
[Federal Register Volume 79, Number 141 (Wednesday, July 23, 2014)]
[Notices]
[Pages 42842-42843]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17278]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Securities and Exchange Commission, Office of FOIA Services, 100 F 
Street NE., Washington, DC 20549-2736.

Extension:

[[Page 42843]]

    Rule 498; SEC File No. 270-574, OMB Control No. 3235-0648.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``Paperwork Reduction Act''), the 
Securities and Exchange Commission (the ``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 (``OMB'') for extension and 
approval.
    Rule 498 (17 CFR 230.498) under the Securities Act of 1933 (15 
U.S.C. 77a et seq.) (``Securities Act'') permits open-end management 
investment companies (``funds'') to satisfy their prospectus delivery 
obligations under the Securities Act by sending or giving key 
information directly to investors in the form of a summary prospectus 
(``Summary Prospectus'') and providing the statutory prospectus on a 
Web site. Upon an investor's request, funds are also required to send 
the statutory prospectus to the investor. In addition, under Rule 498, 
a fund that relies on the rule to meet its statutory prospectus 
delivery obligations must make available, free of charge, the fund's 
current Summary Prospectus, statutory prospectus, statement of 
additional information, and most recent annual and semi-annual reports 
to shareholders at the Web site address specified in the required 
Summary Prospectus legend.\1\ A Summary Prospectus that complies with 
Rule 498 is deemed to be a prospectus that is authorized under Section 
10(b) of the Securities Act and Section 24(g) of the Investment Company 
Act of 1940 (15 U.S.C. 80a-1 et seq.).
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    \1\ 17 CFR 270.498(e)(1).
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    The purpose of Rule 498 is to enable a fund to provide investors 
with a Summary Prospectus containing key information necessary to 
evaluate an investment in the fund. Unlike many other federal 
information collections, which are primarily for the use and benefit of 
the collecting agency, this information collection is primarily for the 
use and benefit of investors. The information filed with the Commission 
also permits the verification of compliance with securities law 
requirements and assures the public availability and dissemination of 
the information.
    Based on an analysis of fund filings, the Commission estimates that 
approximately 9,082 portfolios are using a Summary Prospectus. The 
Commission estimates that the annual hourly burden per portfolio 
associated with the compilation of the information required on the 
cover page or the beginning of the Summary Prospectus is 0.5 hours, and 
estimates that the annual hourly burden per portfolio to comply with 
the Web site posting requirement is approximately 1 hour, requiring a 
total of 1.5 hours per portfolio per year.\2\ Thus the total annual 
hour burden associated with these requirements of the rule is 
approximately 13,623.\3\ The Commission estimates that the annual cost 
burden is approximately $15,900 per portfolio, for a total annual cost 
burden of approximately $144,403,800.\4\
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    \2\ 0.5 hours per portfolio + 1 hour per portfolio = 1.5 hours 
per portfolio. The Commission believes that funds that have opted to 
use the Summary Prospectus have already incurred the estimated one-
time hour burden to initially comply with Rule 498, and therefore 
the estimated burden hours to initially comply with Rule 498 and the 
associated costs are not included in these estimates.
    \3\ 1.5 hours per portfolio x 9,082 portfolios = 13,623 hours.
    \4\ $15,900 per portfolio x 9,082 portfolios = $144,403,800.
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    Estimates of average burden hours are made solely for the purposes 
of the Paperwork Reduction Act and are not derived from a comprehensive 
or even a representative survey or study of the costs of Commission 
rules and forms. Under Rule 498, use of the Summary Prospectus is 
voluntary, but the rule's requirements regarding provision of the 
statutory prospectus upon investor request are mandatory for funds that 
elect to send or give a Summary Prospectus in reliance upon Rule 498. 
The information provided under Rule 498 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.
    Written comments are invited on: (a) Whether the collections of 
information are necessary for the proper 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 collections of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burdens of the collections 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, 100 F Street NE., Washington, DC 20549; or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: July 17, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-17278 Filed 7-22-14; 8:45 am]
BILLING CODE 8011-01-P


