[Federal Register Volume 69, Number 27 (Tuesday, February 10, 2004)]
[Notices]
[Pages 6342-6343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-2761]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon written request, copies available from: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.

Extension:
    Rule 30e-2; SEC File No. 270-437; OMB Control No. 3235-0494.

    Notice is hereby given that, under the Paperwork Reduction Act of 
1995 (44 U.S.C. 350l-3520), 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.
    Section 30(e) of the Investment Company Act of 1940 [15 U.S.C. 80a-
29(e)] (the ``Investment Company Act'' or ``Act'') and rule 30e-2\1\ 
thereunder [17

[[Page 6343]]

CFR 270.30e-2] require registered unit investment trusts (``UITs'') 
that invest substantially all of their assets in securities of a 
management investment company \2\ (``fund'') to send to shareholders at 
least semi-annually a report containing certain financial statements 
and other information. Specifically, rule 30e-2 requires that the 
report contain the financial statements and other information that rule 
30e-1 under the Act [17 CFR 270.30e-1] requires to be included in the 
report of the underlying fund for the same fiscal period. Rule 30e-1 
requires that the underlying fund's report contain, among other things, 
the financial statements and other information that is required to be 
included in such report by the fund's registration form. Preparing and 
sending the above-described reports under rule 30e-2 are collections of 
information under the Paperwork Reduction Act.
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    \1\ Rule 30e-2 was originally adopted as rule 30d-2, but was 
redesignated as rule 30e-2 effective February 15, 2001. See Role of 
Independent Directors of Investment Companies, Securities Act Rel. 
No. 7932; Exchange Act Rel. No. 43786; Investment Company Act Rel. 
No. 24816 (Jan. 2, 2001) [66 FR 3734 (Jan. 16, 2001)].
    \2\ Management investment companies are defined in section 4(3) 
of the Investment Company Act as any investment company other than a 
face-amount certificate company or a unit investment trust, as those 
terms are defined in sections 4(1) and 4(2) of the Investment 
Company Act. See 15 U.S.C. 80a-4.
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    Rule 30e-2, however, permits, under certain conditions, delivery of 
a single shareholder report to investors who share an address 
(``householding''). The purpose of the householding provisions of the 
rule is to reduce the amount of duplicative reports delivered to 
investors sharing the same address. Specifically, rule 30e-2 permits 
householding of annual and semi-annual reports by UITs to satisfy the 
delivery requirements of rule 30e-2 if, in addition to the other 
conditions set forth in the rule, the UIT has obtained from each 
applicable investor written or implied consent to the householding of 
shareholder reports at such address. The rule requires UITs that wish 
to household shareholder reports with implied consent to send a notice 
to each applicable investor stating that the investors in the household 
will receive one report in the future unless the investors provide 
contrary instructions. In addition, at least once a year, UITs relying 
on the rule for householding must explain to investors who have 
provided written or implied consent how they can revoke their consent. 
Preparing and sending the initial notice and the annual explanation of 
the right to revoke consent are collections of information under the 
Paperwork Reduction Act.
    The purpose of the requirement that UITs that invest substantially 
all of their assets in securities of a fund transmit to shareholders at 
least semi-annually reports containing financial statements and certain 
other information is to apprise current shareholders of the operational 
and financial condition of the UIT. Absent the requirement to disclose 
all material information in reports, investors would be unable to 
obtain accurate information upon which to base investment decisions and 
consumer confidence in the securities industry might be adversely 
affected. Requiring the submission of these reports to the Commission 
permits us to verify compliance with securities law requirements.
    The purpose of the notice and annual explanation requirements 
associated with the householding provisions of the rule is to ensure 
that investors who wish to receive individual copies of shareholder 
reports are able to do so.
    The Commission estimates that as of April 2003, approximately 733 
UITs were subject to the provisions of rule 30e-2. The Commission 
further estimates that the annual burden associated with rule 30e-2 is 
121 hours for each UIT, including an estimated 20 hours associated with 
the notice requirement for householding and an estimated 1 hour 
associated with the explanation of the right to revoke consent to 
householding, for a total of 88,693 burden hours.
    The estimate of average burden hours is made solely for the 
purposes of the Paperwork Reduction Act, and is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.
    In addition to the burden hours, the Commission estimates that the 
cost of contracting for outside services associated with complying with 
rule 30e-2 is $12,000 per respondent (80 hours times $150 per hour for 
independent auditor services), for a total of $8,796,000 ($12,000 per 
respondent times 733 respondents).
    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 control number.
    Please direct general comments regarding the above information to 
the following persons: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, New Executive Office Building, 
Washington, DC 20503; and (ii) R. Corey Booth, Director/Chief 
Information Officer, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Comments must be submitted to OMB within 30 days after this notice.

    Dated: February 2, 2004.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-2761 Filed 2-9-04; 8:45 am]
BILLING CODE 8010-01-P