Rule 22c-2 requires the board of
directors (including a majority of independent directors) of most
registered investment companies (funds) to either approve a
redemption fee of up to two percent or determine that imposition of
a redemption fee is not necessary or appropriate for the fund. Rule
22c-2 also requires a fund to enter into written agreements with
their financial intermediaries (such as broker-dealers and
retirement plan administrators) under which the fund, upon request,
can obtain certain shareholder identity and trading information
from the intermediaries. The written agreement must also allow the
fund to direct the intermediary to prohibit further purchases or
exchanges by specific shareholders that the fund has identified as
being engaged in transactions that violate the funds market timing
policies. These requirements enable funds to obtain the information
that they need to monitor the frequency of short term trading in
omnibus accounts and enforce their market timing
policies.
US Code:
15
USC 80a Name of Law: Investment Company Act of 1940
There have been significant
decreases in the estimates of burden hours and costs for rule
22c-2. The decrease primarily results from the rule having been
adopted and the start-up and initial implementation costs and time
having been previously expended. In contrast, this renewal only
reflects the ongoing hourly burden and costs for existing funds,
and the initial hourly burden and costs for new entrants.
Accordingly, the estimated hour burden has decreased to 26,413
hours from a previously estimated 2,429,500 hours, a decrease of
2,403,087 hours. Similarly, the estimated cost burden has decreased
to $31,440,000 from $363,030,000, a decrease of $331,590,000
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Adopting release.doc
Investment Company Act rule 22c-2, 17 CFR 270.22c-2 Mutual Fund Redemption Fees