[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Notices]
[Pages 50222-50223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24095]



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SECURITIES AND EXCHANGE COMMISSION


Forms Under Review by the Office of Management and Budget

Agency Clearance Officer: Michael E. Bartell, (202) 942-8800
Upon Written Request, Copy Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, 450 Fifth 
Street, N.W., Washington, DC 20549
Proposed Amendments:
    Form N-1A
    File No. 270-21

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1980 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted for OMB approval proposed 
amendments to Form N-1A under the Securities Act of 1933 (the 
``Securities Act'') and the Investment Company Act of 1940 [15 U.S.C. 
80a et seq.] (the ``Investment Company Act'').
    Form N-1A is the registration statement required for open-end 
registered investment companies (``funds'') under the Investment 
Company Act and the Securities Act. A registration statement on Form N-
1A must contain such information as the Commission has determined to be 
necessary or appropriate in the public interest or for the protection 
of investors. Form N-1A requires funds to include in their 
prospectuses, among other items, disclosure about sales charges and a 
table setting forth those changes (the ``fee table'').
    The Commission proposed amending Form N-1A to reflect the new types 
of deferred sales loads permitted by the amended rule 6c-10. The 
amendments would add new item 7(g) to Form N-1A to require funds to 
disclose in their prospectuses the price on which the load is based 
(e.g., whether the load is based on the fund's net asset value at the 
time of purchase or redemption), the amount of deferred sales loads, if 
any, imposed on shares acquired through reinvested distributions, and 
the way in which the load is calculated (e.g., a specified percentage 
of the fund's net asset value). This information also would have to be 
reflected in the fund's fee table. In addition, item 7(g) would require 
funds to disclose any deferred sales loads charged on reinvested 
dividends or other distributions and to disclose the way in which an 
investor may be required to pay any installment load (e.g., through the 
withholding of dividend payments). Under revised Guidelines to Form N-
1A, funds would be required to briefly describe any tax consequences 
for shareholders related to an installment load. Finally, proposed 
amendments to Instruction 1 to Item 22(b)(i) of Form N-1A would require 
deferred sales loads to be included in calculating a fund's advertised 
total return. Some of these requirements do not entail any additional 
paperwork burden because the amendments cover many of the operational 
aspects that have been mandatory for all funds under rule 6c-10 and 
already are required to be disclosed in the prospectus. The fee tables 
of funds that impose contingent deferred sales loads (``CDSLs''), for 
example, must include certain information about these charges.
    The Commission expects that funds that currently impose CDSLs are 
likely to continue to impose these charges or assess the other types of 
deferred sales loads permitted under the amendments. It is estimated 
that the number of funds that currently charge CDSLs is approximately 
550. Based on its experience with the industry, the Commission 
estimates that, as a result of the disclosure requirements proposed by 
the amendments, the burden on a fund that imposes a deferred sales load 
would increase by 2/10 of an hour. It is estimated that an increase of 
110 total burden hours would be expended in 

[[Page 50223]]
connection with the proposed disclosure requirements.
    General comments may be directed to the OMB Clearance Officer for 
the Securities and Exchange Commission at the address below. Comments 
concerning the accuracy of the estimated average burden hours for 
compliance with Commission rules and forms should be directed to 
Michael E. Bartell, Associate Executive Director, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549, and 
to the Securities and Exchange Commission's Clearance Officer, Office 
of Information and Regulatory Affairs, Paperwork Reduction Act number 
3235-0307, Office of Management and Budget, Room 3228, New Executive 
Office Building, Washington, DC 20543.

    Dated: September 5, 1995.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-24095 Filed 9-27-95; 8:45 am]
BILLING CODE 8010-01-M