[Federal Register Volume 89, Number 16 (Wednesday, January 24, 2024)]
[Notices]
[Page 4645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01349]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 3235-0346, File No. 270-305]


Proposed Collection; Comment Request; Extension: Rule 34b-1

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736.

    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 for extension and approval.
    Rule 34b-1 under the Investment Company Act (17 CFR 270.34b-1) 
governs sales material that accompanies or follows the delivery of a 
statutory prospectus (``sales literature''). Rule 34b-1 deems to be 
materially misleading any investment company (``fund'') sales 
literature required to be filed with the Securities and Exchange 
Commission (``Commission'') by Section 24(b) of the Investment Company 
Act (15 U.S.C. 80a-24(b)) that includes performance data, unless the 
sales literature also includes the appropriate uniformly computed data 
and the legend disclosure required in investment company advertisements 
by rule 482 under the Securities Act of 1933 (17 CFR 230.482) (``rule 
482''). Additionally, rule 34b-1 deems to be materially misleading any 
fund sales literature intended for distribution to prospective 
investors that includes fee and expense information, unless that sales 
literature complies with the disclosure and timeliness requirements of 
rule 482.\1\ These requirements are designed to prevent misleading 
performance claims by funds and to enable investors to make meaningful 
comparisons among funds.
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    \1\ These provisions of rule 34b-1 apply to any registered 
investment company or business development company advertisement, 
pamphlet, circular, form letter, or other sales literature addressed 
to or intended for distribution to prospective investors in 
connection with a public offering. See rule 34b-1(c).
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    The Commission estimates that on average approximately 8,289 \2\ 
responses that include the information required by rule 34b-1 each 
year. The burden resulting from the collection of information 
requirements of rule 34b-1 is estimated to be 11 hours per response.\3\ 
The total hourly burden for rule 34b-1 is approximately 91,179 hours 
per year in the aggregate.\4\
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    \2\ The estimated average number of responses to rule 34b-1 for 
the two-year period from October 1, 2021, to November 30, 2023, 
comprises 7,912 filings submitted to FINRA and 377 filings submitted 
to the Commission.
    \3\ Previous PRA extensions for rule 34b-1 assumed an estimated 
annual burden of 6 hours per response in complying with paragraphs a 
and b of rule 34b-1, 3 hours per response in complying with the fee 
and expense figure disclosure requirements of paragraph c, and 2 
hours for the fee waivers/expense reimbursement arrangements 
disclosure requirements of paragraph c, while estimating that only 
96% of relevant responses would need to comply with all of the 
paragraph c requirements. For purposes of this extension, we are 
assuming that 100% of the responsive filings identified will incur 
burdens for all of the rule's requirements, such that a total of 11 
hours per response per year (6 + 3 + 2 = 11). We recognize that this 
might overstate the total burden.
    \4\ 8,289 responses x 11 hours per response = 91,179 hours.
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    The collection of information under rule 34b-1 is mandatory. The 
information provided under rule 34b-1 is not kept confidential. The 
Commission 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 proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have 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 by March 25, 2024.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Chief 
Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549 or send an email to: 
[email protected].

    Dated: January 19, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01349 Filed 1-23-24; 8:45 am]
BILLING CODE 8011-01-P