[Federal Register Volume 62, Number 9 (Tuesday, January 14, 1997)]
[Notices]
[Page 1932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-863]



[[Page 1932]]

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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Extension:
    Rule 17a-7, SEC File No. 270-238, OMB Control No. 3235-0214
    Rule 17e-1, SEC File No. 270-224, OMB Control No. 3235-0217
    Rule 19a-1, SEC File No. 270-240, OMB Control No. 3235-0216
    Rule 31a-1, SEC File No. 270-173, OMB Control No. 3235-0178

    Upon written request, copies available from: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, DC 20549.
    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 requests for approval of extension on previously approved 
collections of information:
    Rule 17a-7 [17 CFR 270.17a-7] under the Act requires registered 
investment companies to keep various records in connection with certain 
purchase or sale transactions between investment companies and certain 
of their affiliates. The annual burden of meeting this requirement is 
estimated to be about one hour for each of an estimated 500 
recordkeepers that enter into subject transactions each year, for a 
total annual burden of 500 hours.
    Rule 17e-1 [17 CFR 270.17e-1] under the Act governs the 
remuneration a broker affiliated with an investment company may receive 
in connection with securities transactions by the investment company. 
The rule requires an investment company's board of directors to 
establish, and review, as necessary, procedures reasonably designed to 
provide that the remuneration to an affiliated broker is a fair amount 
compared to that received by other brokers in connection with 
transactions in similar securities during a comparable period of time. 
Each quarter, the board must determine that all transactions effected 
pursuant to the rule during the preceding quarter complied with the 
established procedures. Rule 17e-1(c) also requires the investment 
company to (i) maintain permanently a written copy of the procedures 
adopted by the board for complying with the requirements of the rule; 
and (ii) maintain for a period of six years a written record of each 
transaction subject to the rule setting forth the amount and source of 
the commission, fee or other remuneration received; the identity of the 
broker; the terms of the transaction; and the materials used to 
determine that the transactions were effected in compliance with the 
procedures adopted by the board.
    The Commission estimates that approximately 1,462 funds rely upon 
Rule 17e-1 each year. The total average annual burden for Rule 17e-1 
per respondent is estimated to be 10 hours, for a total annual burden 
of 14,620 hours.
    Rule 19a-1 [17 CFR 270.19a-1] under the Act sets forth specific 
requirements for the information which must be included in statements 
made pursuant to Section 19(a) by registered management investment 
companies (funds). The rule requires that the statement indicate what 
portions of the payment are made from net income, net profits and paid-
in capital. When any part of the payment is made from net profits, Rule 
19a-1 requires that the statement disclose certain other information 
relating to the appreciation or depreciation of portfolio securities. 
If an estimated portion is subsequently determined to be significantly 
inaccurate, a correction must be made on a statement made pursuant to 
Section 19(a) or in the first report to shareholders following the 
discovery of the inaccuracy.
    It is estimated that approximately 3,000 funds are subject to the 
rule each year. It is estimated that compliance with the rule's 
requirements imposes a total annual burden per fund of approximately 30 
minutes. The total annual burden for all funds is estimated at 1,500 
hours.
    Rule 31a-1 [17 CFR 270.31a-1] under the Act requires registered 
investment companies, and every underwriter, broker, dealer or 
investment adviser which is a majority-owned subsidiary of a registered 
investment company, to maintain and keep current accounts, books and 
other documents which constitute the record forming the basis for 
financial statements required to be filed pursuant to Section 30 [15 
U.S.C. 80a-29] of the Act and of the auditor's certificates relating 
thereto. The rule lists specific records to be maintained by registered 
investment companies. The rule also requires certain underwriters, 
brokers, dealers, depositors and investment advisers to maintain such 
records as they are required to maintain under federal securities laws.
    It is estimated that Rule 31a-1 imposes an average burden of 
approximately 5,260 hours annually per investment company. It is 
further estimated that approximately 5,000 investment companies are 
subject to the rule each year, so that the total annual burden for all 
investment companies would be 26,300,000 hours. Most of the records 
required to be maintained by the rule are the type that generally would 
be maintained as a matter of good business practice and to prepare the 
investment company's financial statements.
    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 Executive 
Director, Office of Information Technology, Securities and Exchange 
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549 and Desk 
Officer for the Securities and Exchange Commission, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Room 3208, New Executive Office Building, Washington, D.C. 20503.

    Dated: December 30, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-863 Filed 1-13-97; 8:45 am]
BILLING CODE 8010-01-M