Rule 17e-1 governs the receipt of compensation by a broker affiliated with a registered investment company in connection with securities transactions by the investment company. The rule requires the board of directors to establish and review procedures to ensure compliance with the rule, and imposes recordkeeping requirements concerning such procedures and transactions effected under the rule. The rule exempts certain transactions from some of the rule's procedural and recordkeeping requirements.
US Code:
15 USC 80a
Name of Law: Investment Company Act of 1940
The estimated hourly burden associated with rule 17e-1 has decreased from 68,688 hours to 43,021 hours (a decrease of 25,667 hours). The decrease is due to a decrease in the number of funds estimated to use an affiliated broker and a decrease in the estimated average annual hourly burden per fund, partially offset by an increase in the estimated number of funds entering into a subadvisory agreement each year.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Rule 17e-1 Supporting Statement - 01 - 2013-04-01.pdf
Brokerage Transactions on a Securities Exchange