Notice2024-01436
Submission for OMB Review; 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
January 25, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 17 (Thursday, January 25, 2024)</title>
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[Federal Register Volume 89, Number 17 (Thursday, January 25, 2024)]
[Notices]
[Page 5047]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01436]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-574, OMB Control No. 3235-0648]
Submission for OMB Review; 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'') has submitted
to the Office of Management and Budget (``OMB'') a request for
extension of the previously approved collection of information
discussed below.
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 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 the 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.
The public may view background documentation for this information
collection at the following website: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
by February 26, 2024 to (i) <a href="/cdn-cgi/l/email-protection#4b06091365040609650402190a65180e08142f2e382014242d2d22282e390b242629652e243b652c243d"><span class="__cf_email__" data-cfemail="fab7b8a2d4b5b7b8d4b5b3a8bbd4a9bfb9a59e9f8991a5959c9c93999f88ba959798d49f958ad49d958c">[email protected]</span></a>
and (ii) David Bottom, Director/Chief Information Officer, Securities
and Exchange Commission, c/o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an email to: <a href="/cdn-cgi/l/email-protection#015153405e4c60686d636e79417264622f666e77"><span class="__cf_email__" data-cfemail="78282a3927351911141a1700380b1d1b561f170e">[email protected]</span></a>.
Dated: January 22, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01436 Filed 1-24-24; 8:45 am]
BILLING CODE 8011-01-P
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