§ 80a-5. — Subclassification of management companies.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC80a-5]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2D--INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER I--INVESTMENT COMPANIES
Sec. 80a-5. Subclassification of management companies
(a) Open-end and closed-end companies
For the purposes of this subchapter, management companies are
divided into open-end and closed-end companies, defined as follows:
(1) ``Open-end company'' means a management company which is
offering for sale or has outstanding any redeemable security of
which it is the issuer.
(2) ``Closed-end company'' means any management company other
than an open-end company.
(b) Diversified and non-diversified companies
Management companies are further divided into diversified companies
and non-diversified companies, defined as follows:
(1) ``Diversified company'' means a management company which
meets the following requirements: At least 75 per centum of the
value of its total assets is represented by cash and cash items
(including receivables), Government securities, securities of other
investment companies, and other securities for the purposes of this
calculation limited in respect of any one issuer to an amount not
greater in value than 5 per centum of the value of the total assets
of such management company and to not more than 10 per centum of the
outstanding voting securities of such issuer.
(2) ``Non-diversified company'' means any management company
other than a diversified company.
(c) Loss of status as diversified company
A registered diversified company which at the time of its
qualification as such meets the requirements of paragraph (1) of
subsection (b) of this section shall not lose its status as a
diversified company because of any subsequent discrepancy between the
value of its various investments and the requirements of said paragraph,
so long as any such discrepancy existing immediately after its
acquisition of any security or other property is neither wholly nor
partly the result of such acquisition.
(Aug. 22, 1940, ch. 686, title I, Sec. 5, 54 Stat. 800; Pub. L. 100-181,
title VI, Sec. 607, Dec. 4, 1987, 101 Stat. 1261.)
Amendments
1987--Subsec. (a)(2). Pub. L. 100-181 substituted ``Closed-end'' for
``Close-end''.
Transfer of Functions
For transfer of functions of Securities and Exchange Commission,
with certain exceptions, to Chairman of such Commission, see Reorg. Plan
No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out under section 78d of this title.
Section Referred to in Other Sections
This section is referred to in sections 80a-2, 80a-6, 80a-8, 80a-12,
80a-13, 80a-58 of this title.
