[Federal Register Volume 70, Number 66 (Thursday, April 7, 2005)]
[Notices]
[Page 17724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1583]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

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

Extension:
    Rule 17d-1; SEC File No. 270-505; OMB Control No. 3235-0562.

    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 
(the ``Commission'') is soliciting comments on the collections of 
information summarized below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Section 17(d) of the Investment Company Act of 1940 (the ``Act'') 
prohibits first- and second-tier affiliates of a fund, the fund's 
principal underwriters, and affiliated persons of the fund's principal 
underwriters, acting as principal, to effect any transaction in which 
the fund or a company controlled by the fund is a joint or a joint and 
several participant in contravention of the Commission's rules. Rule 
17d-1 (``Applications regarding joint enterprises or arrangements and 
certain profit-sharing plans'' [17 CFR 270.17d-1]) permit a fund to 
enter into a joint arrangement with a portfolio affiliate (an issuer of 
which a fund owns a position in excess of five percent of the voting 
securities), or an affiliated person of a portfolio affiliate, as long 
as certain other affiliated persons of the fund (e.g., the fund's 
adviser, persons controlling the fund, and persons under common control 
with the fund) are not parties to the transaction and do not have a 
financial interest in a party to the transaction.
    Rule 17d-1 provides that, in addition to the interests identified 
in the rule not to be ``financial interests,'' the term ``financial 
interest'' also does not include any interest that the fund's board of 
directors (including a majority of the directors who are not interested 
persons of the fund) finds to be not material. The rule requires that 
the minutes of the board's meeting record the basis for the board's 
finding.
    The information collection requirements in rule 17d-1 are intended 
to ensure that Commission staff can review, in the course of its 
compliance and examination functions, the basis for a board of 
director's finding that the financial interest of a prohibited 
participant in a party to a transaction with a portfolio affiliate is 
not material.
    Based on analysis of past filings, the Commission's staff estimates 
that 148 funds are affiliated persons of 668 issuers as a result of the 
fund's ownership or control of the issuer's voting securities, and that 
there are approximately 1,000 such affiliate relationships. Staff 
discussions with mutual fund representatives have suggested that no 
funds are currently relying on rule 17d-1 exemptions. We do not know 
definitively the reasons for this change in transactional behavior, but 
differing market conditions from year to year may offer some 
explanation for the current lack of fund interest in the exemptions 
under rule 17d-1. Accordingly, we estimate that annually there will be 
no joint transactions under rule 17d-1 that will result in a collection 
of information.
    The Commission requests authorization to maintain an inventory of 
one burden hour to ease future renewals of rule 17d-1 collection of 
information analysis should reliance on the rule increase in the coming 
years.
    Written comments are invited on: (a) Whether the proposed 
collection of information is 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 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 R. Corey Booth, Director/
Chief Information Officer, Office of Information Technology, Securities 
and Exchange Commission, 450 5th Street, NW., Washington, DC 20549.

    Dated: March 29, 2005.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1583 Filed 4-6-05; 8:45 am]
BILLING CODE 8010-01-P