[Federal Register Volume 66, Number 76 (Thursday, April 19, 2001)]
[Notices]
[Page 20170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9708]



[[Page 20170]]

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SECURITIES AND EXCHANGE COMMISSION

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


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.

    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'') has submitted to the Office of Management and Budget 
requests for extension on the previously approved collections of 
information discussed below.
    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 [17 CFR 270.8b-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 [17 CFR 270.8b-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.
    Investment companies seeking to register under the Act are required 
to provide the information specified in Rules 8b-1 to 8b-32 if 
applicable. Responses will not be kept confidential.
    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 available for monitoring the adviser's handling of 
their accounts.
    The Commission estimates that approximately 785 respondents utilize 
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.
    These collections of information are found at 17 CFR 275.206(3)-2 
and are necessary in order for the investment adviser to obtain the 
benefits of Rule 206(3)-2. Commission-registered investment advisers 
are required to maintain and preserve certain information required 
under Rule 206(3)-2 for five (5) years. The long-term retention of 
these records is necessary for the Commission's inspection program to 
ascertain compliance with the Advisers Act.
    The estimated average burden hours are made solely for the purposes 
of the Paperwork Reduction Act and are not derived from a comprehensive 
or even representative survey or study of the cost of Commission rules 
and forms. 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: (1) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10202, New Executive Office 
Building, Washington, DC 20503; and (2) 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: April 9, 2001.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-9708 Filed 4-18-01; 8:45 am]
BILLING CODE 8010-01-M