N.J. Admin. Code § 17:16-42.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 17:16-42.4 - Limitations

(a) At the time of initial purchase, the following conditions shall be met:

1. Not more than 10 percent of the market value of the assets of any eligible fund shall be directly invested in equity and fixed income obligations of any one issuer and affiliated entities;

2. The total amount of a particular class of stock directly purchased or acquired of any one entity shall not exceed five percent of that class of stock outstanding; provided, however, that the total amount of shares owned pursuant to this section and N.J.A.C. 17:16-48, in the aggregate, of a swap dealer or major swap participant as defined in the Commodity Futures Trading Commission rules and that are eligible to vote, shall be less than 10 percent of that class of stock outstanding; and

3. The total amount of shares directly purchased or acquired of any one exchange-traded fund shall not exceed five percent of the total shares outstanding of such fund.

(b) If, subsequent to initial purchase, the limitations in (a) above are exceeded, then the Council shall be notified at the next regularly scheduled meeting of the Council. The Division may be granted a six-month period of grace to reduce the level of participation below the maximum levels, except that the period of grace may be extended for additional four-month periods with the approval of the Council.

N.J. Admin. Code § 17:16-42.4

Amended by R.1996 d.222, effective 5/6/1996.
See: 28 N.J.R. 1366(a), 28 N.J.R. 2397(a).
In (a) substituted market value for book value.
Recodified from N.J.A.C. 17:16-42.4 by R.2000 d.250, effective 6/19/2000.
See: 32 N.J.R. 1324(b), 32 N.J.R. 2257(c).
Former N.J.A.C. 17:16-42.3, Applicable funds in the trust group, recodified to N.J.A.C. 17:16-42.2.
Recodified from N.J.A.C. 17:16-42.3 and amended by R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Recodified former (a) and (b) as (a)1 and (a)2; rewrote (a)1; and added new (a) and (b).
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
Rewrote (a)1 and (a)2; and added (a)3.

Amended by 53 N.J.R. 1857(a), effective 11/1/2021