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approval, petitioner files the RIC's registration statement with
the SEC.
During the years in issue, SEC registrations for RIC's
became effective 60 days after filing. During this 60-day
period, the SEC could submit comments and questions to petitioner
concerning the registration. Unless the SEC issued a stop order,
the registration became effective 60 days after filing.
At or before the time that the RIC's SEC registration would
become effective, petitioner, by memorandum to the board of
trustees, requested approval of the initial management contract.
Petitioner submitted this memorandum to the board of trustees at
a regularly scheduled meeting. Only after the board of trustees
approved the initial management contract and the SEC registration
became effective, could petitioner begin selling shares in the
RIC to the investing public.
Petitioner's RIC's
During the years in issue, petitioner created, and entered
into separate contracts to manage, 82 new RIC's. Each new RIC
launched by petitioner is formed as a trust, or as a series of an
already existing trust. The decision to create a new trust or a
new series within an existing trust turns upon practical
considerations like matching fiscal years or similarity of the
new investment discipline or objective to those of preexisting
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