[Federal Register Volume 68, Number 51 (Monday, March 17, 2003)]
[Notices]
[Page 12722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6343]



[[Page 12722]]

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SECURITIES AND EXCHANGE COMMISSION


Request for Public Comment

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 450 
Fifth Street NW., Washington, DC 20549.

Extension

Rule 17f-1 File No. 270-236, OMB Control No. 3235-0222.
Form N-17f-1, File No. 270-316, OMB Control No. 3235-0359.

    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 soliciting for public comment the 
following summary of previously approved information collection 
requirements. The Commission plans to submit these existing collections 
of information to the Office of Management and Budget (``OMB'') for 
extension and approval.
    Rule 17f-1 [17 CFR Sec.  270.17f-1] under the Investment Company 
Act of 1940 (the ``Act'') is entitled: ``Custody of Securities with 
Members of National Securities Exchanges.'' Rule 17f-1 provides that 
any registered management investment company (``fund'') that wishes to 
place its assets in the custody of a national securities exchange 
member may do so only under a written contract that must be ratified 
initially and approved annually by a majority of the fund's board of 
directors. The written contract also must contain certain specified 
provisions. In addition, the rule requires an independent public 
accountant to examine the fund's assets in the custody of the exchange 
member at least three times during the fund's fiscal year. The rule 
requires the written contract and the certificate of each examination 
to be transmitted to the Commission. The purpose of the rule is to 
ensure the safekeeping of fund assets.
    Commission staff estimates that approximately 10 funds maintain 
their assets with a national securities exchange member.\1\ The annual 
burden of the rule's requirements is estimated to be approximately 4.5 
hours for each of these funds.\2\ Commission staff estimates the total 
annual burden for all funds is 45 hours.
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    \1\ The Commission's records show that 10 funds filed Form N-
17f-1 during calendar year 2002.
    \2\ The Commission staff estimates, based upon the experience of 
staff familiar with the information collection requirements of the 
rule, that each fund spends approximately 4.5 hours annually in 
complying with the rule's requirements: 4 hours of clerical time (1 
hour to prepare the custodial contract for board review and to 
transmit the contract, and 1 hour each of the three times the fund 
transmits the accountant's certificate) and 0.5 hours for the board 
of directors to ratify the custodial contract.
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    Form N-17f-1 is entitled: ``Certificate of Accounting of Securities 
and Similar Investments of a Management Investment Company in the 
Custody of Members of National Securities Exchanges.'' Form N-17f-1 is 
the cover sheet for accountant examination certificates filed under 
rule 17f-1 of the Act. Rule 17f-1 requires the accountant's certificate 
of each examination be attached to form N-17f-1 and transmitted to the 
Commission promptly after each examination. The form facilitates the 
filing of the accountant's certificate, and increases the accessibility 
of the certificate to both Commission's staff and interested investors.
    The annual burden of the rule's requirements is estimated to be 
approximately 27 minutes for each of the 10 funds estimated to maintain 
their assets with a national securities exchange member.\3\ The total 
annual burden for all funds therefore is estimated to be 4.5 hours.
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    \3\ Commission staff estimates that it takes approximately nine 
minutes of clerical time to prepare each Form N-17f-1. This estimate 
is based on Commission staff members filling out the form. Each fund 
is required to file Form N-17f-1 three times annually, for an 
average hour burden per fund of 27 minutes.
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    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. Compliance with the collections of information 
required by rule 17f-1 and Form N-17f-1 is mandatory for funds that 
place their assets in the custody of a national securities exchange 
member. Responses will not be 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.
    The Commission requests written comments on: (a) Whether the 
proposed 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 burdens 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 Kenneth A. Fogash, Acting 
Associate Executive Director/CIO, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, NW., Washington, DC 
20549.

    Dated: March 10, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-6343 Filed 3-14-03; 8:45 am]
BILLING CODE 8010-01-P