[Federal Register Volume 66, Number 27 (Thursday, February 8, 2001)]
[Notices]
[Page 9612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3236]


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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:
    Rules 8b-1 to 8b-32, SEC File No. 270-135, OMB Control No. 3235-
0176
    Rule 206(3)-2, SEC File No. 270-216, OMB Control No. 3235-0243

    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'') is publishing the following summary of 
collections for public comment. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget for extension and approval.
    Rules 8b-1 to 8b-32 under the Investment Company Act of 1940 (the 
``Act'') are the procedural rules an investment company must follow 
when preparing and filing a registration statement. These rules were 
adopted to standardize the mechanics of registration under the Act and 
to provide more specific guidance for persons registering under the Act 
than the information contained in the statute. For the most part, these 
procedural rules do not require the disclosure of information. Two of 
the rules, however, require limited disclosure of information.\1\ The 
information required is necessary to ensure that investors have clear 
and complete information upon which to base an investment decision. The 
Commission uses the information that investment companies provide on 
registration statements in its regulatory, disclosure review, 
inspection and policy-making roles. The respondents to the collection 
of information are investment companies filing registration statements 
under the Act.
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    \1\ Rule 8b-3 provides that whenever a registration form 
requires the title of securities to be stated, the registrant must 
indicate the type and general character of the securities to be 
issued. Rule 8b-22 provides that if the existence of control is open 
to reasonable doubt, the registrant may disclaim the existence of 
control, but it must state the material facts pertinent to the 
possible existence of control.
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    The Commission does not estimate separately the total annual 
reporting and recordkeeping burden associated with Rules 8b-1 to 8b-32 
because the burden associated with these rules are included in the 
burden estimates the Commission submits for the investment company 
registration statement forms (e.g., Form N- 1A, Form N-2, Form N-3, and 
Form N-4). For example, a mutual fund that prepares a registration 
statement on Form N-1A must comply with the rules under Section 8(b), 
including rules on riders, amendments, the form of the registration 
statement, and the number of copies to be submitted. Because the fund 
only incurs a burden from the Section 8(b) rules when preparing a 
registration statement, it would be impractical to measure the 
compliance burden of these rules separately. The Commission believes 
that including the burden of the Section 8(b) rules with the burden 
estimates for the investment company registration statement forms 
provides a more accurate and complete estimate of the total burdens 
associated with the registration process.
    Rule 206(3)-2 permits investment advisers to comply with Section 
206(3) of the Investment Advisers Act of 1940 (``Advisers Act'') by 
obtaining a blanket consent from a client to enter into agency cross 
transactions, provided that certain disclosures are made to the client. 
The information requirements of the rule consist of the following: (1) 
Prior to obtaining the client's consent appropriate disclosure must be 
made to the client as to the practice of, and the conflicts of interest 
involved in, agency cross transactions; (2) at or before the completion 
of any such transaction the client must be furnished with a written 
confirmation containing specified information and offering to furnish 
upon request certain additional information; and (3) at least annually, 
the client must be furnished with a written statement or summary as to 
the total number of transactions during the period covered by the 
consent and the total amount of commissions received by the adviser or 
its affiliated broker-dealer attributable to such transactions.
    The Commission uses the information required by Rule 206(3)-2 in 
connection with its investment adviser inspection program to ensure 
that advisers are in compliance with the rule. Adviser clients also use 
the information to monitor agency cross transactions. Without the 
information collected under the rule, the Commission would be less 
efficient and effective in its inspection program and clients would not 
have information valuable for monitoring the adviser's handling of 
their accounts.
    The Commission estimates that approximately 785 respondents use the 
rule annually, necessitating about 32 responses per respondent each 
year, for a total of 25,120 responses. Each response requires about .5 
hours, for a total of 12,560 hours.
    The estimated average burden hours are made solely for the purposes 
of the PRA and are not derived from a comprehensive or even 
representative survey or study of the cost of Commission rules and 
forms.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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.
    Direct your written comments to Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.

    Dated: February 1, 2001.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-3236 Filed 2-7-01; 8:45 am]
BILLING CODE 8010-01-M