[Federal Register Volume 65, Number 244 (Tuesday, December 19, 2000)]
[Notices]
[Pages 79438-79439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32278]
=======================================================================
-----------------------------------------------------------------------
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,
D.C. 20549.
Extension:
Rule 30d-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. 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.
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 30d-2\1\
thereunder [17 CFR 270.30d-2] require unit investment trusts (``UITs'')
that invest substantially all of their assets in securities of a
management investment company (``fund'') to send a report to
shareholders at least semi-annually containing financial information on
the underlying fund.\2\ Rule 30d-2 requires that the reports contain
the financial statements that are required by rule 30d-1 [17 CFR
270.30d-1] to be included in the report of the underlying fund for the
same fiscal period. Rule 30d-1 requires that the reports contain the
financial statements required by a fund's registration form. Rule 30d-
2, however, permits, under certain conditions, delivery of a single
shareholder report to investors who share an address (``housholding'')
to satisfy the delivery requirements of the rule. The purpose of the
householding provisions of the rule
[[Page 79439]]
is to reduce the amount of duplicative reports delivered to investors
sharing the same address.
---------------------------------------------------------------------------
\1\ The Commission has proposed that rule 30d-2 be redesignated
as rule 30e-2. See Role of Independent Directors of Investment
Companies. Securities Act Rel. No. 7754; Exchange Act Rel. No.
42007; Investment Company Act Rel. No. 24082 (Oct. 14, 1999) [64 FR
59826 (Nov. 3, 1999)]. The proposal has not been adopted as of the
date of this notice.
\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.
---------------------------------------------------------------------------
Rule 30d-2 permits householding of annual and semi-annual reports
by UITs to satisfy the delivery requirements of rule 30d-2 if, in
addition to the other conditions set forth in the rule, the UIT has
obtained from each investor written or implied consent to the
householding of shareholder reports. The rule requires UITs that wish
to household shareholder reports with implied consent to send a notice
to each 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 are collections of information.
The rule requires UITs that invest substantially all of their
assets in securities of a fraud to transmit to shareholders at least
semi-annually reports containing financial statements and certain other
information in order 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.
Rule 30d-2 allows UITs to household shareholder reports if certain
conditions are met. Among the conditions with which a UIT must comply
are providing notice to each investor that only one report will be sent
to the household and providing to each investor that consents to
householding an annual explanation of the right to revoke consent to
the delivery of a single shareholder report to multiple investors
sharing an address. 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 December 1999, approximately
655 UITs were subject to the provisions of rule 30d-2. The Commission
further estimates that the annual burden associated with rule 30d-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 79,255 burden hours.
The estimate of average burden hours is made solely for the purpose
of the Paperwork Reduction Act, and is not derived from a comprehensive
or even a representative survey or study of the costs of Commission
rules and forms.
In addition to the burden hours, the Commission estimates that the
cost of contracting for outside services associated with complying with
rule 30d-2 is $12,000 per respondent (80 hours times $150 per hour for
independent auditor services), for a total of $7,860,000 ($12,000 per
respondent times 655 respondents).
Compliance with the collection of information requirements relating
to the transmittal of shareholder reports required by the rule is
mandatory. Compliance with the collection of information requirements
relating to the householding provisions of the rule is necessary to
obtain the benefit of providing only one shareholder report to a
household containing more than one investor. Responses to the
collections of information will not be kept confidential. The rule does
not require these reports or notices be retained for any specific
period of time. 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 Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Washington, DC
20503; and (ii) Michael E. Bartell, Associate Executive Director,
Office of Information Technology, Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC 20549. Comments must be submitted
to OMB within 30 days after this notice.
Dated: December 11, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-32278 Filed 12-18-00; 8:45 am]
BILLING CODE 8010-01-M