[Federal Register: February 15, 2006 (Volume 71, Number 31)]
[Notices]
[Page 8006-8007]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15fe06-135]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549.
Extension:
Rule 31a-1; SEC File No. 270-173; OMB Control No. 3235-0178.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 [44 U.S.C. 3501-3520], the Securities and Exchange Commission
(``Commission'') has submitted to the Office of Management and Budget
(``OMB'') a request for extension of the previously approved collection
of information discussed below.
Rule 31a-1 [17 CFR 270.31a-1] under the Investment Company Act of
1940 (the ``Act'') is entitled ``Records to be maintained by registered
investment companies, certain majority-owned subsidiaries thereof, and
other persons having transactions with registered investment
companies.'' Rule 31a-1 requires registered investment companies
(``funds''), and every underwriter, broker, dealer, or investment
adviser that is a majority-owned subsidiary of a fund, to maintain and
keep current accounts, books, and other documents which constitute the
record forming the basis for financial statements required to be filed
pursuant to section 31 of the Act [15 U.S.C. 80a-30] and of the
auditor's certificates relating thereto. The rule lists specific
records to be maintained by funds. The rule also requires certain
underwriters, brokers, dealers, depositors, and investment advisers to
maintain the records that they are required to maintain under federal
securities laws. The Commission periodically inspects the operations of
funds to insure their compliance with the provisions of the Act and the
rules thereunder. The books and records required to be maintained by
rule 31a-1 constitute a major focus of the Commission's inspection
program.
[[Page 8007]]
There are approximately 4300 investment companies registered with
the Commission, all of which are required to comply with rule 31a-1.
For purposes of determining the burden imposed by rule 31a-1, the
Commission staff estimates that each fund is divided into approximately
four series, on average, and that each series is required to comply
with the recordkeeping requirements of rule 31a-1. Based on
conversations with fund representatives, it is estimated that rule 31a-
1 imposes an average burden of approximately 1500 hours annually per
series for a total of 6000 annual hours per fund. The estimated total
annual burden for all 4300 investment companies subject to the rule
therefore is approximately 25,800,000 hours. Based on conversations
with fund representatives, however, the Commission staff estimates that
even absent the requirements of rule 31a-1, 90 percent of the records
created pursuant to the rule are the type that generally would be
created as a matter of normal business custom and to prepare financial
statements.
The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act, and is not derived from a
comprehensive or even a representative survey or study. The collection
of information required by rule 31a-1 is mandatory. Responses will not
be kept confidential. The records required by rule 31a-1 are required
to be preserved pursuant to rule 31a-2 under the Investment Company Act
[17 CFR 270.31a-2]. Rule 31a-2 requires that certain of these records
be preserved permanently, and that others be preserved six years from
the end of the fiscal year in which any transaction occurred. In both
cases, the records should be kept in an easily accessible place for the
first two years. 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.
General comments regarding the above information should be directed
to the following persons: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503, or e-mail to:
David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief
Information Officer, Office of Information Technology, Securities and
Exchange Commission, 100 F Street, NE., Washington, DC 20549. Comments
must be submitted to OMB within 30 days of this notice.
Dated: February 6, 2006.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-2102 Filed 2-14-06; 8:45 am]
BILLING CODE 8010-01-P