Supporting Statement A

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PAPERWORK REDUCTION ACT SUPPORTING STATEMENT
for the Extension of Rule 6e-2 and Form N-6EI-1;
OMB Control Number 3235-0177

The U.S. Securities and Exchange Commission (“Commission” or SEC) submits this
information collection request (ICR) pursuant to the Paperwork Reduction Act of 1995 (PRA), 44
U.S.C. Section 3501 et seq., with the following justification.

1.

Necessity of Information Collection

Rule 6e-2 (17 CFR 270.6e-2) under the Investment Company Act of 1940 (“Act”)
provides exemptions from certain provisions of the Act to separate accounts formed by
life insurance companies to fund certain variable life insurance products, subject to
conditions set forth in the rule.
Rule 6e-2 provides a separate account with an exemption from the registration
provisions of section 8 of the Act if the account files with the Securities and Exchange
Commission (“Commission” or “SEC”) Form N-6EI-1 (17 CFR 274.301), a notification
of claim of exemption.
The rule also exempts a separate account from a number of other sections of the
Act provided that the separate account makes certain disclosure in its registration
statements (in the case of those separate accounts that elect to register), reports to
contract holders, or proxy solicitations, as prescribed by the rule, and/or makes certain
disclosure to state regulatory authorities. The requirements for registration statements,
reports to contract holders, and proxy solicitations are separately approved under the
Paperwork Reduction Act.
Subpart (b)(8) of rule 6e-2, which exempts a management separate account from
section 17(f) of the Act, requires information collection in addition to that required in
connection with registration statements, reports to contract holders, proxy solicitations,
or disclosure to state regulatory authorities. Section 17(f) provides, in pertinent part, that
every registered management company shall place and maintain its securities and similar
investments in the custody of: (a) a bank or banks having the qualifications prescribed
section 26(a)(1) of the Act for trustees of unit investment trusts; or (b) a company which
is a member of a national securities exchange as defined in the Securities Exchange Act
of 1934 [15 U.S.C. 78a et seq.], subject to such rules as the Commission may from time
to time prescribe for the protection of investors; or (c) such registered company, but only
in accordance with such rules and regulations or orders as the Commission may from
time to time prescribe for the protection of investors.
Rule 6e-2 exempts management separate accounts from section 17(f) provided
several conditions are met. First, each person, when depositing such securities or similar
investments in or withdrawing them from a depository, or when ordering their delivery to
and withdrawal from the custody of the life insurer or affiliated insurance company, must
sign a notation in respect of such deposit, withdrawal or order which shows: (a) the time
and date of the deposit, withdrawal or order; (b) the title and amount of the securities
withdrawn, and an identification thereof by certificate number or otherwise; (c) the
U.S. Securities and Exchange Commission (SEC)
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OMB Control Number 3235-0177

manner of acquisition of the securities or similar investments deposited or the purpose for
which they have been withdrawn, or ordered to be withdrawn; and (d) if withdrawn and
delivered to another person, the name of such person. Second, the aforementioned
notation must be transmitted promptly to an officer or director of the separate account or
the life insurer designated by the board of directors of the separate account. Third, the
securities and similar investments deposited with the insurer or affiliate under rule 6e-2
must be verified by complete examination by an independent public accountant retained
by the separate account at least three times during each fiscal year, at least two of which
shall be chosen by the such accountant without prior notice to the separate account.
Finally, a certificate by such accountant stating that he or she has made an examination of
such securities and investments and describing the nature and extent of the examination
shall be transmitted to the Commission by the accountant promptly after each
examination. The accountant’s examination certificates are not reviewed by the
Commission’s staff.

2.

Purpose and Use of Information Collection

Without this rule, management separate accounts and sponsoring life insurers
would bear the expense of filing individual exemptive applications, in addition to
registration statements, in order to obtain the relief needed to administer the separate
accounts. Accordingly, the Commission staff would be required to process such
applications. Because the exemptive applications would seek relief from a number of
sections of the Act, such applications would be quite lengthy and burdensome on both the
life insurers and the staff. In addition, information gathered under rule 6e-2, including
information collected on Form N-6EI-1, is aimed at minimizing the possibility that the
rule will be abused.

3.

Use and Consideration of Information Technology

The Commission’s electronic filing system, the Electronic Data Gathering,
Analysis and Retrieval system (“EDGAR”), is designed to automate the filing,
processing and dissemination of all disclosure filings. All registrants must file their
disclosure documents via EDGAR, which has increased the speed, ease, accuracy and
availability of information. At present, none of the information collections required by
rule 6e-2 are filed on EDGAR, but they may be considered for electronic filing in the
future.

4.

Identifying and Minimizing Duplication

The rule does not call for duplicative information. The information requirement
conforms to other rules under the Act to which separate accounts are subject, so as to
coordinate them with existing information collection and reporting procedures.

5.

Effect on Small Entities
The insurance companies affected by the rule are not considered “small entities.”

6.

Consequences of Not Conducting Collection and Obstacles to Reducing
Burden

The assets of a separate account held in custody by the insurer must be
continuously monitored and periodically audited to assure their safety. Other
information collections are required by the rule only when certain events occur.
U.S. Securities and Exchange Commission (SEC)
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OMB Control Number 3235-0177

7.

Inconsistencies with Guidelines in 5 CFR 1320.5(d)(2)
Not applicable.

8.

Public Comment and Consultations Outside the Agency

The Commission requested public comment on the collection of information
requirements in rule 6e-2 before it submitted this request for extension and approval to
the Office of Management and Budget. The Commission received no public comments
in response to its request.
The Commission and the staff of the Division of Investment Management also
participate in an ongoing dialogue with representatives of the investment company
industry through public conferences, meetings and informal exchanges. These various
forums provide the Commission and the staff with a means of ascertaining and acting
upon paperwork burdens confronting the industry.

9.

Payment or Gift to Respondents
Not applicable.

10.

Assurance of Confidentiality and Privacy
Not applicable.

11.

Collection Questions of a Sensitive Nature

No information of a sensitive nature, including social security numbers, will be
required under this collection of information. The information collection collects basic
Personally Identifiable Information (PII) that may include names, job titles and work
addresses. However, the agency has determined that the information collection does not
constitute a system of record for purposes of the Privacy Act. Information is not retrieved
by a personal identifier. In accordance with Section 208 of the E-Government Act of
2002, the agency has conducted a Privacy Impact Assessment (“PIA”) of the EDGAR
system, in connection with this collection of information. The EDGAR PIA, published
on March 6, 2025, is provided as a supplemental document and is also available at
https://www.sec.gov/privacy.

12.

Estimated Time Burden and its Cost Equivalent

Since 2008, there have been no filings of Form N-6EI-1 by separate accounts.
Therefore, there has been no cost or burden to the industry since that time.
The staff of the Division of Investment Management estimates that the
completion and submission of the form takes one hour. However, it is expected that
most, if not all, separate accounts will not elect the exemption from registration that
triggers the form requirement under the rule. Therefore, the form is not expected to
present any additional burden. With respect to information required in registration
statements, reports to contract holders, proxy solicitations, and submissions to state
agencies, issuers would be filing with the Commission and those state agencies as a
matter of course to fulfill other requirements. Consequently, rule 6e-2 does not result in
any additional cost or burden to the industry. The Commission requests authorization to
maintain an inventory of one burden hour for administrative purposes.

U.S. Securities and Exchange Commission (SEC)
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OMB Control Number 3235-0177

IC

IC Title
Rule 6e-2 and Form N-6EI-1

IC1

Recordkeeping

Total for all ICs

13.

Annual No. of Responses
Previously
Requested
Change
approved
0
0
0
0

0

0

Annual Time Burden (Hrs.)
Previously
Requested
Change
approved
1
1
0
1

1

0

Burden Cost Burden ($)
Previously
Requested
Change
approved
0
0
0
0

0

0

Estimated Additional Cost Burden
Not applicable.

14.

Annual Cost to the Federal Government
Not applicable

15.

Reasons for Changes in Burden
Not applicable.

16.

Plans for Publishing Results
Not applicable.

17.

Approval to Omit Display of OMB Expiration Date
Not applicable.

18.

Exceptions to the Certification for Paperwork Reduction Act Submissions
Not applicable.

B.

COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS
Not applicable

U.S. Securities and Exchange Commission (SEC)
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OMB Control Number 3235-0177