The Securities and Exchange Commission (SEC) has submitted a request to the Office of Management and Budget to extend the collection of information under Rule 20a-1 of the Investment Company Act of 1940. This rule requires investment funds to comply with specific regulations when soliciting proxies, consents, and authorizations related to their securities, ensuring that investors receive the necessary information to make informed voting decisions. Around 1,129 proxy statements from funds are filed annually, with an estimated 85 hours required for each filing, totaling about 95,965 hours annually. The public comment period for this request runs from December 16, 2024, to January 13, 2025.
Simple Explanation
The SEC wants to keep checking how investment funds ask people to vote about their money, making sure they get the right information. They plan to discuss this until January 13, 2025, and they think it takes about 85 hours for funds to prepare this information each year.