[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]


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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 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