[Federal Register Volume 76, Number 171 (Friday, September 2, 2011)]
[Notices]
[Pages 54814-54815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-22576]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 498, SEC File No. 270-574, OMB Control No. 3235-0648.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995,\1\ the Securities and Exchange Commission (the ``Commission'')
has submitted to the Office of Management and Budget a request for
extension of the previously approved collection of information
discussed below.
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\1\ 44 U.S.C. 3501 et seq.
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Rule 498 under the Securities Act of 1933 (``Securities Act'') \2\
permits open-end management investment companies (``funds'') to satisfy
their prospectus delivery obligations under the Securities Act by
sending or giving key information directly to investors in the form of
a summary prospectus (``Summary Prospectus'') and providing the
statutory prospectus on a Web site. Upon an investor's request, funds
are also required to send the statutory prospectus to the investor. In
addition, under rule 498, a fund that relies on the rule to meet its
statutory prospectus delivery obligations must make available, free of
charge, the fund's current Summary Prospectus, statutory prospectus,
statement of additional information, and most recent annual and semi-
annual reports to shareholders at the Web site address specified in the
required Summary Prospectus legend. A Summary Prospectus that complies
with
[[Page 54815]]
rule 498 is deemed to be a prospectus that is authorized under Section
10(b) of the Securities Act \3\ and Section 24(g) of the Investment
Company Act of 1940.\4\
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\2\ 17 CFR 230.498.
\3\ 15 U.S.C. 77j. A ``prospectus,'' as defined by the
Securities Act, is any prospectus, notice, circular, advertisement,
letter, or communication, written or by radio or television, which
offers any security for sale or confirms the sale of any security,
with certain exceptions. 15 U.S.C. 77b(a)(10).
\4\ 15 U.S.C. 80a-24(g).
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The purpose of rule 498 is to enable a fund to provide investors
with a Summary Prospectus containing key information necessary to
evaluate an investment in the fund. Unlike many other Federal
information collections, which are primarily for the use and benefit of
the collecting agency, this information collection is primarily for the
use and benefit of investors. The information filed with the Commission
also permits the verification of compliance with securities law
requirements and assures the public availability and dissemination of
the information.
The current approved annual internal hour burden for filing and
updating Summary Prospectuses and posting the required disclosure
documents on a Web site pursuant to rule 498 is 63,014 hours. Based on
staff review of Summary Prospectuses filed with the Commission, the
Commission now estimates that approximately 6,250 portfolios are using
a Summary Prospectus. Therefore, the Commission estimates that the
total annual internal burden for filing and updating Summary
Prospectuses and posting the required disclosure documents to a Web
site pursuant to rule 498 will therefore be approximately 9,375 hours,
representing a decrease of 53,639 hours.
The current approved total annual cost burden is $106,200,000 or
approximately $15,200 per portfolio. Adjusting the total annual cost
burden per portfolio for the effects of inflation, the Commission now
estimates the total annual cost burden per portfolio to be $15,900, for
a total annual cost burden of approximately $99,375,000. This
represents a decrease in the total annual cost burden of approximately
$6,825,000.
Estimates of average burden hours are made solely for the purposes
of the Paperwork Reduction Act, and are not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules and forms. 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 proposed
collection of information is necessary for the proposed performance of
the functions of the agency, including whether information will have
practical utility; (b) the accuracy of the agency'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 Thomas Bayer, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an
e-mail to: [email protected].
Dated: August 29, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-22576 Filed 9-1-11; 8:45 am]
BILLING CODE 8011-01-P