[Federal Register: December 13, 1999 (Volume 64, Number 238)]
[Notices]               
[Page 69575]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13de99-113]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

[Extension: Rule 34b-1; SEC File No. 270-305; OMB Control No. 3235-
0346]

    Upon Written Request, Copy Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 450 
Fifth Street, N.W, Washington, D.C. 20549.

    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 for extension and approval.

Rule 34b-1 Under the Investment Company Act of 1940, Sales 
Literature Deemed to be Misleading

    Rule 34b-1 under the Investment Company Act of 1940 (``Investment 
Company Act'') [17 CFR 270.34b-1] governs sales material that 
accompanies or follows the delivery of a statutory prospectus (``sales 
literature'') Rule 34b-1 deems to be materially misleading any 
investment company sales literature, required to be filed with the 
Commission by section 24(b) of the Investment Company Act,\1\ that 
includes any information that purports to show the investment 
performance of the fund unless it also includes performance data 
calculated in a manner prescribed by rule 482 under the Securities Act 
of 1933. Requiring the inclusion of such standardized performance data 
in sales literature is designed to prevent misleading performance 
claims by funds and to enable investors to make meaningful comparisons 
among fund performance claims.
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    \1\ Sales literature addressed to or intended for distribution 
to prospective investors shall be deemed filed with the Commission 
for purposes of Section 24(b) of the Investment Company Act upon 
filing with a national securities association registered under 
Section 15A of the Securities Exchange Act of 1934 that has adopted 
rules providing standards for the investment company advertising 
practices of its members and has established and implemented 
procedures to review that advertising. Rule 24b-3 under the 
Investment Company Act [17 CFR 270.24b-3].
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    It is estimated that approximately 545 respondents file five 
responses annually in compliance with rule 34b-1. The burden from rule 
34b-1 requires approximately 2.4 hours per response resulting from 
creating the information required under rule 34b-1. The total burden 
hours for rule 34b-1 would be 6,540 hour per year in the aggregate. The 
estimated annual burden of 6,540 hours represents an increase of 3,096 
hours over the prior estimate of 3,444 hours. The increase in burden 
hours is attributable to an increase in the number of respondents from 
287 to 545.
    The estimates of average burden hours are made solely or the 
purposes of the PRA and are not derived from a comprehensive or even 
representative survey or study of the costs of Commission rules and 
forms.
    Written comments are invited on: (a) Whether the proposed 
collection 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 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 in writing within 60 
days of this publication.
    Please direct your written comments to Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 Fifth Street, NW, Washington, 
DC 20549.

    Dated: December 6, 1999.
Jonathan G. Katz,
Secretary.
[FR Doc. 99-32211 Filed 12-10-99; 8:45 am]
BILLING CODE 8010-01-M