FR 2021-01664

The document in review is a notice from the Securities and Exchange Commission (SEC) concerning a request for the extension of the approval process for a form known as Form 24F-2. This form is critical as it is used by specific types of investment funds, including mutual funds and unit investment trusts, to report on securities that they have sold over a fiscal year. This report assists in the calculation of the necessary registration fees. The process is part of the compliance measures mandated under the Paperwork Reduction Act of 1995, aiming to streamline the reporting obligations of these funds.

Summary of the Document

The SEC estimates that approximately 6,794 funds are involved in filing Form 24F-2 annually, and each form takes about four hours to complete. The public is invited to comment on this request for extension within 30 days from the notice's publication. The comments can be directed to the Office of Management and Budget (OMB) or the SEC itself through specified channels.

Significant Issues and Concerns

One of the notable aspects of the document is the absence of an abstract, which could be beneficial in providing a quick overview of the notice's intentions. Additionally, while the SEC provides an estimate of the time burden (four hours per form), it acknowledges that this estimate does not derive from a comprehensive study or survey. This admission may raise questions about the reliability and accuracy of these calculations. The document also lacks specific measures or recommendations on how to reduce the paperwork burden, which is ostensibly the purpose of the Paperwork Reduction Act.

Furthermore, the document does not provide detailed information about the costs or potential financial implications associated with completing Form 24F-2. This lack of detail hampers the ability to assess whether the process could lead to wasteful spending or otherwise impact the financial bottom line of the stakeholders involved.

Potential Impact on the Public

Broadly, this document's implications are indicative of the regular processes involved in managing the administrative burden on investment funds. The results of such paperwork may contribute to the transparency and regulation of financial markets, reassuring the public that these entities are appropriately monitored.

Impact on Specific Stakeholders

For the investment funds required to file Form 24F-2, the estimated four-hour time burden might represent a concern in terms of administrative costs and efficiency. Without concrete measures to reduce this burden, these financial entities may find themselves expending resources that could be otherwise utilized. This situation might particularly affect smaller funds that might not have as much administrative capability as larger ones.

However, maintaining such reporting is crucial for regulatory oversight, ensuring that the funds operate within the set legal framework. This regulatory process could benefit investors and the general public by preventing fraudulent activities and promoting financial stability.

Including more detailed explanations about the laws referenced and streamlining the instructions for submitting comments by consolidating them into a single section could also improve clarity and facilitate engagement from the public and stakeholders.