82 FR 60264 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 242 (December 19, 2017)

[Federal Register Volume 82, Number 242 (Tuesday, December 19, 2017)]
[Notices]
[Pages 60264-60265]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27313]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-385, OMB Control No. 3235-0441]


Submission for OMB Review; 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 18f-3.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``Paperwork Reduction Act''), the 
Securities and Exchange Commission (``the Commission'') has submitted 
to the Office of Management and Budget (``OMB'') a request for 
extension of the previously approved collection of information 
discussed below.
    Rule 18f-3 (17 CFR 270.18f-3) under the Investment Company Act of 
1940 (15 U.S.C. 80a-1 et seq.) exempts from section 18(f)(1) a fund 
that issues multiple classes of shares representing interests in the 
same portfolio of securities (a ``multiple class fund'') if the fund 
satisfies the conditions of the rule. In general, each class must 
differ in its arrangement for shareholder services or distribution or 
both, and must pay the related expenses of that different arrangement. 
The rule includes one requirement for the collection of information. A 
multiple class fund must prepare, and fund directors must approve, a 
written plan setting forth the separate arrangement and expense 
allocation of each class, and any related conversion features or 
exchange privileges (``rule 18f-3 plan''). Approval of the plan must 
occur before the fund issues any shares of multiple classes and 
whenever the fund materially amends the plan. In approving the plan, 
the fund board, including a majority of the independent directors, must 
determine that the plan is in the best interests of each class and the 
fund as a whole.
    The requirement that the fund prepare and directors approve a 
written rule 18f-3 plan is intended to ensure that the fund compiles 
information relevant to

[[Page 60265]]

the fairness of the separate arrangement and expense allocation for 
each class, and that directors review and approve the information. 
Without a blueprint that highlights material differences among classes, 
directors might not perceive potential conflicts of interests when they 
determine whether the plan is in the best interests of each class and 
the fund. In addition, the plan may be useful to Commission staff in 
reviewing the fund's compliance with the rule.
    Based on an analysis of fund filings, the Commission estimates that 
there are approximately 7,743 multiple class funds offered by 1,045 
registrants. The Commission estimates that each of the 1,045 
registrants will make an average of 0.5 responses annually to prepare 
and approve a written 18f-3 plan.\1\ The Commission estimates each 
response will take 6 hours, requiring a total of 3 hours per registrant 
per year.\2\ Thus the total annual hour burden associated with these 
requirements of the rule is approximately 3,135 hours.\3\
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    \1\ The Commission estimates that each registrant prepares and 
approves a rule 18f-3 plan every two years when issuing a new fund 
or new class or amending a plan (or that 522.5 of all 1,045 
registrants prepare and approve a plan each year).
    \2\ 0.5 responses per registrant x 6 hours per response = 3 
hours per registrant.
    \3\ 3 hours per registrant per year x 1,045 registrants = 3,135 
hours per year.
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    Estimates of the average burden hours are made solely for the 
purposes of the Paperwork Reduction Act and are not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms. The collection of information under rule 
18f-3 is mandatory. The information provided under rule 18f-3 will not 
be kept confidential. 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 OMB control number.
    The public may view the background documentation for this 
information collection at the following website, www.reginfo.gov. 
Comments should be directed to: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503, or by sending an email to: 
[email protected]; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE, Washington, DC 20549 or send an email 
to: [email protected]. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: December 14, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-27313 Filed 12-18-17; 8:45 am]
 BILLING CODE 8011-01-P