[Federal Register Volume 75, Number 94 (Monday, May 17, 2010)]
[Notices]
[Pages 27600-27601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11659]
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SECURITIES AND EXCHANGE COMMISSION
[Rule 17a-8; SEC File No. 270-225; OMB Control No. 3235-0235]
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 17a-8; SEC File No. 270-225; OMB Control No. 3235-0235.
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'') 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 for extension and approval.
Rule 17a-8 (17 CFR 270.17a-8) under the Investment Company Act of
1940 (the ``Act'') (15 U.S.C. 80a) is entitled ``Mergers of affiliated
companies.'' Rule 17a-8 exempts certain mergers and similar business
combinations (``mergers'') of affiliated registered investment
companies (``funds'') from prohibitions under section 17(a) of the Act
(15 U.S.C. 80a-17(a)) on purchases and sales between a fund and its
affiliates. The rule requires fund directors to consider certain issues
and to record their findings in board minutes. The rule requires the
directors of any fund merging with an unregistered entity to approve
procedures for the valuation of assets received from that entity. These
procedures must provide for the preparation of a report by an
independent evaluator that sets forth the fair value of each such asset
for which market quotations are not readily available. The rule also
requires a fund being acquired to obtain approval of the merger
transaction by a majority of its outstanding voting securities, except
in certain situations, and requires any surviving fund to preserve
written records describing the merger and its terms for six years after
the merger (the first two in an easily accessible place).
The average annual burden of meeting the requirements of rule 17a-8
is estimated to be 7 hours for each fund. The Commission staff
estimates that each year approximately 610 funds rely on the rule. The
estimated total average annual burden for all respondents therefore is
4270 hours.
This estimate represents a decrease of 2170 hours from the prior
estimate of 6440 hours. The decrease results from a change in the
methodology used to estimate the number of mergers between affiliated
funds or fund portfolios.
The average cost burden of preparing a report by an independent
evaluator in a merger with an unregistered entity is estimated to be
$15,000. The average net cost burden of obtaining approval of a merger
transaction by a majority of a fund's outstanding voting securities is
estimated to be $80,000. The Commission staff estimates that each year
approximately 0 mergers with unregistered entities occur and
approximately 15 funds hold shareholder votes that would not otherwise
have held a shareholder vote to comply with State law. The total annual
cost burden of meeting these requirements is estimated to be
$1,200,000.
The estimates of average burden hours and average cost burdens 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. 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 requested on: (a) Whether the collection of
information is 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 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 Charles Boucher, Director/
CIO,
[[Page 27601]]
Securities and Exchange Commission, c/o Shirley Martinson, 6432 General
Green Way, Alexandria, VA 22312; or send an e-mail to: [email protected].
Dated: May 10, 2010.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11659 Filed 5-14-10; 8:45 am]
BILLING CODE 8010-01-P