Submission for OMB Review; Comment Request, 32673-32674 [E5-2844]

Download as PDF Federal Register / Vol. 70, No. 106 / Friday, June 3, 2005 / Notices negate the public service pension offset in Tier 1 for a spouse or widow(er). FOR FURTHER INFORMATION CONTACT: Copies of the forms and supporting documents can be obtained from Charles Mierzwa, the agency clearance officer (312–751–3363) or Charles.Mierzwa@rrb.gov. Comments regarding the information collection should be addressed to Ronald J. Hodapp, Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois, 60611–2092 or Ronald.Hodapp@rrb.gov and to the OMB Desk Officer for the RRB, at the Office of Management and Budget, Room 10230, New Executive Office Building, Washington, DC 20503. Charles Mierzwa, Clearance Officer. [FR Doc. 05–11032 Filed 6–2–05; 8:45 am] BILLING CODE 7905–01–P RAILROAD RETIREMENT BOARD Summary: In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the Railroad Retirement Board (RRB) has submitted the following proposal(s) for the collection of information to the Office of Management and Budget for review and approval. Summary of Proposal(s) (1) Collection title: Statement of Authority to Act for Employee. (2) Form(s) submitted: SI–10. (3) OMB Number: 3220–0034. (4) Expiration date of current OMB clearance: 08/31/2005. (5) Type of request: Extension of a currently approved collection. (6) Respondents: Individuals or households, Business or other for-profit. (7) Estimated annual number of respondents: 400. (8) Total annual responses: 400. (9) Total annual reporting hours: 40. (10) Collection description: Under 20 CFR 335.2, the Railroad Retirement Board (RRB) accepts claims for sickness benefits by other than the sick or injured employees, provided the RRB has the information needed to satisfy itself that the delegation should be made. FOR FURTHER INFORMATION CONTACT: Copies of the forms and supporting documents can be obtained from Charles Mierzwa, the agency clearance officer (312–751–3363) or Charles.Mierzwa@rrb.gov. Comments regarding the information collection should be addressed to 18:03 Jun 02, 2005 Jkt 205001 Charles Mierzwa, Clearance Officer. [FR Doc. 05–11033 Filed 6–2–05; 8:45 am] BILLING CODE 7905–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549 Extension: Rule 482, SEC File No. 270–508, OMB Control No. 3235–0565. Agency Forms Submitted for OMB Review VerDate jul<14>2003 Ronald J. Hodapp, Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois, 60611–2092 or Ronald.Hodapp@rrb.gov and to the OMB Desk Officer for the RRB, at the Office of Management and Budget, Room 10230, New Executive Office Building, Washington, DC 20503. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for extension of the previously approved collection of information discussed below. Like most issuers of securities, when an investment company 1 (‘‘fund’’) offers its shares to the public, its promotional efforts become subject to the advertising restrictions of the Securities Act of 1933, as amended (the ‘‘Securities Act’’). In recognition of the particular problems faced by funds that continually offer securities and wish to advertise their securities, the Commission has previously adopted advertising safe harbor rules. The most important of these is rule 482 under the Securities Act, which, under certain circumstances, permits funds to advertise investment performance data, as well as other information. Rule 482 advertisements are deemed to be ‘‘prospectuses’’ under section 10(b) of the Securities Act.2 Rule 482 contains certain requirements regarding the disclosure that funds are required to provide in qualifying advertisements. These requirements are intended to encourage the provision to investors of information company’’ refers to both investment companies registered under the Investment Company Act of 1940, as amended, and business development companies. 2 15 U.S.C. 77j(b). PO 00000 1 ‘‘Investment Frm 00110 Fmt 4703 Sfmt 4703 32673 that is balanced and informative, particularly in the area of investment performance. For example, a fund is required to include disclosure advising investors to consider the fund’s investment objectives, risks, charges and expenses, and other information described in the fund’s prospectus or accompanying profile (if applicable), and highlighting the availability of the fund’s prospectus. In addition, rule 482 advertisements that include performance data of open-end funds or insurance company separate accounts offering variable annuity contracts are required to include certain standardized performance information, information about any sales loads or other nonrecurring fees, and a legend warning that past performance does not guarantee future results. Such funds including performance information in rule 482 advertisements are also required to make available to investors month-end performance figures via website disclosure or by a toll-free telephone number, and to disclose the availability of the month-end performance data in the advertisement. The rule also sets forth requirements regarding the prominence of certain disclosures, requirements regarding advertisements that make tax representations, requirements regarding advertisements used prior to the effectiveness of the fund’s registration statement, requirements regarding the timeliness of performance data, and certain required disclosures by money market funds. Rule 482 advertisements must be filed with the Commission or, in the alternative, with NASD Regulation, Inc. (‘‘NASDR’’).3 This information collection differs from many other federal information collections that are primarily for the use and benefit of the collecting agency. As discussed above, rule 482 contains requirements that are intended to encourage the provision to investors of information that is balanced and informative, particularly in the area of investment performance. The Commission is concerned that in the absence of such provisions fund investors may be misled by deceptive rule 482 performance advertisements and may rely on less-than-adequate information when determining in which funds they should invest their money. As a result, the Commission believes it is beneficial for funds to provide 3 See Rule 24b–3 under the Investment Company Act [17 CFR 270.24b–3], which provides that any sales material, including rule 482 advertisements, shall be deemed filed with the Commission for purposes of Section 24(b) of the Investment Company Act upon filing with the NASDR. E:\FR\FM\03JNN1.SGM 03JNN1 32674 Federal Register / Vol. 70, No. 106 / Friday, June 3, 2005 / Notices investors with balanced information in fund advertisements in order to allow investors to make better-informed decisions. The Commission estimates that 56,936 responses are filed annually pursuant to rule 482 by 4,384 investment companies offering 37,500 portfolios. Respondents consist of all the investment companies that take advantage of the safe harbor offered by the rule for their advertisements. The burden associated with rule 482 is presently estimated to be 5.16 hours per response. The hourly burden is therefore approximately 293,790 hours (56,936 responses times 5.16 hours per response). The estimate of average burden hours is made solely for the purposes of the Paperwork Reduction Act, and is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules and forms. Cost burden is the cost of services purchased to comply with rule 482, such as for the services of computer programmers, outside counsel, financial printers, and advertising agencies. The Commission attributes no cost burden to rule 482. The provision of information under rule 482 is necessary to obtain the benefits of the safe harbor offered by the rule. The information provided is not kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid control number. General comments regarding the above information should be directed to the following persons: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503 or e-mail to: David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief Information Officer, Office of Information Technology, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. Comments must be submitted to OMB within 30 days of this notice. Dated: May 27, 2005. Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–2844 Filed 6–2–05; 8:45 am] BILLING CODE 8010–01–P VerDate jul<14>2003 18:03 Jun 02, 2005 Jkt 205001 SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549 Extension: Rule 10f–3, SEC File No. 270–237, OMB Control No. 3235–0226. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for extension and approval of the collections of information discussed below. Section 10(f) of the Investment Company Act of 1940 (the ‘‘Act’’) prohibits a registered investment company (‘‘fund’’) from purchasing any security during an underwriting or selling syndicate if the fund has certain relationships with a principal underwriter for the security. Congress enacted this provision in 1940 to protect funds and their shareholders by preventing underwriters from ‘‘dumping’’ unmarketable securities on affiliated funds. Rule 10f–3 permits a fund to engage in a securities transaction that otherwise would violate section 10(f) if, among other things, (i) each transaction effected under the rule is reported on Form N–SAR; (ii) the fund’s directors have approved procedures for purchases made in reliance on the rule, regularly review fund purchases to determine whether they comply with these procedures, and approve necessary changes to the procedures; and (iii) a written record of each transaction effected under the rule is maintained for six years, the first two of which in an easily accessible place. The written record must state (i) from whom the securities were acquired, (ii) the identity of the underwriting syndicate’s members, (iii) the terms of the transactions, and (iv) the information or materials on which the fund’s board of directors has determined that the purchases were made in compliance with procedures established by the board. The rule also conditionally allows managed portions of fund portfolios to purchase securities offered in otherwise off-limits primary offerings. To qualify for this exemption, rule 10f–3 requires that the subadviser that is advising the purchaser be contractually prohibited PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 from providing investment advice to any other portion of the fund’s portfolio and consulting with any other of the fund’s advisers that is a principal underwriter or affiliated person of a principal underwriter concerning the fund’s securities transactions. These requirements provide a mechanism for fund boards to oversee compliance with the rule. The required recordkeeping facilitates the Commission staff’s review of rule 10f– 3 transactions during routine fund inspections and, when necessary, in connection with enforcement actions. The staff estimates that approximately 200 funds engage in a total of approximately 1,000 rule 10f–3 transactions each year.1 Rule 10f–3 requires that the purchasing fund create a written record of each transaction that includes, among other things, from whom the securities were purchased and the terms of the transaction. The staff estimates 2 that it takes an average fund approximately 30 minutes per transaction and approximately 500 hours 3 in the aggregate to comply with this portion of the rule. The funds also must maintain and preserve these transactional records in accordance with the rule’s recordkeeping requirement, and the staff estimates that it takes a fund approximately 20 minutes per transaction and that annually, in the aggregate, funds spend approximately 333 hours 4 to comply with this portion of the rule. In addition, fund boards must, no less than quarterly, examine each of these transactions to ensure that they comply with the fund’s policies and procedures. The information or materials upon which the board relied to come to this determination also must be maintained and the staff estimates that it takes a fund 1 hour per quarter and, in the aggregate, approximately 800 hours 5 annually to comply with this rule requirement. The staff estimates that approximately half of the boards of funds that engage in rule 10f–3 transactions that deem it necessary to revise the fund’s written policies and procedures for rule 10f–3 1 These estimates are based on staff extrapolations from earlier data. 2 Unless stated otherwise, the information collection burden estimates contained in this Supporting Statement are based on conversations between the staff and representatives of funds. 3 This estimate is based on the following calculation: (30 minutes × 1,000 = 500 hours). 4 This estimate is based on the following calculations: (20 minutes × 1,000 transactions = 20,000 minutes; 20,000 minutes / 60 = 333 hours). 5 This estimate is based on the following calculation: (1 hour per quarter × 4 quarters × 200 funds = 800 hours). E:\FR\FM\03JNN1.SGM 03JNN1

Agencies

[Federal Register Volume 70, Number 106 (Friday, June 3, 2005)]
[Notices]
[Pages 32673-32674]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2844]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549

Extension:
    Rule 482, SEC File No. 270-508, OMB Control No. 3235-0565.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission 
(``Commission'') has submitted to the Office of Management and Budget 
(``OMB'') a request for extension of the previously approved collection 
of information discussed below.
    Like most issuers of securities, when an investment company \1\ 
(``fund'') offers its shares to the public, its promotional efforts 
become subject to the advertising restrictions of the Securities Act of 
1933, as amended (the ``Securities Act''). In recognition of the 
particular problems faced by funds that continually offer securities 
and wish to advertise their securities, the Commission has previously 
adopted advertising safe harbor rules. The most important of these is 
rule 482 under the Securities Act, which, under certain circumstances, 
permits funds to advertise investment performance data, as well as 
other information. Rule 482 advertisements are deemed to be 
``prospectuses'' under section 10(b) of the Securities Act.\2\
---------------------------------------------------------------------------

    \1\ ``Investment company'' refers to both investment companies 
registered under the Investment Company Act of 1940, as amended, and 
business development companies.
    \2\ 15 U.S.C. 77j(b).
---------------------------------------------------------------------------

    Rule 482 contains certain requirements regarding the disclosure 
that funds are required to provide in qualifying advertisements. These 
requirements are intended to encourage the provision to investors of 
information that is balanced and informative, particularly in the area 
of investment performance. For example, a fund is required to include 
disclosure advising investors to consider the fund's investment 
objectives, risks, charges and expenses, and other information 
described in the fund's prospectus or accompanying profile (if 
applicable), and highlighting the availability of the fund's 
prospectus. In addition, rule 482 advertisements that include 
performance data of open-end funds or insurance company separate 
accounts offering variable annuity contracts are required to include 
certain standardized performance information, information about any 
sales loads or other nonrecurring fees, and a legend warning that past 
performance does not guarantee future results. Such funds including 
performance information in rule 482 advertisements are also required to 
make available to investors month-end performance figures via website 
disclosure or by a toll-free telephone number, and to disclose the 
availability of the month-end performance data in the advertisement. 
The rule also sets forth requirements regarding the prominence of 
certain disclosures, requirements regarding advertisements that make 
tax representations, requirements regarding advertisements used prior 
to the effectiveness of the fund's registration statement, requirements 
regarding the timeliness of performance data, and certain required 
disclosures by money market funds.
    Rule 482 advertisements must be filed with the Commission or, in 
the alternative, with NASD Regulation, Inc. (``NASDR'').\3\ This 
information collection differs from many other federal information 
collections that are primarily for the use and benefit of the 
collecting agency.
---------------------------------------------------------------------------

    \3\ See Rule 24b-3 under the Investment Company Act [17 CFR 
270.24b-3], which provides that any sales material, including rule 
482 advertisements, shall be deemed filed with the Commission for 
purposes of Section 24(b) of the Investment Company Act upon filing 
with the NASDR.
---------------------------------------------------------------------------

    As discussed above, rule 482 contains requirements that are 
intended to encourage the provision to investors of information that is 
balanced and informative, particularly in the area of investment 
performance. The Commission is concerned that in the absence of such 
provisions fund investors may be misled by deceptive rule 482 
performance advertisements and may rely on less-than-adequate 
information when determining in which funds they should invest their 
money. As a result, the Commission believes it is beneficial for funds 
to provide

[[Page 32674]]

investors with balanced information in fund advertisements in order to 
allow investors to make better-informed decisions.
    The Commission estimates that 56,936 responses are filed annually 
pursuant to rule 482 by 4,384 investment companies offering 37,500 
portfolios. Respondents consist of all the investment companies that 
take advantage of the safe harbor offered by the rule for their 
advertisements. The burden associated with rule 482 is presently 
estimated to be 5.16 hours per response. The hourly burden is therefore 
approximately 293,790 hours (56,936 responses times 5.16 hours per 
response).
    The estimate of average burden hours is made solely for the 
purposes of the Paperwork Reduction Act, and is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.
    Cost burden is the cost of services purchased to comply with rule 
482, such as for the services of computer programmers, outside counsel, 
financial printers, and advertising agencies. The Commission attributes 
no cost burden to rule 482.
    The provision of information under rule 482 is necessary to obtain 
the benefits of the safe harbor offered by the rule. The information 
provided is not kept confidential.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid control number.
    General comments regarding the above information should be directed 
to the following persons: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503 or e-mail to: David--
Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief 
Information Officer, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Comments must be submitted to OMB within 30 days of this notice.

    Dated: May 27, 2005.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2844 Filed 6-2-05; 8:45 am]
BILLING CODE 8010-01-P
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