Proposed Collection; Comment Request, 43172-43173 [E9-20529]
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43172
Federal Register / Vol. 74, No. 164 / Wednesday, August 26, 2009 / Notices
Education and Advocacy,
Washington, DC 20549–0213.
jlentini on DSKJ8SOYB1PROD with NOTICES
Extension: Rule 35d–1, SEC File No. 270–
491, OMB Control No. 3235–0548.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘Act’’), the
Securities and Exchange Commission
(the ‘‘Commission’’) has submitted to
the Office of Management and Budget a
request for extension of the previously
approved collection of information
discussed below.
Rule 35d–1 (17 CFR 270.35d–1) under
the Investment Company Act of 1940
(15 U.S.C. 80a–1 et seq.) generally
requires that investment companies
with certain names invest at least 80%
of their assets according to what their
names suggests. The rule provides that
an affected investment company must
either adopt this 80% requirement as a
fundamental policy or adopt a policy to
provide notice to shareholders at least
60 days prior to any change in its 80%
investment policy. This preparation and
delivery of the notice to existing
shareholders is a collection of
information within the meaning of the
Act.
The Commission estimates that there
are 8,681 open-end and closed-end
management investment companies and
series that have descriptive names that
are governed by the rule. The
Commission estimates that of these
8,681 investment companies,
approximately 29 provide prior notice
to their shareholders of a change in their
investment policies per year. The
Commission estimates that the annual
burden associated with the notice
requirement of the rule is 20 hours per
response. The total burden hours for
Rule 35d–1 is 580 per year in the
aggregate (29 responses × 20 hours per
response). Estimates of average burden
hours are made solely for the purposes
of the Act, and are not derived from a
comprehensive or even a representative
survey or study of the costs of
Commission rules and forms.
The collection of information under
Rule 35d–1 is mandatory. The
information provided under Rule 35d–
1 is not kept confidential. 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.
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
VerDate Nov<24>2008
19:53 Aug 25, 2009
Jkt 217001
or send an e-mail to Shagufta Ahmed at
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher, 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. Comments must
be submitted to OMB within 30 days of
this notice.
Dated: August 18, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20528 Filed 8–25–09; 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 12b–1, SEC File No. 270–
188, OMB Control No. 3235–0212.
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 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 12b–1 (17 CFR 270.12b–1)
permits a registered open-end
investment company (‘‘mutual fund’’) to
distribute its own shares and pay the
expenses of distribution out of the
mutual fund’s assets provided, among
other things, that the mutual fund
adopts a written plan (‘‘Rule 12b–1
plan’’) and has in writing any
agreements relating to the
implementation of the Rule 12b–1 plan.
The rule in part requires that (i) the
adoption or material amendment of a
Rule 12b–1 plan be approved by the
mutual fund’s directors and
shareholders; (ii) the board review
quarterly reports of amounts spent
under the Rule 12b–1 plan; and (iii) the
board consider continuation of the Rule
12b–1 plan at least annually. Rule 12b–
1 also requires funds relying on the rule
to preserve for six years, the first two
years in an easily accessible place,
copies of the Rule 12b–1 plan, related
agreements and reports, as well as
minutes of board meetings that describe
the factors considered and the basis for
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
adopting or continuing a Rule 12b–1
plan.
The board and shareholder approval
requirements of Rule 12b–1 are
designed to ensure that fund
shareholders and directors receive
adequate information to evaluate and
approve a 12b–1 plan. The requirement
of quarterly reporting to the board is
designed to ensure that the 12b–1 plan
continues to benefit the fund and its
shareholders. The recordkeeping
requirements of the rule are necessary to
enable Commission staff to oversee
compliance with the rule.
Based on information filed with the
Commission by funds, Commission staff
estimates that there are approximately
6,871 mutual fund portfolios that have
at least one share class subject to a rule
12b–1 plan.1 However, many of these
portfolios are part of an affiliated group
of funds known as a ‘‘mutual fund
family’’ that is overseen by a common
board of directors. Although the board
must review and approve the 12b–1
plan for each fund separately, we have
allocated the costs and hourly burden
related to rule 12b–1 based on the
number of fund families that have at
least one fund that charges 12b–1 fees,
rather than on the total number of
mutual fund portfolios that individually
have a 12b–1 plan.2 Based on
information filed with the Commission,
the staff estimates that there are
approximately 371 fund families with
common boards of directors that have at
least one fund with a 12b–1 plan.
Based on conversations with fund
representatives, Commission staff
estimates that for each of the 371 mutual
fund families with a portfolio that has
a rule 12b–1 plan, the average annual
burden of complying with the rule is
425 hours. This estimate takes into
account the time needed to prepare
quarterly reports to the board of
directors, the board’s consideration of
those reports, and the board’s annual
consideration of whether to continue
the plan.3 We therefore estimate that the
1 This estimate is based on information from the
Commission’s NSAR database.
2 This allocation is based on conversations with
fund representatives on how fund boards comply
with the requirements of rule 12b–1. Despite this
allocation of hourly burdens and costs, the number
of annual responses each year will continue to
depend on the number of fund portfolios with 12b–
1 plans rather than the number of fund families
with 12b–1 plans. The staff estimates that the
number of annual responses per fund portfolio will
be four per year (quarterly, with the annual reviews
taking place at one of the quarterly intervals). Thus,
we estimate that funds will make 27,484 responses
(6871 fund portfolios × 4 responses per fund
portfolio = 27,484 responses) each year.
3 We do not estimate any costs or time burden
related to the recordkeeping requirement, as funds
are already required to maintain these records
E:\FR\FM\26AUN1.SGM
26AUN1
jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 164 / Wednesday, August 26, 2009 / Notices
total hourly burden per year for all
funds to comply with current
information collection requirements
under rule 12b–1, is 157,675 hours (371
fund families × 425 hours per fund
family = 157,675 hours) over the three
year period for which we are requesting
approval of the information collection
burden).
If a currently operating fund seeks to
(i) adopt a new Rule 12b–1 plan or (ii)
materially increase the amount it spends
for distribution under its Rule 12b–1
plan, Rule 12b–1 requires that the fund
obtain shareholder approval. As a
consequence, the fund will incur the
cost of a proxy. Based on conversations
with fund industry representatives,
Commission staff estimates that
approximately three funds per year
prepare a proxy in connection with the
adoption or material amendment of a
Rule 12b–1 plan. The staff further
estimates that the cost of each fund’s
proxy is $30,000. Thus the total annual
cost burden of Rule 12b–1 to the fund
industry is $90,000 (3 funds requiring a
proxy × $30,000 per proxy).
The collections of information
required by Rule 12b–1 are necessary to
obtain the benefits of the rule. Notices
to the Commission will not be kept
confidential. 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 Charles Boucher, 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.
pursuant to other rules, and would keep these
records in any case as a matter of business practice.
VerDate Nov<24>2008
17:05 Aug 25, 2009
Jkt 217001
Dated: August 19, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20529 Filed 8–25–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60531; File No. 4–443]
Joint Industry Plan; Order Approving
Amendment No. 3 to the Plan for the
Purpose of Developing and
Implementing Procedures Designed To
Facilitate the Listing and Trading of
Standardized Options
August 19, 2009.
I. Introduction
On June 30, 2009, June 16, 2009, June
12, 2009, June 22, 2009, June 18, 2009,
June 23, 2009, July 8, 2009, the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’), International Securities
Exchange, LLC (‘‘ISE’’), NASDAQ Stock
Market LLC (‘‘NASDAQ’’), NASDAQ
OMX BX, Inc. (‘‘BX’’), NASDAQ OMX
PHLX (‘‘Phlx’’), NYSE Amex LLC
(‘‘NYSE Amex’’), NYSE Arca Inc.
(‘‘NYSE Arca’’), and The Options
Clearing Corporation (‘‘OCC’’),
respectively, filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
11A of the Securities Exchange Act of
1934 (‘‘Act’’) 1 and Rule 608
thereunder,2 Amendment No. 3 to the
Plan for the Purpose of Developing and
Implementing Procedures Designed to
Facilitate the Listing and Trading of
Standardized Options (‘‘Plan’’ or
‘‘OLPP’’).3 Amendment No. 3 would
apply uniform objective standards to the
range of options series exercise (or
strike) prices available for trading on the
Plan Sponsor exchanges.
The proposed Amendment was
published for comment in the Federal
Register on July 28, 2009.4 The
Commission received no comment
letters in response to the Notice. This
1 15
U.S.C. 78k–1.
CFR 242.608.
3 On July 6, 2001, the Commission approved the
OLPP, which was originally proposed by the
American Stock Exchange LLC (k/n/a NYSE Amex),
CBOE, ISE, OCC, Philadelphia Stock Exchange, Inc.
(k/n/a Phlx), and Pacific Exchange, Inc. (k/n/a
NYSE Arca). See Securities Exchange Act Release
No. 44521, 66 FR 36809 (July 13, 2001). On
February 5, 2004, the Boston Stock Exchange, Inc.
(k/n/a BX) was added as a sponsor to the OLPP. See
Securities Exchange Act Release No. 49199, 69 FR
7030 (February 12, 2004). On March 21, 2008,
NASDAQ was added as a sponsor to the OLPP. See
Securities Exchange Act Release No. 57546 (March
21, 2008), 73 FR 16393 (March 27, 2008).
4 See Securities Exchange Act Release No. 60365
(July 22, 2009), 74 FR 37266 (‘‘Notice’’).
2 17
PO 00000
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Fmt 4703
Sfmt 4703
43173
order approves Amendment No. 3 to the
OLPP.
II. Description of the Proposed
Amendment
Amendment No. 3 would apply
uniform objective standards to the range
of options series exercise (or strike)
prices available for trading on the Plan
Sponsor exchanges as a quote mitigation
strategy. Specifically, the proposal
applies certain ‘‘range limitations’’ to
the addition of new series strike prices
for options classes overlying equity
securities, Exchange Traded Fund
Shares, or Trust Issued Receipts. As
proposed, if the price of the underlying
security is less than or equal to $20, the
Series Selecting Exchange would not list
new option series with an exercise price
more than 100 percent above or below
the price of the underlying security.5 If
the price of the underlying security is
greater than $20, the Series Selecting
Exchange would not list new option
series with an exercise price more than
50 percent above or below the price of
the underlying security.
The proposed Amendment provides
for an objective basis upon which the
underlying prices for the price range
limitations described above would be
determined, specifically, in regards to
intra-day add-on series and next-day
series additions, new expiration months
and for option series to be added as a
result of pre-market trading.
Furthermore, 8 a.m. Chicago time is
proposed as the earliest permissible
time at which a Series Selecting
Exchange may notify the OCC, and each
other exchange also trading the same
options class, that it has commenced
trading new series as a result of premarket trading. This earliest permissible
time is established to ensure that outlier
prices for the underlying security which
occur at 6 a.m. Chicago time, for
example (i.e., well in advance of the
opening of the standard trading session),
are not relied upon for purposes of the
exercise price range limitations.
The proposal also allows each Plan
Sponsor exchange to designate up to
five underlying securities to except from
the aforementioned 50 percent
restriction and instead apply the 100
percent restriction. These designations
would be made on an annual basis and
could not be removed during the
calendar year unless the option class
was delisted by the designating
exchange, in which case the designating
exchange could designate another class
to replace the delisted class. If a
5 This restriction would not prohibit the listing of
at least three options series per expiration month
in an option class.
E:\FR\FM\26AUN1.SGM
26AUN1
]]>Agencies
[Federal Register Volume 74, Number 164 (Wednesday, August 26, 2009)]
[Notices]
[Pages 43172-43173]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-20529]
-----------------------------------------------------------------------
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 12b-1, SEC File No. 270-188, OMB Control No. 3235-
0212.
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
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 12b-1 (17 CFR 270.12b-1) permits a registered open-end
investment company (``mutual fund'') to distribute its own shares and
pay the expenses of distribution out of the mutual fund's assets
provided, among other things, that the mutual fund adopts a written
plan (``Rule 12b-1 plan'') and has in writing any agreements relating
to the implementation of the Rule 12b-1 plan. The rule in part requires
that (i) the adoption or material amendment of a Rule 12b-1 plan be
approved by the mutual fund's directors and shareholders; (ii) the
board review quarterly reports of amounts spent under the Rule 12b-1
plan; and (iii) the board consider continuation of the Rule 12b-1 plan
at least annually. Rule 12b-1 also requires funds relying on the rule
to preserve for six years, the first two years in an easily accessible
place, copies of the Rule 12b-1 plan, related agreements and reports,
as well as minutes of board meetings that describe the factors
considered and the basis for adopting or continuing a Rule 12b-1 plan.
The board and shareholder approval requirements of Rule 12b-1 are
designed to ensure that fund shareholders and directors receive
adequate information to evaluate and approve a 12b-1 plan. The
requirement of quarterly reporting to the board is designed to ensure
that the 12b-1 plan continues to benefit the fund and its shareholders.
The recordkeeping requirements of the rule are necessary to enable
Commission staff to oversee compliance with the rule.
Based on information filed with the Commission by funds, Commission
staff estimates that there are approximately 6,871 mutual fund
portfolios that have at least one share class subject to a rule 12b-1
plan.\1\ However, many of these portfolios are part of an affiliated
group of funds known as a ``mutual fund family'' that is overseen by a
common board of directors. Although the board must review and approve
the 12b-1 plan for each fund separately, we have allocated the costs
and hourly burden related to rule 12b-1 based on the number of fund
families that have at least one fund that charges 12b-1 fees, rather
than on the total number of mutual fund portfolios that individually
have a 12b-1 plan.\2\ Based on information filed with the Commission,
the staff estimates that there are approximately 371 fund families with
common boards of directors that have at least one fund with a 12b-1
plan.
---------------------------------------------------------------------------
\1\ This estimate is based on information from the Commission's
NSAR database.
\2\ This allocation is based on conversations with fund
representatives on how fund boards comply with the requirements of
rule 12b-1. Despite this allocation of hourly burdens and costs, the
number of annual responses each year will continue to depend on the
number of fund portfolios with 12b-1 plans rather than the number of
fund families with 12b-1 plans. The staff estimates that the number
of annual responses per fund portfolio will be four per year
(quarterly, with the annual reviews taking place at one of the
quarterly intervals). Thus, we estimate that funds will make 27,484
responses (6871 fund portfolios x 4 responses per fund portfolio =
27,484 responses) each year.
---------------------------------------------------------------------------
Based on conversations with fund representatives, Commission staff
estimates that for each of the 371 mutual fund families with a
portfolio that has a rule 12b-1 plan, the average annual burden of
complying with the rule is 425 hours. This estimate takes into account
the time needed to prepare quarterly reports to the board of directors,
the board's consideration of those reports, and the board's annual
consideration of whether to continue the plan.\3\ We therefore estimate
that the
[[Page 43173]]
total hourly burden per year for all funds to comply with current
information collection requirements under rule 12b-1, is 157,675 hours
(371 fund families x 425 hours per fund family = 157,675 hours) over
the three year period for which we are requesting approval of the
information collection burden).
---------------------------------------------------------------------------
\3\ We do not estimate any costs or time burden related to the
recordkeeping requirement, as funds are already required to maintain
these records pursuant to other rules, and would keep these records
in any case as a matter of business practice.
---------------------------------------------------------------------------
If a currently operating fund seeks to (i) adopt a new Rule 12b-1
plan or (ii) materially increase the amount it spends for distribution
under its Rule 12b-1 plan, Rule 12b-1 requires that the fund obtain
shareholder approval. As a consequence, the fund will incur the cost of
a proxy. Based on conversations with fund industry representatives,
Commission staff estimates that approximately three funds per year
prepare a proxy in connection with the adoption or material amendment
of a Rule 12b-1 plan. The staff further estimates that the cost of each
fund's proxy is $30,000. Thus the total annual cost burden of Rule 12b-
1 to the fund industry is $90,000 (3 funds requiring a proxy x $30,000
per proxy).
The collections of information required by Rule 12b-1 are necessary
to obtain the benefits of the rule. Notices to the Commission will not
be kept confidential. 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 Charles Boucher, 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: August 19, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20529 Filed 8-25-09; 8:45 am]
BILLING CODE 8010-01-P
