[Federal Register Volume 86, Number 16 (Wednesday, January 27, 2021)]
[Notices]
[Pages 7320-7321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01667]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-524, OMB Control No. 3235-0582]


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Form N-PX

    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 30b1-4 (17 CFR 270.30b1-4) under the Investment Company Act of 
1940 (15 U.S.C. 80a-1 et seq.) requires every registered management 
investment company, other than a small business investment company 
registered on Form N-5 (``funds''), to file a report on Form N-PX not 
later than August 31 of each year. Funds use Form N-PX to file annual 
reports with the Commission containing their complete proxy voting 
record for the most recent twelve-month period ended June 30.
    The Commission estimates that there are approximately 2,207 funds 
registered with the Commission, representing approximately 11,890 fund 
portfolios that are required to file Form N-PX reports. The 11,890 
portfolios are comprised of approximately 6,392 portfolios holding 
equity securities, 2,857 portfolios holding no equity securities, and 
1,476 portfolios holding fund securities (i.e., fund of funds).\1\ The 
currently approved burden of Form N-PX for portfolios holding equity

[[Page 7321]]

securities is 7.2 hours per response, the current burden estimate for 
funds holding no equity securities is 0.17 hours (10 minutes) per 
response, and the current burden estimate for fund of funds is 1 hour 
per response. Therefore, the number of aggregate burden hours, when 
calculated using the current number of portfolios, is approximately 
47,984 hours.\2\ We continue to believe that these estimates for Form 
N-PX's current burden are appropriate. Based on the Commission's 
estimate of 47,984 burden hours and an estimated wage rate of 
approximately $368 per hour,\3\ the total cost to reporting persons of 
the hour burden for filing Form N-PX is approximately $17.66 
million.\4\
---------------------------------------------------------------------------

    \1\ The estimate of 2,207 funds is based on the number of 
management investment companies currently registered with the 
Commission. The Commission staff estimates that there are 
approximately 6,392 portfolios that invest primarily in equity 
securities, 804 ``hybrid'' or bond portfolios that may hold some 
equity securities, 2,857 bond portfolios that hold no equity 
securities, and 361 money market fund portfolios, and 1,476 fund of 
funds, for a total of 11,890 portfolios required to file Form N-PX 
reports. The staff has based its portfolio estimates on a number of 
publications. See Investment Company Institute, Trends in Mutual 
Fund Investing (February 2020); Investment Company Institute, 
Closed-End Fund Assets and Net Issuance (Fourth Quarter 2019); 
Investment Company Institute, ETF Assets and Net Issuance (February 
2020).
    \2\ (6,392 portfolios that hold equity securities x 7.2 hours 
per year) + (2,857 portfolios holding no equity securities x 0.17 
hours per year) + (1,476 portfolios holding fund securities x 1 hour 
per year) = 47,984 hours.
    \3\ The hourly wage figure for a compliance attorney is from the 
Securities Industry and Financial Markets Association's Management & 
Professional Salaries in the Securities Industry 2013, modified by 
Commission staff to account for an 1800-hour work-year and inflation 
and multiplied by 5.35 to account for bonuses, firm size, employee 
benefits and overhead.
    \4\ 47,984 hours x $368 per hour = $17,658,112.
---------------------------------------------------------------------------

    The estimated cost burden of Form N-PX is $1,000 in external costs 
per portfolio holding equity securities that is paid to third-party 
service providers. External costs for portfolios holding no equity 
securities have previously been estimated to be zero because portfolios 
holding no equity securities generally have no proxy votes to report 
and therefore do not require third-party service providers to assist 
with proxy voting and preparing reports on Form N-PX. The estimated 
cost burden of Form N-PX for fund of funds is estimated to be $100 per 
portfolio because fund of funds generally either have no proxy votes to 
report; or if proxy votes are reported, they are generally limited in 
the number of securities and the number of voting matters relative to 
portfolios holding equity securities. Therefore, the aggregate cost 
burden, when calculated using the current number of portfolios, is 
approximately $6,539,600 in external costs.\5\ We continue to believe 
that these estimates for Form N-PX's current cost burden are 
appropriate.
---------------------------------------------------------------------------

    \5\ (6,392 portfolios holding equity securities x $1,000 per 
year) + (2,857 portfolios holding no equity securities x $0 per 
year) + (1,476 fund of funds x $100) = $6,539,600.
---------------------------------------------------------------------------

    Estimates of average burden hours and costs are made solely for the 
purposes of the Paperwork Reduction Act and are not derived from a 
comprehensive or even representative survey or study of the costs of 
Commission rules and forms. Compliance with the collection of 
information requirements of Form N-PX is mandatory. Responses to the 
collection of information 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 collection of 
information is 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 burden 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 David Bottom, Director/Chief 
Information Officer, Securities and Exchange Commission, C/O Cynthia 
Roscoe, 100 F Street NE, Washington, DC 20549; or send an email to: 
PRA_Mailbox@sec.gov.

    Dated: January 21, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-01667 Filed 1-26-21; 8:45 am]
BILLING CODE 8011-01-P


