[Federal Register Volume 79, Number 111 (Tuesday, June 10, 2014)]
[Notices]
[Pages 33224-33225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-13463]
-----------------------------------------------------------------------
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 18f-3;
SEC File No. 270-385, OMB Control No. 3235-0441.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.) (``Paperwork Reduction Act''), 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 (``OMB'') for extension and
approval.
Rule 18f-3 (17 CFR 270.18f-3) under the Investment Company Act of
1940 (15 U.S.C. 80a-1 et seq.) exempts from section 18(f)(1) a fund
that issues multiple classes of shares representing interests in the
same portfolio of securities (a ``multiple class fund'') if the fund
satisfies the conditions of the rule. In general, each class must
differ in its arrangement for shareholder services or distribution or
both, and must pay the related expenses of that different arrangement.
The rule includes one requirement for the collection of information. A
multiple class fund must prepare, and fund directors must approve, a
written plan setting forth the separate arrangement and expense
allocation of each class, and any related conversion features or
exchange privileges (``rule 18f-3 plan''). Approval of the plan must
occur before the fund issues any shares of multiple classes and
whenever the fund materially amends the plan. In approving the plan,
[[Page 33225]]
the fund board, including a majority of the independent directors, must
determine that the plan is in the best interests of each class and the
fund as a whole.
The requirement that the fund prepare and directors approve a
written rule 18f-3 plan is intended to ensure that the fund compiles
information relevant to the fairness of the separate arrangement and
expense allocation for each class, and that directors review and
approve the information. Without a blueprint that highlights material
differences among classes, directors might not perceive potential
conflicts of interests when they determine whether the plan is in the
best interests of each class and the fund. In addition, the plan may be
useful to Commission staff in reviewing the fund's compliance with the
rule.
Based on an analysis of fund filings, the Commission estimates that
there are approximately 5,831 multiple class funds offered by 969
registrants. The Commission estimates that each of the 969 registrants
will make an average of 0.5 responses annually to prepare and approve a
written 18f-3 plan.\1\ The Commission estimates each response will take
6 hours, requiring a total of 3 hours per registrant per year.\2\ Thus
the total annual hour burden associated with these requirements of the
rule is approximately 2,907 hours.\3\
---------------------------------------------------------------------------
\1\ The Commission estimates that each registrant prepares and
approves a rule 18f-3 plan every two years when issuing a new fund
or new class or amending a plan (or that 484.5 of all 969
registrants prepare and approve a plan each year).
\2\ 0.5 responses per registrant x 6 hours per response = 3
hours per registrant.
\3\ 3 hours per registrant per year x 969 registrants = 2,907
hours per year.
---------------------------------------------------------------------------
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. The collection of information under rule 18f-3 is
mandatory. The information provided under rule 18f-3 will not be kept
confidential. 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 collections of
information are necessary for the proper performance of the functions
of the Commission, including whether the information has practical
utility; (b) the accuracy of the Commission's estimate of the burdens
of the collections of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burdens of the collections 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, Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email
to: [email protected].
Dated: June 4, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13463 Filed 6-9-14; 8:45 am]
BILLING CODE 8011-01-P