[Federal Register Volume 68, Number 149 (Monday, August 4, 2003)]
[Notices]
[Page 45862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-19727]


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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 17g-1 [17 CFR 270.17g-1], SEC File No. 270-208, OMB Control 
No. 3235-0213.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange 
Commission (the ``Commission'') has submitted to the Office of 
Management and Budget (``OMB'') a request for extension of approval of 
the previously approved collection of information discussed below.
    Rule 17g-1 governs the fidelity bonding of officers and employees 
of registered management investment companies (``funds'') and their 
advisers. Rule 17g-1 requires, in part, the following:
    [sbull] Independent Directors' Approval Requirements. At least 
annually, the independent directors of a fund must approve the form and 
amount of the fund's fidelity bond. Rule 17g-1 provides a schedule of 
minimum amounts for fidelity bonds based on a fund's size. The 
independent directors also must approve the amount of any premium paid 
for any ``joint bond'' covering multiple funds or certain other 
affiliates of the fund.
    [sbull] Fidelity Bond Content Requirements. The fidelity bond must 
provide that it shall not be cancelled, terminated or modified except 
upon 60-days written notice to the affected party and to the 
Commission. In the case of a joint bond, this 60-day notice also must 
be given to each fund and to the Commission. In addition, a joint bond 
must provide that the fidelity insurance company will provide all funds 
covered by the bond with (i) a copy of the bond and any amendments to 
the bond; (ii) a copy of any formal filing of a claim on the bond; and 
(iii) notification of the terms of the settlement on any claim prior to 
execution of that settlement.
    [sbull] Joint Bond Agreement Requirement. A fund that is insured by 
a joint bond must enter into an agreement with all other parties 
insured by the joint bond regarding recovery under the joint bond.
    [sbull] Required Filings with the Commission. Upon execution of a 
fidelity bond or any amendment thereto, a fund must file with the 
Commission a copy of: (i) The executed fidelity bond; (ii) the 
resolution of the fund's independent directors approving the fidelity 
bond; and (iii) a statement as to the period for which the fidelity 
bond premiums have been paid. In the case of a joint bond, a fund also 
must file a copy of: (i) A statement showing the amount of a single 
insured bond the fund would have maintained under the rule had it not 
been named under a joint bond; and (ii) each agreement between the fund 
and all other insured parties. A fund also must notify the Commission 
in writing within 5 days of any claim and settlement on a claim made 
under a fidelity bond.
    [sbull] Required Notices to Directors. A fund must notify by 
registered mail each member of its board of directors of (i) any 
cancellation, termination or modification of the fidelity bond at least 
45 days prior to the effective date; and (ii) the filing or settlement 
of any claim under the fidelity bond when the notification is filed 
with the Commission. Rule 17g-1's independent directors' annual review 
requirements, fidelity bond content requirements, joint bond agreement 
requirement and the required notices to directors are designed to 
ensure the safety of fund assets against losses due to the conduct of 
persons who may obtain access to those assets. These requirements also 
facilitate oversight of a fund's fidelity bond. The rule's required 
filings with the Commission are designed to assist the Commission in 
monitoring funds' compliance with the fidelity bond requirements.
    The Commission staff estimates that approximately 4600 funds are 
subject to the requirements of rule 17g-1, and that on average a fund 
spends approximately one hour per year complying with the rule's 
paperwork requirements. The Commission staff therefore estimates the 
total annual burden of the rule's paperwork requirements to be 4600 
hours.
    These estimates of average burden hours are made solely for the 
purposes of the Paperwork Reduction Act. These estimates are not 
derived from a comprehensive or even a representative survey or study 
of Commission rules. The collection of information required by rule 
17g-1 is mandatory and 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.
    Please direct general comments regarding the information above to: 
(i) Desk Officer for the Securities and Exchange Commission, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Room 10102, New Executive Office Building, Washington, DC 20503; and 
(ii) Kenneth A. Fogash, Acting Associate Executive Director/CIO, 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: July 22, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-19727 Filed 8-1-03; 8:45 am]
BILLING CODE 8010-01-P