[Federal Register Volume 65, Number 143 (Tuesday, July 25, 2000)]
[Notices]
[Page 45805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18740]


=======================================================================
-----------------------------------------------------------------------

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
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'') has submitted to the Office of 
Management and Budget a request for extension of the previously 
approved collection of information discussed below.

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 an exchange 
transaction; (ii) if the fund imposes an administrative fee 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 therefore, 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.
    Compliance with the collection of information requirements of rule 
11a-3 is mandatory. Responses subject to the disclosure requirement of 
rule 11a-3 will not be kept confidential. Information subject to the 
recordkeeping requirement and notice requirement of rule 11a-3 is not 
submitted to the Commission and, therefore, confidentiality is not an 
issue.
    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.
    General comments regarding the above information should be directed 
to the following persons: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, New Executive Office Building, 
Washington, D.C. 20503; and (ii) Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 5th Street, N.W., Washington, D.C. 20549. 
Comments must be submitted to OMB within 30 days of this notice.

    Dated: July 18, 2000.
Jonathan G. Katz,
Secretary.
[FR Doc. 00-18740 Filed 7-24-00; 8:45 am]
BILLING CODE 8010-01-M