[Federal Register Volume 68, Number 231 (Tuesday, December 2, 2003)]
[Notices]
[Pages 67493-67494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-29934]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filing and Information Services, 
Washington, DC 20549.

Extension:
    Rule 30e-2, SEC File No. 270-437, OMB Control No. 3235-0494.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) (the ``Paperwork Reduction Act'') the 
Securities and Exchange Commission (``Commission'') is soliciting 
comments on the collections of information summarized below. The 
Commission plans to submit this existing collection of information to 
the Office of Management and Budget for extension and approval.
    Section 30(e) of the Investment Company Act of 1940 [15 U.S.C. 80a-
29(e)] (the ``Investment Company Act'' or ``Act'') and rule 30e-2 \1\ 
thereunder [17 CFR 270.30e-2] require registered unit investment trusts 
(``UITs'') that invest substantially all of their assets in securities 
of a management investment company \2\ (``fund'') to send to 
shareholders at least semi-annually a report containing certain 
financial statements and other information. Specifically, rule 30e-2 
requires that the report contain the financial statements and other 
information that rule 30e-1 under the Act [17 CFR 270.30e-1] requires 
to be included in the report of the underlying fund for the same fiscal 
period. Rule 30e-1 requires that the underlying fund's report contain, 
among other things, the financial statements and other information that 
is required to be included in such report by the fund's registration 
form. Preparing and sending the above-described reports under rule 30e-
2 are collections of information under the Paperwork Reduction Act.
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    \1\ Rule 30e-2 was originally adopted as rule 30d-2, but was 
redesignated as rule 30e-2 effective February 15, 2001. See Role of 
Independent Directors of Investment Companies, Securities Act Rel. 
No. 7932; Exchange Act Rel. No. 43786; Investment Company Act Rel. 
No. 24816 (Jan. 2, 2001) [66 FR 3734 (Jan. 16, 2001)].
    \2\ Management investment companies are defined in section 4(3) 
of the Investment Company Act as any investment company other than a 
face-amount certificate company or a unit investment trust, as those 
terms are defined in sections 4(1) and 4(2) of the Investment 
Company Act. See 15 U.S.C. 80a-4.
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    Rule 30e-2, however, permits, under certain conditions, delivery of 
a single shareholder report to investors who share an address 
(``householding''). The purpose of the householding provisions of the 
rule is to reduce the amount of duplicative reports delivered to 
investors sharing the same address. Specifically, rule 30e-2 permits 
householding of annual and semi-annual reports by UITs to satisfy the 
delivery requirements of rule 30e-2 if, in addition to the other 
conditions set forth in the rule, the UIT has obtained from each 
applicable investor written or implied consent to the householding of 
shareholder reports at such address. The rule requires UITs that wish 
to household shareholder reports with implied consent to send a notice 
to each applicable investor stating that the investors in the household 
will receive one report in the future unless the investors provide 
contrary instructions. In addition, at least once a year, UITs relying 
on the rule for householding must explain to investors who have 
provided written or implied consent how they can revoke their consent. 
Preparing and sending the initial notice and the annual explanation of 
the right to revoke consent are collections of information under the 
Paperwork Reduction Act.
    The purpose of the requirement that UITs that invest substantially 
all of their assets in securities of a fund transmit to shareholders at 
least semi-annually reports containing financial statements and certain 
other information is to apprise current shareholders of the operational 
and financial condition of the UIT. Absent the requirement to disclose 
all material information in reports, investors would be unable to 
obtain accurate information upon which to base investment decisions and 
consumer confidence in the securities industry might be adversely 
affected. Requiring the submission of these reports to the Commission 
permits us to verify compliance with securities law requirements.
    The purpose of the notice and annual explanation requirements 
associated with the householding provisions of the rule is to ensure 
that investors who wish to receive individual copies of shareholder 
reports are able to do so.
    The Commission estimates that as of April 2003, approximately 733 
UITs were subject to the provisions of rule 30e-2. The Commission 
further estimates that the annual burden associated with rule 30e-2 is 
121 hours for each UIT, including an estimated 20 hours associated with 
the notice requirement for householding and an estimated 1 hour 
associated with the explanation of the right to revoke consent to 
householding, for a total of 88,693 burden hours.
    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.
    In addition to the burden hours, the Commission estimates that the 
cost of contracting for outside services associated with complying with 
rule

[[Page 67494]]

30e-2 is $12,000 per respondent (80 hours times $150 per hour for 
independent auditor services), for a total of $8,796,000 ($12,000 per 
respondent times 733 respondents).
    Written comments are invited on: (a) Whether the proposed 
collections of information are necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collections of information; (c) ways to enhance the 
quality, utility, and clarity of the information collected; and (d) 
ways to minimize the burden of the collections 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: November 25, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-29934 Filed 12-1-03; 8:45 am]
BILLING CODE 8010-01-P