Notice2025-22124
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 22c-1
Primary source
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Published
December 5, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 232 (Friday, December 5, 2025)</title>
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[Federal Register Volume 90, Number 232 (Friday, December 5, 2025)]
[Notices]
[Pages 56210-56211]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22124]
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SECURITIES AND EXCHANGE COMMISSION
[OMB Control No. 3235-0734]
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension: Rule 22c-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. 3501-3520), the Securities and Exchange
Commission (SEC or ``Commission'') is soliciting comments on the
collections 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 22c-1 (17 CFR 270.22c-1) under the Investment Company Act of
1940 (15 U.S.C. 80a) (the ``Investment Company Act'' or ``Act'')
enables a fund to choose to use ``swing pricing'' as a tool to mitigate
shareholder dilution. Rule 22c-1 is intended to promote investor
protection by providing funds with an additional tool to mitigate the
potentially dilutive effects of shareholder purchase or redemption
activity and a set of operational standards that allow funds to gain
comfort using swing pricing as a means of mitigating potential
dilution.
The respondents to amended rule 22c-1 are open-end management
investment companies (other than money market funds or exchange-traded
funds) that engage in swing pricing. Compliance with rule 22c-1(a)(3)
is mandatory for any fund that chooses to use swing pricing to adjust
its NAV in reliance on the rule.
While we are not aware of any funds that have engaged in swing
pricing,\1\ we are estimating for the purpose of this analysis that 5
fund complexes have funds that may adopt swing pricing policies and
procedures in the future pursuant to the rule. We estimate that the
total burden associated with the preparation and approval of swing
pricing policies and procedures by those fund complexes that would use
swing pricing will be 280 hours.\2\ We also estimate that it will cost
a fund complex $77,038 to document, review and initially approve these
policies and procedures, for a total cost of $385,190.\3\
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\1\ No funds have engaged in swing pricing as reported on Form
N-CEN as of October 31, 2025.
\2\ This estimate is based on the following calculation: (48 + 2
+ 6) hours x 5 fund complexes = 280 hours.
\3\ These estimates are based on the following calculations: 24
hours x $266 (hourly rate for a senior accountant) = $6,384; 24
hours x $612 (blended hourly rate for assistant general counsel
($573) and chief compliance officer ($652)) = $14,688; 2 hours (for
a fund attorney's time to prepare materials for the board's
determinations) x $449 (hourly rate for a compliance attorney) =
$898; 6 hours x $9,178 (hourly rate for a board of 9 directors) =
$55,068; ($6,384 + $14,688 +$898 + $55,068) = $77,038; $77,038 x 5
fund complexes = $385,190; the estimated hourly wages are based on
SIFMA's report on Management & Professional Earnings in the
Securities Industry 2013, modified by Commission staff to account
for an 1,800-hour work-year and inflation, and adjusted to account
for bonuses, firm size, employee benefits, and overhead; the staff
has estimated the average cost of board of director time as $9,178
per hour for the board as a whole, based on information received
from funds and their counsel.
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Rule 22c-1 requires a fund that uses swing pricing to maintain the
fund's swing policies and procedures that are in effect, or at any time
within the past six years were in effect, in an easily accessible
place.\4\ The rule also requires a fund to retain a written copy of the
periodic report provided to the board prepared by the swing pricing
administrator that describes, among other things, the swing pricing
administrator's review of the adequacy of the fund's swing pricing
policies and procedures and the effectiveness of their implementation,
including the impact on mitigating dilution and any back-testing
performed.\5\ The retention of these records is necessary to allow the
staff during examinations of funds to determine whether a fund is in
compliance with its swing pricing policies and procedures and with rule
22c-1. We estimate a time cost per fund complex of $388.\6\ We estimate
that the total for recordkeeping related to swing pricing will be 20
hours, at an aggregate cost of $1,940, for all fund complexes that we
believe include funds that have adopted swing pricing policies and
procedures.\7\
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\4\ See rule 22c-1(a)(3)(iii).
\5\ See id.
\6\ This estimate is based on the following calculations: 2
hours x $77 (hourly rate for a general clerk) = $154; 2 hours x $117
(hourly rate for a senior computer operator) = $234. $154 + $234 =
$388.
\7\ These estimates are based on the following calculations: 4
hours x 5 fund complexes = 20 hours. 5 fund complexes x $388 =
$1,940.
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Amortized over a three-year period, we believe that the hour
burdens and time costs associated with rule 22c-1, including the burden
associated with the requirements that funds adopt policies and
procedures, obtain board approval, and periodic review of an annual
written report from the swing pricing administrator, and retain certain
records and written reports related to swing pricing, will result in an
average aggregate annual burden of 113.3 hours, and average aggregate
time costs of $130,336.\8\ We also estimate that rule 22c-1 imposes a
total external cost burden of $2,920 for outside legal services related
to compliance with the policies and procedures requirement.\9\
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\8\ These estimates are based on the following calculations:
(280 hours (year 1) + (3 x 20 hours) (years 1, 2 and 3)) / 3 = 113.3
hours; ($385,190 (year 1) + (3 x $1,940) (years 1, 2 and 3)) / 3 =
$130,336.
\9\ This estimated burden is based on the estimated wage rate of
$584 per hour for outside legal services and the following
calculation: $584 x 5 fund complexes = $2,920.
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These estimates of average costs are made solely for the purposes
of the Paperwork Reduction Act. The estimate is not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules. This collection of information is necessary to obtain
a benefit and 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 this proposed
collection of information is necessary for the proper performance of
the functions of the SEC, including whether the information will have
practical utility; (b) the accuracy of the SEC's estimate of the burden
imposed by the proposed collection of information, including the
validity of the methodology and the assumptions used; (c) ways to
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated,
electronic 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#db8bbaabbea9acb4a9b089bebfaeb8afb2b4b59ab8af9ba8beb8f5bcb4ad"><span class="__cf_email__" data-cfemail="a2f2c3d2c7d0d5cdd0c9f0c7c6d7c1d6cbcdcce3c1d6e2d1c7c18cc5cdd4">[email protected]</span></a> by February 3, 2026. There will be a
second opportunity to comment on this SEC request following the Federal
Register publishing a 30-Day Submission Notice.
[[Page 56211]]
Dated: December 3, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-22124 Filed 12-4-25; 8:45 am]
BILLING CODE 8011-01-P
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