Copley Fund, Inc. v. SEC

Petitioner, a mutual fund, challenged the Commission's denial of an exemption from rules governing the calculation and reporting of petitioner's deferred tax liability. The court concluded that petitioner’s attacks on the Commission’s “hypothetical speculation” affords no basis for setting aside the Commission’s reasonable conclusion that petitioner’s proposal to provide for only a small fraction of its full potential tax liability may result in inequitable treatment of redeeming and non-redeeming shareholders, contradicting a primary purpose of the Investment Company Act of 1940, 15 U.S.C. 80a-22(a). The court rejected petitioner's remaining claims. Accordingly, petitioner's arguments fail to carry the high burden required to overturn the Commission’s denial of an exemption and, therefore, the court denied the petition for review. View "Copley Fund, Inc. v. SEC" on Justia Law