Notice2023-25723
Proposed Collection; Comment Request; Extension: Rule 498
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
November 21, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 223 (Tuesday, November 21, 2023)</title>
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[Federal Register Volume 88, Number 223 (Tuesday, November 21, 2023)]
[Notices]
[Pages 81121-81122]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25723]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-574, OMB Control No. 3235-0648]
Proposed Collection; Comment Request; Extension: Rule 498
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.) (``Paperwork Reduction Act''), 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 498 (17 CFR 230.498) under the Securities Act of 1933 (15
U.S.C. 77a et seq.) (``Securities Act'') permits open-end management
investment companies (``funds'') to satisfy their prospectus delivery
obligations under the Securities Act by sending or giving key
information directly to investors in the form of a summary prospectus
(``Summary Prospectus'') and providing the statutory prospectus on a
website. Upon an investor's request, funds are also required to send
the statutory prospectus to the investor. In addition, under rule 498,
a fund that relies on the rule to meet its statutory prospectus
delivery obligations must make available, free of charge, the fund's
current Summary Prospectus, statutory prospectus, statement of
additional information, and most recent annual and semi-annual reports
to shareholders at the website address specified in the required
Summary Prospectus legend (17 CFR 270.498(e)(1)). A Summary Prospectus
that complies with rule 498 is deemed to be a prospectus that is
authorized under Section 10(b) of the Securities Act and Section 24(g)
of the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.).
The purpose of rule 498 is to enable a fund to provide investors
with a
[[Page 81122]]
Summary Prospectus containing key information necessary to evaluate an
investment in the fund. Unlike many other federal information
collections, which are primarily for the use and benefit of the
collecting agency, this information collection is primarily for the use
and benefit of investors. The information filed with the Commission
also permits the verification of compliance with securities law
requirements and assures the public availability and dissemination of
the information.
Based on an analysis of fund filings, the Commission estimates that
approximately 11,241 funds are using a Summary Prospectus. The
Commission estimates that the annual hourly burden per fund associated
with the compilation of the information required on the cover page or
the beginning of the Summary Prospectus is 0.5 hours, and estimates
that the annual hourly burden per fund to comply with the website
posting requirement is approximately 1 hour, requiring a total of 1.5
hours per fund per year.\1\ Thus the total annual hour burden
associated with these requirements of the rule is approximately
16,862.\2\ The Commission estimates that the annual cost burden is
approximately $21,400 per fund, for a total annual cost burden of
approximately $240,557,400.\3\
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\1\ 0.5 hours per fund + 1 hour per fund = 1.5 hours per fund.
\2\ 1.5 hours per fund x 11,241 funds = 16,862 hours.
\3\ $21,400 per fund x 11,241 funds = $240,557,400.
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Estimates of average 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 and forms. Under rule 498, use of the Summary Prospectus is
voluntary, but the rule's requirements regarding provision of the
statutory prospectus upon investor request are mandatory for funds that
elect to send or give a Summary Prospectus in reliance upon rule 498.
The information provided under rule 498 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
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 January 22, 2024.
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#3a6a687b65775b53565855427a495f59145d554c"><span class="__cf_email__" data-cfemail="aafaf8ebf5e7cbc3c6c8c5d2ead9cfc984cdc5dc">[email protected]</span></a>.
Dated: November 16, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25723 Filed 11-20-23; 8:45 am]
BILLING CODE 8011-01-P
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