[Federal Register Volume 75, Number 171 (Friday, September 3, 2010)]
[Notices]
[Pages 54193-54194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-22025]
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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.
Extension:
Rule 0-2; SEC File No. 270-572; OMB Control No. 3235-0636.
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 a request for extension of the previously approved collection of
information discussed below.
Several sections of the Investment Company Act of 1940 (``Act'' or
``Investment Company Act'') \1\ give the Commission the authority to
issue orders granting exemptions from the Act's provisions. The section
that grants broadest authority is section 6(c), which provides the
Commission with authority to conditionally or unconditionally exempt
persons, securities or transactions from any provision of the
Investment Company Act, or the rules or regulations, if and to the
extent that such exemption is necessary or appropriate in the public
interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Act.\2\
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\1\ 15 U.S.C. 80a-1 et seq.
\2\ 15 U.S.C. 80a-6(c).
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Rule 0-2 under the Investment Company Act,\3\ entitled ``General
Requirements of Papers and Applications,'' prescribes general
instructions for filing an application seeking excemptive relief with
the Commission for which a form is not specifically prescribed. Rule 0-
2 requires that each application filed with the commission have (a) a
statement of authorization to file and sign the application on behalf
of the applicant, (b) a verification of application and statements of
fact, (c) a brief statement of the grounds for application, and (d) the
name and address of each applicant and of any person to whom questions
should be directed. The Commission uses the information required by
rule 0-
[[Page 54194]]
2 to decide whether the applicant should be deemed to be entitled to
the action requested by the application.
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\3\ 17 CFR 270.0-2.
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Applicants for orders can include registered investment companies,
affiliated persons of registered investment companies, and issuers
seeking to avoid investment company status, among other entities.
Commission staff estimates that it receives approximately 125
applications per year under the Act. Although each application
typically is submitted on behalf of multiple entities, the entities in
the vast majority of cases are related companies and are treated as a
single respondent for purposes of this analysis.
The time to prepare an application depends on the complexity and/or
novelty of the issues covered by the application. We estimate that the
Commission receives 20 of the most time-consuming applications
annually, 80 applications of medium difficulty, and 25 of the least
difficult applications. Based on conversations with applicants, we
estimate that in-house counsel would spend from ten to fifty hours
helping to draft and review an application. We estimate a total annual
hour burden to all respondents of 3,650 hours [(50 hours x 20
applications) + (30 hours x 80 applications) + (10 hours x 25
applications)].
Much of the work of preparing an application is performed by
outside counsel. The cost outside counsel charges applicants depends on
the complexity of the issues covered by the application and the time
required for preparation. Based on conversations with attorneys who
serve as outside counsel, the cost ranges from approximately $10,000
for preparing a well-precedented, routine application to approximately
$150,000 to prepare a complex and/or novel application. This
distribution gives a total estimated annual cost burden to applicants
of filing all applications of $9,650,000 [(20 x $150,000) + (80 x
$80,000) + (25 x $10,000)].
These estimates of average costs are made solely for the purposes
of the Paperwork Reduction Act. The estimate is not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules.
This collection of information is necessary to obtain a benefit and
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.
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 e-mail to: Shagufta Ahmed at
[email protected]; and (ii) Charles Boucher, Director/CIO,
Securities and Exchange Commission, C/O Remi Pavlik-Simon, 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: August 30, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-22025 Filed 9-2-10; 8:45 am]
BILLING CODE 8010-01-P