[Federal Register Volume 66, Number 38 (Monday, February 26, 2001)]
[Notices]
[Pages 11612-11613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4650]


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SECURITIES AND EXCHANGE COMMISSION

[Proposed Form N-6; SEC File No. 270-446; OMB Control No. 3235-0503]


Proposed Collection; Comment Request; Extension

    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'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit to the 
Office of Management and Budget a request for an extension of this 
previously approved collection of information.
    The title for the collection of information is ``Form N-6 Under the 
Investment Company Act of 1940 and the Securities Act of 1933, 
Registration Statement of Variable Life Insurance Separate Accounts 
Registered as Unit Investment Trusts.''
    On March 13, 1998, the Securities and Exchange Commission proposed 
a new Form N-6 for insurance company separate accounts that are 
registered as unit investment trusts that offer variable life insurance 
policies. The form would be used by these separate accounts to register 
under the Investment Company Act of 1940 and to offer their securities 
under the Securities Act of 1933. For these registrants, the proposed 
form would replace Form N-8B-2, currently used by all unit investment 
trusts to register under the Investment Company Act, and Form S-6, 
currently used by all unit investment trusts to offer their securities 
under the Securities Act. Forms S-6 and N-8B-2 were not designed for 
variable life insurance registrants and do not reflect fundamental 
improvements that the Commission has made to other investment company 
registration forms, including Forms N-1A and N-4, which facilitate 
clearer and more concise disclosure. If adopted, proposed Form N-6 
would:
    <bullet> Eliminate requirements in the current registration forms 
that are not relevant to variable life insurance and include items that 
are specifically addressed to variable life insurance;
    <bullet> Streamline variable life prospectus disclosure by adopting 
a two-part format consisting of a simplified prospectus, designed to 
contain essential information, and a Statement of Additional 
Information, containing more extensive information that investors could 
obtain upon request; and
    <bullet> Provide variable life separate accounts a single, 
integrated form for Investment Company Act and Securities Act 
registration, thereby eliminating unnecessary paperwork and duplicative 
reporting.
    The Commission estimates that there are approximately 200 separate 
accounts registered as unit investment trusts and offering variable 
life insurance policies that would file registration statements on 
proposed Form N-6. The Commission estimates that there will be as many 
as 50 initial registration statements on proposed Form N-6 filed 
annually. The Commission estimates, therefore, that approximately 250 
registration statements (200 post-effective amendments plus 50 initial 
registration statements) will be filed on Form N-6 annually.
    The Commission estimates that the hour burden for preparing and 
filing a post-effective amendment on proposed Form N-6 will be 100 
hours. Thus, the total annual hour burden for preparing and filing 
post-effective amendments would be 20,000 hours (200 post-effective 
amendments annually times 100 hours per amendment). The Commission 
estimates that the hour burden for preparing and filing an initial 
registration statement on proposed Form N-6 will be 800 hours. Thus, 
the annual hour burden for preparing and filing initial registration 
statements would be 40,000 hours (50 initial registration statements 
annually times 800 hours per registration statement). The total annual 
hour burden for proposed Form N-6, therefore, is estimated to be 60,000 
hours (20,000 hours for post-effective amendments plus 40,000 hours for 
initial registration statements).

[[Page 11613]]

    The Commission estimates that the cost burden for preparing and 
filing a post-effective amendment on proposed Form N-6 will be $7,500. 
Thus, the total annual cost burden for preparing and filing post-
effective amendments would be $1,500,000 (200 post-effective amendments 
annually times $7,500 per amendment). The Commission estimates that the 
cost burden for preparing and filing an initial registration statement 
on proposed Form N-6 will be $20,000. Thus, the annual cost burden for 
preparing and filing initial registration statements would be 
$1,000,000 (50 initial registration statements annually times $20,000 
per registration statement). The total annual cost burden for proposed 
Form N-6, therefore, is estimated to be $2,500,000 ($1,500,000 for 
post-effective amendments plus $1,000,000 for initial registration 
statements).
    The hour and cost burdens would be offset by a decrease in the 
burdens attributable to Forms N-8B-2 and S-6 because separate accounts 
registering on Form N-6 would no longer be required to register on 
Forms N-8B-2 and S-6. The Commission expects that the aggregate burden 
imposed by Forms N-6, S-6, and N-8B-2 after Form N-6 is adopted will be 
no greater, and may be less, than the burden currently imposed by Forms 
S-6 and N-8B-2.
    Form N-6 has not yet been adopted, and therefore no variable life 
separate accounts are currently using Form N-6 to register pursuant to 
the Securities Act and the Investment Company Act.
    The information collection requirements that would be imposed by 
Form N-6 are mandatory. Responses to the collection of information 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 invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency'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, NW., Washington, DC 
20549.

    Dated: February 16, 2001.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-4650 Filed 2-23-01; 8:45 am]
BILLING CODE 8010-01-M