Notice2025-12007
Proposed Collection; Comment Request; Extension: Rule 701, Exemption for Offers and Sales of Securities Pursuant To Certain Compensatory Benefit Plans and Contracts Relating to Compensation
Primary source
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Published
June 30, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 123 (Monday, June 30, 2025)</title>
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[Federal Register Volume 90, Number 123 (Monday, June 30, 2025)]
[Notices]
[Page 27894]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12007]
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SECURITIES AND EXCHANGE COMMISSION
[OMB Control No. 3235-0522]
Proposed Collection; Comment Request; Extension: Rule 701,
Exemption for Offers and Sales of Securities Pursuant To Certain
Compensatory Benefit Plans and Contracts Relating to Compensation
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 (``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 701 (17 CFR 230.701) under the Securities Act of 1933
(``Securities Act'') (15 U.S.C. 77a et seq.) provides an exemption for
certain issuers from the registration requirements of the Securities
Act for limited offerings and sales of securities issued under
compensatory benefit plans or contracts. The purpose of Rule 701 is to
enable issuers that are not reporting companies under the Securities
Exchange Act of 1934 to compensate employees and others without
registering an offer and sale of securities under the Securities Act,
while requiring issuers, as a condition of reliance on the rule, to
provide investors with certain information that is important to
investment decision making. We estimate that approximately 3,725
issuers annually rely on the Rule 701 exemption and that it takes
approximately two hours to prepare each response. We estimate that 25%
of the 2 hours per response (0.5 hours) is prepared by the issuer for a
total annual burden of 1,863 hours (0.5 hours per response x 3,725
responses). We estimate that 75% of the two hours per response (1.5
hours) is carried by outside professionals retained by the issuer at an
estimated cost of $600 per hour, for a total annual cost burden of
$3,352,500 (1.5 hours per response x $600 per hour x 3,725 responses
annually).
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 this proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden imposed by 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.
Please direct your written comments on this 60-Day Collection
Notice to Austin Gerig, Director/Chief Data Officer, Securities and
Exchange Commission, c/o Tanya Ruttenberg via email to
<a href="/cdn-cgi/l/email-protection#f5a594859087829a879ea790918096819c9a9bb49681b5869096db929a83"><span class="__cf_email__" data-cfemail="c292a3b2a7b0b5adb0a990a7a6b7a1b6abadac83a1b682b1a7a1eca5adb4">[email protected]</span></a> by August 29, 2025. There will be a
second opportunity to comment on this SEC request following the Federal
Register publishing a 30-Day Submission Notice.
Dated: June 25, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-12007 Filed 6-27-25; 8:45 am]
BILLING CODE 8011-01-P
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