The Securities and Exchange Commission (SEC) has requested an extension from the Office of Management and Budget to continue collecting certain information under Rule 19a-1, as mandated by the Paperwork Reduction Act of 1995. This rule requires investment companies to inform their shareholders about the sources of dividend payments to ensure clarity and prevent confusion between income dividends and other types of distributions. It affects around 12,019 investment companies annually, creating an estimated total burden of 24,038 hours and an approximate cost of $2,892,693. The SEC is accepting public comments on this information collection request within 30 days of the notice's publication.
Simple Explanation
The Securities and Exchange Commission wants to keep asking companies to tell their shareholders where their dividend money is coming from. This helps everyone understand if the money is from regular income or something else. They also want to know what people think about this plan!