Document ID: SEC-2017-1713-0003
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2021-03-16T04:00Z

[Federal Register Volume 86, Number 49 (Tuesday, March 16, 2021)]
[Notices]
[Pages 14502-14503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05376]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-574, OMB Control No. 3235-0648]

Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rule 498

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``Paperwork

[[Page 14503]]

Reduction Act''), the Securities and Exchange Commission (``the 
Commission'') has submitted to the Office of Management and Budget 
(``OMB'') a request for extension of the previously approved collection 
of information discussed below.
    Rule 498 (17 CFR 230.498) under the Securities Act of 1933 (15 
U.S.C. 77a et seq.) (``Securities Act'') permits open-end management 
investment companies (``funds'') to satisfy their prospectus delivery 
obligations under the Securities Act by sending or giving key 
information directly to investors in the form of a summary prospectus 
(``Summary Prospectus'') and providing the statutory prospectus on a 
website. Upon an investor's request, funds are also required to send 
the statutory prospectus to the investor. In addition, under rule 498, 
a fund that relies on the rule to meet its statutory prospectus 
delivery obligations must make available, free of charge, the fund's 
current Summary Prospectus, statutory prospectus, statement of 
additional information, and most recent annual and semi-annual reports 
to shareholders at the website address specified in the required 
Summary Prospectus legend (17 CFR 270.498(e)(1)). A Summary Prospectus 
that complies with rule 498 is deemed to be a prospectus that is 
authorized under Section 10(b) of the Securities Act and Section 24(g) 
of the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.).
    The purpose of rule 498 is to enable a fund to provide investors 
with a Summary Prospectus containing key information necessary to 
evaluate an investment in the fund. Unlike many other federal 
information collections, which are primarily for the use and benefit of 
the collecting agency, this information collection is primarily for the 
use and benefit of investors. The information filed with the Commission 
also permits the verification of compliance with securities law 
requirements and assures the public availability and dissemination of 
the information.
    Based on an analysis of fund filings, the Commission estimates that 
approximately 10,536 funds are using a Summary Prospectus. The 
Commission estimates that the annual hourly burden per fund associated 
with the compilation of the information required on the cover page or 
the beginning of the Summary Prospectus is 0.5 hours, and estimates 
that the annual hourly burden per fund to comply with the website 
posting requirement is approximately 1 hour, requiring a total of 1.5 
hours per fund per year.\1\ Thus the total annual hour burden 
associated with these requirements of the rule is approximately 
15,804.\2\ The Commission estimates that the annual cost burden is 
approximately $18,105 per fund, for a total annual cost burden of 
approximately $190,754,280.\3\
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    \1\ 0.5 hours per fund + 1 hour per fund = 1.5 hours per fund.
    \2\ 1.5 hours per fund x 10,536 fund = 15,804 hours.
    \3\ $18,105 per fund x 10,536 fund = $190,754,280.
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    Estimates of the average burden hours are made solely for the 
purposes of the Paperwork Reduction Act and are not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms. Under rule 498, use of the Summary 
Prospectus is voluntary, but the rule's requirements regarding 
provision of the statutory prospectus upon investor request are 
mandatory for funds that elect to send or give a Summary Prospectus in 
reliance upon rule 498. The information provided under rule 498 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 OMB control number.
    The public may view background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by 
sending an email to: PRA_Mailbox@sec.gov.

    Dated: March 11, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-05376 Filed 3-15-21; 8:45 am]
BILLING CODE 8011-01-P