[Federal Register Volume 65, Number 199 (Friday, October 13, 2000)]
[Notices]
[Pages 60989-60990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26376]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, DC 20549.
    Extension: Rule 30d-2, SEC File No. 270-437, OMB Control No. 
3235-0494.

    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.
    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 30d-2 \1\ 
thereunder [17 CFR 270.30d-2] require unit investment trusts (``UITs'') 
that invest substantially all of their assets in securities of a 
management investment company (``fund'') to send a report to 
shareholders at least semi-annually containing financial information on 
the underlying fund.\2\ Rule 30d-2 requires that the reports contain 
the financial statements that are required by rule 30d-1 [17 CFR 
270.30d-1] to be included in the report of the underlying fund for the 
same fiscal period. Rule 30d-1 requires that the reports contain the 
financial statements required by a fund's registration form. Rule 30d-
2, however, permits, under certain conditions, delivery of a single 
shareholder report to investors who share an address (``householding'') 
to satisfy the delivery requirements of the rule. The purpose of the 
householding provisions of the rule is to reduce the amount of 
duplicative reports delivered to investors sharing the same address.
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    \1\ The Commission has proposed that rule 30d-2 be redesignated 
as rule 30e-2. See Role of Independent Directors of Investment 
Companies, Securities Act Rel. No. 7754; Exchange Act Rel. No. 
42007; Investment Company Act Rel. No. 24082 (Oct. 14, 1999) [64 FR 
59826 (Nov. 3, 1999)]. The proposal has not been adopted as of the 
date of this notice.
    \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 30d-2 permits householding of annual and semi-annual reports 
by UITs to satisfy the delivery requirements of rule 30d-2 if, in 
addition to the other conditions set forth in the rule, the UIT has 
obtained from each investor written or implied consent to the 
householding of shareholder reports. The rule requires UITs that wish 
to household shareholder reports with implied consent to send a notice 
to each 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 are collections of information.
    The rule requires UITs that invest substantially all of their 
assets in securities of a fund to transmit to shareholders at least 
semi-annually reports containing financial statements and certain other 
information in order 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.
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    \1\ The Commission has proposed that rule 30d-2 be redesignated 
as rule 30e-2. See Role of Independent Directors of Investment 
Companies, Securities Act Rel. No. 7754; Exchange Act Rel. No. 
42007; Investment Company Act Rel. No. 24082 (Oct. 14, 1999) [64 FR 
59826 (Nov. 3, 1999)]. The proposal has not been adopted as of the 
date of this notice.
    \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 30d-2 allows UITs to household shareholder reports if certain 
conditions

[[Page 60990]]

are met. Among the conditions with which a UIT must comply are 
providing notice to each investor that only one report will be sent to 
the household and providing to each investor that consents to 
householding an annual explanation of the right to revoke consent to 
the delivery of a single shareholder report to multiple investors 
sharing an address. 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 December 1999, approximately 
655 UITs were subject to the provisions of rule 30d-2. The Commission 
further estimates that the annual burden associated with rule 30d-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 79,255 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 30d-2 is $12,000 per respondent (80 hours times $150 per hour for 
independent auditor services), for a total of $7,860,000 ($12,000 per 
respondent times 655 respondents).
    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 burden of 
the collections of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collections of information on respondents, 
including through the use of automated collection techniques or other 
forms of information technology. The Commission will consider comments 
and suggestions submitted in writing within 60 days after 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, NW., Washington, DC 
20549.

    Dated: October 4, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-26376 Filed 10-12-00; 8:45 am]
BILLING CODE 8010-01-M