[Federal Register Volume 89, Number 90 (Wednesday, May 8, 2024)]
[Notices]
[Pages 38932-38933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09964]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-522, OMB Control No. 3235-0586]


Proposed Collection; Comment Request; Extension: Rule 38a-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

[[Page 38933]]

``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 38a-1 (17 CFR 270.38a-1) under the Investment Company Act of 
1940 (15 U.S.C. 80a) (``Investment Company Act'') is intended to 
protect investors by fostering better fund compliance with securities 
laws. The rule requires every registered investment company and 
business development company (``fund'') to: (i) adopt and implement 
written policies and procedures reasonably designed to prevent 
violations of the federal securities laws by the fund, including 
procedures for oversight of compliance by each investment adviser, 
principal underwriter, administrator, and transfer agent of the fund; 
(ii) obtain the fund board of directors' approval of those policies and 
procedures; (iii) annually review the adequacy of those policies and 
procedures and the policies and procedures of each investment adviser, 
principal underwriter, administrator, and transfer agent of the fund, 
and the effectiveness of their implementation; (iv) designate a chief 
compliance office to administer the fund's policies and procedures and 
prepare an annual report to the board that addresses certain specified 
items relating to the policies and procedures; and (v) maintain for 
five years the compliance policies and procedures and the chief 
compliance officer's annual report to the board.
    The rule contains certain information collection requirements that 
are designed to ensure that funds establish and maintain comprehensive, 
written internal compliance programs. The information collections also 
assist the Commission's examination staff in assessing the adequacy of 
funds' compliance programs.
    The Commission staff estimates that 13,628 funds are subject to 
rule 38a-1. Based on these estimates, the total annual burden hours 
associated with Rule 38a-1 is 476,980 hours. The estimated total annual 
burden hours associated with rule 38a-1 have increased 25,572 hours, 
from 451,408 hours to 476,980 hours and external costs increased from 
$19,608,000 to $23,876,256. These changes in burden hours and external 
costs reflect changes in the number of affected entities and in the 
external cost associated with the information collection requirements. 
These changes reflect revised estimates.
    The estimate of average burden hours is made solely for the 
purposes of the Paperwork Reduction Act. The estimate is based on 
communications with industry representatives and is not derived from a 
comprehensive or even a representative survey or study. Responses will 
not be kept confidential. Other information provided to the Commission 
in connection with staff examinations or investigations is kept 
confidential subject to the provisions of applicable law. If 
information collected pursuant to rule 38a-1 is reviewed by the 
Commission's examination staff, it is accorded the same level of 
confidentiality accorded to other responses provided to the Commission 
in the context of its examination and oversight program.
    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 July 8, 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: May 2, 2024.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-09964 Filed 5-7-24; 8:45 am]
BILLING CODE 8011-01-P