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Can you summarize 3 NYCRR Part 36?
General Regulations of the Superintendent > Investments by Banks or Trust Companies in Investment Companies
Short Summary
This document governs the investments made by banks or trust companies in investment companies. It allows banks or trust companies to invest in the shares of any single fund without express limit, subject to certain limitations. Banks or trust companies investing in funds with assets subject to investment limits must periodically review the fund portfolios to ensure compliance with the limitations set forth in sections 97(4-b), 103, and 106 of the Banking Law. If the combined investment of the bank or trust company in the obligations of a single issuer exceeds the limitations, the excessive holdings must be reduced within a reasonable period of time. Additionally, banks or trust companies are expected to periodically monitor the portfolios of the funds they invest in to determine the appropriateness of the investments for their own portfolios. A bank or trust company may invest in the shares of investment companies, provided that the portfolio of the fund consists solely of investments in stocks and obligations in which banks or trust companies are permitted to invest directly. Investment companies include open-end and closed-end investment companies and unit investment trusts as those terms are used in the Investment Company Act of 1940. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Banks or trust companies
What does it govern?
Investments made by banks or trust companies in investment companies
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York