[Federal Register Volume 67, Number 212 (Friday, November 1, 2002)]
[Notices]
[Page 66677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27775]
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SECURITIES AND EXCHANGE COMMISSION
Existing Collection; Comment Request
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 (``OMB'') for extension and approval.
Rule 17a-7 [17 CFR 270.17a-7] under the Investment Company Act of
1940 (the ``Act'') is entitled ``Exemption of certain purchase or sale
transactions between an investment company and certain affiliated
persons thereof.'' It provides an exemption from section 17(a) of the
Act for purchases and sales of securities between registered investment
companies, which are affiliated persons or affiliated persons of
affiliated persons of each other, or between a registered investment
company and an affiliated person or an affiliated person of an
affiliated person, when the affiliation arises solely because of a
common adviser, director, or officer. Rule 17a-7 requires investment
companies to keep various records in connection with purchase or sale
transactions affected by the rule. The rule requires the board of
directors of an investment company to establish procedures reasonably
designed to ensure that all conditions of the rule have been satisfied.
If an investment company enters into a purchase or sale transaction
with an affiliated person, the rule requires the investment company to
compile and maintain written records of the transaction.\1\ In
addition, under the rule, the board is required to determine, at least
on a quarterly basis, that all affiliated transactions made during the
preceding quarter were made in compliance with these established
procedures. The Commission's examination staff uses these records to
evaluate transactions between affiliated investment companies for
compliance with the rule.
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\1\ The written records are required to set forth a description
of the security purchased or sold, the identity of the person on the
other side of the transaction, and the information or materials upon
which the board of directors' determination that the transaction was
in compliance with the procedures was made.
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The Commission estimates that approximately 1,000 investment
companies enter into transactions affected by rule 17a-7 each year and,
therefore, are subject to the rule's information collection
requirements.\2\ The average annual burden for rule 17a-7 is estimated
to be approximately two burden hours per respondent, for an annual
total of 2,000 burden hours for all respondents. The estimates of
burden hours 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.
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\2\ These estimates are based on conversations with the
examination and inspections staff of the Commission and fund
representatives. Based on these conversations, the Commission staff
estimates that most investment companies (4,000 of the estimated
4,500 registered investment companies) have adopted procedures for
compliance with rule 17a-7. Of these 4,000 investment companies, the
Commission staff estimates that each year approximately 25% (1,000)
enter into transactions affected by rule 17a-7.
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Written comments are invited on: (a) Whether the collections of
information are 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 collections of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burdens of the collections 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 Kenneth A. Fogash, Acting
Associate Executive Director, Office of Information Technology,
Securities and Exchange Commission, 450 5th Street, NW., Washington, DC
20549.
Dated: October 24, 2002.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-27775 Filed 10-31-02; 8:45 am]
BILLING CODE 8010-01-P