36174 Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices

Agreement and to be compatible with

the Commission’s program.

Article IX

This Agreement shall become

effective on [TBA], and shall remain in

effect unless and until such time as it is

terminated pursuant to Article VIII.

Dated at Rockville, Maryland, this

lth day of llllll, 2000.

FOR THE UNITED STATES

NUCLEAR REGULATORY

COMMISSION.

Chairman

Dated at Oklahoma City, Oklahoma

this lth day of llllll, 2000.

FOR THE STATE OF OKLAHOMA

Governor

[FR Doc. 00–14286 Filed 6–6–00; 8:45 am]

BILLING CODE 7590–01–P

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: Form ADV–E; SEC File No.

270–318; OMB Control No. 3235–0361.

Notice is hereby given that pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.) the Securities

and Exchange Commission

(‘‘Commission’’) has submitted to the

Office of Management and Budget a

request for extension of the previously

approved collection of information on

the following form:

Form ADV–E is the cover sheet for

accountant examination certificates

filed pursuant to rule 206(4)–2 under

the Investment Advisers Act by

investment advisers retaining custody of

client securities or funds. The annual

burden is approximately three minutes

per respondent.

The estimate of burden hours set forth

above is made solely for the purposes of

the Paperwork Reduction Act and is not

derived from a comprehensive or even

representative survey or study of the

cost of SEC rules and forms.

Any 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.

General comments regarding the

estimated burden hours should be

directed to the Desk Officer for the

Securities and Exchange Commission at

the address below. Any comments

concerning the accuracy of the

estimated average burden hours for

compliance with Commission rules and

forms should be directed to Michael E.

Bartell, Associate Director, Office of

Information Technology, Securities and

Exchange Commission, 450 Fifth Street,

NW., Washington, DC 20549, and Desk

Office for the Securities and Exchange

Commission, Office of Information and

Regulatory Affairs, Office of

Management and Budget, New

Executive Office Building, Washington,

DC 20503. Comments must be submitted

to OMB within 30 days of this notice.

Dated: May 25, 2000.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14244 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Request Under Review by Office of

Management and Budget

Upon Written Request, Copies Available

From: Securities and Exchange Commission,

Office of Filings and Information Services,

Washington, DC 20549.

Extension: Rule 12b–1; SEC File No. 270–

188; OMB Control No. 3235–0212.

Notice is hereby given that under the

Paperwork Reduction Act of 1995 [44

U.S.C. 3501[, the Securities and

Exchange Commission (the ‘‘SEC’’) has

submitted to the Office of Management

and Budget (‘‘OMB’’), a request for

extension of OMB approval for rule

12b–1 [17 CFR 270.12b–1] under the

Investment Company Act of 1940 [15

U.S.C. 80a] (the ‘‘Act’’).

Rule 12b–1 permits a registered openend investment company (‘‘mutual

fund’’) to distribute its own shares and

pay expenses of distribution provided,

among other things, that the mutual

fund adopts a written plan (‘‘rule 12b–

1 plan’’) and has in writing any

agreements relating to the

implementation of the rule 12b–1 plan.

The rule in part requires that (i) the

adoption or material amendment of a

rule 12b–1 plan be approved by the

mutual fund’s directors and

shareholders; (ii) the board review

quarterly reports of amounts spend

under the rule 12b–1 plan; and (iii) the

board consider continuation of the rule

12b–1 plan at least annually. Rule 12b–

1 also requires funds relying on the rule

to preserve for six years, the first two

years in an easily accessible place,

copies of the rule 12b–1 plan, related

agreements and reports, as well as

minutes of board meetings that describe

the factors considered and the basis for

adopting or continuing a rule 12b–1

plan.

The board and shareholder approval

requirements of rule 12b–1 are designed

to ensure that fund shareholders and

directors receive adequate information

to evaluate and approve a rule 12b–1

plan. The requirement of quarterly

reporting to the board is designed to

ensure that the 12b–1 plan continues to

benefit the fund and its shareholders.

The recordkeeping requirements of the

rule are necessary to enable Commission

staff to oversee compliance with the

rule.

Based on information filed with the

Commission by funds, Commission staff

estimates that there are 4,500 mutual

funds with the 12b–1 plans. As

discussed above, 12b–1 requires the

board of each fund with a 12b–1 plan

to (i) review quarterly reports of

amounts spent under the plan and (ii)

annually consider the plan’s

continuation (which generally is

combined with the foruth quarterly

review). This results in a total number

of annual responses per fund of four and

an estimated total number of industry

responses of 18,000 (4,500 funds × 4

annual responses per fund = 18,000

resonses).

Based on conversations with fund

industry representatives, Commission

staff estimates that for each of the 4,500

mutual funds that currently have a 12b–

1 plan, the average annual burden of

complying with the rule if 50 hours to

maintain the plan. This estimate takes

into account the time needed to prepare

quarterly reports to the board of

directors, the board’s consideration of

those reports, and the board’s annual

consideration of the plan’s continuation.

Commission staff therefore estimates

that the total burden of the rule’s

paperwork requirements is 225,000

hours (4,500 funds x 50 hours per fund

= 225,000 hours).

The estimate of burden hours is made

solely for the purpose of the Paperwork

Reduction Act. The estimate is not

derived form a comprehensive or even

a representative survey or study of

Commission rules.

If a currently operating fund seeks to

(i) adopt a new rule 12b–1 plan or (ii)

materially increase the amount it spends

for distribution under its rule 12b–1

plan, rule 12b–1 requires that the fund

obtain shareholder approval. As a

consequence, the fund will incur the

cost of a proxy. Commission staff

estimates that four funds per year

prepare a proxy in connection with the

adoption or material amendment of a

rule 12b–1 plan. Commission staff

further estimates that the cost of each

fund’s proxy is $15,000. Thus the total