[Federal Register Volume 65, Number 93 (Friday, May 12, 2000)]
[Notices]
[Pages 30644-30645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11917]


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SECURITIES AND EXCHANGE COMMISSION


Existing Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, 
D.C. 20549.
Extension: Rule 17g-1, SEC File No. 270-208, OMB Control No. 3235-
0213.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 [44 U.S.C. 3501-3520], 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 for extension and approval.
    Rule 17g-1 [17 CFR 270.17g-1] under the Investment Company Act of 
1940 (the ``Act'') governs the fidelity bonding of officers and 
employees of registered management investment companies (``funds'') and 
their advisers. Rule 17g-1 requires, in part, the following:
    <bullet> Independent Directors' Approval Requirements. At least 
annually, the independent directors of a fund must approve the form and 
amount of the fund's fidelity bond. Rule 17g-1 provides a schedule of 
minimum amounts for fidelity bonds based on a fund's size. The 
independent directors also must approve the amount of any premium paid 
for any ``joint bond'' covering multiple funds or certain other 
affiliates of the fund.
    <bullet> Fidelity Bond Content Requirements. The fidelity bond must 
provide that it shall not be canceled, terminated or modified except 
upon 60-days written notice to the affected party and to the 
Commission. In the case of a joint bond, this 60-day notice also must 
be given to each fund and to the Commission. In addition, a joint bond 
must provide that the fidelity insurance company will provide all funds 
covered by the bond with (i) A copy of the bond and any amendments to 
the bond; (ii) a copy of any formal filing of a claim on the bond; and 
(iii) notification of the terms of the settlement on any claim prior to 
execution of that settlement.
    <bullet> Joint Bond Agreement Requirement. A fund that is insured 
by a joint bond must enter into an agreement with all other parties 
insured by the joint bond regarding recovery under the joint bond.
    <bullet> Required Filings with the Commission. Upon execution of a 
fidelity bond or any amendment thereto, a fund must file with the 
Commission a copy of: (i) The executed fidelity bond; (ii) the 
resolution of the fund's independent directors approving the fidelity 
bond; and (iii) a statement as to the period for which the fidelity 
bond premiums have been paid. In the case of a joint bond, a fund also 
must file a copy of: (i) A statement showing the amount of a single 
insured bond the fund would have maintained under the rule had it not 
been named under a joint bond; and (ii) each agreement between the fund 
and all other insured parties. A fund also must notify the Commission 
in writing within 5 days of any claim and settlement on a claim made 
under a fidelity bond.
    <bullet> Required Notices to Directors. A fund must notify by 
registered mail each member of its board of directors of (i) any 
cancellation, termination or modification of the fidelity bond at least 
45 days prior to the effective date; and (ii) the filing or settlement 
of any claim under the fidelity bond when the notification is filed 
with the Commission.

[[Page 30645]]

    Rule 17g-1's independent directors' annual requirements, fidelity 
bond content requirements, joint bond agreement requirement and the 
required notices to directors seek to ensure the safety of fund assets 
against losses due to the conduct of persons who may obtain access to 
those assets. These requirements also seek to facilitate oversight of a 
fund's fidelity bond. The rule's required filings with the Commission 
are designed to assist the Commission in monitoring funds' compliance 
with the fidelity bond requirements.
    The Commission staff estimates that approximately 3500 funds are 
subject to the requirements of rule 17g-1, and that on average a fund 
spends approximately one hour per year complying with the rule's 
paperwork requirements. The Commission staff therefore estimates the 
total annual burden of the rule's paperwork requirements to be 3500 
hours.
    These estimates of average burden hours are made solely for the 
purposes of the Paperwork Reduction Act. These estimates are not 
derived from a comprehensive or even a representative survey or study 
of Commission rules. The collection of information required by rule 
17g-1 is mandatory and 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 control 
number.
    Written comments are requested on: (a) Whether the collection of 
information is 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 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 Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, N.W., Washington, 
D.C. 20549.

    Dated: May 4, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-11917 Filed 5-11-00; 8:45 am]
BILLING CODE 8010-01-M