[Federal Register Volume 59, Number 21 (Tuesday, February 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2194]
[[Page Unknown]]
[Federal Register: February 1, 1994]
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SECURITIES AND EXCHANGE COMMISSION
Requests Under Review by the Office of Management and Budget
Agency Clearance Officer: John J. Lane (202) 942-8800.
Upon Written Request, Copy Available From: Securities and Exchange
Commission, Office of Filings, Information and Consumer Services, 450
Fifth Street, NW., Washington, DC 20549.
Revisions:
Regulation S-X--File No. 270-3
Rule 2a-7--File No. 270-258
Rule 31a-1--File No. 270-173
Form N-1A--File No. 270-21
Form N-3--File No. 270-281
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1980 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (Commission) has submitted for OMB approval proposed
amendments to Regulation S-X under the Securities Act of 1933 (1933
Act), rules 2a-7 and 31a-1 under the Investment Company Act of 1940
(1940 Act), and Form N-1A and N-3 under both the 1933 and 1940 Acts.
These amendments pertain solely to investment companies that hold
themselves out as money market funds (``funds'').
The proposed amendment to Regulation S-X would require funds to
identify in their portfolio schedules any institution providing a put
or guarantee with respect to a portfolio security and to give a brief
description of the nature of the put (e.g., unconditional or
conditional demand feature). It is estimated that each of the 1,000
money market funds preparing financial statements pursuant to Form N-1A
would incur an annual estimated two burden hours annually to record
this information in their portfolio schedules (one hour two times per
year). The increase in burden resulting from this amendment will be
reflected in the burdens associated with Forms N-1A and N-3.
The proposed amendments to rule 2a-7 would make a number of changes
effecting primarily tax exempt funds. Among the amendments being
proposed are:
(1) Limiting national tax exempt funds to holding no more than 5%
of assets in securities of one issuer;
(2) Permitting single state funds to be undiversified, but limiting
their investments to only first tier securities;
(3) Requiring prospectus disclosure regarding the increased risks
associated with single state funds because of their geographical
concentration and lack of diversification;
(4) Limiting an individual guarantor to guaranteeing no more than
10% of fund assets; and
(5) Requiring that funds obtain additional credit information about
their investments that are subject to puts in certain situations.
It is estimated that each money market fund will incur an annual
estimated 20 burden hours to comply with these requirements.
Rule 31a-1 would be amended to require funds to identify the
provider of any put or guarantee with respect to a portfolio security
and provide information sufficient to identify, value, and account for
each investment. It is estimated that the 1,000 funds subject to this
requirement will incur an estimated twelve burden hours in order to
comply with this change.
Form N-1A would be amended to require that tax exempt money market
funds that restrict their investments to those that generate income
exempt from federal, state and/or local taxes (``single state'' funds)
make certain disclosures in their prospectuses regarding the additional
risks associated with geographic concentration and lack of issuer
diversification. It is estimated that the 181 single fund Form N-1A
registrants will incur an initial burden of two hours to comply with
this requirement initially and less time in subsequent updates of the
fund's registration statement.
Form N-3 is a required form of registration statement for insurance
company separate accounts organized as management investment companies.
The burden associated with Form N-3 reflects the change being made to
Regulation S-X. A technical amendment being made to an instruction to
Form N-3 will not affect the burden associated with Form N-3.
Direct general comments to Gary Waxman at the address below.
Comments concerning the accuracy of the estimated average burden hours
for compliance with Commission rules and forms should be directed to
John J. Lane, Associate Executive Director, Securities and Exchange
Commission, 450 Fifth Street, NW., Washington, DC 20549, and Gary
Waxman, Clearance Officer, Office of Information and Regulatory
Affairs, (Paperwork Reduction Act numbers 3235-0009, 3235-0268, 3235-
0178, 3235-0307, and 3235-0316), Office of Management and Budget, Room
3228 New Executive Office Building, Washington, DC 20543.
Dated: January 12, 1994.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-2194 Filed 1-31-94; 8:45 am]
BILLING CODE 8010-01-M
