Investment Company Act rule 17e-1, CFR Sec. 270.17e-1, Brokerage Transactions on a Securities Exchange

Forms and Documents

Document Name	Status
3235-0217.pdf Supplementary Document	2022-01-27
3235-0217.pdf Supplementary Document	2022-01-27
Rule 17e-1 (2022) Supporting Statement.pdf Supporting Statement A	2022-01-10

IC Document Collections

IC ID	Document Title	Status
34604	Rule 17e-1, Brokerage Transactions on a Securities Exchange	Modified

ICR Details

OMB Control No: 3235-0217	ICR Reference No: 202112-3235-010
Status: Received in OIRA	Previous ICR Reference No: 201810-3235-046
Agency/Subagency: SEC	Agency Tracking No: IM-270-224
Title: Investment Company Act rule 17e-1, CFR Sec. 270.17e-1, Brokerage Transactions on a Securities Exchange
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 01/27/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	07/31/2022
Responses	1,640	1,609
Time Burden (Hours)	82,000	48,450
Cost Burden (Dollars)	0	0

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Abstract: Rule 17e-1 governs the receipt of compensation by a broker affiliated with a registered investment company in connection with securities transactions by the investment company. The rule requires the board of directors to establish and review procedures to ensure compliance with the rule, and imposes recordkeeping requirements concerning such procedures and transactions effected under the rule. The rule exempts certain transactions from some of the rule's procedural and recordkeeping requirements.

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Authorizing Statute(s): US Code: 15 USC 80a Name of Law: Investment Company Act of 1940
  

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:
	87 FR 2190	01/13/2022
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 4321	01/27/2022
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 17e-1, Brokerage Transactions on a Securities Exchange

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ICR Summary of Burden

	Total Request	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	1,640	1,609	0	0	31	0
Annual Time Burden (Hours)	82,000	48,450	0	0	33,550	0
Annual Cost Burden (Dollars)	0	0	0	0	0	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: No

Burden Reduction Due to:

Short Statement: The estimated hourly burden associated with rule 17e-1 has increased from 48,450 hours to 82,000 hours (an increase of 33,550 hours). The increase in the amount of annual responses and annual time burden is attributable to two factors. First, we are using data provided on Form N-CEN for determining the number of respondents to the reporting and recordkeeping requirements, which we had not done in prior submissions. Secondly, prior submissions had included a third element to the collection, one relating to the rule’s exception for subadvisory contracts that meet the requirements of 17 CFR 270.17a-10 (“rule 17a-10”). However, because rule 17e-1 does not contain any specific subadvisory contract requirements and we have already accounted for the burdens and costs for entering into these subadvisory contracts in the information collection relating to rule 17a-10, we are not including those burdens and costs in the rule 17e-1 information collection.

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Annual Cost to Federal Government: $0

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

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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: 01/27/2022

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