Proposed Collection; Comment Request, 17724-17725 [E5-1585]

Download as PDF 17724 Federal Register / Vol. 70, No. 66 / Thursday, April 7, 2005 / Notices determined pursuant to U.S.C. 552b(e) and § 9.107(a) of the Commission’s rules that ‘‘Discussion of Intergovernmental Issues (Closed—Ex. 9)’’ be held April 4, and on less than one week’s notice to the public. * * * * * The NRC Commission Meeting Schedule can be found on the Internet at: https://www.nrc.gov/what-we-do/ policy-making/schedule.html. * * * * * The NRC provides reasonable accommodation to individuals with disabilities where appropriate. If you need a reasonable accommodation to participate in these public meetings, or need this meeting notice or the transcript or other information from the public meetings in another format (e.g. braille, large print), please notify the NRC’s Disability Program Coordinator, August Spector, at 301–415–7080, TDD: 301–415–2100, or by e-mail at aks@nrc.gov. Determinations on requests for reasonable accommodation will be made on a case-by-case basis. * * * * * This notice is distributed by mail to several hundred subscribers; if you no longer wish to receive it, or would like to be added to the distribution, please contact the Office of the Secretary, Washington, DC 20555 (301–415–1969). In addition, distribution of this meeting notice over the Internet system is available. If you are interested in receiving this Commission meeting schedule electronically, please send an electronic message to dkw@nrc.gov. Dated: April 4, 2005. Dave Gamberoni, Office of the Secretary. [FR Doc. 05–6995 Filed 4–5–05; 9:25 am] BILLING CODE 7590–01–M SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission; Office of Filings and Information Services; Washington, DC 20549. Extension: Rule 17d–1; SEC File No. 270–505; OMB Control No. 3235–0562. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission (the ‘‘Commission’’) is soliciting comments on the collections of information VerDate jul<14>2003 18:22 Apr 06, 2005 Jkt 205001 summarized below. The Commission plans to submit these existing collections of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Section 17(d) of the Investment Company Act of 1940 (the ‘‘Act’’) prohibits first- and second-tier affiliates of a fund, the fund’s principal underwriters, and affiliated persons of the fund’s principal underwriters, acting as principal, to effect any transaction in which the fund or a company controlled by the fund is a joint or a joint and several participant in contravention of the Commission’s rules. Rule 17d–1 (‘‘Applications regarding joint enterprises or arrangements and certain profit-sharing plans’’ [17 CFR 270.17d– 1]) permit a fund to enter into a joint arrangement with a portfolio affiliate (an issuer of which a fund owns a position in excess of five percent of the voting securities), or an affiliated person of a portfolio affiliate, as long as certain other affiliated persons of the fund (e.g., the fund’s adviser, persons controlling the fund, and persons under common control with the fund) are not parties to the transaction and do not have a financial interest in a party to the transaction. Rule 17d–1 provides that, in addition to the interests identified in the rule not to be ‘‘financial interests,’’ the term ‘‘financial interest’’ also does not include any interest that the fund’s board of directors (including a majority of the directors who are not interested persons of the fund) finds to be not material. The rule requires that the minutes of the board’s meeting record the basis for the board’s finding. The information collection requirements in rule 17d–1 are intended to ensure that Commission staff can review, in the course of its compliance and examination functions, the basis for a board of director’s finding that the financial interest of a prohibited participant in a party to a transaction with a portfolio affiliate is not material. Based on analysis of past filings, the Commission’s staff estimates that 148 funds are affiliated persons of 668 issuers as a result of the fund’s ownership or control of the issuer’s voting securities, and that there are approximately 1,000 such affiliate relationships. Staff discussions with mutual fund representatives have suggested that no funds are currently relying on rule 17d–1 exemptions. We do not know definitively the reasons for this change in transactional behavior, but differing market conditions from year to year may offer some explanation for the current lack of fund interest in the exemptions under rule 17d–1. PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 Accordingly, we estimate that annually there will be no joint transactions under rule 17d–1 that will result in a collection of information. The Commission requests authorization to maintain an inventory of one burden hour to ease future renewals of rule 17d–1 collection of information analysis should reliance on the rule increase in the coming years. Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to R. Corey Booth, Director/Chief Information Officer, Office of Information Technology, Securities and Exchange Commission, 450 5th Street, NW., Washington, DC 20549. Dated: March 29, 2005. Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–1583 Filed 4–6–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission; Office of Filings and Information Services; Washington, DC 20549. Extension: Rule 12d3–1; SEC File No. 270–504; OMB Control No. 3235–0561. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission (the ‘‘Commission’’) is soliciting comments on the collections of information summarized below. The Commission plans to submit these existing collections of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. E:\FR\FM\07APN1.SGM 07APN1 Federal Register / Vol. 70, No. 66 / Thursday, April 7, 2005 / Notices Section 12(d)(3) of the Act generally prohibits registered investment companies (‘‘funds’’), and companies controlled by funds, from purchasing securities issued by a registered investment adviser, broker, dealer, or underwriter (‘‘securities-related businesses’’). Rule 12d3–1 (‘‘Exemption of acquisitions of securities issued by persons engaged in securities related businesses’’ [17 CFR 270.12d3–1]) permits a fund to invest up to five percent of its assets in securities of an issuer deriving more than fifteen percent of its gross revenues from securities-related businesses, but a fund may not rely on rule 12d3–1 to acquire securities of its own investment adviser or any affiliated person of its own investment adviser. A fund may, however, rely on an exemption in rule 12d3–1 to acquire securities issued by its subadvisers in circumstances in which the subadviser would have little ability to take advantage of the fund, because it is not in a position to direct the fund’s securities purchases. The exemption in rule 12d3–1(c)(3) is available if (i) the subadviser is not, and is not an affiliated person of, an investment adviser that provides advice with respect to the portion of the fund that is acquiring the securities, and (ii) the advisory contracts of the subadviser, and any subadviser that is advising the purchasing portion of the fund, prohibit them from consulting with each other concerning securities transactions of the fund, and limit their responsibility in providing advice to providing advice with respect to discrete portions of the fund’s portfolio. The Commission staff estimates that 3,028 portfolios of approximately 2,126 funds use the services of one or more subadvisers. Based on an analysis of investment company filings, the staff estimates that approximately 200 funds are registered annually. Assuming that the number of these funds that will use the services of subadvisers is proportionate to the number of funds that currently use the services of subadvisers, then we estimate that 46 new funds will enter into subadvisory agreements each year.1 The Commission staff further estimates, based on analysis of investment company filings, that 10 extant funds will employ the services of subadvisers for the first time each year. Thus, the staff estimates that a total of 56 funds, with a total of 78 portfolios 1 The Commission staff estimates that approximately 23 percent of funds are advised by subadvisers. VerDate jul<14>2003 18:22 Apr 06, 2005 Jkt 205001 (respondents),2 will enter into subadvisory agreements each year. Assuming that each of these funds enters into a subadvisory contract that permits it to rely on the exemptions in rule 12d3–1(c)(3),3 we estimate that the rule’s contract modification requirement will result in 117 burden hours annually.4 Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to R. Corey Booth, Director/Chief Information Officer, Office of Information Technology, Securities and Exchange Commission, 450 5th Street, NW., Washington, DC 20549. Dated: March 28, 2005. Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–1585 Filed 4–6–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon written request, copies available from: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. Extension: Rule 17a–10, SEC File No. 270–507, OMB Control No. 3235–0563. 2 Based on existing statistics, we assume that each fund has 1.4 portfolios advised by a subadviser. 3 Rules 12d3–1, 10f–3, 17a–10, and 17e–1 require virtually identical modifications to fund advisory contracts. The Commission staff assumes that funds would rely equally on the exemptions in these rules, and therefore the Commission has apportioned the burden hours associated with the required contract modifications equally among the four rules. 4 This estimate is based on the following calculations: (78 portfolios × 6 hours = 468 burden hours for rules 12d3–1, 10f–3, 17a–10, and 17e–1; 468 total burden hours for all of the rules/four rules = 117 annual burden hours per rule.) PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 17725 Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission (the ‘‘Commission’’) is soliciting comments on the collections of information summarized below. The Commission plans to submit these existing collections of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Section 17(a) of the Investment Company Act of 1940 (the ‘‘Act’’), prohibits affiliated persons of a registered investment company (‘‘fund’’) from borrowing money or other property from, or selling or buying securities or other property to or from the fund, or any company that the fund controls. Rule 17a–10 permits (i) a subadviser of a fund to enter into transactions with funds the subadviser does not advise but which are affiliated persons of a fund that it does advise (e.g., other funds in the fund complex), and (ii) a subadviser (and its affiliated persons) to enter into transactions and arrangements with funds the subadviser does advise, but only with respect to discrete portions of the subadvised fund for which the subadviser does not provide investment advice. To qualify for the exemptions in rule 17a–10, the subadvisory relationship must be the sole reason why section 17(a) prohibits the transaction; and the advisory contracts of the subadviser entering into the transaction, and any subadviser that is advising the purchasing portion of the fund, must prohibit the subadvisers from consulting with each other concerning securities transactions of the fund, and limit their responsibility to providing advice with respect to discrete portions of the fund’s portfolio.1 The Commission staff estimates that 3,028 portfolios of approximately 2,126 funds use the services of one or more subadvisers. Based on discussions with industry representatives, the staff estimates that it will require approximately 6 hours to draft and execute revised subadvisory contracts (5 staff attorney hours, 1 supervisory attorney hour), in order for funds and subadvisers to be able to rely on the exemptions in rule 17a–10. The staff assumes that all of these funds amended their advisory contracts following the adoption of rule 17a–10 in 2002 that conditioned certain exemptions upon these contractual alterations.2 1 See 17 CFR 270.17a–10(a)(2). 12d3–1, 10f–3, 17a–10, and 17e–1 require virtually identical modifications to fund advisory contracts. The Commission staff assumes that funds 2 Rules E:\FR\FM\07APN1.SGM Continued 07APN1

Agencies

[Federal Register Volume 70, Number 66 (Thursday, April 7, 2005)]
[Notices]
[Pages 17724-17725]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1585]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission; Office of Filings and Information Services; Washington, DC 
20549.

Extension:
    Rule 12d3-1; SEC File No. 270-504; OMB Control No. 3235-0561.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission 
(the ``Commission'') is soliciting comments on the collections of 
information summarized below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget (``OMB'') for extension and approval.

[[Page 17725]]

    Section 12(d)(3) of the Act generally prohibits registered 
investment companies (``funds''), and companies controlled by funds, 
from purchasing securities issued by a registered investment adviser, 
broker, dealer, or underwriter (``securities-related businesses''). 
Rule 12d3-1 (``Exemption of acquisitions of securities issued by 
persons engaged in securities related businesses'' [17 CFR 270.12d3-1]) 
permits a fund to invest up to five percent of its assets in securities 
of an issuer deriving more than fifteen percent of its gross revenues 
from securities-related businesses, but a fund may not rely on rule 
12d3-1 to acquire securities of its own investment adviser or any 
affiliated person of its own investment adviser.
    A fund may, however, rely on an exemption in rule 12d3-1 to acquire 
securities issued by its subadvisers in circumstances in which the 
subadviser would have little ability to take advantage of the fund, 
because it is not in a position to direct the fund's securities 
purchases. The exemption in rule 12d3-1(c)(3) is available if (i) the 
subadviser is not, and is not an affiliated person of, an investment 
adviser that provides advice with respect to the portion of the fund 
that is acquiring the securities, and (ii) the advisory contracts of 
the subadviser, and any subadviser that is advising the purchasing 
portion of the fund, prohibit them from consulting with each other 
concerning securities transactions of the fund, and limit their 
responsibility in providing advice to providing advice with respect to 
discrete portions of the fund's portfolio.
    The Commission staff estimates that 3,028 portfolios of 
approximately 2,126 funds use the services of one or more subadvisers. 
Based on an analysis of investment company filings, the staff estimates 
that approximately 200 funds are registered annually. Assuming that the 
number of these funds that will use the services of subadvisers is 
proportionate to the number of funds that currently use the services of 
subadvisers, then we estimate that 46 new funds will enter into 
subadvisory agreements each year.\1\ The Commission staff further 
estimates, based on analysis of investment company filings, that 10 
extant funds will employ the services of subadvisers for the first time 
each year. Thus, the staff estimates that a total of 56 funds, with a 
total of 78 portfolios (respondents),\2\ will enter into subadvisory 
agreements each year. Assuming that each of these funds enters into a 
subadvisory contract that permits it to rely on the exemptions in rule 
12d3-1(c)(3),\3\ we estimate that the rule's contract modification 
requirement will result in 117 burden hours annually.\4\
---------------------------------------------------------------------------

    \1\ The Commission staff estimates that approximately 23 percent 
of funds are advised by subadvisers.
    \2\ Based on existing statistics, we assume that each fund has 
1.4 portfolios advised by a subadviser.
    \3\ Rules 12d3-1, 10f-3, 17a-10, and 17e-1 require virtually 
identical modifications to fund advisory contracts. The Commission 
staff assumes that funds would rely equally on the exemptions in 
these rules, and therefore the Commission has apportioned the burden 
hours associated with the required contract modifications equally 
among the four rules.
    \4\ This estimate is based on the following calculations: (78 
portfolios x 6 hours = 468 burden hours for rules 12d3-1, 10f-3, 
17a-10, and 17e-1; 468 total burden hours for all of the rules/four 
rules = 117 annual burden hours per rule.)
---------------------------------------------------------------------------

    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information collected; and (d) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques or other forms of information technology. Consideration will 
be given to comments and suggestions submitted in writing within 60 
days of this publication.
    Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Office of Information Technology, Securities 
and Exchange Commission, 450 5th Street, NW., Washington, DC 20549.

    Dated: March 28, 2005.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1585 Filed 4-6-05; 8:45 am]
BILLING CODE 8010-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.