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Federal Register / Vol. 72, No.

26 / Thursday, February 8, 2007 / Notices 6013

of the Code and section 302(d)(7) of • Rule 10b–10; Confirmation of VA 22312 or send an e-mail to:
ERISA for plan years beginning on or Transactions. PRA_Mailbox@sec.gov. Comments must
after January 1, 2007. As a result, in Rule 10b–10 (17 CFR 240.10b–10) of be submitted to OMB within 60 days of
accordance with section the Securities Exchange Act of 1934 (17 this notice.
4006(a)(3)(E)(iii)(II) of ERISA, the U.S.C. 78a et seq.) requires broker- Dated: January 31, 2007.
required interest rate for plan years dealers to convey basic trade
Florence E. Harmon,
beginning on or after January 1, 2007, is information to customers regarding their
securities transactions. This information Deputy Secretary.
100 percent of the annual rate of interest
determined by the Secretary of the includes: the date and time of the [FR Doc. E7–2086 Filed 2–7–07; 8:45 am]
Treasury on amounts invested transaction, the identity and number of BILLING CODE 8010–01–P

conservatively in long-term investment shares bought or sold, and the trading


grade corporate bonds for the month capacity of the broker-dealer. Depending
on the trading capacity of the broker- SECURITIES AND EXCHANGE
preceding the beginning of the plan year
dealer, the Rule requires the disclosure COMMISSION
for which premiums are being paid
(premium payment year). of commissions as well as mark-up and [Release No. IC–27695; File No. 812–13325]
On January 12, 2007 (at 72 FR 1564), mark-down information. For
the Pension Benefit Guaranty transactions in debt securities, the Rule Country Investors Life Assurance
Corporation (PBGC) published a notice requires the disclosure of redemption Company, et al.
informing the public of the interest rate and yield information. The Rule
potentially applies to all of the February 2, 2007.
assumption to be used for determining AGENCY: Securities and Exchange
variable-rate premiums for premium approximately 6,014 firms registered
with the Commission that affect Commission (the ‘‘Commission’’).
payment years beginning in January
transactions on behalf of customers. ACTION: Notice of application for an
2007. In light of IRS’s publication of the
updated mortality tables, that required The confirmations required by Rule order pursuant to Section 26(c) of the
interest rate assumption has changed. 10b–10 are generally processed through Investment Company Act of 1940, as
The required interest rate to be used automated systems. It takes amended (the ‘‘1940 Act’’ or ‘‘Act’’),
for determining variable-rate premiums approximately 1 minute to generate and approving certain substitutions of
for premium payment years beginning send a confirmation. It is estimated that securities.
in January 2007 is 5.75 percent (i.e., 100 broker-dealers spend 77.4 million hours
per year complying with Rule 10b–10. APPLICANTS: COUNTRY Investors Life
percent of the 5.75 percent composite
The Commission staff estimates the Assurance Company (the ‘‘Company’’),
corporate bond rate for December 2006).
costs of producing and sending a paper COUNTRY Investors Variable Life
PBGC will post the revised required
confirmation, including postage, to be Account (the ‘‘Life Account’’) and
interest rate on its Web site (http://
approximately 91 cents. The COUNTRY Investors Variable Annuity
www.pbgc.gov).
Commission staff also estimates that the Account (the ‘‘Annuity Account’’)
Issued in Washington, DC, on this 5th day cost of producing and sending a wholly (together, the ‘‘Applicants’’)
of February 2007. electronic confirmation is SUMMARY: Applicants seek an order
Vincent K. Snowbarger, approximately 52 cents. The amount of pursuant to Section 26(c) of the 1940
Interim Director, Pension Benefit Guaranty confirmations sent and the cost of
Corporation.
Act approving the substitution of: (1)
sending each confirmation varies from
Shares of the EquiTrust High Grade
[FR Doc. E7–2087 Filed 2–7–07; 8:45 am] firm to firm. Smaller firms generally
Bond Portfolio (‘‘Replacement Portfolio
BILLING CODE 7709–01–P send fewer confirmations than larger
A’’) of the EquiTrust Variable Insurance
firms because they affect fewer
Series Fund (the ‘‘EquiTrust Fund’’) for
transactions.
Written comments are invited on: (a) shares of the COUNTRY VP Short-Term
SECURITIES AND EXCHANGE Whether the proposed collection of Bond Fund (‘‘Replaced Portfolio A’’) of
COMMISSION information is necessary for the proper the COUNTRY Mutual Funds Trust (the
performance of the functions of the ‘‘COUNTRY Fund’’); and (2) shares of
Proposed Collection; Comment agency, including whether the the T. Rowe Price Personal Strategy
Request information shall have practical utility; Balanced Portfolio (‘‘Replacement
(b) the accuracy of the agency’s Portfolio B’’) of the T. Rowe Price Equity
Upon written request, copies available Series, Inc. (the ‘‘T. Rowe Price Fund’’)
from: Securities and Exchange estimates of the burden of the proposed
collection of information; (c) ways to for shares of the COUNTRY VP
Commission, Office of Filings and Balanced Fund (‘‘Replaced Portfolio B’’)
Information Services, Washington, DC enhance the quality, utility and clarity
of the information to be collected; and of the COUNTRY Fund. Shares of
20549. Replacement Portfolio A, Replacement
(d) ways to minimize the burden of the
Extension: Rule 10b–10, SEC File No. 270– collection of information on Portfolio B, Replaced Portfolio A, and
389, OMB Control No. 3235–0444.
respondents, including through the use Replaced Portfolio B currently are held
Notice is hereby given that pursuant of automated collection techniques or by the Life Account and the Annuity
to the Paperwork Reduction Act of 1995 other forms of information technology. Account (each an ‘‘Account,’’ together,
(44 U.S.C. 3501 et seq.), the Securities Consideration will be given to the ‘‘Accounts’’) to support variable life
and Exchange Commission comments and suggestions submitted in insurance or variable annuity contracts,
(‘‘Commission’’) is soliciting comments writing within 60 days of this respectively, issued by the Company
on the collection of information publication. (collectively, the ‘‘Contracts’’).
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summarized below. The Commission Direct your written comments to R. FILING DATE: The Application was filed
plans to submit this existing collection Corey Booth, Director/Chief Information on September 5, 2006 and amended and
of information to the Office of Officer, Securities and Exchange restated on January 24, 2007.
Management and Budget for extension Commission, C/O Shirley Martinson, HEARING OR NOTIFICATION OF HEARING: An
and approval. 6432 General Green Way, Alexandria, order granting the application will be

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6014 Federal Register / Vol. 72, No. 26 / Thursday, February 8, 2007 / Notices

issued unless the Commission orders a File No. 811–21330 (the Annuity reserve to the Company the right to
hearing. Interested persons may request Account)). Each Account is comprised assess a charge of $25 for transfers in
a hearing by writing to the Secretary of of a number of subaccounts and each excess of twelve per Contract year.
the Commission and serving Applicants subaccount invests exclusively in one of 7. The COUNTRY Fund is organized
with a copy of the request, personally or the insurance dedicated mutual fund as a Delaware business trust and
by mail. Hearing requests must be portfolios made available as investment registered as an open-end management
received by the Commission by 5:30 options underlying the Contracts. investment company under the Act (File
p.m. on February 27, 2007, and should 3. The Life Account is currently No. 811–10475). The COUNTRY Fund
be accompanied by proof of service on divided into 36 subaccounts. The assets currently offers 9 separate investment
Applicants in the form of an affidavit or, of the Life Account support variable life portfolios (each, a ‘‘Portfolio’’), two of
for lawyers, a certificate of service. insurance contracts, and interests in the which would be involved in the
Hearing requests should state the nature Account offered through such contracts proposed substitutions. The COUNTRY
of the requester’s interest, the reason for have been registered under the Fund issues a separate series of shares
the request, and the issues contested. Securities Act of 1933, as amended (the of beneficial interest in connection with
Persons who wish to be notified of a ‘‘1933 Act’’) on Form N–6 (File No. 333– each Portfolio and has registered such
hearing may request notification by 106757). shares under the 1933 Act on Form N–
writing to the Secretary of the 4. The Annuity Account is currently 1A (File No. 33–68270). COUNTRY
Commission. divided into 36 subaccounts. The assets Trust Bank (‘‘COUNTRY Advisor’’)
of the Annuity Account support variable serves as the investment adviser to each
ADDRESSES: Secretary, Securities and
annuity contracts, and interests in the Portfolio, including both Replaced
Exchange Commission, 100 F Street,
Account offered through such contracts Portfolio A and Replaced Portfolio B.
NE., Washington, DC 20549–1090.
have been registered under the 1933 Act 8. The EquiTrust Fund is an open-end
Applicants, c/o Virginia L. Eves, Esq.,
on Form N–4 (File No. 333–104424). diversified management investment
General Attorney, Country Investors Life 5. The Contracts are flexible premium company registered under the Act (File
Assurance Company, 1701 N. Towanda variable life insurance and variable No. 811–5069) consisting of six
Avenue, Bloomington, IL 61702–2901. annuity contracts. The variable life portfolios, each with its own investment
Copy to Thomas E. Bisset, Esq., insurance Contracts provide for the objective(s), investment policies,
Sutherland Asbill & Brennan LLP, 1275 accumulation of values on a variable restrictions, and attendant risks. One of
Pennsylvania Avenue, NW., basis, a fixed basis, or a combination of those portfolios, the EquiTrust High
Washington, DC 20004–2415. both, throughout the insured’s life, and Grade Bond Portfolio, is involved in the
FOR FURTHER INFORMATION CONTACT: for a death benefit upon the death of the proposed substitution. The EquiTrust
Alison T. White, Senior Counsel, or insured. The variable annuity Contracts Fund issues a separate series of shares
Joyce M. Pickholz, Branch Chief, Office provide for the accumulation of values of beneficial interest in connection with
of Insurance Products, Division of on a variable basis, a fixed basis, or a each of those portfolios, and has
Investment Management, at (202) 551– combination of both, during the registered such shares under the 1933
6795. accumulation period, and provide Act on Form N–1A (File No. 33–12791).
SUPPLEMENTARY INFORMATION: The settlement or annuity payment options EquiTrust Investment Management
following is a summary of the on a variable basis, a fixed basis, or a Services, Inc. is the investment adviser
Application. The complete Application combination of both, during the income and manager to the EquiTrust Fund
is available for a fee from the Public period. Under each of the Contracts, the portfolios. Neither the EquiTrust Fund
Reference Branch of the Commission. Company reserves the right to substitute nor any of its portfolios is affiliated with
shares of one underlying fund for shares the Applicants.
Applicants’ Representations of another, or of another investment 9. The T. Rowe Price Fund is a
1. The Company is a stock life portfolio, including a portfolio of a Maryland corporation that is registered
insurance company organized under different management investment as an open-end management investment
Illinois law in 1981. The Company is company. company under the Act (File No. 811–
principally engaged in the offering of 6. For as long as a variable life 07143) and currently offers seven
life insurance policies and annuity insurance Contract remains in force or investment portfolios, one of which—
contracts, and is admitted to do a variable annuity Contract remains in the T. Rowe Price Personal Strategy
business in 41 states. For purposes of force and has not yet been annuitized, Balanced Portfolio—is involved in the
the Act, the Company is the depositor a Contract owner may transfer all or any proposed substitution. The T. Rowe
and sponsor of each of the Accounts, as part of the Contract value from one Price Fund issues a series of shares of
those terms have been interpreted by the subaccount to any other subaccount beneficial interest in connection with
Commission with respect to variable life without limit, although certain each portfolio, and has registered such
insurance and variable annuity separate restrictions apply to transfers to and shares under the 1933 Act on Form N–
accounts. from the fixed account interest 1A (File No. 33–52161). T. Rowe Price
2. Under the insurance law of Illinois, investment option under the Contract Associates, Inc., based in Baltimore,
the assets of each Account attributable funded by the Company’s general Maryland, acts as investment adviser to
to the Contracts issued through that account (the ‘‘Declared Interest the T. Rowe Price Personal Strategy
Account are owned by the Company, Option’’). The Company reserves the Balanced Portfolio. Neither the T. Rowe
but are held separately from the other right to revoke or modify the transfer Price Fund nor any of its portfolios is
assets of the Company for the benefit of privilege to discourage excessive trading affiliated with the Applicants.
the owners of, and the persons entitled by Contract owners or to prevent 10. The investment objectives of each
to payment under, those Contracts. Each transfers that may have a detrimental Replaced Portfolio and Replacement
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Account is a ‘‘separate account’’ as effect upon Contract owners, Portfolio are as follows:
defined by Rule 0–1(e) under the Act. subaccount unit values, the insurance a. Replaced Portfolio A and
Each Account is registered with the dedicated mutual fund portfolios Replacement Portfolio A: The Country
Commission as a unit investment trust underlying the subaccounts or the VP Short-Term Bond Fund seeks to
(File No. 811–21394 (the Life Account); Declared Interest Option. The Contracts achieve a high level of current income

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Federal Register / Vol. 72, No. 26 / Thursday, February 8, 2007 / Notices 6015

consistent with preservation of capital b. Replaced Portfolio B and 11. The advisory fees, other expenses
and maintenance of liquidity. The Replacement Portfolio B: The Country and total operating expenses (before and
EquiTrust High Grade Bond Portfolio VP Balanced Fund seeks growth of after any contractual waivers and
seeks to generate as high a level of capital and current income. The T. reimbursements) for the year ended
current income as is consistent with Rowe Price Strategy Balanced Portfolio December 31, 2005, expressed as an
investment in a diversified portfolio of seeks the highest total return over time annual percentage of average daily net
high-grade income-bearing debt consistent with emphasis on both assets, of the Replaced Portfolios and
securities. capital appreciation and income. the Replacement Portfolios are as
follows:

Replaced Replacement
Portfolio A Portfolio A

Country VP EquiTrust High


Short-Term Grade Bond
Bond Fund Portfolio
(Percent) (Percent)

Advisory Fees ........................................................................................................................................................ .50 .30


Other Expenses ..................................................................................................................................................... .75 .15
Total Operating Expenses ..................................................................................................................................... 1.25 .45
Less Contractual Fee Waivers and Expense Reimbursements ........................................................................... (.55) N/A
Net Operating Expenses ....................................................................................................................................... .70 .45

Replaced Replacement
Portfolio B Portfolio B

T. Rowe Price
Country VP Bal- Personal Strat-
anced Fund egy Balanced
(Percent) Portfolio
(Percent)

Advisory Fees ........................................................................................................................................................ .75 1 .90

Other Expenses ..................................................................................................................................................... .79 .00


Total Operating Expenses ..................................................................................................................................... 1.54 .90
Less Contractual Fee Waivers and Expense Reimbursements ........................................................................... (.64) N/A
Net Operating Expenses ....................................................................................................................................... .90 .90
1 Unified fee.

12. The investment performance of reimburse the Contract owners investing 31, 2006 (the ‘‘Closing Date’’) and will
each Replacement Portfolio compares in the Replacement Portfolios to the be discontinued altogether under the
favorably to the investment performance extent that the sum of the operating Contracts on a date no later than the
of the corresponding Replaced Portfolio. expenses of the Replacement Portfolio Liquidation Date.
For each of the last three fiscal years, (taking into account any fee waivers and 16. Accumulated Contract value
the life of each Replaced Portfolio, the expense reimbursements) and invested in the COUNTRY VP Short-
investment performance of each subaccount expenses for such period Term Bond Fund and the COUNTRY VP
Replacement Portfolio has significantly exceed, on an annualized basis, the sum Balanced Fund will automatically be
exceeded the investment performance of of the operating expenses of the transferred to the EquiTrust High Grade
the corresponding Replaced Portfolio. In corresponding Replaced Portfolio Bond Fund and the T. Rowe Price
addition, each Replacement Portfolio (taking into account any fee waivers and Personnel Strategy Balanced Fund,
has a longer history of investment expense reimbursements) and respectively, as of a date determined by
performance than that of the subaccount expenses for the fiscal year the Company following receipt of a
corresponding Replaced Portfolio. preceding the date of the proposed Commission order granting substitution
substitution. In addition, for twenty-four relief (the ‘‘Substitution’’). Contract
13. Currently, under each Contract 36
months following the proposed owners will receive advance notice of
different variable investment options are
substitutions, the Company will not the date of the Substitution (the
available for investment. Following the
increase asset-based fees or charges for ‘‘Substitution Date’’).
proposed substitution of shares of each 17. By supplements dated July 6, 2006
Replacement Portfolio for shares of the Contracts outstanding on the date of the
(collectively, the ‘‘2006 Supplements’’)
corresponding Replaced Portfolio, 34 proposed substitutions.
to the prospectuses for the registration
different variable investment options 15. The Board of Trustees of the statements of the Accounts, the
will be available under each Contract. COUNTRY Fund voted to close the Company notified owners of the
14. For those Contracts that are in Replaced Portfolios to new investment Contracts of its intention to take the
force on the date of the proposed as of July 31, 2006, and to liquidate both necessary actions, including seeking an
substitutions, the Company will take the Replaced Portfolios on or before August order requested to carry out the
jlentini on PROD1PC65 with NOTICES

following action during the twenty-four 31, 2007, the Liquidation Date. In turn, proposed substitutions.
months following the date of the Replaced Portfolio A and Replaced 18. The 2006 Supplements advised
proposed substitutions. On the last day Portfolio B are no longer available for Contract owners that accumulated
of each fiscal period (not to exceed a new investment under the Contracts Contract value may continue to remain
fiscal quarter), the Company will (allocation of Contract value) as of July in the Replaced Portfolios after the

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6016 Federal Register / Vol. 72, No. 26 / Thursday, February 8, 2007 / Notices

Closing Date until the Substitution Date. Portfolio. Redemption requests and SECURITIES AND EXCHANGE
After the Closing Date, Contract owners purchase orders will be placed COMMISSION
will not be able to allocate Contract simultaneously so that Contract values
[Release No. 34–55207, File No. 4–518]
value to the Replaced Portfolios from will remain fully invested at all times.
the alternative investment options All redemptions of shares of the Joint Industry Plan; Order Approving
available under the Contract. Replaced Portfolios and purchases of Amendment To Add the International
19. From the date of the 2006 shares of the Replacement Portfolios Securities Exchange, LLC as
Supplements, Contract owners may will be effected in accordance with Rule Participant to National Market System
transfer accumulated Contract value Plan Establishing Procedures Under
22c–1 of the Act.
invested in the Replaced Portfolios to Rule 605 of Regulation NMS
the other investment options available 23. The proposed substitutions will
under the Contract free of charge and take place at relative net asset value and January 31, 2007.
without such transfers counting against will not result in a change in the
amount of any Contract owner’s I. Introduction
the number of free transfers allowed
each Contract Year. For 30 days accumulated Contract value or death On September 14, 2006, the
following the Substitution Date, benefit, or in the dollar value of his or International Securities Exchange, LLC
Contract owners whose accumulated her investment in any of the Accounts. (‘‘ISE’’) submitted to the Securities and
Contract value was invested in the Contract owners will not incur any fees Exchange Commission (‘‘SEC’’ or
Replaced Portfolios as of the or charges as a result of the proposed ‘‘Commission’’) in accordance with
Substitution Date and subsequently substitutions, nor will their rights or the Section 11A of the Securities Exchange
invested in the Replacement Portfolios Act of 1934 (‘‘Act’’) 1 and Rule 608 of
Company’s obligations under the
as a result of the Substitution may Regulation NMS,2 a proposed
Contracts be altered in any way. All
transfer that accumulated Contract value amendment to the national market
applicable expenses incurred in system plan establishing procedures
from the Replacement Portfolios to the
connection with the proposed under Rule 605 of Regulation NMS
alternative investment options available
substitutions, including brokerage (‘‘Joint-SRO Plan’’ or ‘‘Plan’’).3 Under
under the Contract free of charge and
without such transfers counting against commissions and legal, accounting, and the proposed amendment, ISE would be
the number of free transfers. Although other fees and expenses, will be paid by added as a participant to the Joint-SRO
the Company has no present intention the Company. In addition, the proposed Plan. Notice of filing and an order
to increase the charge for transfers substitutions will not result in adverse granting temporary effectiveness of the
under the Contract, the Company will tax consequences for, and will not alter, proposal through January 30, 2007 was
not exercise any rights reserved by it the tax benefits to Contract owners. The published in the Federal Register on
under the Contract to impose additional proposed substitutions will not cause October 2, 2006.4 The Commission did
charges for transfers until at least 30 the Contract fees and charges currently not receive any comments on the
days after the Substitution Date. being paid by existing Contract owners proposed amendment. This order
20. Further, all Contract owners to be greater after the proposed approves the amendment on a
invested in a Replaced Portfolio will substitutions than before the proposed permanent basis.
have received the most recent substitutions. II. Discussion
corresponding Replacement Portfolio
prospectus prior to the Substitution Conclusion The Joint-SRO Plan establishes
Date. procedures for market centers to follow
21. Within five days after the For the reasons and upon the facts set in making their monthly reports
proposed substitutions, Contract owners forth above, Applicants submit that the required pursuant to Rule 605 of
who are affected by the substitutions requested order meets the standards set Regulation NMS, available to the public
will be sent a written notice informing forth in Section 26(c). Applicants in a uniform, readily accessible, and
them that the substitutions were carried request an order of the Commission, usable electronic format. The current
out. The notice also will reiterate the pursuant to Section 26(c) of the Act, participants to the Joint-SRO Plan are
facts that: (a) For at least 30 days after approving the Substitutions. the American Stock Exchange LLC,
the Substitution Date, the Company will For the Commission, by the Division of Boston Stock Exchange, Inc., Chicago
not exercise any rights reserved by it Investment Management, pursuant to Board Options Exchange, Incorporated,
under the Contract to impose additional delegated authority. Chicago Stock Exchange, Inc.,
charges for transfers; and (b) for 30 days Cincinnati Stock Exchange, Inc. (n/k/a
Florence E. Harmon,
following the proposed substitutions, National Stock ExchangeSM), The
Contract owners may transfer Deputy Secretary.
NASDAQ Stock Market LLC, National
accumulated Contract value invested in [FR Doc. 07–554 Filed 2–7–07; 8:45 am] Association of Securities Dealers, Inc.,
the Replacement Portfolios as a result of BILLING CODE 8010–01–P New York Stock Exchange, Inc. (n/k/a
the Substitution out of the Replacement New York Stock Exchange LLC), Pacific
Portfolios and into the alternative
investment options available under the 1 15 U.S.C. 78k–1.
Contracts free of charge and without 2 17 CFR 242.608.
3 17 CFR 242.605. On April 12, 2001, the
such transfers counting against the
Commission approved a national market system
number of free transfers allowed each plan for the purpose of establishing procedures for
Contract Year. market centers to follow in making their monthly
22. The Company will carry out the reports available to the public under Rule 11Ac1–
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proposed substitutions by redeeming 5 under the Act (n/k/a Rule 605 of Regulation
shares of each Replaced Portfolio held NMS). See Securities Exchange Act Release No.
44177 (April 12, 2001), 66 FR 19814 (April 17,
by the Accounts for cash and applying 2001).
the proceeds to the purchase of shares 4 See Securities Exchange Act Release No. 54510

of the corresponding Replacement (September 26, 2006), 71 FR 58018.

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