
[Federal Register Volume 78, Number 131 (Tuesday, July 9, 2013)]
[Notices]
[Pages 41131-41132]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16365]


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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 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'') has submitted to the Office of Management and 
Budget a request for extension of the previously approved collection of 
information discussed below.
    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)].

[[Page 41132]]

    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)].
    These estimates of average costs are made solely for the purposes 
of the Paperwork Reduction Act. The estimate is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules.
    This collection of information is necessary to obtain a benefit and 
will not be kept confidential. 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 the background documentation for this 
information collection at the following Web site, www.reginfo.gov. 
Comments should be directed to: (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 by sending an email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 100 
F Street NE., Washington, DC 20549 or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of 
this notice.

    Dated: July 2, 2013.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-16365 Filed 7-8-13; 8:45 am]
BILLING CODE 8011-01-P


