
[Federal Register Volume 78, Number 83 (Tuesday, April 30, 2013)]
[Notices]
[Pages 25324-25325]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-10147]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension:
    Rule 0-2; OMB Control No. 3235-0636, SEC File No. 270-572.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange 
Commission (the ``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.
    Several sections of the Investment Company Act of 1940 (``Act'' or 
``Investment Company Act'') \1\ give the Commission the authority to 
issue orders granting exemptions from the Act's provisions. The section 
that grants broadest authority is section 6(c), which provides the 
Commission with authority to conditionally or unconditionally exempt 
persons, securities or transactions from any provision of the 
Investment Company Act, or the rules or regulations thereunder, if and 
to the extent that such exemption is necessary or appropriate in the 
public interest and consistent with the protection of investors and the 
purposes fairly intended by the policy and provisions of the Act.\2\
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    \1\ 15 U.S.C. 80a-1 et seq.
    \2\ 15 U.S.C. 80a-6(c).
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    Rule 0-2 under the Investment Company Act,\3\ entitled ``General 
Requirements of Papers and Applications,'' prescribes general 
instructions for filing an application seeking exemptive relief with 
the Commission for which a form is not specifically prescribed. Rule 0-
2 requires that each application filed with the commission have (a) a 
statement of authorization to file and sign the application on behalf 
of the applicant, (b) a verification of application and statements of 
fact, (c) a brief statement of the grounds for application, and (d) the 
name and address of each applicant and of any person to whom questions 
should be directed. The Commission uses the information required by 
rule 0-2 to decide whether the applicant should be deemed to be 
entitled to the action requested by the application.
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    \3\ 17 CFR 270.0-2.
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    Applicants for orders can include registered investment companies, 
affiliated persons of registered investment companies, and issuers 
seeking to avoid investment company status, among other entities. 
Commission staff estimates that it receives approximately 110 
applications per year under the Act. Although each application 
typically is submitted on behalf of multiple entities, the entities in 
the vast majority of cases are related companies and are treated as a 
single respondent for purposes of this analysis.
    The time to prepare an application depends on the complexity and/or 
novelty of the issues covered by the application. We estimate that the 
Commission receives 15 of the most time-consuming applications 
annually, 75 applications of medium difficulty, and 20 of the least 
difficult applications. Based on conversations with applicants, we 
estimate that in-house counsel would spend from ten to fifty hours 
helping to draft and review an application. We estimate a total annual 
hour burden to all respondents of 3,200 hours [(50 hours x 15 
applications) + (30 hours x 75 applications) + (10 hours x 20 
applications)].
    Much of the work of preparing an application is performed by 
outside counsel. The cost outside counsel charges applicants depends on 
the complexity of the issues covered by the application and the time 
required for preparation. Based on conversations with attorneys who 
serve as outside counsel, the cost ranges from approximately $10,000 
for preparing a well-precedented, routine application to approximately 
$150,000 to prepare a complex and/or novel application. This 
distribution gives a total estimated annual cost burden to applicants 
of filing all applications of $8,450,000 [(15 x $150,000) + (75 x 
$80,000) + (20 x $10,000)].
    We request written comment on: (a) Whether the collections of 
information are necessary for the proper

[[Page 25325]]

performance of the functions of the Commission, including whether the 
information has practical utility; (b) the accuracy of the Commission's 
estimate of the burdens 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 Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, C/O Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an 
email to: PRA_Mailbox@sec.gov.

    Dated: April 24, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-10147 Filed 4-29-13; 8:45 am]
BILLING CODE 8011-01-P


