Rule 701 60 Day Federal Register Notice

SECURITIES AND EXCHANGE COMMISSION
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: Rule 701
SEC File No. 270-306, OMB Control No. 3235-0522
Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.), the Securities and Exchange Commission ("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 for extension and
approval.
Rule 701(17 CFR 230.701) under the Securities Act of 1933 (“Securities Act”)
(15 U.S.C. 77a et seq.) provides an exemption for certain issuers from the registration
requirements of the Securities Act for limited offerings and sales of securities issued under
compensatory benefit plans or contracts. The purpose of Rule 701 is to ensure that a basic level
of information is available to employees and others when substantial amounts of securities are
issued in compensatory arrangements. We estimate that approximately 800 companies annually
rely on the Rule 701 exemption and that it takes 2 hours to prepare each response. We estimate
that 25% of the 2 hours per response (0.5 hours) is prepared by the company for a total annual
reporting burden of 400 hours (0.5 hours per response x 800 responses).
Written comments are invited on: (a) whether the proposed collection of information is
necessary for the proper performance of the functions of the agency, including whether the

- 2 information will have practical utility; (b) the accuracy of the agency’s estimate of the burden
imposed by 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.
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 control number.
Please direct your written comment to Charles Riddle, Acting Director/Chief Information
Officer, Securities and Exchange Commission, c/o Candace Kenner, 100 F Street, NE,
Washington, DC 20549 or send an e-mail to: [email protected].

Eduardo A. Aleman
Deputy Secretary
February 19, 2019