Notice2024-01349
Proposed Collection; Comment Request; Extension: Rule 34b-1
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
January 24, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 16 (Wednesday, January 24, 2024)</title>
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[Federal Register Volume 89, Number 16 (Wednesday, January 24, 2024)]
[Notices]
[Page 4645]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01349]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 3235-0346, File No. 270-305]
Proposed Collection; Comment Request; Extension: Rule 34b-1
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 for extension and approval.
Rule 34b-1 under the Investment Company Act (17 CFR 270.34b-1)
governs sales material that accompanies or follows the delivery of a
statutory prospectus (``sales literature''). Rule 34b-1 deems to be
materially misleading any investment company (``fund'') sales
literature required to be filed with the Securities and Exchange
Commission (``Commission'') by Section 24(b) of the Investment Company
Act (15 U.S.C. 80a-24(b)) that includes performance data, unless the
sales literature also includes the appropriate uniformly computed data
and the legend disclosure required in investment company advertisements
by rule 482 under the Securities Act of 1933 (17 CFR 230.482) (``rule
482''). Additionally, rule 34b-1 deems to be materially misleading any
fund sales literature intended for distribution to prospective
investors that includes fee and expense information, unless that sales
literature complies with the disclosure and timeliness requirements of
rule 482.\1\ These requirements are designed to prevent misleading
performance claims by funds and to enable investors to make meaningful
comparisons among funds.
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\1\ These provisions of rule 34b-1 apply to any registered
investment company or business development company advertisement,
pamphlet, circular, form letter, or other sales literature addressed
to or intended for distribution to prospective investors in
connection with a public offering. See rule 34b-1(c).
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The Commission estimates that on average approximately 8,289 \2\
responses that include the information required by rule 34b-1 each
year. The burden resulting from the collection of information
requirements of rule 34b-1 is estimated to be 11 hours per response.\3\
The total hourly burden for rule 34b-1 is approximately 91,179 hours
per year in the aggregate.\4\
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\2\ The estimated average number of responses to rule 34b-1 for
the two-year period from October 1, 2021, to November 30, 2023,
comprises 7,912 filings submitted to FINRA and 377 filings submitted
to the Commission.
\3\ Previous PRA extensions for rule 34b-1 assumed an estimated
annual burden of 6 hours per response in complying with paragraphs a
and b of rule 34b-1, 3 hours per response in complying with the fee
and expense figure disclosure requirements of paragraph c, and 2
hours for the fee waivers/expense reimbursement arrangements
disclosure requirements of paragraph c, while estimating that only
96% of relevant responses would need to comply with all of the
paragraph c requirements. For purposes of this extension, we are
assuming that 100% of the responsive filings identified will incur
burdens for all of the rule's requirements, such that a total of 11
hours per response per year (6 + 3 + 2 = 11). We recognize that this
might overstate the total burden.
\4\ 8,289 responses x 11 hours per response = 91,179 hours.
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The collection of information under rule 34b-1 is mandatory. The
information provided under rule 34b-1 is not kept confidential. The
Commission 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 March 25, 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, 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#a7f7f5e6f8eac6cecbc5c8dfe7d4c2c489c0c8d1"><span class="__cf_email__" data-cfemail="aefefceff1e3cfc7c2ccc1d6eeddcbcd80c9c1d8">[email protected]</span></a>.
Dated: January 19, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01349 Filed 1-23-24; 8:45 am]
BILLING CODE 8011-01-P
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