FR 2020-29013

Summary of the Document

The document is a notice published by the Securities and Exchange Commission (SEC) concerning applications for deregistration under Section 8(f) of the Investment Company Act of 1940. Two applicants, Premier Multi-Series VIT and SEI Insurance Products Trust, are seeking orders from the SEC to no longer be classified as investment companies. The Premier Multi-Series VIT completed its process of distributing assets to its shareholders in April 2020, while SEI Insurance Products Trust did the same in September 2020. These actions are formalized via applications filed with the SEC to ensure regulatory compliance.

Significant Issues and Concerns

There are a few notable issues regarding the information provided in the document. Firstly, the document mentions specific expenses incurred during the reorganization process for each company's deregistration. Premier Multi-Series VIT reported expenses of approximately $97,923, and SEI Insurance Products Trust reported expenses of around $21,512. However, there is no detailed explanation about whether these costs were competitive or justified. The lack of transparency regarding these expenses may raise concerns about their necessity and whether they might reflect favoritism towards certain service providers.

Additionally, the use of technical terms such as "liquidating distribution" and "net asset value" may not be easily understood by individuals without a background in finance or investment. This could hinder the public's ability to fully comprehend the implications of these actions, highlighting a need for clearer language and definitions.

Lastly, the document does not provide detailed reasons for why these companies decided to cease being investment companies. Understanding the specific motivations and circumstances could greatly aid stakeholders in assessing the impact and necessity of such deregistrations.

Impact on the Public

For the general public, the immediate implications of this document may not be widely felt. However, ensuring that investment companies are properly regulated and transparent is crucial for maintaining public trust in the financial system. Deregistration actions like these serve as a reminder of the importance of regulatory oversight in protecting the public's financial interests.

Impact on Specific Stakeholders

The stakeholders most directly affected by this document are the shareholders of Premier Multi-Series VIT and SEI Insurance Products Trust. For them, the deregistration means they would have received the value of their investments back through liquidating distributions based on the net asset value. If these actions were effectively communicated and handled, shareholders might see this as a positive conclusion, securing their assets.

On the other hand, employees and managers within the deregistering companies may face uncertainty regarding their future roles, as the companies transition away from being classified as investment companies. Additionally, other investment companies may view this as a precedent for how they might approach similar actions, thus impacting broader industry practices and behaviors.

In summary, while the document primarily affects stakeholders closely associated with the two companies in question, it also underscores the importance of transparent financial practices and regulatory oversight, which play a vital role in protecting public interests.

In the Federal Register document titled "Notice of Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940," several financial references are made concerning the process of deregistering specific investment companies. The content and implications of these financial references are significant in understanding the financial operations and the possible transparency issues involved.

Summary of Financial Allocations

The document outlines the expenses incurred by two applicants during the process of liquidating their assets and deregistering from being considered investment companies:

• For Premier Multi-Series VIT, expenses associated with the reorganization amounted to approximately $97,923. These costs were covered by the applicant and its investment adviser.
• For SEI Insurance Products Trust, the liquidation process incurred expenses totaling approximately $21,512, which were paid solely by the applicant.

Context and Considerations

These expenditures are directly related to the investment companies' efforts to cease operating as registered investment entities, as reflected in their filings with the Securities and Exchange Commission. Such expenses are expected during significant structural changes like liquidations and deregistrations. However, the document briefly mentions these financial figures without detailing the scope of the services rendered for the reorganization and liquidation processes. It's unclear whether these expenses were competitively bid or justified in terms of value received, raising potential concerns regarding financial transparency and whether there could be favoritism towards certain service providers.

Moreover, the financial figures presented could lead stakeholders to question whether the costs were necessary and appropriately minimized, especially when substantial sums are involved. The lack of detailed information about how these expenses were predetermined or later evaluated limits the ability to thoroughly assess the fairness and efficacy of the expenditure.

Implications for Stakeholders

The financial references in the document, particularly the cited costs of $97,923 and $21,512 for the respective companies' processes, underscore the potential need for greater transparency in financial reporting related to significant transitions like deregistration. Absent detailed documentation of these expenses, stakeholders may find it challenging to fully understand the rationale and execution of such spending, highlighting the importance of clarity and transparency in financial matters.

This discussion also ties into broader concerns about how such processes might impact shareholders or other stakeholders if costs are not managed efficiently. Understanding the underlying reasons and necessity for these expenses could further illuminate their appropriateness and help prevent any inadvertent financial waste or mismanagement.