Notice2022-16150
Proposed Collection; Comment Request; Extension: Rule 31a-2
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 28, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 144 (Thursday, July 28, 2022)</title>
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[Federal Register Volume 87, Number 144 (Thursday, July 28, 2022)]
[Notices]
[Pages 45370-45371]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-16150]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-174, OMB Control No. 3235-0179]
Proposed Collection; Comment Request; Extension: Rule 31a-2
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), 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.
Section 31(a)(1) of the Investment Company Act of 1940 (15 U.S.C.
80a-1 et seq.) (the ``Act'') requires registered investment companies
(``funds'') and certain underwriters, broker-dealers, investment
advisers, and depositors to maintain and preserve records as prescribed
by Commission rules. Rule 31a-1 (17 CFR 270.31a-1) under the Act
specifies the books and records that each of these entities must
maintain. Rule 31a-2 (17 CFR 270.31a-2) under the Act specifies the
time periods that entities must retain certain books and records,
including those required to be maintained under rule 31a-1.
The retention of records, as required by the rule, is necessary to
ensure access to material business and financial information about
funds and certain related entities. We periodically inspect the
operations of funds to ensure they are in compliance with the Act and
regulations under the Act. Due to the limits on our resources, however,
each fund may only be inspected at intervals of several years. In
addition, the prosecution of persons who have engaged in certain
violations of the federal securities laws may not be limited by timing
restrictions. For these reasons, we often need information relating to
events or transactions that occurred years ago. Without the requirement
to preserve books, records, and other documents, our staff would have
difficulty determining whether the fund was in compliance with the law
in such areas as valuation of its portfolio securities, computation of
the prices investors paid, and, when purchasing and selling fund
shares, types and amounts of expenses the fund incurred, kinds of
investments the fund purchased, actions of affiliated persons, or
whether the fund had engaged in any illegal or fraudulent activities.
As part of our examinations of funds, our staff also reviews the
materials that directors consider in approving the advisory contract.
There are 2,754 funds currently operating as of December 31, 2021,
all of which are required to comply with rule 31a-2. The Commission
staff estimates that, on average, a fund spends 220.4 hours annually to
comply with the rule. The Commission therefore estimates the total
annual hour burden of the rule's and form's paperwork requirements to
be 606,981.60 hours. In addition to the burden hours, the Commission
staff estimates that the average yearly cost to each fund that is
subject to rule 31a-2 is about $40,577,95. The Commission estimates
total annual cost is therefore about $111.8 million.
Estimates of average burden hours and costs are made solely for
purposes of the Paperwork Reduction Act and are not derived from a
comprehensive or even representative survey or study of the costs of
Commission rules and forms. Compliance with the collection of
information requirements of the rule is mandatory. Responses to the
disclosure requirements 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.
Written comments are invited on: (a) whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
[[Page 45371]]
estimate of the burden of the collection of information; (c) ways to
enhance the quality, utility, and clarity of the information collected;
and (d) ways to minimize the burden of the collection 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 by September 26, 2022.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
Please direct your written comments to: David Bottom, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John Pezzullo, 100 F Street NE, Washington, DC 20549 or send an
email to: <a href="/cdn-cgi/l/email-protection#6f3f3d2e30220e06030d00172f1c0a0c41080019"><span class="__cf_email__" data-cfemail="d08082918f9db1b9bcb2bfa890a3b5b3feb7bfa6">[email protected]</span></a>.
Dated: July 22, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-16150 Filed 7-27-22; 8:45 am]
BILLING CODE 8011-01-P
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