Submission for OMB Review; Comment Request, 69306-69307 [2011-28910]

Download as PDF 69306 Federal Register / Vol. 76, No. 216 / Tuesday, November 8, 2011 / Notices Section 18(f)(1) 1 of the Investment Company Act of 1940 2 (the ‘‘Investment Company Act’’ or ‘‘Act’’) prohibits registered open-end management investment companies (‘‘funds’’) from issuing any senior security. Rule 18f–3 under the Act 3 exempts from section 18(f)(1) a fund that issues multiple classes of shares representing interests in the same portfolio of securities (a ‘‘multiple class fund’’) if the fund satisfies the conditions of the rule. In general, each class must differ in its arrangement for shareholder services or distribution or both, and must pay the related expenses of that different arrangement. The rule includes one requirement for the collection of information. A multiple class fund must prepare, and fund directors must approve, a written plan setting forth the separate arrangement and expense allocation of each class, and any related conversion features or exchange privileges (‘‘rule 18f–3 plan’’).4 Approval of the plan must occur before the fund issues any shares of multiple classes and whenever the fund materially amends the plan. In approving the plan, a majority of the fund board, including a majority of the fund’s independent directors, must determine that the plan is in the best interests of each class and the fund as a whole. The requirement that the fund prepare and directors approve a written rule 18f–3 plan is intended to ensure that the fund compiles information relevant to the fairness of the separate arrangement and expense allocation for each class, and that directors review and approve the information. Without a blueprint that highlights material differences among classes, directors might not perceive potential conflicts of interests when they determine whether the plan is in the best interests of each class and the fund. In addition, the plan may be useful to Commission staff in reviewing the fund’s compliance with the rule. There are approximately 5,655 multiple class funds offered by 1,020 registrants.5 Based on a review of typical rule 18f–3 plans, the Commission’s staff estimates that the 1,020 registrants together make an average of 510 responses each year to 1 15 U.S.C. 80a–18(f)(1). U.S.C. 80a. 3 17 CFR 270.18f–3. 4 Rule 18f–3(d). 5 This estimate is based on data from Form N– SAR, the semi-annual report that funds file with the Commission. In previous years, the staff estimated that each multiple class fund prepared and approved a rule 18f–3 plan. However, the staff has revised this estimate to reflect its belief that most registrants prepare and approve a single rule 18f– 3 plan for all series funds offered by the registrants. mstockstill on DSK4VPTVN1PROD with NOTICES 2 15 VerDate Mar<15>2010 16:29 Nov 07, 2011 Jkt 226001 prepare and approve a written rule 18f– 3 plan, requiring approximately 8 hours per response and a total of 4,080 burden hours per year in the aggregate.6 The staff estimates that preparation of the rule 18f–3 plan may require 5 hours of the services of an attorney employed by the fund, at a cost of approximately $354.00 per hour for professional time,7 and approval of the plan may require 3 hours of the services of the board of directors, at a cost of approximately $4,000.00 per hour.8 The staff therefore estimates that the aggregate annual cost of complying with the paperwork requirements of the rule is approximately $7,022,700.00 ((5 hours × 510 responses × $354.00.00 = $902,700.00) + (3 hours × 510 responses × $4,000.00 = $6,120,000.00)). The estimated annual burden of 4,080 hours represents a decrease of 1,520 hours from the prior estimate of 5,600 hours. The decrease in burden hours is attributable to changes in the estimates of the average hour burden per response and the number of responses that are submitted pursuant to the rule. The estimate of average burden hours 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. Complying with this collection of information requirement is mandatory. 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, 6 The estimate reflects the assumption that each registrant prepares and approves a rule 18f–3 plan every two years when issuing a new fund or new class or amending a plan (or that 510 of all 1020 registrants prepare and approve a plan each year). The estimate assumes that the time required to prepare a plan is 5 hours per plan (or 2550 hours for 510 registrants annually), and the time required to approve a plan is an additional 3 hours per plan (or 1530 hours for 510 registrants annually). 7 This hourly rate estimate is derived from annual salaries reported in: Securities Industry and Financial Markets Association, Management and Professional Earnings in the Securities Industry (2010), modified by Commission staff to account for an 1800-hour work year and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead. 8 This hourly rate estimate is derived from fund representatives. PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 New Executive Office Building, Washington, DC 20503, or by sending an email 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 email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. November 3, 2011. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2011–28909 Filed 11–7–11; 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 30b2–1, SEC File No. 270–213, OMB Control No. 3235–0220. 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 (the ‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for extension of the previously approved collection of information discussed below. Rule 30b2–1 (17 CFR 270.30b2–1) under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) (the ‘‘Investment Company Act’’) requires a registered management investment company (‘‘fund’’) to (1) file a report with the Commission on Form N–CSR (17 CFR 249.331 and 274.128) not later than 10 days after the transmission of any report required to be transmitted to shareholders under rule 30e–1 under the Investment Company Act, and (2) file with the Commission a copy of every periodic or interim report or similar communication containing financial statements that is transmitted by or on behalf of such fund to any class of such fund’s security holders and that is not required to be filed with the Commission under (1) above, not later than 10 days after the transmission to security holders. The purpose of the collection of information required by rule 30b2–1 is to meet the disclosure requirements of the Investment Company Act and certification E:\FR\FM\08NON1.SGM 08NON1 Federal Register / Vol. 76, No. 216 / Tuesday, November 8, 2011 / Notices requirements of the Sarbanes-Oxley Act of 2002 (Pub. L 107–204, 116 Stat. 745 (2002)) and to provide investors with information necessary to evaluate an interest in the fund. The Commission estimates that there are 2,520 funds, with a total of approximately 9,250 portfolios, that are governed by the rule. For purposes of this analysis, the burden associated with the requirements of rule 30b2–1 has been included in the collection of information requirements of rule 30e-1 and Form N–CSR, rather than the rule. The Commission has, however, requested a one hour burden for administrative purposes. The collection of information under rule 30b2–1 is mandatory. The information provided under rule 30b2– 1 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 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 email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas A. Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, VA 22312; or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: November 3, 2011. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2011–28910 Filed 11–7–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION mstockstill on DSK4VPTVN1PROD with NOTICES Submission for OMB Review; Comment Request Upon Written Request, Copy Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Rule 34b–1, File No. 270–305, OMB Control No. 3235–0346. VerDate Mar<15>2010 16:29 Nov 07, 2011 Jkt 226001 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 (the ‘‘Commission’’) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. Rule 34b–1 under the Investment Company Act (17 CFR 270.34b–1) governs sales material that accompanies or follows the delivery of a statutory prospectus (‘‘sales literature’’). Rule 34b–1 deems to be materially misleading any investment company (‘‘fund’’) sales literature required to be filed with the Securities and Exchange Commission (‘‘Commission’’) by Section 24(b) of the Investment Company Act (15 U.S.C. 80a–24(b)) that includes performance data, unless the sales literature also includes the appropriate uniformly computed data and the legend disclosure required in investment company advertisements by rule 482 under the Securities Act of 1933 (17 CFR 230.482). Requiring the inclusion of such standardized performance data in sales literature is designed to prevent misleading performance claims by funds and to enable investors to make meaningful comparisons among funds. The Commission estimates that on average 3,525 respondents file approximately 12,433 responses with the Commission that include the information required by rule 34b–1 each year. The burden from rule 34b–1 requires 2.41 hours per response. The total annual burden hours for rule 34b– 1 is 29,964 hours per year in the aggregate (12,443 responses × 2.41 hours per response). The collection of information under rule 34b–1 is mandatory. The information provided under rule 34b–1 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. 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 email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi Pavlik- PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 69307 Simon, 6432 General Green Way, Alexandria, VA 22312 or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: November 3, 2011. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2011–28911 Filed 11–7–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copy Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Rule 498, File No. 270–574, OMB Control No. 3235–0648. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995,1 the Securities and Exchange Commission (the ‘‘Commission’’) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. Rule 498 under the Securities Act of 1933 (‘‘Securities Act’’) 2 permits open-end management investment companies (‘‘funds’’) to satisfy their prospectus delivery obligations under the Securities Act by sending or giving key information directly to investors in the form of a summary prospectus (‘‘Summary Prospectus’’) and providing the statutory prospectus on a Web site. Upon an investor’s request, funds are also required to send the statutory prospectus to the investor. In addition, under rule 498, a fund that relies on the rule to meet its statutory prospectus delivery obligations must make available, free of charge, the fund’s current Summary Prospectus, statutory prospectus, statement of additional information, and most recent annual and semi-annual reports to shareholders at the Web site address specified in the required Summary Prospectus legend. A Summary Prospectus that complies with rule 498 is deemed to be a prospectus that is authorized under Section 10(b) of the Securities Act 3 and Section 24(g) of the Investment Company Act of 1940.4 The purpose of rule 498 is to enable a fund to provide investors with a Summary Prospectus containing key information necessary to evaluate an investment in the fund. Unlike many other federal information 1 44 U.S.C. 3501 et seq. CFR 230.498. 3 15 U.S.C. 77j. A ‘‘prospectus,’’ as defined by the Securities Act, is any prospectus, notice, circular, advertisement, letter, or communication, written or by radio or television, which offers any security for sale or confirms the sale of any security, with certain exceptions. 15 U.S.C. 77b(a)(10). 4 15 U.S.C. 80a–24(g). 2 17 E:\FR\FM\08NON1.SGM 08NON1

Agencies

[Federal Register Volume 76, Number 216 (Tuesday, November 8, 2011)]
[Notices]
[Pages 69306-69307]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-28910]


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 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 30b2-1, SEC File No. 270-213, OMB Control No. 3235-0220.

    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 (the ``Commission'') has submitted to the Office of 
Management and Budget (``OMB'') a request for extension of the 
previously approved collection of information discussed below.
    Rule 30b2-1 (17 CFR 270.30b2-1) under the Investment Company Act of 
1940 (15 U.S.C. 80a-1 et seq.) (the ``Investment Company Act'') 
requires a registered management investment company (``fund'') to (1) 
file a report with the Commission on Form N-CSR (17 CFR 249.331 and 
274.128) not later than 10 days after the transmission of any report 
required to be transmitted to shareholders under rule 30e-1 under the 
Investment Company Act, and (2) file with the Commission a copy of 
every periodic or interim report or similar communication containing 
financial statements that is transmitted by or on behalf of such fund 
to any class of such fund's security holders and that is not required 
to be filed with the Commission under (1) above, not later than 10 days 
after the transmission to security holders. The purpose of the 
collection of information required by rule 30b2-1 is to meet the 
disclosure requirements of the Investment Company Act and certification

[[Page 69307]]

requirements of the Sarbanes-Oxley Act of 2002 (Pub. L 107-204, 116 
Stat. 745 (2002)) and to provide investors with information necessary 
to evaluate an interest in the fund.
    The Commission estimates that there are 2,520 funds, with a total 
of approximately 9,250 portfolios, that are governed by the rule. For 
purposes of this analysis, the burden associated with the requirements 
of rule 30b2-1 has been included in the collection of information 
requirements of rule 30e-1 and Form N-CSR, rather than the rule. The 
Commission has, however, requested a one hour burden for administrative 
purposes.
    The collection of information under rule 30b2-1 is mandatory. The 
information provided under rule 30b2-1 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 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 email 
to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas A. Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an 
email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB 
within 30 days of this notice.

    Dated: November 3, 2011.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-28910 Filed 11-7-11; 8:45 am]
BILLING CODE 8011-01-P