[Federal Register Volume 75, Number 138 (Tuesday, July 20, 2010)]
[Notices]
[Page 42176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17641]
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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.
Approval of Existing Information Collection:
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'') has submitted to the Office of
Management and Budget (``OMB'') a request for extension of the
previously approved collection of information discussed below.
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.
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 at [email protected]; 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: [email protected]. Comments must be submitted to OMB within
30 days of this notice.
Dated: July 14, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-17641 Filed 7-19-10; 8:45 am]
BILLING CODE 8010-01-P