[Federal Register: December 19, 2006 (Volume 71, Number 243)]
[Notices]
[Page 76004-76005]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19de06-93]
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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 Filings and Information Services, Washington, DC
20549.
Extension: Rule 30e-2; SEC File No. 270-437; OMB Control No. 3235-
0494.
Notice is hereby given that, under the Paperwork Reduction Act of
1995 (44 U.S.C. 350l-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.
Section 30(e) of the Investment Company Act of 1940 (15 U.S.C. 80a-
29(e)) (the ``Investment Company Act'' or ``Act'') and Rule 30e-2 \1\
thereunder (17 CFR 270.30e-2) require registered unit investment trusts
(``UITs'') that invest substantially all of their assets in securities
of a management investment company \2\ (``fund'') to send to
shareholders at least semi-annually a report containing certain
financial statements and other information. Specifically, Rule 30e-2
requires that the report contain the financial statements and other
information that Rule 30e-1 under the Act (17 CFR 270.30e-1) requires
to be included in the report of the underlying fund for the same fiscal
period. Rule 30e-1 requires that the underlying fund's report contain,
among other things, the financial statements and other information that
is required to be included in such report by the fund's registration
form.
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\1\ Rule 30e-2 was originally adopted as Rule 30d-2, but was
redesignated as Rule 30e-2 effective February 15, 2001. See Role of
Independent Directors of Investment Companies, Investment Company
Act Release No. 24816 (Jan. 2, 2001) (66 FR 3734 (Jan. 16, 2001)).
\2\ Management investment companies are defined in Section 4(3)
of the Investment Company Act as any investment company other than a
face-amount certificate company or a unit investment trust, as those
terms are defined in Sections 4(1) and 4(2) of the Investment
Company Act. See 15 U.S.C. 80a-4.
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The purpose of this requirement is to apprise current shareholders
of the operational and financial condition of the UIT. Absent the
requirement to disclose all material information in reports, investors
would be unable to obtain accurate information upon which to base
investment decisions and consumer confidence in the securities industry
might be adversely affected. Requiring the submission of these reports
to the Commission permits us to verify compliance with securities law
requirements. In addition, Rule 30e-2 permits, under certain
conditions, delivery of a single shareholder report to investors who
share an address (``householding''). Specifically, Rule 30e-2 permits
householding of annual and semi-annual reports by UITs to satisfy the
delivery requirements of Rule 30e-2 if, in addition to the other
conditions set forth in the rule, the UIT
[[Page 76005]]
has obtained from each applicable investor written or implied consent
to the householding of shareholder reports at such address. The rule
requires UITs that wish to household shareholder reports with implied
consent to send a notice to each applicable investor stating that the
investors in the household will receive one report in the future unless
the investors provide contrary instructions. In addition, at least once
a year, UITs relying on the rule for householding must explain to
investors who have provided written or implied consent how they can
revoke their consent. Preparing and sending the initial notice and the
annual explanation of the right to revoke consent are collections of
information under the Paperwork Reduction Act. The purpose of the
notice and annual explanation requirements associated with the
householding provisions of the rule is to ensure that investors who
wish to receive individual copies of shareholder reports are able to do
so.
The Commission estimates that as of April 2006, approximately 737
UITs were subject to the provisions of Rule 30e-2. The Commission
further estimates that the annual burden associated with Rule 30e-2 is
121 hours for each UIT, including an estimated 20 hours associated with
the notice requirement for householding and an estimated 1 hour
associated with the explanation of the right to revoke consent to
householding, for a total of 89,177 burden hours.
In addition to the burden hours, the Commission estimates that the
cost of contracting for outside services associated with complying with
Rule 30e-2 is $24,640 per respondent (80 hours times $308 per hour for
independent auditor services), for a total of $18,159,680 ($24,640 per
respondent times 737 respondents).
These estimates 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 30e-2 is mandatory. The
information provided under Rule 30e-2 is not 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 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:
David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way, Alexandria, VA, 22312; or send an e-
mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within
30 days of this notice.
Dated: December 11, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6-21588 Filed 12-18-06; 8:45 am]
BILLING CODE 8011-01-P