Question: The Investment Company Act prohibits a mutual fund from engaging
The Investment Company Act prohibits a mutual fund from engaging in certain transactions when there may be a conflict of interest between the manager of the fund and its shareholders. Under rules issued by the Securities and Exchange Commission (SEC), however, a fund that meets certain conditions may engage in an otherwise prohibited transaction. In June 2004, the SEC added two new conditions. A year later, the SEC reconsidered the new conditions in terms of the costs that they would impose on the funds. Within eight days, and without asking for public input, the SEC readopted the conditions. The Chamber of Commerce of the United States asked a federal appellate court to review the new rules. The Chamber argued that in readopting the rules, the SEC relied on materials not in the “rulemaking record” without providing an opportunity for public comment. The SEC countered that the information was otherwise “publicly available.” In adopting a rule, should an agency consider information that is not part of the rule-making record? Why or why not?
Answer to relevant QuestionsMichael Manin, an airline pilot, was twice convicted of disorderly conduct, a minor misdemeanor. To renew his flight certification with the National Transportation Safety Board (NTSB), Manin filed an application that asked ...McDonald’s Corp.’s Happy Meal® meal selection consists of an entrée, a small order of French fries, a small drink, and a toy. In the early 1990s, McDonald’s began to aim its Happy Meal marketing at children aged one ...A by- product of phosphate fertilizer production is pyrite waste, which contains arsenic and lead. From 1884 to 1906, seven phosphate fertilizer plants operated on a forty- three- acre operated on a forty-three-acre site in ...Residents of the city of Madison, Wisconsin, became concerned about overconsumption of liquor near the campus of the University of Wisconsin (UW). The city initiated a new policy, imposing conditions on area bars to ...Bob Moreland left his plane at Don Gray’s aircraft repair shop to be painted. When Moreland picked up the airplane, he was disappointed in the quality of the work and pointed out numerous defects. Moreland refused to pay ...
Post your question