Rule 22c-2 requires the board of directors (including a majority of independent directors) of most registered investment companies (funds) to either approve a redemption fee of up to two percent or determine that imposition of a redemption fee is not necessary or appropriate for the fund. Rule 22c-2 also requires a fund to enter into written agreements with their financial intermediaries (such as broker-dealers and retirement plan administrators) under which the fund, upon request, can obtain certain shareholder identity and trading information from the intermediaries. The written agreement must also allow the fund to direct the intermediary to prohibit further purchases or exchanges by specific shareholders that the fund has identified as being engaged in transactions that violate the funds market timing policies. These requirements enable funds to obtain the information that they need to monitor the frequency of short term trading in omnibus accounts and enforce their market timing policies.
US Code:
15 USC 80a
Name of Law: Investment Company Act of 1940
There have been significant decreases in the estimates of burden hours and costs for rule 22c-2. The decrease primarily results from the rule having been adopted and the start-up and initial implementation costs and time having been previously expended. In contrast, this renewal only reflects the ongoing hourly burden and costs for existing funds, and the initial hourly burden and costs for new entrants. Accordingly, the estimated hour burden has decreased to 26,413 hours from a previously estimated 2,429,500 hours, a decrease of 2,403,087 hours. Similarly, the estimated cost burden has decreased to $31,440,000 from $363,030,000, a decrease of $331,590,000
$0
No
No
Uncollected
Uncollected
No
Uncollected
Thoreau Bartmann 202 551-6792 barthmannt@sec.gov
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.
Adopting release.doc
Investment Company Act rule 22c-2, 17 CFR 270.22c-2 Mutual Fund Redemption Fees