Proposed Collection; Comment Request, 39739-39740 [E8-15643]
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Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices
process at least 75% of all routine items
in accordance with the requirements of
Rule 17Ad–2(a) to send to the chief
executive officer of each issuer for
which such registered transfer agent acts
a copy of the written notice required
under Rule 17Ad–2(c), (d), and (h). The
issuer may use the information
contained in the notices in several ways:
(1) To provide an early warning to the
issuer of the transfer agent’s noncompliance with the Commission’s
minimum performance standards
regarding registered transfer agents, and
(2) to assure that issuers are aware of
certain problems and poor performances
with respect to the transfer agents that
are servicing the issuer’s securities. If
the issuer does not receive notice of a
registered transfer agent’s failure to
comply with the Commission’s
minimum performance standards, then
the issuer will be unable to take
remedial action to correct the problem
or to find another registered transfer
agent. Pursuant to Rule 17Ad–3(b), a
transfer agent that has already filed a
Notice of Non-Compliance with the
Commission pursuant to Rule 17Ad–2
will only be required to send a copy of
that notice to issuers for which it acts
when that transfer agent fails to
turnaround 75% of all routine items or
to process 75% of all items.
The Commission estimates that only
two transfer agents will meet the
requirements of Rule 17Ad–3(b). If a
transfer agent fails to meet the minimum
requirements under 17Ad–3(b), such
transfer agent is simply sending a copy
of a form that had already been
produced for the Commission. The
Commission estimates a requirement
will take each respondent
approximately one hour to complete, for
a total annual estimate burden of two
hours at cost of approximately $60.00
for each hour.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of functions for the agency,
including whether the information shall
have practical utility; (b) the accuracy of
the agency’s estimate of the burden of
the proposed collection of information;
(c) ways to enhance the quality, utility,
and clarity of the information to be
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 Lewis W. Walker, Acting Director/
VerDate Aug<31>2005
16:58 Jul 09, 2008
Jkt 214001
39739
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit the existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
Rule 17f–7 (17 CFR 270.17f–7)
permits funds to maintain their assets in
foreign securities depositories based on
conditions that reflect the operations
and role of these depositories.1 Rule
17f–7 contains some ‘‘collection of
information’’ requirements. An eligible
securities depository has to meet
minimum standards for a depository.
The fund or its investment adviser
generally determines whether the
depository complies with those
requirements based on information
provided by the fund’s primary
custodian (a bank that acts as global
custodian). The depository custody
arrangement has to meet certain risk
limiting requirements. The fund can
obtain indemnification or insurance
arrangements that adequately protect
the fund against custody risks. The fund
or its investment adviser generally
determines whether indemnification or
insurance provisions are adequate. If the
fund does not rely on indemnification
or insurance, the fund’s contract with its
primary custodian is required to state
that the custodian will provide to the
fund or its investment adviser a custody
risk analysis of each depository, monitor
risks on a continuous basis, and
promptly notify the fund or its adviser
of material changes in risks. The
primary custodian and other custodians
also are required to agree to exercise
reasonable care.
The collection of information
requirements in rule 17f–7 are intended
to provide workable standards that
protect funds from the risks of using
securities depositories while assigning
appropriate responsibilities to the
fund’s primary custodian and
investment adviser based on their
capabilities. The requirement that the
depository meet specified minimum
standards is intended to ensure that the
depository is subject to basic safeguards
deemed appropriate for all depositories.
The requirement that the custody
contract state that the fund’s primary
custodian will provide an analysis of
the custody risks of depository
arrangements, monitor the risks, and
report on material changes is intended
to provide essential information about
custody risks to the fund’s investment
adviser as necessary for it to approve the
continued use of the depository. The
requirement that the primary custodian
agree to exercise reasonable care is
intended to provide assurances that its
services and the information it provides
will meet an appropriate standard of
care. The alternative requirement that
the funds obtain adequate
indemnification or insurance against the
custody risks of depository
arrangements is intended to provide
another, potentially less burdensome
means to protect assets held in
depository arrangements.
The staff estimates that each of
approximately 828 investment advisers 2
would make an average of 7 responses
annually under the rule to address
depository compliance with minimum
requirements, any indemnification or
insurance arrangements, and reviews of
risk analyses or notifications. The staff
estimates each response would take 5.5
hours, requiring a total of approximately
38.5 hours for each adviser. The total
annual burden associated with these
requirements of the rule would be
approximately 31,878 hours (828
advisers × 38.5 hours per adviser). The
staff further estimates that during each
year, each of approximately 15 global
custodians would make an average of 4
responses to analyze custody risks and
1 Custody of Investment Company Assets Outside
the United States, Investment Company Act Release
No. 23815 (April 29, 1999) (64 FR 24489 (May 6,
1999)).
2 At the start of 2008, there were more than 9300
open-end (including ETFs) portfolios and closedend funds. These entities were managed or
sponsored by more 828 investment advisers.
Chief Information Officer, Securities
and Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312; or send an
e-mail to: PRA_Mailbox@sec.gov.
Dated: July 2, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15642 Filed 7–9–08; 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 Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 17f–7; SEC File No. 270–470; OMB
Control No. 3235–0529.
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
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10JYN1
39740
Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices
jlentini on PROD1PC65 with NOTICES
provide notice of any material changes
to custody risk under the rule. The staff
estimates that each response would take
250.25 hours, requiring approximately
1001 hours annually per custodian.3
The total annual burden associated with
these requirements of the new rule
would be approximately 15,015 hours
(15 custodians × 1001 hours). Therefore,
the staff estimates that the total annual
burden associated with all collection of
information requirements of the rule
would be 46,893 hours (31,878 +
15,015). The total annual cost of burden
hours is estimated to be $10,081,302
(31,878 × $239 for a portfolio manager,
plus 15,015 hours × $164/hour for a
trust administrator’s time).4 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 and
forms. Compliance with the collection
of information requirements of the rule
is necessary to obtain the benefit of
relying on the rule’s permission for
funds to maintain their assets in foreign
custodians.
Written comments are invited on: (a)
Whether the collection of information is
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 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 Lewis W. Walker, Acting Director/
CIO, Securities and Exchange
Commission, c/o Shirley Martinson,
6432 General Green Way, Alexandria,
VA 22312; or send an e-mail to:
PRA_Mailbox@sec.gov.
3 These estimates are based on conversations with
representatives of the fund industry and global
custodians.
4 The salaries for a portfolio manager and a trust
administrator are from SIFMA’s Management &
Professional Earnings in the Securities Industry
2007, modified to account for an 1800-hour workyear and multiplied by 5.35 to account for bonuses,
firm size, employee benefits and overhead.
VerDate Aug<31>2005
16:58 Jul 09, 2008
Jkt 214001
Dated: July 2, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15643 Filed 7–9–08; 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 Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 10A–1; SEC File No. 270–425; OMB
Control No. 3235–0468.
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
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 10A–1 (17 CFR 240.10A–1)
implements the reporting requirements
in Section 10A of the Exchange Act (15
U.S.C. 78j–1), which was enacted by
Congress on December 22, 1995 as part
of the Private Securities Litigation
Reform Act of 1995, Public Law No.
104–67, 109 Stat 737. Under section
10A and Rule 10A–1 reporting occurs
only if a registrant’s board of directors
receives a report from its auditors that
(1) there is an illegal act material to the
registrant’s financial statements, (2)
senior management and the board have
not taken timely and appropriate
remedial action, and (3) the failure to
take such action is reasonably expected
to warrant the auditor’s modification of
the audit report or resignation from the
audit engagement. The board of
directors must notify the Commission
within one business day of receiving
such a report. If the board fails to
provide that notice, then the auditor,
within the next business day, must
provide the Commission with a copy of
the report that it gave to the board.
Likely respondents are those
registrants filing audited financial
statements under the Securities
Exchange Act of 1934 (15 U.S.C. 78a, et
seq.) and the Investment Company Act
of 1940 (15 U.S.C. 80a–1, et seq.).
It is estimated that Rule 10A–1 results
in an aggregate additional reporting
burden of 10 hours per year. The
estimated average burden hours are
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
solely for purposes of the Paperwork
Reduction Act and are not derived from
a comprehensive or even a
representative survey or study of the
costs of SEC rules or forms.
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, Securities and
Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312; or send an
e-mail to: PRA_Mailbox@sec.gov.
Dated: June 30, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15676 Filed 7–9–08; 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 Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 17f–2(d); SEC File No. 270–36; OMB
Control No. 3235–0028.
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
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
• Rule 17f–2(d) (17 CFR 240.17f–
2(d)).
Rule 17f–2(d) was adopted on March
16, 1976, and was last amended on
November 18, 1982. Paragraph (d) of the
E:\FR\FM\10JYN1.SGM
10JYN1
]]>Agencies
[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Notices]
[Pages 39739-39740]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15643]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 17f-7; SEC File No. 270-470; OMB Control No. 3235-0529.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit the
existing collection of information to the Office of Management and
Budget (``OMB'') for extension and approval.
Rule 17f-7 (17 CFR 270.17f-7) permits funds to maintain their
assets in foreign securities depositories based on conditions that
reflect the operations and role of these depositories.\1\ Rule 17f-7
contains some ``collection of information'' requirements. An eligible
securities depository has to meet minimum standards for a depository.
The fund or its investment adviser generally determines whether the
depository complies with those requirements based on information
provided by the fund's primary custodian (a bank that acts as global
custodian). The depository custody arrangement has to meet certain risk
limiting requirements. The fund can obtain indemnification or insurance
arrangements that adequately protect the fund against custody risks.
The fund or its investment adviser generally determines whether
indemnification or insurance provisions are adequate. If the fund does
not rely on indemnification or insurance, the fund's contract with its
primary custodian is required to state that the custodian will provide
to the fund or its investment adviser a custody risk analysis of each
depository, monitor risks on a continuous basis, and promptly notify
the fund or its adviser of material changes in risks. The primary
custodian and other custodians also are required to agree to exercise
reasonable care.
---------------------------------------------------------------------------
\1\ Custody of Investment Company Assets Outside the United
States, Investment Company Act Release No. 23815 (April 29, 1999)
(64 FR 24489 (May 6, 1999)).
---------------------------------------------------------------------------
The collection of information requirements in rule 17f-7 are
intended to provide workable standards that protect funds from the
risks of using securities depositories while assigning appropriate
responsibilities to the fund's primary custodian and investment adviser
based on their capabilities. The requirement that the depository meet
specified minimum standards is intended to ensure that the depository
is subject to basic safeguards deemed appropriate for all depositories.
The requirement that the custody contract state that the fund's primary
custodian will provide an analysis of the custody risks of depository
arrangements, monitor the risks, and report on material changes is
intended to provide essential information about custody risks to the
fund's investment adviser as necessary for it to approve the continued
use of the depository. The requirement that the primary custodian agree
to exercise reasonable care is intended to provide assurances that its
services and the information it provides will meet an appropriate
standard of care. The alternative requirement that the funds obtain
adequate indemnification or insurance against the custody risks of
depository arrangements is intended to provide another, potentially
less burdensome means to protect assets held in depository
arrangements.
The staff estimates that each of approximately 828 investment
advisers \2\ would make an average of 7 responses annually under the
rule to address depository compliance with minimum requirements, any
indemnification or insurance arrangements, and reviews of risk analyses
or notifications. The staff estimates each response would take 5.5
hours, requiring a total of approximately 38.5 hours for each adviser.
The total annual burden associated with these requirements of the rule
would be approximately 31,878 hours (828 advisers x 38.5 hours per
adviser). The staff further estimates that during each year, each of
approximately 15 global custodians would make an average of 4 responses
to analyze custody risks and
[[Page 39740]]
provide notice of any material changes to custody risk under the rule.
The staff estimates that each response would take 250.25 hours,
requiring approximately 1001 hours annually per custodian.\3\ The total
annual burden associated with these requirements of the new rule would
be approximately 15,015 hours (15 custodians x 1001 hours). Therefore,
the staff estimates that the total annual burden associated with all
collection of information requirements of the rule would be 46,893
hours (31,878 + 15,015). The total annual cost of burden hours is
estimated to be $10,081,302 (31,878 x $239 for a portfolio manager,
plus 15,015 hours x $164/hour for a trust administrator's time).\4\ 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 and forms. Compliance with the collection of
information requirements of the rule is necessary to obtain the benefit
of relying on the rule's permission for funds to maintain their assets
in foreign custodians.
---------------------------------------------------------------------------
\2\ At the start of 2008, there were more than 9300 open-end
(including ETFs) portfolios and closed-end funds. These entities
were managed or sponsored by more 828 investment advisers.
\3\ These estimates are based on conversations with
representatives of the fund industry and global custodians.
\4\ The salaries for a portfolio manager and a trust
administrator are from SIFMA's Management & Professional Earnings in
the Securities Industry 2007, modified to account for an 1800-hour
work-year and multiplied by 5.35 to account for bonuses, firm size,
employee benefits and overhead.
---------------------------------------------------------------------------
Written comments are invited on: (a) Whether the collection of
information is 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 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 Lewis W. Walker, Acting
Director/CIO, Securities and Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way, Alexandria, VA 22312; or send an e-
mail to: PRA_Mailbox@sec.gov.
Dated: July 2, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15643 Filed 7-9-08; 8:45 am]
BILLING CODE 8010-01-P
