Rule 32a-4 (17 CFR Sec. 270.32a-4) under the Investment Company Act of 1940, "Independent Audit Committees"

Forms and Documents

Document Name	Status
Rule 32a-4 Supporting Statement 2013.pdf Supporting Statement A	2014-06-10
Section_32_of_Act[1].doc Supplementary Document	2011-08-22
Rule_Text_32a-4[1].doc Supplementary Document	2011-08-22

IC Document Collections

IC ID	Document Title	Status
35332	Investment Company Act rule 32a-4	Modified

ICR Details

OMB Control No: 3235-0530	ICR Reference No: 201404-3235-014
Status: Historical Active	Previous ICR Reference No: 201108-3235-023
Agency/Subagency: SEC	Agency Tracking No: IM 270-473
Title: Rule 32a-4 (17 CFR Sec. 270.32a-4) under the Investment Company Act of 1940, "Independent Audit Committees"
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 09/05/2014
	Date Received in OIRA: 06/10/2014
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2017	36 Months From Approved	09/30/2014
Responses	139	0	117
Time Burden (Hours)	417	0	351
Cost Burden (Dollars)	208,500	0	175,500

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Abstract: Rule 32a-4 exempts a fund from the requirements of section 32(a)(2) of the Investment Company Act -- that shareholders ratify or reject the selection of the fund's independent public accountant -- if the fund has an audit committee composed wholly of independent directors.

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Authorizing Statute(s): US Code: 15 USC 80a Name of Law: Investment Company Act of 1940
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	79 FR 11836	03/03/2014
30-day Notice:	Federal Register Citation:	Citation Date:
	79 FR 27942	05/15/2014
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Investment Company Act rule 32a-4

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	139	117	0	0	22	0
Annual Time Burden (Hours)	417	351	0	0	66	0
Annual Cost Burden (Dollars)	208,500	175,500	0	0	33,000	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The increase in the number of burden hours associated with the rule arises from an increase in the estimated number of funds that will rely on the rule each year. As noted above, because virtually all existing funds have now adopted audit committee charters, the annual one-time collection of information burden associated with adopting audit committee charters is limited to the burden incurred by newly established funds. Our estimate of the number of new funds formed each year has increased from 117 funds (as estimated in the last collection of information submission for rule 32a 4) to 139 funds. As noted above, the ongoing collection of information requirement to preserve a copy of the charter, while applying to all existing funds and new funds, is estimated by Commission staff to have no hourly burden. Therefore, existing funds are not included within the estimate of the number of respondents or responses to the collection of information requirements of rule 32a 4.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 06/10/2014

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