[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Notices]
[Pages 50222-50223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24095]
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SECURITIES AND EXCHANGE COMMISSION
Forms Under Review by the Office of Management and Budget
Agency Clearance Officer: Michael E. Bartell, (202) 942-8800
Upon Written Request, Copy Available From: Securities and Exchange
Commission, Office of Filings and Information Services, 450 Fifth
Street, N.W., Washington, DC 20549
Proposed Amendments:
Form N-1A
File No. 270-21
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 Form N-1A under the Securities Act of 1933 (the
``Securities Act'') and the Investment Company Act of 1940 [15 U.S.C.
80a et seq.] (the ``Investment Company Act'').
Form N-1A is the registration statement required for open-end
registered investment companies (``funds'') under the Investment
Company Act and the Securities Act. A registration statement on Form N-
1A must contain such information as the Commission has determined to be
necessary or appropriate in the public interest or for the protection
of investors. Form N-1A requires funds to include in their
prospectuses, among other items, disclosure about sales charges and a
table setting forth those changes (the ``fee table'').
The Commission proposed amending Form N-1A to reflect the new types
of deferred sales loads permitted by the amended rule 6c-10. The
amendments would add new item 7(g) to Form N-1A to require funds to
disclose in their prospectuses the price on which the load is based
(e.g., whether the load is based on the fund's net asset value at the
time of purchase or redemption), the amount of deferred sales loads, if
any, imposed on shares acquired through reinvested distributions, and
the way in which the load is calculated (e.g., a specified percentage
of the fund's net asset value). This information also would have to be
reflected in the fund's fee table. In addition, item 7(g) would require
funds to disclose any deferred sales loads charged on reinvested
dividends or other distributions and to disclose the way in which an
investor may be required to pay any installment load (e.g., through the
withholding of dividend payments). Under revised Guidelines to Form N-
1A, funds would be required to briefly describe any tax consequences
for shareholders related to an installment load. Finally, proposed
amendments to Instruction 1 to Item 22(b)(i) of Form N-1A would require
deferred sales loads to be included in calculating a fund's advertised
total return. Some of these requirements do not entail any additional
paperwork burden because the amendments cover many of the operational
aspects that have been mandatory for all funds under rule 6c-10 and
already are required to be disclosed in the prospectus. The fee tables
of funds that impose contingent deferred sales loads (``CDSLs''), for
example, must include certain information about these charges.
The Commission expects that funds that currently impose CDSLs are
likely to continue to impose these charges or assess the other types of
deferred sales loads permitted under the amendments. It is estimated
that the number of funds that currently charge CDSLs is approximately
550. Based on its experience with the industry, the Commission
estimates that, as a result of the disclosure requirements proposed by
the amendments, the burden on a fund that imposes a deferred sales load
would increase by 2/10 of an hour. It is estimated that an increase of
110 total burden hours would be expended in
[[Page 50223]]
connection with the proposed disclosure requirements.
General comments may be directed to the OMB Clearance Officer for
the Securities and Exchange Commission 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
Michael E. Bartell, Associate Executive Director, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549, and
to the Securities and Exchange Commission's Clearance Officer, Office
of Information and Regulatory Affairs, Paperwork Reduction Act number
3235-0307, Office of Management and Budget, Room 3228, New Executive
Office Building, Washington, DC 20543.
Dated: September 5, 1995.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-24095 Filed 9-27-95; 8:45 am]
BILLING CODE 8010-01-M
