The Securities and Exchange Commission is seeking public feedback on its information collection under Rule 17g-1, which deals with the fidelity bonding of officers and employees of registered management investment companies. This rule requires independent directors to approve the bond annually, specifies terms for coverage amounts based on a fund's assets, and mandates the submission of certain documents to the Commission. The Commission estimates that complying with these requirements takes about two hours per year for each of the approximately 2,200 funds. Comments on the necessity and efficiency of these information collections are requested within 60 days.
Simple Explanation
The Securities and Exchange Commission wants to know if people think checking certain rules every year takes too long and if it's useful. They think it takes about two hours each year for a group to check these rules, but it's not very clear how much money it costs or what happens if someone doesn't follow the rules.