Federal Register / Vol. 74, No. 8 / Tuesday, January 13, 2009 / Notices 1725 

1This estimate is based on the following 

calculations: (1958 funds ×0.25% = 490 funds); (490 

× 1 (clerical hour) = 490 clerical hours). 

2This estimate is based on the following 

calculations: (1958 (funds) × 0.05% = 98 funds); (98 

× 1 (attorney hour) = 98 total attorney hours); (98 

(funds) × 2 (clerical hours) = 196 total clerical 

hours); (98 (attorney hours) + 196 (clerical hours) 

= 294 total hours). 

3This estimate is based on the following 

calculations: (294 (notice hours) + 490 

(recordkeeping hours) = 784 total hours). 

4This estimate is based on the following 

calculation: (490 fundsresponding to recordkeeping 

requirement + 98 funds responding to notice 

requirement = 588 total respondents). 

or send an e-mail to: 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Charles Boucher, Director/CIO, 

Securities and Exchange Commission, 

C/O Shirley Martinson, 6432 General 

Green Way, Alexandria, VA 22312; or 

send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: January 7, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–442 Filed 1–12–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 11a–3, SEC File No. 270–321, OMB 

Control No. 3235–0358. 

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’’) has submitted to the 

Office of Management and Budget a 

request for extension of the previously 

approved collection of information 

discussed below. 

Section 11(a) of the Investment 

Company Act of 1940 (‘‘Act’’) (15 U.S.C. 

80a–11(a)) provides that it is unlawful 

for a registered open-end investment 

company (‘‘fund’’) or its underwriter to 

make an offer to the fund’s shareholders 

or the shareholders of any other fund to 

exchange the fund’s securities for 

securities of the same or another fund 

on any basis other than the relative net 

asset values (‘‘NAVs’’) of the respective 

securities to be exchanged, ‘‘unless the 

terms of the offer have first been 

submitted to and approved by the 

Commission or are in accordance with 

such rules and regulations as the 

Commission may have prescribed in 

respect of such offers.’’ Section 11(a) 

was designed to prevent ‘‘switching,’’ 

the practice of inducing shareholders of 

one fund to exchange their shares for 

the shares of another fund for the 

purpose of exacting additional sales 

charges. 

Rule 11a–3 (17 CFR 270.11a–3) under 

the Act of 1940 is an exemptive rule that 

permits open-end investment 

companies (‘‘funds’’), other than 

insurance company separate accounts, 

and funds’ principal underwriters, to 

make certain exchange offers to fund 

shareholders and shareholders of other 

funds in the same group of investment 

companies. The rule requires a fund, 

among other things, (i) to disclose in its 

prospectus and advertising literature the 

amount of any administrative or 

redemption fee imposed on an exchange 

transaction, (ii) if the fund imposes an 

administrative fee on exchange 

transactions, other than a nominal one, 

to maintain and preserve records with 

respect to the actual costs incurred in 

connection with exchanges for at least 

six years, and (iii) give the fund’s 

shareholders a sixty day notice of a 

termination of an exchange offer or any 

material amendment to the terms of an 

exchange offer (unless the only material 

effect of an amendment is to reduce or 

eliminate an administrative fee, sales 

load or redemption fee payable at the 

time of an exchange). 

The rule’s requirements are designed 

to protect investors against abuses 

associated with exchange offers, provide 

fund shareholders with information 

necessary to evaluate exchange offers 

and certain material changes in the 

terms of exchange offers, and enable the 

Commission staff to monitor funds’ use 

of administrative fees charged in 

connection with exchange transactions. 

The staff estimates that there are 

approximately 1958 active open-end 

investment companies registered with 

the Commission as of September 2008. 

The staff estimates that 25 percent (or 

490) of these funds impose a nonnominal administrative fee on exchange 

transactions. The staff estimates that the 

recordkeeping requirement of the rule 

requires approximately 1 hour annually 

of clerical time per fund, for a total of 

490 hours for all funds.1

The staff estimates that 5 percent of 

these 1958 funds (or 98) terminate an 

exchange offer or make a material 

change to the terms of their exchange 

offer each year, requiring the fund to 

comply with the notice requirement of 

the rule. The staff estimates that 

complying with the notice requirement 

of the rule requires approximately 1 

hour of attorney time and 2 hours of 

clerical time) per fund, for a total of 

approximately 294 hours for all funds to 

comply with the notice requirement.2

The recordkeeping and notice 

requirements together therefore impose 

a total burden of 784 hours on all 

funds.3 The total number of respondents 

is 588, each responding once a year.4

The burdens associated with the 

disclosure requirement of the rule are 

accounted for in the burdens associated 

with the Form N–1A registration 

statement for funds. 

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. 

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 Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503 

or send an e-mail to: 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Charles Boucher, Director/CIO, 

Securities and Exchange Commission, 

C/O Shirley Martinson, 6432 General 

Green Way, Alexandria, VA 22312; or 

send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: January 7, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–443 Filed 1–12–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: Rule 17f–1, SEC File No. 270–236, 

OMB Control No. 3235–0222. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

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