Rule 498 under the Securities Act of 1933. Summary Prospectus for Open-End Management Investment Companies

Forms and Documents

Document Name	Status
Rule 498 Text.pdf Supplementary Document	2011-11-21
Rule 498 Supporting Statement.doc Supporting Statement A	2011-11-21

IC Document Collections

IC ID	Document Title	Status
187875	Rule 498 under the Securities Act of 1933. Summary Prospectus for Open-End Management Investment Companies	Modified

ICR Details

OMB Control No: 3235-0648	ICR Reference No: 201111-3235-028
Status: Historical Active	Previous ICR Reference No: 200901-3235-011
Agency/Subagency: SEC	Agency Tracking No: IM-270-574
Title: Rule 498 under the Securities Act of 1933. Summary Prospectus for Open-End Management Investment Companies
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 01/24/2012
	Date Received in OIRA: 11/21/2011
Terms of Clearance: Burden reclassified as change due to agency estimate.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2015	36 Months From Approved	03/31/2012
Responses	6,250	0	7,002
Time Burden (Hours)	9,375	0	63,014
Cost Burden (Dollars)	99,375,000	0	106,200,000

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Abstract: Rule 498 would permit the obligation under the Securities Act to deliver a statutory prospectus with respect to mutual fund securities to be satisfied by sending or giving a Summary Prospectus and providing the statutory prospectus online. In addition, the new rule would require a fund to send the statutory prospectus in paper or by e-mail upon request. The Summary Prospectus would be required to contain the key information that is included in the new summary section of the statutory prospectus.

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Authorizing Statute(s): US Code: 15 USC 80a-24(g) Name of Law: Investment Company Act of 1940
   US Code: 15 USC 77j Name of Law: Securities Act of 1933
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 54814	09/02/2011
30-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 69307	11/08/2011
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Rule 498 under the Securities Act of 1933. Summary Prospectus for Open-End Management Investment Companies

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	6,250	7,002	0	0	-752	0
Annual Time Burden (Hours)	9,375	63,014	0	0	-53,639	0
Annual Cost Burden (Dollars)	99,375,000	106,200,000	0	0	-6,825,000	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Using Information Technology

Short Statement: The Commission previously estimated an annual time burden of approximately 63,014 hours for voluntarily complying with rule 498. This number was based on the average burden over a three-year period, assumed that 80% of the estimated 8,752 portfolios in existence at the time would file a summary prospectus ("Summary Prospectus") and post the required disclosure documents on a website, and included an estimated one-time hour burden of 23 hours for initial compliance with the rule and an ongoing hour burden of 1.5 hours per portfolio. The Commission now estimates that approximately 6,250 portfolios are using a Summary Prospectus, resulting in annual internal hour burden of approximately 9,375 hours. The net decrease of 53,639 hours in annual time burden from the previous submission reflects the decrease in the estimated number of portfolios filing a Summary Prospectus, no longer reflects the hours associated with initially complying with the requirements of the rule, and is not based on the average burden over a three-year period. With respect to the total annual external cost burden, the Commission previously estimated a cost burden of approximately $106,200,000, or approximately $15,200 per portfolio. The Commission now estimates a total annual external cost burden of approximately $99,375,000, or approximately $15,900 per portfolio. This represents a net decrease in the total annual external cost burden of approximately $6,825,000, which is due to a decrease in the estimated number of portfolios using a Summary Prospectus, and an increase in the estimated external cost burden per portfolio to account for the effects of inflation since 2008.

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Annual Cost to Federal Government:

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 11/21/2011

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