[Federal Register Volume 65, Number 178 (Wednesday, September 13, 2000)]
[Notices]
[Pages 55309-55310]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23435]


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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, DC 20549.
    Extension: Rule 2a19-1; SEC File No. 270-294; OMB Control No. 3235-
0332.
    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 (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 2a19-1 under the Investment Company Act of 1940 (the ``Act'') 
provides that investment company directors will not be considered 
interested persons, as defined by section 2(a)(19) of the Act, solely 
because they are registered broker-dealers or affiliated persons of 
registered broker-dealers, provided that the broker-dealer does not 
execute any portfolio transactions for the company's complex, engage in 
any principal transactions with the complex or distribute shares for 
the complex for at least six months prior to the time that the director 
is to be considered not to be an interested person and for the period 
during which the director continues to be considered not to be an 
interested person. The rule also requires the investment company's 
board of directors to determine that the company would not be adversely 
affected by refraining from business with the broker-dealer. In 
addition, the rule provides that no more than a minority of the 
disinterested directors of the company may be registered broker-dealers 
or their affiliates.
    Before the adoption of Rule 2a19-1, many investment companies found 
it necessary to file with the Commission applications for orders 
exempting directors from section 2(a)(19) of the Act. Rule 2a19-1 is 
intended to alleviate the burdens on the investment company industry of 
filing for such orders in circumstances where there is no potential 
conflict of interest. The conditions of the rule are designed to 
indicate whether the director has a stake in the broker-dealer's 
business with the company such that he or she might not be able to act 
independently of the company's management.
    The Commission estimates that approximately 3,200 investment 
companies may choose to rely on rule 2a19-1, and that each investment 
company may spend one hour annually compiling and keeping records 
related to the requirements of the rule. The total annual burden 
associated with the rule is estimated to be 3,200 hours.
    The estimate of average burden hours is made solely for the 
purposes of the Paperwork Reduction Act, and is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.
    Complying with the collection of information requirements of the 
rule is necessary to obtain the benefit of relying on the rule. Rule 
2a19-1 does not require the filing of any information with the 
Commission. To the extent that records kept in connection with this 
rule are made available to the Commission's staff as part of the 
Commission's inspection program, those records are generally kept 
confidential. 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.
    Written 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

[[Page 55310]]

Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Washington, DC 20503; and (ii) Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 Fifth Street, NW., Washington, 
DC 20549. Comments must be submitted to OMB within 30 days of this 
notice.

    Dated: September 6, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-23435 Filed 9-12-00; 8:45 am]
BILLING CODE 8010-01-M