[Federal Register Volume 84, Number 156 (Tuesday, August 13, 2019)]
[Notices]
[Pages 40111-40112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17298]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 31a-2, SEC File No. 270-174, OMB Control No. 3235-0179
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
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.
Section 31(a)(1) of the Investment Company Act of 1940 (15 U.S.C.
80a-1 et seq.) (the ``Act'') requires registered investment companies
(``funds'') and certain underwriters, broker-dealers, investment
advisers, and depositors to maintain and preserve records as prescribed
by Commission rules. Rule 31a-1 (17 CFR 270.31a-1) under the Act
specifies the books and records that
[[Page 40112]]
each of these entities must maintain. Rule 31a-2 (17 CFR 270.31a-2)
under the Act specifies the time periods that entities must retain
certain books and records, including those required to be maintained
under rule 31a-1.
The retention of records, as required by the rule, is necessary to
ensure access to material business and financial information about
funds and certain related entities. We periodically inspect the
operations of funds to ensure they are in compliance with the Act and
regulations under the Act. Due to the limits on our resources, however,
each fund may only be inspected at intervals of several years. In
addition, the prosecution of persons who have engaged in certain
violations of the federal securities laws may not be limited by timing
restrictions. For these reasons, we often need information relating to
events or transactions that occurred years ago. Without the requirement
to preserve books, records, and other documents, our staff would have
difficulty determining whether the fund was in compliance with the law
in such areas as valuation of its portfolio securities, computation of
the prices investors paid, and, when purchasing and selling fund
shares, types and amounts of expenses the fund incurred, kinds of
investments the fund purchased, actions of affiliated persons, or
whether the fund had engaged in any illegal or fraudulent activities.
As part of our examinations of funds, our staff also reviews the
materials that directors consider in approving the advisory contract.
There are 3,160 funds currently operating as of December 31, 2018,
all of which are required to comply with rule 31a-2. The Commission
staff estimates that, on average, a fund spends 220.4 hours annually to
comply with the rule. The Commission therefore estimates the total
annual hour burden of the rule's and form's paperwork requirements to
be 696,464 hours. In addition to the burden hours, the Commission staff
estimates that the average yearly cost to each fund that is subject to
rule 31a-2 is about $36,510.28. The Commission estimates total annual
cost is therefore about $115.4 million.
Estimates of average burden hours and costs are made solely for
purposes of the Paperwork Reduction Act and are not derived from a
comprehensive or even representative survey or study of the costs of
Commission rules and forms. Compliance with the collection of
information requirements of the rule is mandatory. Responses to the
disclosure requirements 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 OMB
control number.
Written comments are invited on: (a) Whether the 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 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 Charles Riddle, Acting
Director and Chief Information Officer, Securities and Exchange
Commission, c/o Candace Kenner, 100 F Street NE, Washington, DC 20549;
or send an email to: [email protected].
All submissions should refer to File Number 270-174. This file
number should be included on the subject line if email is used. The
Commission will post all comments on the Commission's internet website
(http://www.sec.gov). All comments received will be posted without
change; we do not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly.
Dated: August 7, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-17298 Filed 8-12-19; 8:45 am]
BILLING CODE 8011-01-P