[Federal Register Volume 65, Number 97 (Thursday, May 18, 2000)]
[Notices]
[Page 31621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12514]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, DC 20549.
    Extension: Rule 11a-3; SEC File No. 270-321; OMB Control No. 
3235-0358.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), 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 for extension and approval.

Rule 11a-3 Under the Investment Company Act of 1940; Offers of 
Exchange by Open-End Investment Companies Other Than Separate 
Accounts

    Rule 11a-3 under the Investment Company Act of 1940 [17 CFR 
270.11a-3] is an exemptive rule that permits open-end investment 
companies (``funds''), other than insurance company separate accounts, 
and funds' principal underwriters, to make certain exchange offers to 
fund shareholders and shareholders of other funds in the same group of 
investment companies. The rule requires a fund, among other things: (i) 
To disclose in its prospectus and advertising literature the amount of 
any administrative or redemption fee imposed on exchange transactions, 
other than a nominal one, to maintain and preserve records with respect 
to the actual costs incurred in connection with exchanges for at least 
six years; and (iii) to give the fund's shareholders a sixty day notice 
of a termination of an exchange offer or any material amendment to the 
terms of an exchange offer (unless the only material effect of an 
amendment is to reduce or eliminate an administrative fee, sales load 
or redemption fee payable at the time of an exchange).
    The rule's requirements are designed to protect investors against 
abuses associated with exchange offers, to provide fund shareholders 
with information necessary to evaluate exchange offers and certain 
material changes in the terms of exchange offers, and to enable the 
Commission staff to monitor funds' use of administrative fees charged 
in connection with exchange transactions.
    It is estimated that approximately 2,900 funds may choose to rely 
on the rule, and each fund may spend one hour annually complying with 
the recordkeeping requirement and another one hour annually complying 
with the notice requirement. The burdens associated with the disclosure 
requirement of the rule are accounted for in the burdens associated 
with the Form N-1A registration statement for funds. The total annual 
burden associated with the rule thereof, is limited to the 
recordkeeping and notice requirements under the rule, which is 
estimated to be 5,800 hours. This estimate represents an increase of 
800 hours over the prior estimate of 5,000 hours. This increase in 
burden hours is attributable to an increase in the estimated number of 
funds from 2,500 to 2,900. The estimate of average burden hours is made 
solely for the purposes of the PRA, and is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.
    Written comments are invited on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information has practical 
utility; (b) the accuracy of the Commission's estimate of the burden of 
the collection of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of information on respondents, 
including through the use of automated collection techniques or other 
forms of information technology. Consideration will be given to 
comments and suggestions submitted in writing within 60 days of this 
publication.
    Please direct your written comments to Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, NW, Washington, DC 
20549.

    Dated: May 11, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-12514 Filed 5-17-00; 8:45 am]
BILLING CODE 8010-01-M