Proposed Collection; Comment Request, 17728 [E5-1590]
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Federal Register / Vol. 70, No. 66 / Thursday, April 7, 2005 / Notices
records of transactions entered into
pursuant to the rule, and (ii) the fund’s
directors review those transactions
quarterly.5 We estimate, therefore, that
all funds relying on this exemption
incur yearly hourly burdens of 10,260
burden.6 Therefore, the annual aggregate
burden hour associated with rule 17e–
1 is 10,377.7
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act, and is not
derived from a comprehensive or even
a representative survey or study. An
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a currently valid OMB control
number.
Written comments are invited on: (a)
Whether the collections of information
are necessary for the proper
performance of the functions of the
Commission, including whether the
information has practical utility; (b) the
accuracy of the Commission’s estimate
of the burdens of the collections of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burdens of the collections
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. E5–1589 Filed 4–6–05; 8:45 am]
BILLING CODE 8010–01–P
5 In calculating the total annual cost of complying
with amended rule 17e–1, the Commission staff
assumes that the entire burden would be
attributable to professionals with an average hourly
wage rate of $66.31 per hour. Unless stated
otherwise, all hourly rates in this Supporting
Statement are derived from the average annual
salaries reported for employees outside of New
York City in Securities Industry Association,
Management and Professional Earnings in the
Securities Industry (2003) and Securities Industry
Association, Office Salaries in the Securities
Industry (2003).
6 This estimate is based on the following
calculation: (180 funds × 57 hours = 10,260).
7 This estimate is based on the following
calculation: (117 hours + 10,260 hours = 10,377).
VerDate jul<14>2003
18:22 Apr 06, 2005
Jkt 205001
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–6, SEC File No. 270–506, OMB
Control No. 3235–0564.
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–6 permits a fund and its
‘‘portfolio affiliates’’ (an issuer of which
a fund owns more than five percent of
the voting securities) to engage in
principal transactions with if no
prohibited participants (e.g., directors,
officers, employees, or investment
advisers of the fund contain persons
controlling and under common control
with the fund, and their affiliates) are
parties to the transaction or have a
direct or indirect financial interest in
the transaction. Rule 17a–6 specifies
certain interests that are not ‘‘financial
interests.’’ The rule also provides that
the term ‘‘financial interest’’ 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, as long as the board records
the basis for the findings in its meeting
minutes.
The information collection
requirements in rule 17a–6 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
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
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 currently rely
on rule 17a–6 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 17a–6.
Accordingly, we estimate that annually
there will be no principal transactions
under rule 17a–6 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 17a–6’s collection of
information analysis should reliance on
rule 17a–6 increase in the coming years.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. The estimate
is not derived from a comprehensive or
even a representative survey or study of
the costs of Commission rules.
Complying with this collection of
information requirement is necessary to
obtain the benefit of relying on rule
17a–6. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
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. E5–1590 Filed 4–6–05; 8:45 am]
BILLING CODE 8010–01–P
E:\FR\FM\07APN1.SGM
07APN1
]]>Agencies
[Federal Register Volume 70, Number 66 (Thursday, April 7, 2005)]
[Notices]
[Page 17728]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1590]
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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-6, SEC File No. 270-506, OMB Control No. 3235-0564.
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-6 permits a fund and its ``portfolio
affiliates'' (an issuer of which a fund owns more than five percent of
the voting securities) to engage in principal transactions with if no
prohibited participants (e.g., directors, officers, employees, or
investment advisers of the fund contain persons controlling and under
common control with the fund, and their affiliates) are parties to the
transaction or have a direct or indirect financial interest in the
transaction. Rule 17a-6 specifies certain interests that are not
``financial interests.'' The rule also provides that the term
``financial interest'' 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, as long as
the board records the basis for the findings in its meeting minutes.
The information collection requirements in rule 17a-6 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 currently rely on rule 17a-6 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 17a-6. Accordingly, we estimate that annually there will be
no principal transactions under rule 17a-6 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 17a-6's collection of
information analysis should reliance on rule 17a-6 increase in the
coming years.
The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act. The estimate is not derived
from a comprehensive or even a representative survey or study of the
costs of Commission rules. Complying with this collection of
information requirement is necessary to obtain the benefit of relying
on rule 17a-6. An agency may not conduct or sponsor, and a person is
not required to respond to, a collection of information unless it
displays a currently valid control number.
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. E5-1590 Filed 4-6-05; 8:45 am]
BILLING CODE 8010-01-P
