(I) the investment company;
''(II) any other investment company having the same investment adviser as such investment company or holding itself out to investors as a related company for purposes of investment or investor services; or
''(III) any account over which the investment company's investment adviser has brokerage place-ment discretion,'';
(2) by redesignating clause (vi) as clause (vii); and
(3) by inserting after clause (v) the following new clause:
''(vi) any person or any affiliated person of a person (other than a registered investment company) that, at any time during the 6-month period preceding the date of the determination of whether that person or affiliated person is an interested person, has loaned money or other property to-
''(I) the investment company;
''(II) any other investment company having the same investment adviser as such investment company or holding itself out to investors as a related company for purposes of investment or investor services; or
''(III) any account for which the investment company's investment adviser has borrowing authority,''.
(b) CONFORMING AMENDMENT.-Section 2(a)(19)(B) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(19)(B)) is amended-
(1) by striking clause (v) and inserting the following new clause:
''(v) any person or any affiliated person of a person (other than a registered investment company) that, at any time during the 6-month period preceding the date of the determination of whether that person or affiliated person is an interested person, has executed any portfolio transactions for, engaged in any principal transactions with, or distributed shares for-
''(I) any investment company for which the investment adviser or principal underwriter serves as such;
''(II) any investment company holding itself out to investors, for purposes of investment or investor services, as a company related to any investment company for which the investment adviser or principal underwriter serves as such; or
''(III) any account over which the investment adviser has brokerage placement discretion,'';
(2) by redesignating clause (vi) as clause (vii); and
(3) by inserting after clause (v) the following new clause:
''(vi) any person or any affiliated person of a person (other than a registered investment company) that, at any time during the 6-month period preceding the date of the determination of whether that person or affiliated person is an interested person, has loaned money or other property to-
''(I) any investment company for which the investment adviser or principal underwriter serves as such;
''(II) any investment company holding itself out to investors, for purposes of investment or investor services, as a company related to any investment company for which the investment adviser or principal underwriter serves as such; or
''(III) any account for which the investment adviser has borrowing authority,''.
(c) AFFILIATION OF DIRECTORS.-Section 10(c) of the Investment Company Act of 1940 (15 U.S.C. 80a-10(c)) is amended by striking ''bank, except'' and inserting ''bank (together with its affiliates and subsidiaries) or any one bank holding company (together with its affiliates and subsidiaries) (as such terms are defined in section 2 of the Bank Holding Company Act of 1956), except''.
This page was last updated on February 14, 2002.