Submission for OMB Review; Comment Request, 53457-53458 [E8-21533]
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Federal Register / Vol. 73, No. 180 / Tuesday, September 16, 2008 / Notices
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 regarding the
above information should be directed to
the following persons: (i) Desk Officer
for the Securities and Exchange
Commission, Office of Information and
Regulatory Affairs, Office of
Management and Budget, Room 10102,
New Executive Office Building,
Washington, DC 20503 or by sending an
e-mail to:
Kimberly_P._Nelson@omb.eop.gov; and
(ii) Lewis W. Walker, Acting Director/
Chief Information Officer, Securities
and Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312; or by
sending an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
Dated: September 8, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–21531 Filed 9–15–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
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’’) has submitted to the
Office of Management and Budget a
request for approval of extension of the
previously approved collection of
information discussed below.
ebenthall on PROD1PC60 with NOTICES
• 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
rule (i) requires that records produced
pursuant to the fingerprinting
requirements of Section 17(f)(2) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) be maintained, (ii)
permits the designated examining
authorities of broker-dealers or members
of exchanges, under certain
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Jkt 214001
circumstances, to store and maintain
records required to be kept by this rule,
and (iii) permits the required records to
be maintained on microfilm.
The general purpose of Rule 17f–2 is:
(i) To identify security risk personnel;
(ii) to provide criminal record
information so that employers can make
fully informed employment decisions;
and (iii) to deter persons with criminal
records from seeking employment or
association with covered entities.
Retention of fingerprint records, as
required under paragraph (d) of the
Rule, enables the Commission or other
examining authority to ascertain
whether all required persons are being
fingerprinted and whether proper
procedures regarding fingerprint are
being followed. Retention of these
records for the term of employment of
all personnel plus three years ensures
that law enforcement officials will have
easy access to fingerprint cards on
timely basis. This in turn acts as an
effective deterrent to employee
misconduct.
Approximately 5,984 respondents are
subject to the recordkeeping
requirements of the rule. Each
respondent keeps approximately 62 new
records per year, which takes
approximately 2 minutes per record for
the respondent to maintain, for an
annual burden of approximately 2 hours
per respondent or a total annual burden
of approximately 11,968 hours on all
respondents, collectively. All records
subject to the rule must be retained for
the term of employment plus 3 years.
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
regarding the above information should
be directed to the following persons: (i)
Desk Officer for the Securities and
Exchange Commission, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Room 10102, New Executive Office
Building, Washington, DC 20503 or by
sending an e-mail to:
Kimberly_P._Nelson@omb.eop.gov; and
(ii) Lewis W. Walker, Acting Director/
Chief Information Officer, Securities
and Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312; or by
sending an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
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53457
Dated: September 8, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–21532 Filed 9–15–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
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–5, SEC File No. 270–259, OMB
Control No. 3235–0269
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’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Rule 17f–5 under the Investment
Company Act of 1940 (15 U.S.C. 80a)
(‘‘Investment Company Act’’ or ‘‘Act’’)
governs the custody of the assets of
registered management investment
companies (‘‘funds’’) with custodians
outside the United States.1 Under rule
17f–5, the fund’s board of directors must
find that it is reasonable to rely on each
delegate it selects to act as the fund’s
foreign custody manager. The delegate
must agree to provide written reports
that notify the board when the fund’s
assets are placed with a foreign
custodian and when any material
change occurs in the fund’s custody
arrangements. The delegate must agree
to exercise reasonable care, prudence,
and diligence, or to adhere to a higher
standard of care. When the foreign
custody manager selects an eligible
foreign custodian, it must determine
that the fund’s assets will be subject to
reasonable care if maintained with that
custodian, and that the written contract
that governs each custody arrangement
will provide reasonable care for fund
assets. The contract must contain
certain specified provisions or others
that provide at least equivalent care.
The foreign custody manager must
establish a system to monitor the
contract and the appropriateness of
1 17 CFR 270.17f–5. All references to rules 17f–
5, 17f–7, 17d–1, or 19b–1 in this notice are to 17
CFR 270.17f–5, 17 CFR 270.17f–7, 17 CFR 270.17d–
1, and 17 CFR 270.19b–1, respectively.
E:\FR\FM\16SEN1.SGM
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53458
Federal Register / Vol. 73, No. 180 / Tuesday, September 16, 2008 / Notices
ebenthall on PROD1PC60 with NOTICES
continuing to maintain assets with the
eligible foreign custodian.
The collection of information
requirements in rule 17f–5 are intended
to provide protection for fund assets
maintained with a foreign bank
custodian whose use is not authorized
by statutory provisions that govern fund
custody arrangements,2 and that is not
subject to regulation and examination
by U.S. regulators. The requirement that
the fund board determine that it is
reasonable to rely on each delegate is
intended to ensure that the board
carefully considers each delegate’s
qualifications to perform its
responsibilities. The requirement that
the delegate provide written reports to
the board is intended to ensure that the
delegate notifies the board of important
developments concerning custody
arrangements so that the board may
exercise effective oversight. The
requirement that the delegate agree to
exercise reasonable care is intended to
provide assurances to the fund that the
delegate will properly perform its
duties.
The requirements that the foreign
custody manager determine that fund
assets will be subject to reasonable care
with the eligible foreign custodian and
under the custody contract, and that
each contract contain specified
provisions or equivalent provisions, are
intended to ensure that the delegate has
evaluated the level of care provided by
the custodian, that it weighs the
adequacy of contractual provisions, and
that fund assets are protected by
minimal contractual safeguards. The
requirement that the foreign custody
manager establish a monitoring system
is intended to ensure that the manager
periodically reviews each custody
arrangement and takes appropriate
action if developing custody risks may
threaten fund assets.
The Commission’s staff estimates that
each year, approximately 159
registrants 3 could be required to make
an average of one response per registrant
under rule 17f–5, requiring
approximately 2 hours of board of
director time per response, to make the
necessary findings concerning foreign
custody managers. The total annual
burden associated with these
requirements of the rule would be up to
approximately 318 hours (159
registrants × 2 hours per registrant). The
2 See
section 17(f) of the Investment Company Act
[15 U.S.C. 80a–17(f)].
3 This figure is an estimate of the number of new
funds each year, based on data reported by funds
in 2007 on Form N–1A and Form N–2 [17 CFR
274.101]. In practice, not all funds will use foreign
custody managers, and the actual figure may be
smaller.
VerDate Aug<31>2005
13:43 Sep 15, 2008
Jkt 214001
staff further estimates that during each
year, approximately 15 global
custodians 4 would be required to make
an average of 4 responses per custodian
concerning the use of foreign custodians
other than depositories. The staff
estimates that each response would take
approximately 262 hours, requiring
approximately 1048 total hours
annually per custodian. The total
annual burden associated with these
requirements of the rule would be
approximately 15,720 hours (15 global
custodians x 1048 hours per custodian).
Therefore, the total annual burden of all
collection of information requirements
of rule 17f–5 is estimated to be up to
16,038 hours (318 + 15,720). The total
annual cost of burden hours is estimated
to be $3,214,080 (318 hours × $2000/
hour for board of director’s time, plus
15,720 hours × $164/hour for a trust
administrator’s time).5 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.
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.
Please direct general comments
regarding the above information to the
following persons: (i) Desk Officer for
the Securities and Exchange
Commission, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503
or e-mail to:
Kimberly_P._Nelson@omb.eop.gov; and
(ii) Lewis W. Walker, Acting Director/
Chief Information Officer, Securities
and Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, VA 22312; or send an email to: PRA_Mailbox@sec.gov.
Comments must be submitted to OMB
within 30 days of this notice.
4 This
estimate is based on staff research.
$164/hour figure for a trust administrator is
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. The $2000/hr board of director time
is from industry sources.
5 The
PO 00000
Frm 00053
Fmt 4703
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Dated: September 8, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–21533 Filed 9–15–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
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’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
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
1 Custody of Investment Company Assets Outside
the United States, Investment Company Act Release
No. IC–23815 (April 29, 1999) (64 FR 24489 (May
6, 1999)).
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]]>Agencies
[Federal Register Volume 73, Number 180 (Tuesday, September 16, 2008)]
[Notices]
[Pages 53457-53458]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21533]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; 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-5, SEC File No. 270-259, OMB Control No. 3235-0269
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'') has submitted to the Office of Management
and Budget (``OMB'') a request for extension of the previously approved
collection of information discussed below.
Rule 17f-5 under the Investment Company Act of 1940 (15 U.S.C. 80a)
(``Investment Company Act'' or ``Act'') governs the custody of the
assets of registered management investment companies (``funds'') with
custodians outside the United States.\1\ Under rule 17f-5, the fund's
board of directors must find that it is reasonable to rely on each
delegate it selects to act as the fund's foreign custody manager. The
delegate must agree to provide written reports that notify the board
when the fund's assets are placed with a foreign custodian and when any
material change occurs in the fund's custody arrangements. The delegate
must agree to exercise reasonable care, prudence, and diligence, or to
adhere to a higher standard of care. When the foreign custody manager
selects an eligible foreign custodian, it must determine that the
fund's assets will be subject to reasonable care if maintained with
that custodian, and that the written contract that governs each custody
arrangement will provide reasonable care for fund assets. The contract
must contain certain specified provisions or others that provide at
least equivalent care. The foreign custody manager must establish a
system to monitor the contract and the appropriateness of
[[Page 53458]]
continuing to maintain assets with the eligible foreign custodian.
---------------------------------------------------------------------------
\1\ 17 CFR 270.17f-5. All references to rules 17f-5, 17f-7, 17d-
1, or 19b-1 in this notice are to 17 CFR 270.17f-5, 17 CFR 270.17f-
7, 17 CFR 270.17d-1, and 17 CFR 270.19b-1, respectively.
---------------------------------------------------------------------------
The collection of information requirements in rule 17f-5 are
intended to provide protection for fund assets maintained with a
foreign bank custodian whose use is not authorized by statutory
provisions that govern fund custody arrangements,\2\ and that is not
subject to regulation and examination by U.S. regulators. The
requirement that the fund board determine that it is reasonable to rely
on each delegate is intended to ensure that the board carefully
considers each delegate's qualifications to perform its
responsibilities. The requirement that the delegate provide written
reports to the board is intended to ensure that the delegate notifies
the board of important developments concerning custody arrangements so
that the board may exercise effective oversight. The requirement that
the delegate agree to exercise reasonable care is intended to provide
assurances to the fund that the delegate will properly perform its
duties.
---------------------------------------------------------------------------
\2\ See section 17(f) of the Investment Company Act [15 U.S.C.
80a-17(f)].
---------------------------------------------------------------------------
The requirements that the foreign custody manager determine that
fund assets will be subject to reasonable care with the eligible
foreign custodian and under the custody contract, and that each
contract contain specified provisions or equivalent provisions, are
intended to ensure that the delegate has evaluated the level of care
provided by the custodian, that it weighs the adequacy of contractual
provisions, and that fund assets are protected by minimal contractual
safeguards. The requirement that the foreign custody manager establish
a monitoring system is intended to ensure that the manager periodically
reviews each custody arrangement and takes appropriate action if
developing custody risks may threaten fund assets.
The Commission's staff estimates that each year, approximately 159
registrants \3\ could be required to make an average of one response
per registrant under rule 17f-5, requiring approximately 2 hours of
board of director time per response, to make the necessary findings
concerning foreign custody managers. The total annual burden associated
with these requirements of the rule would be up to approximately 318
hours (159 registrants x 2 hours per registrant). The staff further
estimates that during each year, approximately 15 global custodians \4\
would be required to make an average of 4 responses per custodian
concerning the use of foreign custodians other than depositories. The
staff estimates that each response would take approximately 262 hours,
requiring approximately 1048 total hours annually per custodian. The
total annual burden associated with these requirements of the rule
would be approximately 15,720 hours (15 global custodians x 1048 hours
per custodian). Therefore, the total annual burden of all collection of
information requirements of rule 17f-5 is estimated to be up to 16,038
hours (318 + 15,720). The total annual cost of burden hours is
estimated to be $3,214,080 (318 hours x $2000/hour for board of
director's time, plus 15,720 hours x $164/hour for a trust
administrator's time).\5\ 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.
---------------------------------------------------------------------------
\3\ This figure is an estimate of the number of new funds each
year, based on data reported by funds in 2007 on Form N-1A and Form
N-2 [17 CFR 274.101]. In practice, not all funds will use foreign
custody managers, and the actual figure may be smaller.
\4\ This estimate is based on staff research.
\5\ The $164/hour figure for a trust administrator is 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. The $2000/hr board of director time is from
industry sources.
---------------------------------------------------------------------------
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.
Please direct general comments regarding the above information to
the following persons: (i) Desk Officer for the Securities and Exchange
Commission, Office of Management and Budget, Room 10102, New Executive
Office Building, Washington, DC 20503 or e-mail to: Kimberly_P._
Nelson@omb.eop.gov; and (ii) Lewis W. Walker, Acting Director/Chief
Information Officer, 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. Comments must be submitted to OMB within
30 days of this notice.
Dated: September 8, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-21533 Filed 9-15-08; 8:45 am]
BILLING CODE 8010-01-P
