Document ID: SEC-2014-0956-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2014-06-10T04:00Z

[Federal Register Volume 79, Number 111 (Tuesday, June 10, 2014)]
[Notices]
[Pages 33224-33225]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13463]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension: Rule 18f-3;
    SEC File No. 270-385, OMB Control No. 3235-0441.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``Paperwork Reduction Act''), 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 (``OMB'') for extension and 
approval.
    Rule 18f-3 (17 CFR 270.18f-3) under the Investment Company Act of 
1940 (15 U.S.C. 80a-1 et seq.) exempts from section 18(f)(1) a fund 
that issues multiple classes of shares representing interests in the 
same portfolio of securities (a ``multiple class fund'') if the fund 
satisfies the conditions of the rule. In general, each class must 
differ in its arrangement for shareholder services or distribution or 
both, and must pay the related expenses of that different arrangement. 
The rule includes one requirement for the collection of information. A 
multiple class fund must prepare, and fund directors must approve, a 
written plan setting forth the separate arrangement and expense 
allocation of each class, and any related conversion features or 
exchange privileges (``rule 18f-3 plan''). Approval of the plan must 
occur before the fund issues any shares of multiple classes and 
whenever the fund materially amends the plan. In approving the plan,

[[Page 33225]]

the fund board, including a majority of the independent directors, must 
determine that the plan is in the best interests of each class and the 
fund as a whole.
    The requirement that the fund prepare and directors approve a 
written rule 18f-3 plan is intended to ensure that the fund compiles 
information relevant to the fairness of the separate arrangement and 
expense allocation for each class, and that directors review and 
approve the information. Without a blueprint that highlights material 
differences among classes, directors might not perceive potential 
conflicts of interests when they determine whether the plan is in the 
best interests of each class and the fund. In addition, the plan may be 
useful to Commission staff in reviewing the fund's compliance with the 
rule.
    Based on an analysis of fund filings, the Commission estimates that 
there are approximately 5,831 multiple class funds offered by 969 
registrants. The Commission estimates that each of the 969 registrants 
will make an average of 0.5 responses annually to prepare and approve a 
written 18f-3 plan.\1\ The Commission estimates each response will take 
6 hours, requiring a total of 3 hours per registrant per year.\2\ Thus 
the total annual hour burden associated with these requirements of the 
rule is approximately 2,907 hours.\3\
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    \1\ The Commission estimates that each registrant prepares and 
approves a rule 18f-3 plan every two years when issuing a new fund 
or new class or amending a plan (or that 484.5 of all 969 
registrants prepare and approve a plan each year).
    \2\ 0.5 responses per registrant x 6 hours per response = 3 
hours per registrant.
    \3\ 3 hours per registrant per year x 969 registrants = 2,907 
hours per year.
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    Estimates of 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. The collection of information under rule 18f-3 is 
mandatory. The information provided under rule 18f-3 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.
    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 burdens 
of the collections of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burdens of the collections 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 Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: June 4, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13463 Filed 6-9-14; 8:45 am]
BILLING CODE 8011-01-P