[Federal Register Volume 85, Number 237 (Wednesday, December 9, 2020)]
[Notices]
[Page 79256]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27029]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-173, OMB Control No. 3235-0178]
Submission for OMB Review; Comment Request
Upon Written Request Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-02736
Extension:
Rule 31a-1
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'') has submitted to the Office of Management
and Budget a request for extension of the previously approved
collection of information discussed below.
Rule 31a-1 (17 CFR 270.31a-1) under the Investment Company Act of
1940 (the ``Act'') (15 U.S.C. 80a) is entitled ``Records to be
maintained by registered investment companies, certain majority-owned
subsidiaries thereof, and other persons having transactions with
registered investment companies.'' Rule 31a-1 requires registered
investment companies (``funds''), and every underwriter, broker,
dealer, or investment adviser that is a majority-owned subsidiary of a
fund, to maintain and keep current accounts, books, and other documents
which constitute the record forming the basis for financial statements
required to be filed pursuant to section 31 of the Act (15 U.S.C. 80a-
30) and of the auditor's certificates relating thereto. The rule lists
specific records to be maintained by funds. The rule also requires
certain underwriters, brokers, dealers, depositors, and investment
advisers to maintain the records that they are required to maintain
under federal securities laws. The Commission periodically inspects the
operations of funds to insure their compliance with the provisions of
the Act and the rules thereunder. The books and records required to be
maintained by rule 31a-1 constitute a major focus of the Commission's
inspection program.
There are approximately 3,964 investment companies registered with
the Commission, all of which are required to comply with rule 31a-1.
For purposes of determining the burden imposed by rule 31a-1, the
Commission staff estimates that each fund is divided into approximately
four series, on average, and that each series is required to comply
with the recordkeeping requirements of rule 31a-1. Based on
conversations with fund representatives, it is estimated that rule 31a-
1 imposes an average burden of approximately 1,750 hours annually per
series for a total of 7,000 annual hours per fund. The estimated total
annual burden for all 3,964 funds subject to the rule therefore is
approximately 27,748,000 hours. Based on conversations with fund
representatives, however, the Commission staff estimates that even
absent the requirements of rule 31a-1, 90 percent of the records
created pursuant to the rule are the type that generally would be
created as a matter of normal business practice and to prepare
financial statements. Thus, the Commission staff estimates that the
total annual burden associated with rule 31a-1 is 2,774,800 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. The collection
of information required by rule 31a-1 is mandatory. Responses will not
be kept confidential. The records required by rule 31a-1 are required
to be preserved pursuant to rule 31a-2 under the Investment Company Act
(17 CFR 270.31a-2). Rule 31a-2 requires that certain of these records
be preserved permanently, and that others be preserved six years from
the end of the fiscal year in which any transaction occurred. In both
cases, the records should be kept in an easily accessible place for the
first two years. 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.
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.
The public may view background documentation for this information
collection at the following website: www.reginfo.gov. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by
sending an email to: [email protected].
Dated: December 4, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-27029 Filed 12-8-20; 8:45 am]
BILLING CODE 8011-01-P