Submission for OMB Review; Comment Request; Extension: Rule 32a-4, 12998 [2023-04209]
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12998
Federal Register / Vol. 88, No. 40 / Wednesday, March 1, 2023 / Notices
For the Nuclear Regulatory Commission.
David C. Cullison,
NRC Clearance Officer, Office of the Chief
Information Officer.
[FR Doc. 2023–04143 Filed 2–28–23; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–473, OMB Control No.
3235–0530]
ddrumheller on DSK120RN23PROD with NOTICES
Submission for OMB Review;
Comment Request; Extension: Rule
32a–4
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA
Services, 100 F Street NE,
Washington, DC 20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 350l et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
requests for extension of the previously
approved collections of information
discussed below.
Section 32(a)(2) of the Investment
Company Act of 1940 (15 U.S.C. 80a
31(a)(2)) (‘‘Act’’) requires that the
selection of a registered management
investment company’s or registered
face-amount certificate company’s
(collectively, ‘‘funds’’) independent
public accountant be submitted to
shareholders for ratification or rejection.
Rule 32a–4 under the Investment
Company Act (17 CFR 270.32a–4)
exempts a fund from this requirement if,
among other things, the fund has an
audit committee consisting entirely of
independent directors. The rule permits
continuing oversight of a fund’s
accounting and auditing processes by an
independent audit committee in place
of a shareholder vote.
Among other things, in order to rely
on rule 32a–4, a fund’s board of
directors must adopt an audit committee
charter and must preserve that charter,
and any modifications to the charter,
permanently in an easily accessible
place. The purpose of these conditions
is to ensure that Commission staff will
be able to monitor the duties and
responsibilities of an audit committee of
a fund relying on the rule.
Commission staff estimates that on
average the board of directors takes 15
minutes to adopt the audit committee
charter. Commission staff has estimated
that with an average of 9 directors on
VerDate Sep<11>2014
18:10 Feb 28, 2023
Jkt 259001
the board,1 total director time to adopt
the charter is 2.25 hours. Combined
with an estimated 1⁄2 hour of paralegal
time to prepare the charter for board
review, the staff estimates a total onetime collection of information burden of
2.75 hours for each fund. Once a board
adopts an audit committee charter, the
charter is preserved as part of the fund’s
records. Commission staff estimates that
there is no annual hourly burden
associated with preserving the charter in
accordance with this rule.2
Because virtually all existing funds
have now adopted audit committee
charters, the annual one-time collection
of information burden associated with
adopting audit committee charters is
limited to the burden incurred by newly
established funds. Commission staff
estimates that fund sponsors establish
approximately 120 new funds each
year,3 and that all of these funds will
adopt an audit committee charter in
order to rely on rule 32a–4. Thus,
Commission staff estimates that the
annual one-time hour burden associated
with adopting an audit committee
charter under rule 32a–4 is
approximately 330 hours.4
When funds adopt an audit committee
charter in order to rely on rule 32a–4,
they also may incur one-time costs
related to hiring outside counsel to
prepare the charter. Commission staff
estimates that those costs average
approximately $1500 per fund.5 As
noted above, Commission staff estimates
that approximately 120 new funds each
year will adopt an audit committee
charter in order to rely on rule 32a–4.
Thus, Commission staff estimates that
the ongoing annual cost burden
associated with rule 32a–4 in the future
will be approximately $180,000.6
The estimates of average burden hours
and costs are made solely for the
1 This estimate is based on staff experience and
on discussions with a representative of an entity
that surveys funds and calculates fund board
statistics based on responses to its surveys.
2 This estimate is based on staff experience and
discussions with funds regarding the hour burden
related to maintenance of the charter.
3 This estimate is based on the average annual
number of notifications of registration on Form N–
8A filed from 2019 to 2021.
4 This estimate is based on the following
calculation: (2.75 burden hours for establishing
charter × 120 new funds = 330 burden hours).
5 Costs may vary based on the individual needs
of each fund. However, based on the staff’s
experience and conversations with outside counsel
that prepare these charters, legal fees related to the
preparation and adoption of an audit committee
charter usually average $1500 or less. The
Commission also understands that model audit
committee charters are available, which reduces the
costs associated with drafting a charter.
6 This estimate is based on the following
calculations: ($1500 cost of adopting charter × 120
newly established funds = $180,000).
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
purposes of the Paperwork Reduction
Act, and are not derived from a
comprehensive or even a representative
survey or study of the costs of
Commission rules and forms. The
collections of information required by
rule 32a–4 are necessary to obtain the
benefits of the rule. The Commission is
seeking OMB approval, because 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 background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice by March 31, 2023 to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission,
c/o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: February 23, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–04209 Filed 2–28–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–481, OMB Control No.
3235–0538]
Proposed Collection; Comment
Request; Extension: Form ADV–H
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA
Services, 100 F Street NE,
Washington, DC 20549–2736
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’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
The title for the collection of
information is ‘‘Form ADV–H under the
Investment Advisers Act of 1940.’’ Form
ADV–H (17 CFR 279.3) under the
E:\FR\FM\01MRN1.SGM
01MRN1
]]>Agencies
[Federal Register Volume 88, Number 40 (Wednesday, March 1, 2023)]
[Notices]
[Page 12998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04209]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-473, OMB Control No. 3235-0530]
Submission for OMB Review; Comment Request; Extension: Rule 32a-4
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 350l et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget requests for extension of the previously approved
collections of information discussed below.
Section 32(a)(2) of the Investment Company Act of 1940 (15 U.S.C.
80a 31(a)(2)) (``Act'') requires that the selection of a registered
management investment company's or registered face-amount certificate
company's (collectively, ``funds'') independent public accountant be
submitted to shareholders for ratification or rejection. Rule 32a-4
under the Investment Company Act (17 CFR 270.32a-4) exempts a fund from
this requirement if, among other things, the fund has an audit
committee consisting entirely of independent directors. The rule
permits continuing oversight of a fund's accounting and auditing
processes by an independent audit committee in place of a shareholder
vote.
Among other things, in order to rely on rule 32a-4, a fund's board
of directors must adopt an audit committee charter and must preserve
that charter, and any modifications to the charter, permanently in an
easily accessible place. The purpose of these conditions is to ensure
that Commission staff will be able to monitor the duties and
responsibilities of an audit committee of a fund relying on the rule.
Commission staff estimates that on average the board of directors
takes 15 minutes to adopt the audit committee charter. Commission staff
has estimated that with an average of 9 directors on the board,\1\
total director time to adopt the charter is 2.25 hours. Combined with
an estimated \1/2\ hour of paralegal time to prepare the charter for
board review, the staff estimates a total one-time collection of
information burden of 2.75 hours for each fund. Once a board adopts an
audit committee charter, the charter is preserved as part of the fund's
records. Commission staff estimates that there is no annual hourly
burden associated with preserving the charter in accordance with this
rule.\2\
---------------------------------------------------------------------------
\1\ This estimate is based on staff experience and on
discussions with a representative of an entity that surveys funds
and calculates fund board statistics based on responses to its
surveys.
\2\ This estimate is based on staff experience and discussions
with funds regarding the hour burden related to maintenance of the
charter.
---------------------------------------------------------------------------
Because virtually all existing funds have now adopted audit
committee charters, the annual one-time collection of information
burden associated with adopting audit committee charters is limited to
the burden incurred by newly established funds. Commission staff
estimates that fund sponsors establish approximately 120 new funds each
year,\3\ and that all of these funds will adopt an audit committee
charter in order to rely on rule 32a-4. Thus, Commission staff
estimates that the annual one-time hour burden associated with adopting
an audit committee charter under rule 32a-4 is approximately 330
hours.\4\
---------------------------------------------------------------------------
\3\ This estimate is based on the average annual number of
notifications of registration on Form N-8A filed from 2019 to 2021.
\4\ This estimate is based on the following calculation: (2.75
burden hours for establishing charter x 120 new funds = 330 burden
hours).
---------------------------------------------------------------------------
When funds adopt an audit committee charter in order to rely on
rule 32a-4, they also may incur one-time costs related to hiring
outside counsel to prepare the charter. Commission staff estimates that
those costs average approximately $1500 per fund.\5\ As noted above,
Commission staff estimates that approximately 120 new funds each year
will adopt an audit committee charter in order to rely on rule 32a-4.
Thus, Commission staff estimates that the ongoing annual cost burden
associated with rule 32a-4 in the future will be approximately
$180,000.\6\
---------------------------------------------------------------------------
\5\ Costs may vary based on the individual needs of each fund.
However, based on the staff's experience and conversations with
outside counsel that prepare these charters, legal fees related to
the preparation and adoption of an audit committee charter usually
average $1500 or less. The Commission also understands that model
audit committee charters are available, which reduces the costs
associated with drafting a charter.
\6\ This estimate is based on the following calculations: ($1500
cost of adopting charter x 120 newly established funds = $180,000).
---------------------------------------------------------------------------
The estimates of average burden hours and costs are made solely for
the purposes of the Paperwork Reduction Act, and are not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules and forms. The collections of information required by
rule 32a-4 are necessary to obtain the benefits of the rule. The
Commission is seeking OMB approval, because 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 background documentation for this information
collection at the following website: www.reginfo.gov. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
by March 31, 2023 to (i) [email protected] and
(ii) David Bottom, Director/Chief Information Officer, Securities and
Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC
20549, or by sending an email to: [email protected].
Dated: February 23, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-04209 Filed 2-28-23; 8:45 am]
BILLING CODE 8011-01-P
