[Federal Register Volume 61, Number 178 (Thursday, September 12, 1996)] [Notices] [Page 48177] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-23314] ======================================================================= ----------------------------------------------------------------------- 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, D.C. 20549. New Proposed Rule 10A-1 SEC File No. 270-425 OMB Control No. 3235-NEW 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 or SEC) has submitted to the Office of Management and Budget a request for approval of proposed Rule 10A-1 under the General Rules and Regulations under the Securities Exchange Act of 1934. Proposed Rule 10A-1 would implement the reporting requirements in Section 10A of the Exchange Act, which was enacted by Congress on December 22, 1995 as part of the Private Securities Litigation Reform Act of 1995, Public Law No. 104-67. Likely respondents are those registrants filing audited financial statements under the Securities Exchange Act of 1934 and the Investment Company Act of 1940. Under section 10A (and proposed Rule 10A-1) reporting would occur only if a registrant's board of directors receives a report from its auditors that (1) there is an illegal act material to the registrant's financial statements, (2) senior management and the board have not taken timely and appropriate remedial action, and (3) the failure to take such action is reasonably expected to warrant the auditor's modification of the audit report or resignation from the audit engagement. The board of directors must notify the Commission within one business day of receiving such a report. If the board fails to provide that notice, then the auditor, within the next business day, must provide the Commission with a copy of the report that it gave to the board. It is expected that satisfaction of these conditions precedent to the reporting requirements will be rare. It is estimated that the proposed amendments, if adopted, may result in an aggregate additional reporting burden of 10 hours. General comments regarding the estimated burden hours should be directed to the OMB Clearance Officer at the address below. Any 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, Office of Information Technology, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549 and Clearance Officer, Office of Management and Budget, Room 3208, New Executive Office Building, Washington, D.C. 20503. Dated: August 26, 1996. Margaret H. McFarland, Deputy Secretary. [FR Doc. 96-23314 Filed 9-11-96; 8:45 am] BILLING CODE 8010-01-M