FLEXIBLE REGISTRATION OF SECURITIES.

SEC. 203. FLEXIBLE REGISTRATION OF SECURITIES. (a) Amendments to Registration Statements.—Section 24(e) of the Investment Company Act of 1940 (15 U.S.C. 80a-24(e)) is amended— (1) by striking paragraphs (1) and (2); (2) by striking “(3) For” and inserting “For”; and (3) by striking “pursuant to this subsection or otherwise”. (b) Registration of Indefinite Amount of Securities.—Section 24(f) of the Investment Company Act of 1940 (15 U.S.C. 80a-24(f)) is amended to read as follows: “(f) Registration of Indefinite Amount of Securities.— “(1) Registration of securities—Upon the effective date of its registration statement, as provided by section 8 of the Securities Act of 1933, a face-amount certificate company, open-110 STAT. 3428end management company, or unit investment trust, shall be deemed to have registered an indefinite amount of securities. “(2) Payment of registration fees.—Not later than 90 days after the end of the fiscal year of a company or trust referred to in paragraph (1), the company or trust, as applicable, shall pay a registration fee to the Commission, calculated in the manner specified in section 6(b) of the Securities Act of 1933, based on the aggregate sales price for which its securities (including, for purposes of this paragraph, all securities issued pursuant to a dividend reinvestment plan) were sold pursuant to a registration of an indefinite amount of securities under this subsection during the previous fiscal year of the company or trust, reduced by— “(A) the aggregate redemption or repurchase price of the securities of the company or trust during that year; and “(B) the aggregate redemption or repurchase price of the securities of the company or trust during any prior fiscal year ending not more than 1 year before the date of enactment of the Investment Company Act Amendments of 1996, that were not used previously by the company or trust to reduce fees payable under this section. “(3) Interest due on late payment.—A company or trust paying the fee required by this subsection or any portion thereof more than 90 days after the end of the fiscal year of the company or trust shall pay to the Commission interest on unpaid amounts, at the average investment rate for Treasury tax and loan accounts published by the Secretary of the Treasury pursuant to section 3717(a) of title 31, United States Code. The payment of interest pursuant to this paragraph shall not preclude the Commission from bringing an action to enforce the requirements of paragraph (2). “(4) Rulemaking authority.—The Commission may adopt rules and regulations to implement this subsection.”. (c) Effective Date.—The amendments made by this section shall become effective on the earlier of— (1) 1 year after the date of enactment of this Act; or (2) the effective date of final rules or regulations issued in accordance with section 24(f) of the Investment Company Act of 1940, as amended by this section.