Submission for OMB Review; Comment Request, 28821-28823 [2011-12206]

Download as PDF Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices The Commission may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid Office of Management and Budget (OMB) control number. The public may view the background documentation for this information collection at the following Web site, http://www.reginfo.gov. Comments should be directed to (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 by sending an e-mail to: Shagufta_Ahmed@omb.eop.gov ; and (ii) Thomas Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 30 days of this notice. Dated: May 13, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–12208 Filed 5–17–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. srobinson on DSKHWCL6B1PROD with NOTICES Extension: Rule 203A–2(f); SEC File No. 270–501; OMB Control No. 3235–0559. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget requests for extension of the previously approved collection of information discussed below. estimated cost figures for an in-house attorney and an assistant compliance director. These figures are from SIFMA’s Management & Professional Earnings in the Securities Industry 2010, modified by Commission staff for an 1800-hour work-year and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead. VerDate Mar<15>2010 16:31 May 17, 2011 Jkt 223001 Rule 203A–2(f),1 which is entitled ‘‘Internet Investment Advisers,’’ exempts from the prohibition on Commission registration an Internet investment adviser who provides investment advice to all of its clients exclusively through computer software-based models or applications termed under the rule as ‘‘interactive Web sites.’’ These advisers generally would not meet the statutory thresholds currently set out in section 203A of the Advisers Act 2 or the thresholds set out in section 203A as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’) beginning on July 21, 2011 3— they do not manage $25 million or more in assets and do not advise registered investment companies,4 or they manage between $25 million and $100 million in assets, do not advise registered investment companies or business development companies, and are required to be registered as investment advisers with the states in which they maintain their principal offices and places of business and are subject to examination as an adviser by such states.5 Eligibility under rule 203A–2(f) is conditioned on an adviser maintaining in an easily accessible place, for a period of not less than five years from the filing of Form ADV relying on the rule,6 a record demonstrating that the adviser’s advisory business has been conducted through an interactive Web site in accordance with the rule.7 This record maintenance requirement is a ‘‘collection of information’’ for PRA purposes. The Commission believes that approximately 58 advisers are registered with the Commission under rule 203A– 2(f), which involves a recordkeeping requirement manifesting in approximately four burden hours per year per adviser and results in an 1 17 CFR 275.203A–2(f). Included in rule 203A– 2(f) is a limited exception to the interactive Web site requirement which allows these advisers to provide investment advice to no more than 14 clients through other means on an annual basis. 17 CFR 275.203A–2(f)(1)(i). The rule also precludes advisers in a control relationship with the SECregistered Internet adviser from registering with the Commission under the common control exemption provided by rule 203A–2(c) (17 CFR 275.203A– 2(c)). 17 CFR 275.203A–2(f)(1)(iii). 2 15 U.S.C. 80b–3a(a). 3 Public Law 111–203, 124 Stat. 1376 (2010). 4 15 U.S.C. 80b–3a(a). 5 See section 410 of the Dodd-Frank Act. A midsized adviser managing between $25 million and $100 million also will be permitted to register with the Commission if it would be required to register with 15 or more states. These amendments are effective on July 21, 2011. 6 The five-year record retention period is a similar recordkeeping retention period as imposed on all advisers under rule 204–2 of the Adviser Act. See rule 204–2 (17 CFR 275.204–2). 7 17 CFR 275.203A–2(f)(1)(ii). PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 28821 estimated 232 of total time burden (4 × 58) for all advisers. This collection of information is mandatory, as it is used by Commission staff in its examination and oversight program in order to determine continued Commission registration eligibility of advisers registered under this rule. Responses generally are kept confidential pursuant to section 210(b) of the Advisers Act.8 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. The public may view the background documentation for this information collection at the following Web site, http://www.reginfo.gov. Comments should be directed to: (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 by sending an e-mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: May 13, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–12207 Filed 5–17–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Rule 19b–1; SEC File No. 270–312; OMB Control No. 3235–0354. 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 of the previously approved collection of information discussed below. 8 15 U.S.C. 80b–10(b). E:\FR\FM\18MYN1.SGM 18MYN1 28822 Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices Section 19(b) of the Investment Company Act of 1940 (the ‘‘Act’’) (15 U.S.C. 80a–19(b)) authorizes the Commission to regulate registered investment company (‘‘fund’’) distributions of long-term capital gains made more frequently than once every twelve months. Rule 19b–1 under the Act 1 prohibits funds from distributing long-term capital gains more than once every twelve months unless certain conditions are met. Rule 19b–1(c) (17 CFR 270.19b–1(c)) permits unit investment trusts (‘‘UITs’’) engaged exclusively in the business of investing in certain eligible fixed-income securities to distribute long-term capital gains more than once every twelve months, if: (i) The capital gains distribution falls within one of several categories specified in the rule 2 and (ii) the distribution is accompanied by a report to the unitholder that clearly describes the distribution as a capital gains distribution (the ‘‘notice requirement’’).3 Rule 19b–1(e) (17 CFR 270.19b–1(e)) permits a fund to apply to the Commission for permission to distribute long-term capital gains more than once a year if the fund did not foresee the circumstances that created the need for the distribution. The application must set forth the pertinent facts and explain the circumstances that justify the distribution.4 An application that meets those requirements is deemed to be granted unless the Commission denies the request within 15 days after the Commission receives the application. Commission staff estimates that, on average, each year six funds file an application under rule 19b–1(e). The staff understands that funds that file an application generally use outside counsel to prepare the application. The cost burden of using outside counsel is discussed below. The staff estimates that, on average, the fund’s investment adviser spends a total of approximately 4 hours to review an application, including 3.5 hours by an assistant general counsel, 0.5 hours by an administrative assistant, and the fund’s board of directors spends an additional 1 hour, for a total of 5 hours. Thus, the 1 17 CFR 270.19b–1. CFR 270.19b–1(c)(1). 3 The notice requirement in rule 19b–1(c)(2) (17 CFR 270.19b–1(c)(2)) supplements the notice requirement of section 19(a) [15 U.S.C. 80a–19(a)] and rule 19a–1 [17 CFR 270.19a–1], which requires any distribution in the nature of a dividend payment made by a fund to its investors to be accompanied by a notice disclosing the source of the distribution. 4 Rule 19b–1(e) also requires that the application comply with rule 0–2 [17 CFR 270.02], which sets forth the general requirements for papers and applications filed with the Commission. srobinson on DSKHWCL6B1PROD with NOTICES 2 17 VerDate Mar<15>2010 16:31 May 17, 2011 Jkt 223001 Commission staff estimates that the annual time burden of the collection of information imposed by rule 19b–1 is approximately five hours per fund, for a total burden of 30 hours. The Commission staff estimates that there is no time burden associated with complying with the collection of information component of rule 19b–1(c). As noted above, the Commission staff understands that funds that file an application under rule 19b–1(e) generally use outside counsel to prepare the application.5 The staff estimates that, on average, outside counsel spends 10 hours preparing a rule 19b–1(e) application, including eight hours by an associate and two hours by a partner. Outside counsel billing arrangements and rates vary based on numerous factors, but the staff has estimated the average cost of outside counsel as $400 per hour, based on information received from funds, intermediaries, and their counsel. The staff therefore estimates that the average cost of outside counsel preparation of the 19b–(e) exemptive application is $4,000.6 Thus, the staff estimates that the total annual cost burden imposed by the exemptive application requirements of rule 19b– 1(e) is $24,000.7 The Commission staff estimates that there are approximately 3759 UITs 8 that may rely on rule 19b–1(c) to make capital gains distributions. The staff estimates that, on average, these UITs rely on rule 19b–1(c) once a year to make a capital gains distribution.9 In most cases, the trustee of the UIT is responsible for preparing and sending the notices that must accompany a capital gains distribution under rule 19b–1(c)(2). These notices require limited preparation, the cost of which accounts for only a small, indiscrete portion of the comprehensive fee charged by the trustee for its services to the UIT. The staff believes that as a matter of good business practices, and for tax preparation reasons, UITs would 5 This understanding is based on conversations with representatives from the fund industry. 6 This estimate is based on the following calculation: 10 hours multiplied by $400 per hour equals $4000. 7 This estimate is based on the following calculation: $4,000 multiplied by 6 (funds) equals $24,000. 8 The Investment Company Institute, Unit Investment Trust Data, (January 2011). 9 The number of times UITs rely on the rule to make capital gains distributions depends on a wide range of factors and, thus, can vary greatly across years. A number of UITs are organized as grantor trusts, and therefore do not generally make capital gains distributions under rule 19b–1(c), or may not rely on rule 19b–1(c) as they do not meet the rule’s requirements. Other UITs may distribute capital gains biannually, annually, quarterly, or at other intervals. PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 collect and distribute the capital gains information required to be sent to unitholders under rule 19b–1(c) even in the absence of the rule. The staff estimates that the cost of preparing a notice for a capital gains distribution under rule 19b–1(c)(2) is approximately $50. There is no separate cost to mail the notices because they are mailed with the capital gains distribution. Thus, the staff estimates that the capital gains distribution notice requirement imposes an annual cost on UITs of approximately $187,950.10 The staff therefore estimates that the total cost imposed by rule 19b–1 is $211,950 ($187,950 plus $24,000 equals $211,950). Based on these calculations, the total number of respondents for rule 19b–1 is estimated to be 3765 (3759 UIT portfolios + 6 funds filing an application under rule 19b–1(e)), the total annual hour burden is estimated to be 30 hours, and the total annual cost burden is estimated to be $211,950. These estimates of average annual burden hours and costs are made solely for purposes of the Paperwork Reduction Act. The collections of information required by 19b–1(c) and 19b–1(e) are necessary to obtain the benefits described above. Responses will not be 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. The public may view the background documentation for this information collection at the following Web site, http://www.reginfo.gov. Comments should be directed to: (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 by sending an e-mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. 10 This estimate is based on the following calculation: 3759 UITs multiplied by $50 equals $187,950. E:\FR\FM\18MYN1.SGM 18MYN1 Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices Dated: May 13, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–12206 Filed 5–17–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. srobinson on DSKHWCL6B1PROD with NOTICES Extension: Rule 17f–7; SEC File No. 270–470; OMB Control No. 3235–0529. 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’’) requests for extension of the previously approved collections of information discussed below. Rule 17f–7 (17 CFR 270.17f–7) permits funds to maintain their assets in foreign securities depositories based on conditions that reflect the operations and role of these depositories.1 Rule 17f–7 contains some ‘‘collection of information’’ requirements. An eligible securities depository has to meet minimum standards for a depository. The fund or its investment adviser generally determines whether the depository complies with those requirements based on information provided by the fund’s primary custodian (a bank that acts as global custodian). The depository custody arrangement has to meet certain risk limiting requirements. The fund can obtain indemnification or insurance arrangements that adequately protect the fund against custody risks. The fund or its investment adviser generally determines whether indemnification or insurance provisions are adequate. If the fund does not rely on indemnification or insurance, the fund’s contract with its primary custodian is required to state that the custodian will provide to the fund or its investment adviser a custody risk analysis of each depository, monitor risks on a continuous basis, and promptly notify the fund or its adviser of material changes in risks. The primary custodian and other custodians also are required to agree to exercise reasonable care. The collection of information requirements in rule 17f–7 are intended to provide workable standards that protect funds from the risks of using securities depositories while assigning appropriate responsibilities to the fund’s primary custodian and investment adviser based on their capabilities. The requirement that the depository meet specified minimum standards is intended to ensure that the depository is subject to basic safeguards deemed appropriate for all depositories. The requirement that the custody contract state that the fund’s primary custodian will provide an analysis of the custody risks of depository arrangements, monitor the risks, and report on material changes is intended to provide essential information about custody risks to the fund’s investment adviser as necessary for it to approve the continued use of the depository. The requirement that the primary custodian agree to exercise reasonable care is intended to provide assurances that its services and the information it provides will meet an appropriate standard of care. The alternative requirement that the funds obtain adequate indemnification or insurance against the custody risks of depository arrangements is intended to provide another, potentially less burdensome means to protect assets held in depository arrangements. The staff estimates that each of approximately 836 investment advisers 2 will make an average of 8 responses annually under the rule to address depository compliance with minimum requirements, any indemnification or insurance arrangements, and reviews of risk analyses or notifications. The staff estimates each response will take 6 hours, requiring a total of approximately 48 hours for each adviser. The total annual burden associated with these requirements of the rule will be approximately 40,128 hours (836 advisers × 48 hours per adviser). The staff further estimates that during each year, each of approximately 15 global custodians will make an average of 4 responses to analyze custody risks and provide notice of any material changes to custody risk under the rule. The staff estimates that each response will take 260 hours, requiring approximately 1040 hours annually per custodian.3 The total annual burden associated with 2 At 1 Custody of Investment Company Assets Outside the United States, Investment Company Act Release No. IC–23815 (April 29, 1999) (64 FR 24489 (May 6, 1999)). VerDate Mar<15>2010 17:51 May 17, 2011 Jkt 223001 the start of 2011, 836 investment advisers managed or sponsored open-end (including ETFs) portfolios and closed-end registered funds. 3 These estimates are based on conversations with representatives of the fund industry. PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 28823 these requirements is approximately 15,600 hours (15 custodians × 1040 hours). Therefore, the staff estimates that the total annual time burden associated with all collection of information requirements of the rule is 55,728 hours (40,128 + 15,600). The total annual cost of the burden is estimated to be $14,948,736 (40,128 × $287 for a portfolio manager, plus 15,600 hours × $220/hour for a trust administrator’s time).4 The estimate of average time burden is made solely for the purposes of the Paperwork Reduction Act. The estimate is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules and forms. Compliance with the collection of information requirements of the rule is necessary to obtain the benefit of relying on the rule’s permission for funds to maintain their assets in foreign custodians. The public may view the background documentation for this information collection at the following Web site, http://www.reginfo.gov. Comments should be directed to: (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 by sending an e-mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: May 13, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–12205 Filed 5–17–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. 4 The salaries for a portfolio manager and a trust administrator are from SIFMA’s Management & Professional Earnings in the Securities Industry 2010, modified to account for an 1800-hour workyear and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead. E:\FR\FM\18MYN1.SGM 18MYN1

Agencies

[Federal Register Volume 76, Number 96 (Wednesday, May 18, 2011)]
[Notices]
[Pages 28821-28823]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12206]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension:
Rule 19b-1; SEC File No. 270-312; OMB Control No. 3235-0354.

    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 of the previously approved 
collection of information discussed below.

[[Page 28822]]

    Section 19(b) of the Investment Company Act of 1940 (the ``Act'') 
(15 U.S.C. 80a-19(b)) authorizes the Commission to regulate registered 
investment company (``fund'') distributions of long-term capital gains 
made more frequently than once every twelve months. Rule 19b-1 under 
the Act \1\ prohibits funds from distributing long-term capital gains 
more than once every twelve months unless certain conditions are met. 
Rule 19b-1(c) (17 CFR 270.19b-1(c)) permits unit investment trusts 
(``UITs'') engaged exclusively in the business of investing in certain 
eligible fixed-income securities to distribute long-term capital gains 
more than once every twelve months, if: (i) The capital gains 
distribution falls within one of several categories specified in the 
rule \2\ and (ii) the distribution is accompanied by a report to the 
unitholder that clearly describes the distribution as a capital gains 
distribution (the ``notice requirement'').\3\ Rule 19b-1(e) (17 CFR 
270.19b-1(e)) permits a fund to apply to the Commission for permission 
to distribute long-term capital gains more than once a year if the fund 
did not foresee the circumstances that created the need for the 
distribution. The application must set forth the pertinent facts and 
explain the circumstances that justify the distribution.\4\ An 
application that meets those requirements is deemed to be granted 
unless the Commission denies the request within 15 days after the 
Commission receives the application.
---------------------------------------------------------------------------

    \1\ 17 CFR 270.19b-1.
    \2\ 17 CFR 270.19b-1(c)(1).
    \3\ The notice requirement in rule 19b-1(c)(2) (17 CFR 270.19b-
1(c)(2)) supplements the notice requirement of section 19(a) [15 
U.S.C. 80a-19(a)] and rule 19a-1 [17 CFR 270.19a-1], which requires 
any distribution in the nature of a dividend payment made by a fund 
to its investors to be accompanied by a notice disclosing the source 
of the distribution.
    \4\ Rule 19b-1(e) also requires that the application comply with 
rule 0-2 [17 CFR 270.02], which sets forth the general requirements 
for papers and applications filed with the Commission.
---------------------------------------------------------------------------

    Commission staff estimates that, on average, each year six funds 
file an application under rule 19b-1(e). The staff understands that 
funds that file an application generally use outside counsel to prepare 
the application. The cost burden of using outside counsel is discussed 
below. The staff estimates that, on average, the fund's investment 
adviser spends a total of approximately 4 hours to review an 
application, including 3.5 hours by an assistant general counsel, 0.5 
hours by an administrative assistant, and the fund's board of directors 
spends an additional 1 hour, for a total of 5 hours. Thus, the 
Commission staff estimates that the annual time burden of the 
collection of information imposed by rule 19b-1 is approximately five 
hours per fund, for a total burden of 30 hours.
    The Commission staff estimates that there is no time burden 
associated with complying with the collection of information component 
of rule 19b-1(c).
    As noted above, the Commission staff understands that funds that 
file an application under rule 19b-1(e) generally use outside counsel 
to prepare the application.\5\ The staff estimates that, on average, 
outside counsel spends 10 hours preparing a rule 19b-1(e) application, 
including eight hours by an associate and two hours by a partner. 
Outside counsel billing arrangements and rates vary based on numerous 
factors, but the staff has estimated the average cost of outside 
counsel as $400 per hour, based on information received from funds, 
intermediaries, and their counsel. The staff therefore estimates that 
the average cost of outside counsel preparation of the 19b-(e) 
exemptive application is $4,000.\6\ Thus, the staff estimates that the 
total annual cost burden imposed by the exemptive application 
requirements of rule 19b-1(e) is $24,000.\7\
---------------------------------------------------------------------------

    \5\ This understanding is based on conversations with 
representatives from the fund industry.
    \6\ This estimate is based on the following calculation: 10 
hours multiplied by $400 per hour equals $4000.
    \7\ This estimate is based on the following calculation: $4,000 
multiplied by 6 (funds) equals $24,000.
---------------------------------------------------------------------------

    The Commission staff estimates that there are approximately 3759 
UITs \8\ that may rely on rule 19b-1(c) to make capital gains 
distributions. The staff estimates that, on average, these UITs rely on 
rule 19b-1(c) once a year to make a capital gains distribution.\9\ In 
most cases, the trustee of the UIT is responsible for preparing and 
sending the notices that must accompany a capital gains distribution 
under rule 19b-1(c)(2). These notices require limited preparation, the 
cost of which accounts for only a small, indiscrete portion of the 
comprehensive fee charged by the trustee for its services to the UIT. 
The staff believes that as a matter of good business practices, and for 
tax preparation reasons, UITs would collect and distribute the capital 
gains information required to be sent to unitholders under rule 19b-
1(c) even in the absence of the rule. The staff estimates that the cost 
of preparing a notice for a capital gains distribution under rule 19b-
1(c)(2) is approximately $50. There is no separate cost to mail the 
notices because they are mailed with the capital gains distribution. 
Thus, the staff estimates that the capital gains distribution notice 
requirement imposes an annual cost on UITs of approximately 
$187,950.\10\ The staff therefore estimates that the total cost imposed 
by rule 19b-1 is $211,950 ($187,950 plus $24,000 equals $211,950).
---------------------------------------------------------------------------

    \8\ The Investment Company Institute, Unit Investment Trust 
Data, (January 2011).
    \9\ The number of times UITs rely on the rule to make capital 
gains distributions depends on a wide range of factors and, thus, 
can vary greatly across years. A number of UITs are organized as 
grantor trusts, and therefore do not generally make capital gains 
distributions under rule 19b-1(c), or may not rely on rule 19b-1(c) 
as they do not meet the rule's requirements. Other UITs may 
distribute capital gains biannually, annually, quarterly, or at 
other intervals.
    \10\ This estimate is based on the following calculation: 3759 
UITs multiplied by $50 equals $187,950.
---------------------------------------------------------------------------

    Based on these calculations, the total number of respondents for 
rule 19b-1 is estimated to be 3765 (3759 UIT portfolios + 6 funds 
filing an application under rule 19b-1(e)), the total annual hour 
burden is estimated to be 30 hours, and the total annual cost burden is 
estimated to be $211,950. These estimates of average annual burden 
hours and costs are made solely for purposes of the Paperwork Reduction 
Act. The collections of information required by 19b-1(c) and 19b-1(e) 
are necessary to obtain the benefits described above. Responses will 
not be 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.
    The public may view the background documentation for this 
information collection at the following Web site, http://www.reginfo.gov. Comments should be directed to: (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 by sending an e-
mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an 
e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB 
within 30 days of this notice.


[[Page 28823]]


    Dated: May 13, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-12206 Filed 5-17-11; 8:45 am]
BILLING CODE 8011-01-P