Professional Documents
Culture Documents
of the trade date all ‘‘long’’ and ‘‘short’’ positions easy location, access, and retrieval of the required books and records by identifying the
carried by the fund for its own account, and annual costs for several funds and then relating this
corporate charters, certificates of incorporation and any particular record.6 total cost to the average net assets of these funds
by-laws. during the year. The staff estimates that the annual
5 17 CFR 270.31a–1(b)(5)–(12). These include, investment adviser, and memoranda identifying cost of preserving records is $70,000 per fund; the
among other records, records of each brokerage persons, committees or groups authorizing the funds queried in support of this analysis had an
order given in connection with purchases and sales purchase or sale of securities for the fund. average asset base of approximately $2 billion
of securities by the fund, all other portfolio 6 In addition, the fund, or whoever maintains the (70,000/2 billion=.000035).
9 See Investment Company Institute, 2002 Mutual
purchases, records of all puts, calls, spreads, documents for the fund must provide promptly any
straddles or other options in which the fund has an of the following that the Commission (by its Fund Fact Book, at 61.
interest, has granted, or has guaranteed, records of examiners or other representatives) or the directors 10 This estimate is based on the annual cost per
proof of money balances in all ledger accounts, files of the company may request: (A) a legible, true, and dollar of net assets of the average fund as applied
of all advisory material received from the complete copy of the record in the medium and Continued
VerDate 0ct<31>2002 16:30 Nov 04, 2002 Jkt 200001 PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 E:\FR\FM\05NON1.SGM 05NON1
67432 Federal Register / Vol. 67, No. 214 / Tuesday, November 5, 2002 / Notices
The Commission staff estimates, exemption since adoption of the rule, Securities and Exchange Commission,
however, based on past conversations and approximately 2.7 % (100) of the 450 Fifth Street, NW, Washington, DC
with representatives of the fund funds that have not already done so 20549. Comments must be submitted to
industry, that funds could spend as choose to rely on the rule each year. For OMB within 30 days of this notice.
much as half of this amount ($122.4 each of those funds choosing for the first Dated: October 29, 2002.
million) to preserve the books and time to rely on the rule, we estimate that
Margaret H. McFarland,
records that are necessary to prepare the adoption of the audit committee
Deputy Secretary.
financial statements, meet various state charter requires, on average, 1 hour of
reporting requirements, and prepare directors’ time, 2.5 hours of professional [FR Doc. 02–28098 Filed 11–4–02; 8:45 am]
their annual federal and state income time and 1 hour of support staff time, BILLING CODE 8010–01–P
VerDate 0ct<31>2002 16:30 Nov 04, 2002 Jkt 200001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 E:\FR\FM\05NON1.SGM 05NON1