[Federal Register Volume 68, Number 89 (Thursday, May 8, 2003)]
[Notices]
[Page 24765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11411]


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SECURITIES AND EXCHANGE COMMISSION


Existing Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, 
DC 20549.
Extension:
    Rule 11a-3 (17 CFR 270.11a-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. 3501-3520], the Securities and Exchange Commission 
(``Commission'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    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) give the funds' 
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, provide fund shareholders with 
information necessary to evaluate exchange offers and certain material 
changes in the terms of exchange offers, and enable the Commission 
staff to monitor funds' use of administrative fees charged in 
connection with exchange transactions.
    There are approximately 3,075 funds registered with the Commission 
as of December 31, 2002. The staff estimates that one-quarter of these 
funds imposes a non-nominal administrative fee on exchange 
transactions, and that the recordkeeping requirement of the rule 
requires approximately one hour annually of clerical time (at an 
estimated $16 per hour) per fund, for a total of 768.75 hours for all 
funds (at a total annual cost of $12,300). The staff estimates that 
one-quarter of the 3,075 funds terminates an exchange offer or makes a 
material change to its terms once each year, and that the notice 
requirement of the rule requires approximately one hour of professional 
time (at an estimated $60 per hour) and two hours of clerical time (at 
an estimated $16 per hour) per fund, for a total of approximately 
2306.25 hours for all funds (at a total annual cost of $70,725). 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 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. 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 are requested 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 
burden[s] 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: April 30, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-11411 Filed 5-7-03; 8:45 am]
BILLING CODE 8010-01-P