Notice2024-09964
Proposed Collection; Comment Request; Extension: Rule 38a-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
May 8, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 90 (Wednesday, May 8, 2024)</title>
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[Federal Register Volume 89, Number 90 (Wednesday, May 8, 2024)]
[Notices]
[Pages 38932-38933]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09964]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-522, OMB Control No. 3235-0586]
Proposed Collection; Comment Request; Extension: Rule 38a-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
[[Page 38933]]
``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 38a-1 (17 CFR 270.38a-1) under the Investment Company Act of
1940 (15 U.S.C. 80a) (``Investment Company Act'') is intended to
protect investors by fostering better fund compliance with securities
laws. The rule requires every registered investment company and
business development company (``fund'') to: (i) adopt and implement
written policies and procedures reasonably designed to prevent
violations of the federal securities laws by the fund, including
procedures for oversight of compliance by each investment adviser,
principal underwriter, administrator, and transfer agent of the fund;
(ii) obtain the fund board of directors' approval of those policies and
procedures; (iii) annually review the adequacy of those policies and
procedures and the policies and procedures of each investment adviser,
principal underwriter, administrator, and transfer agent of the fund,
and the effectiveness of their implementation; (iv) designate a chief
compliance office to administer the fund's policies and procedures and
prepare an annual report to the board that addresses certain specified
items relating to the policies and procedures; and (v) maintain for
five years the compliance policies and procedures and the chief
compliance officer's annual report to the board.
The rule contains certain information collection requirements that
are designed to ensure that funds establish and maintain comprehensive,
written internal compliance programs. The information collections also
assist the Commission's examination staff in assessing the adequacy of
funds' compliance programs.
The Commission staff estimates that 13,628 funds are subject to
rule 38a-1. Based on these estimates, the total annual burden hours
associated with Rule 38a-1 is 476,980 hours. The estimated total annual
burden hours associated with rule 38a-1 have increased 25,572 hours,
from 451,408 hours to 476,980 hours and external costs increased from
$19,608,000 to $23,876,256. These changes in burden hours and external
costs reflect changes in the number of affected entities and in the
external cost associated with the information collection requirements.
These changes reflect revised estimates.
The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act. The estimate is based on
communications with industry representatives and is not derived from a
comprehensive or even a representative survey or study. Responses will
not be kept confidential. Other information provided to the Commission
in connection with staff examinations or investigations is kept
confidential subject to the provisions of applicable law. If
information collected pursuant to rule 38a-1 is reviewed by the
Commission's examination staff, it is accorded the same level of
confidentiality accorded to other responses provided to the Commission
in the context of its examination and oversight program.
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 July 8, 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#37676576687a565e5b55584f7744525419505841"><span class="__cf_email__" data-cfemail="b1e1e3f0eefcd0d8ddd3dec9f1c2d4d29fd6dec7">[email protected]</span></a>.
Dated: May 2, 2024.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-09964 Filed 5-7-24; 8:45 am]
BILLING CODE 8011-01-P
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