Interactive Data (Final Names Rule) Supporting Statement

OMB CONTROL NUMBER: 3235-0642
SUPPORTING STATEMENT
For the Paperwork Reduction Act Information Collection Submission for
Investment Company Interactive Data
This supporting statement is part of a submission under the Paperwork Reduction Act of
1995 (“PRA”), 44 U.S.C. §3501, et seq.
A.

JUSTIFICATION
1. NECESSITY FOR THE INFORMATION COLLECTION
Certain funds have current requirements to submit to the Commission information

included in their registration statements, or information included in or amended by any posteffective amendments to such registration statements, in response to certain form items in
structured data language (“Investment Company Interactive Data”). This collection of
information relates to regulations and forms under the Securities Act of 1933 (“Securities Act”)
[15 U.S.C. 77a et seq.]. This collection of information relates to regulations and forms under the
Investment Company Act of 1940 (“Investment Company Act”) [15 U.S.C. 80a-1 et seq.] that set
forth disclosure requirements for funds and other issuers.
On September 20, 2023 the Commission adopted certain amendments to the “names
rule,” rule 35d-1 of the Investment Company Act. 1 The Commission also amended Form N-2, 2
Form N-8B-2, 3 and Form S-6, 4 under the Securities Act to require certain new structured data

1

Investment Company Names, Investment Company Act Release No. 35000 (September 20, 2023) (the “2023
Names Rule Adoption”).

2

17 CFR 274.11a-1.

3

17 CFR 274.12

4

17 CFR 239.16.

reporting requirements for funds. 5 Specifically, the amendments include new structured data
requirements that require funds to tag the information that the amendments require funds to
include in their registration statements about their fund name using Inline eXtensible Business
Reporting Language or “Inline XBRL.”
The amendments affect “collection of information” requirements within the meaning of
the PRA. 6
2. PURPOSE AND USE OF THE INFORMATION COLLECTION
The purpose of the new information collections is to make information regarding fund
names easier for investors to analyze and to help automate regulatory filings and business
information processing, and to improve consistency across all types of funds with respect to the
accessibility of fund name information they provide to the market. Requiring registrants to use
Inline XBRL to tag disclosures will improve the data’s usefulness, timeliness, and quality,
benefiting investors and other market participants, and to decrease, over time, the cost of
preparing the data for submission to the Commission.

5

6

The Investment Company Interactive Data collection of information do not impose any separate burden aside
from that described in our discussion of the burden estimates for this collection of information. The
amendments we are adopting to rules 485 and 497 under the Securities Act, as well as rules 11 and 405 to
Regulation S-T, are conforming amendments that have no associated PRA burden. While the new names related
information that open-end funds will be required to disclose under our final amendments to Form N-1A also
will be required to be tagged using Inline XBRL, the final amendments to Form N-1A will create no additional
PRA burden. The final rule amends Items 4 and 9 of Form N-1A; Form N-1A registrants are already required to
submit the information that they provide in response to Item 4 using Inline XBRL, and the final rules do not
require funds to tag the information disclosed in response to Item 9. Therefore, the burdens associated with
tagging Item 4 disclosure are already accounted for under the current Investment Company Interactive Data
collection of information.
This supporting statement relates only to the amendments to Forms N-1A, N-2, N-8B-2, and Form S-6, as well
as Regulation S-T. The amendments only affect investments companies that file on Forms N-1A, N-2, N-8B-2,
and Form S-6, and that under the final amendments would be required to use Inline XBRL to tag specified
disclosures.

2

3. CONSIDERATION GIVEN TO INFORMATION TECHNOLOGY
The collection of information requirements are set forth in the respective forms and
related rules. The information that will be required by these provisions would continue to be
filed electronically with the Commission using the Commission’s Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system.
4. DUPLICATION
The Commission periodically evaluates rule-based reporting and recordkeeping
requirements for duplication and reevaluates them whenever it proposes a rule or a form, or a
change in either. The Investment Company Interactive Data requirements generally are not
duplicated elsewhere.
5. EFFECT ON SMALL ENTITIES
The Commission reviews all rules periodically, as required by the Regulatory Flexibility
Act, to identify methods to minimize recordkeeping or reporting requirements affecting small
businesses. The burden on small entities to prepare and then submit Investment Company
Interactive Data may be proportionally greater than for larger registrants. This burden may
include the cost of software designed to prepare information in interactive data format and hiring
a consultant or filing agent to prepare and file the information in interactive data format. The
Commission believes, however, that imposing different requirements on smaller funds would not
be consistent with investor protection and the purposes of the Investment Company Interactive
Data requirements.
6. CONSEQUENCES OF NOT CONDUCTING COLLECTION
The final names rule disclosures and structured data requirements are designed to help
investors make informed investment decisions. Failure to conduct these collections of information

3

would reduce the information available to investors to make these decisions. The amendments
collectively are intended to improve disclosure about a fund’s name.
7. INCONSISTENCIES WITH GUIDESLINES IN 5 CFR 1320.5(d)(2)
This collection is not inconsistent with 5 CFR 1320.5(d)(2).
8. CONSULTATIONS OUTSIDE THE AGENCY
The Commission and the staff of the Division of Investment Management 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 staff with a means of ascertaining and acting upon paperwork burdens confronting the
industry. The Commission requested public comment on the proposed amendments, including
the collection of information requirements resulting from the proposed amendments. The
Commission’s solicitation of public comments included estimating and requesting public
comments on the burden estimates for all information collections under this OMB control
number (i.e., both changes associated with the rulemaking and other burden updates). The
Commission received no comments in response to its request.
9. PAYMENT OR GIFT
No payment or gift has been provided to any respondents.
10. CONFIDENTIALITY
No assurance of confidentiality was provided.
11. SENSITIVE QUESTIONS
No information of a sensitive nature, including social security numbers, will be required
under the following collections of information. The information collections that are currently

4

included in the Investment Company Interactive Data collection of information (although not the
amendments that would affect this collection of information) include basic Personally
Identifiable Information (“PII”) that may include a name and job title. However, the agency has
determined that the information collections do not constitute a system of records 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 these collections of information. The
EDGAR PIA, published on February 5, 2020, is provided as a supplemental document and is
also available at https://www.sec.gov/privacy.
12. BURDEN OF INFORMATION COLLECTION
The following estimates of average burden hours and costs are made solely for purposes
of the Paperwork Reduction Act of 1995 7 and are not derived from a comprehensive or even
representative survey or study of the cost of Commission rules and forms. Compliance with the
Investment Company Interactive Data requirements is mandatory. Responses to the disclosure
requirements will not be kept confidential.
Funds filing registration statements on Form N-2 already submit certain information
using Inline XBRL format. Based on filing data as of December 2022, we estimate that 663
funds filing registration statements on these forms would be subject to the interactive data
amendments. UITs filing initial registration statements on Form N-8B-2 and post-effective
amendments on Form S-6 are not currently subject to requirements to submit information in
structured form. Because these UITs have not previously been subject to Inline XBRL

7

44 U.S.C. 3501 et seq.

5

requirements, we assume that these funds will experience additional burdens related to one-time
costs associated with becoming familiarized with Inline XBRL reporting. These costs will
include, for example, the acquisition of new software or the services of consultants, and the
training of staff. Based on filing data as of December 30, 2020, we estimate that 796 filings
would be subject to these amendments. Therefore, we estimate 15,492 responses (the currently
approved 14,702 responses + 796 additional responses) associated with the Investment Company
Interactive Data information collection burden estimate. 8 Compliance with the interactive data
requirements is mandatory, and the responses will not be kept confidential.
In our most recent Paperwork Reduction Act submission for Investment Company
Interactive Data, we estimated a total aggregate annual hour burden of 323,724 hours, and a total
aggregate annual external cost burden of $16,041,450. The table below summarizes our PRA
initial and ongoing annual burden estimates associated with the amendments to Form N-1A,
Form N-2, Form N-8B-2, and Form S-6, as well as Regulation S-T.

8

Of these responses, we estimate 83 respondents are small entities. See 2023 Names Rule Adoption at
section VI.C.

6

PRA Table 1. INVESTMENT COMPANY INTERACTIVE DATA PRA ESTIMATES
Internal
initial
burden
hours

Internal annual
burden hours1

Wage rate2

Internal time
costs

Annual external
cost burden

PROPOSED BURDENS
Names rule information
1 hour
for current XBRL filers3

1 hour

Number of funds

× 626 funds6

Names rule information
9 hours
for new XBRL filers7

4 hours8

Number of filings

× 785 filings10

$356
(blended rate for
$356
compliance attorney and
senior programmer)

4

× 626 funds
$356
(blended rate for
$1,424
compliance attorney and
senior programmer)

Total new aggregate
3,766 hours11
annual burden
TOTAL PROPOSED ESTIMATED BURDENS INCLUDING AMENDMENTS
Current aggregate
annual burden
+ 252,602 hours
estimates
Revised aggregate
annual burden
256,368 hours
estimates

$505
× 626 funds
$9009

× 785 filings

x 785 filings

$1,340,69612

$737,800 13

+ $15,350,750
$16,088,550

FINAL ESTIMATED BURDENS
Names rule information
1 hour
for current XBRL filers3

1 hour4

Number of funds

× 663 funds6

$406
(blended rate for
$406
compliance attorney and
senior programmer)
× 663funds
$406
(blended rate for
$1,625
compliance attorney and
senior programmer)

$505
× 663funds

Names rule information
9 hours
for new XBRL filers7

4 hours8

Number of filings

× 796 filings14

× 796 filings

x 796 filings

Total new aggregate
annual burden

3,847 hours11

$1,562,67812

$749,55013

$9009

TOTAL FINAL ESTIMATED BURDENS INCLUDING AMENDMENTS
Current aggregate
annual burden
+ 323,724hours
estimates
Revised aggregate
annual burden
327,571 hours15
estimates
Notes:
1. Includes initial burden estimates annualized over a 3-year period.

+ $16,041,450
$16,791,000

2.

The estimated wage figures are based on published rates for the professionals described in this chart, modified to account for
an 1800-hour work-year and inflation. The estimates for the proposed and final burdens were multiplied by 5.35 to account for
bonuses, firm size, employee benefits, and overhead. See Securities Industry and Financial Markets Association’s Report on
Management & Professional Earnings in the Securities Industry 2013.

3.

This estimate represents the average burden for a filer on Form N-2 that is currently subject to interactive data requirements.

4.

This estimate included initial burden estimates annualized over a three-year period, plus 0.67 hour of ongoing annual burden
hours. The estimate of 1 hour was based on the following calculation: ((1 initial hour /3) + 0.67 hour of additional ongoing
burden hours) = 1 hour.

5.

The Commission estimated an incremental external cost for filers on Form N-2, as they already submit certain information using
Inline XBRL.

7

6.

Based on filing data as of December 30, 2020, the Commission estimated 626 funds, including BDCs, filing on Form N-2.
Based on filing data as of December 2022, we have adjusted that estimate to 663 funds.

7.

This estimate represents the average burden for a filer on Form N-8B-2 and Form S-6 that is not currently subject to interactive
data requirements.

8.

Includes initial burden estimates annualized over a three-year period, plus 1 hour of ongoing annual burden hours. The estimate
of 10 hours is based on the following calculation: ((27 initial hours /3) + 1 hour of additional ongoing burden hours) = 10
hours.

9.

This estimate assumes an external cost for filers on Form N-8B-2 and Form S-6 of $900 to reflect one-time compliance and
initial set-up costs. Because these filers have not been previously been subject to Inline XBRL requirements, this estimate
reflects that these funds would experience additional burdens related to one time-costs associated with becoming familiar with
Inline XBRL reporting. These costs would include, for example, the acquisition of new software or the services of consultants.

10. The Commission estimated 49 non-separate account and non-ETF UITs registered with the Commission. However, the
Commission based the proposed estimate on the belief that the number of filings instead of registrants would form a more
accurate estimate of annual burdens. The Commission estimated 1,047 filings based on the average number of filings made on
Form S-6 from 2018 to 2020, and therefore estimated that there are approximately 785 filings for funds that have names that
would have been covered by the proposed rule amendments, or 75% of the filings for UITs covered by the rule amendments
(1,047 filings x 75% = 785 filings).
11. With respect to the proposed estimate, 3,766 hours = (626 funds x 1 hour = 626 hours) + (785 filings x 4 hours = 3,140
hours). With respect to the final estimate, 3,847 hours = (663 funds x 1 hours = 663 hours) + (796 filings x 4 hours = 3,184
hours).
12. With respect to the proposed estimate, $1,340,696 internal time cost = (626 funds x $356 = $222,856) + (785 filings x
$1,424 = $1,117,840). With respect to the final estimate, $1,562,678 internal time cost = (663 funds x $406 = $269,178) +
(796 filings x $1,625 = $1,293,500).
13. With respect to the proposed estimate, $737,800 annual external cost = (626 funds x $50 = $31,300) + (785 filings x $900 =
$706,500). With respect to the final estimate, $749,550 annual external cost = (663 funds x $50 = $33,150) + (796 filings x
$900 = $716,400).
14. Based on our current analysis, we estimate that 76% of funds will be subject to rule 35d-1 under the final amendments, and
therefore estimate that 796 filings for funds that have names that will be covered by the final amendments (1,047 filings x 76%
= 796 filings).
15. The Names Rule Adopting Release included a scrivener’s error that calculated this figure as 324,571 rather than 327,571.

8

13.

COST TO RESPONDENTS
Cost burden is the cost of goods and services purchased to comply with the Investment

Company Interactive Data requirements, such as for software or the services of consultants or
filing agents. The cost burden does not include the cost of the hour burden discussed in Item 12
above.
As summarized in Table 1 above, in our most recent Paperwork Reduction Act
submission for Investment Company Interactive Data, Commission staff estimated about
$16,041,450 in external cost burden per year. We estimate that the annual cost of outside
services associated with these amendments to the Names Rule is $749,550, and therefore the
revised external cost burden would be $16,791,000. 9
14.

COSTS TO FEDERAL GOVERNMENT
The annual cost of reviewing and processing disclosure documents, including new

registration statements, post-effective amendments, proxy statements, shareholder reports, and
other filings of investment companies amounted to approximately $29 million in fiscal year
2022, based on the Commission’s computation of the value of staff time devoted to this activity
and related overhead.
15.

CHANGE IN BURDEN
The estimated hourly burden and external cost associated with Investment Company

Interactive Data has increased as follows:

9

This estimate is based on the following calculation: $749,550 annual external cost = (663 funds x $50) +
(796 filings x $900).

9

Table 2: Comparison of Current and Revised Burden Hours and External Cost for Investment
Company Interactive Data
Annual Time Burden (hours)

Investment
Company
Interactive
Data

External Cost Burden (dollars)

Currently
Approved

Revised
Estimate

Change

Currently
Approved

Revised Estimate

Change

323,724

327,571

3,847

$16,041,450

$16,791,000

$749,550

The changes in annual burden hours and external cost burden are due to our amendments
requiring a description of a fund’s name and requiring funds to tag this disclosure using Inline
XBRL. These changes in burden also reflect the Commission’s revision and update of burden
estimates for all information collections under this OMB control number (whether or not
associated with rulemaking changes), and the Commission requested public comment on all
information collection burden estimates for this OMB control number.
16.

INFORMATION COLLECTION PLANNED FOR STATISTICAL PURPOSES
The information collections do not employ statistical methods.

17.

APPROVAL TO OMIT OMB EXPIRATION DATE
The Commission is not seeking approval to omit the expiration date for OMB approval.

18.

EXCEPTIONS TO CERTIFICATION FOR PAPERWORK REDUCTION ACT
SUBMISSIONS
The Commission is not seeking an exception to the certification statement.

B.

STATISTICAL METHODS
The collection of information will not employ statistical methods.

10