[Federal Register Volume 79, Number 141 (Wednesday, July 23, 2014)]
[Notices]
[Pages 42842-42843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17278]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Securities and Exchange Commission, Office of FOIA Services, 100 F
Street NE., Washington, DC 20549-2736.
Extension:
[[Page 42843]]
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 (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 498 (17 CFR 230.498) under the Securities Act of 1933 (15
U.S.C. 77a et seq.) (``Securities Act'') 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.\1\ A Summary Prospectus that complies with
Rule 498 is deemed to be a prospectus that is authorized under Section
10(b) of the Securities Act and Section 24(g) of the Investment Company
Act of 1940 (15 U.S.C. 80a-1 et seq.).
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\1\ 17 CFR 270.498(e)(1).
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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.
Based on an analysis of fund filings, the Commission estimates that
approximately 9,082 portfolios are using a Summary Prospectus. The
Commission estimates that the annual hourly burden per portfolio
associated with the compilation of the information required on the
cover page or the beginning of the Summary Prospectus is 0.5 hours, and
estimates that the annual hourly burden per portfolio to comply with
the Web site posting requirement is approximately 1 hour, requiring a
total of 1.5 hours per portfolio per year.\2\ Thus the total annual
hour burden associated with these requirements of the rule is
approximately 13,623.\3\ The Commission estimates that the annual cost
burden is approximately $15,900 per portfolio, for a total annual cost
burden of approximately $144,403,800.\4\
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\2\ 0.5 hours per portfolio + 1 hour per portfolio = 1.5 hours
per portfolio. The Commission believes that funds that have opted to
use the Summary Prospectus have already incurred the estimated one-
time hour burden to initially comply with Rule 498, and therefore
the estimated burden hours to initially comply with Rule 498 and the
associated costs are not included in these estimates.
\3\ 1.5 hours per portfolio x 9,082 portfolios = 13,623 hours.
\4\ $15,900 per portfolio x 9,082 portfolios = $144,403,800.
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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. Under Rule 498, use of the Summary Prospectus is
voluntary, but the rule's requirements regarding provision of the
statutory prospectus upon investor request are mandatory for funds that
elect to send or give a Summary Prospectus in reliance upon Rule 498.
The information provided under Rule 498 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: July 17, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-17278 Filed 7-22-14; 8:45 am]
BILLING CODE 8011-01-P