Section 35(d) of the Investment
Company Act of 1940 prohibits a registered investment company from
adopting as part of the name or title of such company, or of any
securities of which it is the issuer, any word or words that the
Commission finds are materially deceptive or misleading. Rule 35d-1
under the Investment Company Act defines certain names of funds as
“materially deceptive and misleading” for purposes of Section 35(d)
unless a fund with one of those names adopts an investment policy
to invest, under normal circumstances, at least 80% of the value of
its assets in investments in accordance with the investment focus
that the fund's name suggests (“80% investment policy”). Rule 35d-1
further requires either that the 80% investment policy be
fundamental or that the fund has adopted a policy to provide its
shareholders with at least 60 days prior notice of any change in
the 80% investment policy. The rule, however, does not require that
a fund file the notice to shareholders with the
Commission.
US Code:
15 USC 80a-34(d) Name of Law: Investment Company Act of
1940
The amendments to rule 35d-1
will result in a number of changes to the currently approved
burden. The new recordkeeping requirements for funds that adopt an
80% policy will add an additional hour burden of 75 hours per year
for 10,291 funds, or 771,825 hours annually. While we estimate that
the per-response hour burden associated with the notice requirement
would not change from the currently-approved per-response hour
burden, we have revised the number of responses to the notice
requirement down from 38 responses annually to 34 responses, based
upon an updated assessment that a lower percentage (76%, rather
than 83%) of funds have names that would be subject to the rule.
The Commission estimates that there would be an external cost
burden associated with rule 35d-1’s notice and recordkeeping
requirements of $5,833,625 (an increase from the currently-approved
estimate of $0).
$0
No
No
No
No
No
No
No
Pamela Ellis 202
551-3506
No
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.
Supporting Statement - Rule 35d-1 PRA_Names Adoption.pdf
Rule 35d-1 under the Investment Company Act of 1940, Investment Company Names