

[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
