[Federal Register Volume 90, Number 170 (Friday, September 5, 2025)]
[Notices]
[Page 42991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-17030]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0522]


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Extension: Rule 701--Exemption for Offers and 
Sales of Securities Pursuant to Certain Compensatory Benefit Plans and 
Contracts Relating to Compensation

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 (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') this request for extension of the previously 
approved collection of information discussed below.
    Rule 701 (17 CFR 230.701) under the Securities Act of 1933 
(``Securities Act'') (15 U.S.C. 77a et seq.) provides an exemption for 
certain issuers from the registration requirements of the Securities 
Act for limited offerings and sales of securities issued under 
compensatory benefit plans or contracts. The purpose of Rule 701 is to 
enable issuers that are not reporting companies under the Securities 
Exchange Act of 1934 to compensate employees and others without 
registering an offer and sale of securities under the Securities Act, 
while requiring issuers, as a condition of reliance on the rule, to 
provide investors with certain information that is important to 
investment decision making. Information provided under Rule 701 is 
mandatory for an issuer to be able to rely on the registration 
exemption under Rule 701. We estimate that approximately 3,725 issuers 
annually rely on the Rule 701 exemption and that it takes approximately 
two hours to prepare each response. We estimate that 25% of the 2 hours 
per response (0.5 hours) is prepared by the issuer for a total annual 
burden of 1,863 hours (0.5 hours per response x 3,725 responses 
annually). We estimate that 75% of the two hours per response (1.5 
hours) is carried by outside professionals retained by the issuer at an 
estimated cost of $600 per hour, for a total annual cost burden of 
$3,352,500 (1.5 hours per response x $600 per hour x 3,725 responses 
annually).
    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.
    The public may view and comment on this information collection 
request at: https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202505-3235-019 or send an email comment to 
[email protected] within 30 days of the day 
after publication of this notice by October 6, 2025.

    Dated: September 3, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-17030 Filed 9-4-25; 8:45 am]
BILLING CODE 8011-01-P