Investment Company Act Rules

Rule 0-10

Small Entities Under the Investment Company Act for Purposes of the Regulatory Flexibility Act

(a) General. For purposes of Commission rulemaking in accordance  with the provisions of Chapter Six of the Administrative Procedure Act  (5 U.S.C. 601 et seq.) and unless otherwise defined for purposes of a  particular rulemaking, the term small business or small organization for  purposes of the Investment Company Act of 1940 shall mean an investment  company that, together with other investment companies in the same group  of related investment companies, has net assets of $50 million or less  as of the end of its most recent fiscal year. For purposes of this  section:

(1) In the case of a management company, the term group of related  investment companies shall mean two or more management companies  (including series thereof) that:

(i) Hold themselves out to investors as related companies for  purposes of investment and investor services; and

(ii) Either:

(A) Have a common investment adviser or have investment advisers  that are affiliated persons of each other; or

(B) Have a common administrator; and

(2) In the case of a unit investment trust, the term group of  related investment companies shall mean two or more unit investment  trusts (including series thereof) that have a common sponsor.

(b) Special rule for insurance company separate accounts. In  determining whether an insurance company separate account is a small  business or small entity pursuant to paragraph (a) of this section, the  assets of the separate account shall be cumulated with the assets of the  general account and all other separate accounts of the insurance  company.

(c) Determination of net assets. The Commission may calculate its  determination of the net assets of a group of related investment  companies based on the net assets of each investment company in the  group as of the end of such company's fiscal year.