Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 17g-1

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<title>Federal Register, Volume 91 Issue 204 (Friday, October 23, 2026)</title>
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[Federal Register Volume 91, Number 204 (Friday, October 23, 2026)]
[Notices]
[Pages 66902-66903]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21637]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0213]


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Extension: Rule 17g-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. Sec.  3501 et seq.), the Securities and Exchange 
Commission (SEC or ``Commission'') is submitting to the Office of 
Management and Budget (OMB) this request for extension of the proposed 
collection of information described below.
    Section 17(g) of the Investment Company Act of 1940 (the ``Act'') 
(15 U.S.C. 80a-17(g)) authorizes the Commission to require by rules and 
regulations, for the protection of investors, that officers and 
employees of registered management investment companies (``funds'') who 
may singly, or jointly with others, have access to securities or funds 
of any registered management investment company, either directly or 
through authority to draw upon such funds or to direct generally the 
disposition of such securities, to be bonded by a reputable fidelity 
insurance company against larceny and embezzlement. The Commission, 
pursuant to this provision, adopted rule 17g-1 (17 CFR 270.17g-1) in 
1947 and has subsequently amended the rule on numerous occasions.
    Rule 17g-1 provides, in substance, the following requirements. The 
form and amount of the fidelity bond must be approved by a majority of 
the fund's independent directors at least once annually, and the amount 
of any premium paid by the fund for any ``joint insured bond,'' 
covering multiple funds or certain affiliates, must be approved by a 
majority of the fund's independent directors. The amount of the bond 
may not be less than the minimum amounts of coverage set forth in a 
schedule based on the fund's gross assets. The bond

[[Page 66903]]

must provide that it shall not be cancelled, terminated, or modified 
except upon 60 days' written notice to the affected party and to the 
Commission. In the case of a joint insured bond, 60 days' written 
notice must also be given to each fund covered by the bond. A joint 
insured bond must provide that the fidelity insurance company will 
provide all funds covered by the bond with a copy of the agreement, a 
copy of any claim on the bond, and notification of the terms of the 
settlement of any claim prior to execution of that settlement. Finally, 
a fund that is insured by a joint bond must enter into an agreement 
with all other parties insured by the joint bond regarding recovery 
under the bond.
    Upon the execution of a fidelity bond or any amendment thereto, a 
fund must file with the Commission within 10 days: (i) a copy of the 
executed bond or any amendment to the bond, (ii) the independent 
directors' resolution approving the bond, and (iii) a statement as to 
the period for which premiums have been paid on the bond. In the case 
of a joint insured bond, a fund must also file: (i) a statement showing 
the amount the fund would have been required to maintain under the rule 
if it were insured under a single insured bond; and (ii) the agreement 
between the fund and all other insured parties regarding recovery under 
the bond. A fund must also notify the Commission in writing within five 
days of any claim or settlement on a claim under the fidelity bond. A 
fund must notify by registered mail each member of its board of 
directors of: (i) any cancellation, termination, or modification of the 
fidelity bond at least 45 days prior to the effective date; and (ii) 
the filing or settlement of any claim under the fidelity bond when 
notification is filed with the Commission. The Commission amended rule 
17g-1 most recently in 2004 to require that the fund's board of 
directors satisfy the fund governance standards defined in rule 0-
1(a)(7) (17 CFR 270.0-1(a)(7)).\1\ The rule's requirements are 
mandatory for funds.
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    \1\ Investment Company Governance, Investment Company Act 
Release No. 26520 (July 27, 2004) (69 FR 46378 (Aug. 2, 2004)).
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    We estimate that approximately 2,078 funds (registered open- and 
closed-end funds, and business development companies) must comply with 
the collections of information under rule 17g-1, and which collectively 
submit an estimated 2,437 filings on Form 17G annually.\2\ We estimate 
an annual burden per response of 1.0 hour of compliance attorney time 
and 1.0 hour of the fund's board of directors time. This results in a 
total annual burden of 2,437 hours for the compliance attorney 
($1,886,238) and 2,437 hours for the fund board ($29,697,282), for a 
total estimated annual burden of 4,874 hours and $31,583,520 total 
annual internal cost for all funds. We continue to estimate that the 
filing and reporting requirements of rule 17g-1 do not entail any 
external cost burdens.
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    \2\ Based on a review of fund filings for the three-year period 
from January 1, 2023 to December 31, 2025, Commission staff 
estimates there are approximately 2,078 funds (registered open- and 
closed-end funds, and business development companies) that must 
comply with the collections of information under rule 17g-1, and 
which collectively submit an estimated 2,437 filings on Form 17G 
annually.
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    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 and comment on 
this information collection request at: <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202608-3235-010">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202608-3235-010</a> or email comment to 
<a href="/cdn-cgi/l/email-protection#4e030c166001030c6001071c0f601d0b0d112a2b3d2511212828272d2b3c0e21232c602b213e60292138"><span class="__cf_email__" data-cfemail="2c616e740263616e0263657e6d027f696f7348495f4773434a4a454f495e6c43414e0249435c024b435a">[email&#160;protected]</span></a> within 30 days of the day 
after publication of this notice, by November 23, 2026.

    Dated: October 20, 2026.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-21637 Filed 10-22-26; 8:45 am]
BILLING CODE 8011-01-P


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