Proposed Collection; Comment Request, 49541-49542 [2010-19973]
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Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Notices
disaster for Public Assistance Only for
the State of Kentucky (FEMA—1925—
DR), dated 07/23/2010.
Incident: Severe Storms, Flooding,
and Mudslides.
Incident Period: 07/17/2010 through
07/30/2010.
Effective Date: 08/05/2010.
Physical Loan Application Deadline
Date: 09/21/2010.
Economic Injury (EIDL) Loan
Application Deadline Date: 04/25/2011.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of Kentucky,
dated 07/23/2010, is hereby amended to
include the following areas as adversely
affected by the disaster.
Primary Counties: Carter, Elliott, Lewis.
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Roger B. Garland,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2010–19964 Filed 8–12–10; 8:45 am]
BILLING CODE 8025–01–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.
emcdonald on DSK2BSOYB1PROD with NOTICES
Extension:
Rule 7d–2; SEC File No. 270–464; OMB
Control No. 3235–0527.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520), 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.
VerDate Mar<15>2010
16:35 Aug 12, 2010
Jkt 220001
In Canada, as in the United States,
individuals can invest a portion of their
earnings in tax-deferred retirement
savings accounts (‘‘Canadian retirement
accounts’’). These accounts, which
operate in a manner similar to
individual retirement accounts in the
United States, encourage retirement
savings by permitting savings on a taxdeferred basis. Individuals who
establish Canadian retirement accounts
while living and working in Canada and
who later move to the United States
(‘‘Canadian-U.S. Participants’’ or
‘‘participants’’) often continue to hold
their retirement assets in their Canadian
retirement accounts rather than
prematurely withdrawing (or ‘‘cashing
out’’) those assets, which would result in
immediate taxation in Canada.
Once in the United States, however,
these participants historically have been
unable to manage their Canadian
retirement account investments. Most
investment companies (‘‘funds’’) that are
‘‘qualified companies’’ for Canadian
retirement accounts are not registered
under the U.S. securities laws.
Securities of those unregistered funds,
therefore, generally cannot be publicly
offered and sold in the United States
without violating the registration
requirement of the Investment Company
Act of 1940 (‘‘Investment Company
Act’’).1 As a result of this registration
requirement, Canadian-U.S. Participants
previously were not able to purchase or
exchange securities for their Canadian
retirement accounts as needed to meet
their changing investment goals or
income needs.
The Commission issued a rulemaking
in 2000 that enabled Canadian-U.S.
Participants to manage the assets in
their Canadian retirement accounts by
providing relief from the U.S.
registration requirements for offers of
securities of foreign issuers to CanadianU.S. Participants and sales to Canadian
retirement accounts.2 Rule 7d–2 under
the Investment Company Act 3 permits
foreign funds to offer securities to
Canadian-U.S. Participants and sell
securities to Canadian retirement
accounts without registering as
1 15 U.S.C. 80a. In addition, the offering and
selling of securities that are not registered pursuant
to the Securities Act of 1933 (‘‘Securities Act’’) is
generally prohibited by U.S. securities laws. 15
U.S.C. 77.
2 See Offer and Sale of Securities to Canadian
Tax-Deferred Retirement Savings Accounts, Release
Nos. 33–7860, 34–42905, IC–24491 (June 7, 2000)
[65 FR 37672 (June 15, 2000)]. This rulemaking also
included new rule 237 under the Securities Act,
permitting securities of foreign issuers to be offered
to Canadian-U.S. Participants and sold to Canadian
retirement accounts without being registered under
the Securities Act. 17 CFR 230.237.
3 17 CFR 270.7d–2.
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
49541
investment companies under the
Investment Company Act.
Rule 7d–2 contains a ‘‘collection of
information’’ requirement within the
meaning of the Paperwork Reduction
Act of 1995.4 Rule 7d–2 requires written
offering materials for securities offered
or sold in reliance on that rule to
disclose prominently that those
securities and the fund issuing those
securities are not registered with the
Commission, and that those securities
and the fund issuing those securities are
exempt from registration under U.S.
securities laws. Rule 7d–2 does not
require any documents to be filed with
the Commission.
Rule 7d–2 requires written offering
documents for securities offered or sold
in reliance on the rule to disclose
prominently that the securities are not
registered with the Commission and
may not be offered or sold in the United
States unless registered or exempt from
registration under the U.S. securities
laws, and also to disclose prominently
that the fund that issued the securities
is not registered with the Commission.
The burden under the rule associated
with adding this disclosure to written
offering documents is minimal and is
non-recurring. The foreign issuer,
underwriter, or broker-dealer can redraft
an existing prospectus or other written
offering material to add this disclosure
statement, or may draft a sticker or
supplement containing this disclosure
to be added to existing offering
materials. In either case, based on
discussions with representatives of the
Canadian fund industry, the staff
estimates that it would take an average
of 10 minutes per document to draft the
requisite disclosure statement.
The staff estimates that there are 2075
publicly offered Canadian funds that
potentially would rely on the rule to
offer securities to participants and sell
securities to their Canadian retirement
accounts without registering under the
Investment Company Act.5 Most of
these funds have already relied upon
the rule and have made the one-time
change to their offering documents
required to rely on the rule. The staff
estimates that 104 (5 percent) additional
Canadian funds may newly rely on the
rule each year to offer securities to
Canadian-U.S. Participants and sell
securities to their Canadian retirement
accounts, thus incurring the paperwork
burden required under the rule. The
staff estimates that each of those funds,
on average, distributes 3 different
written offering documents concerning
4 44
U.S.C. 3501–3502.
Company Institute, 2010 Investment
Company Fact Book (2010) at 183, tbl. 60.
5 Investment
E:\FR\FM\13AUN1.SGM
13AUN1
49542
Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
those securities, for a total of 312
offering documents. The staff therefore
estimates that 104 respondents would
make 312 responses by adding the new
disclosure statement to approximately
312 written offering documents. The
staff therefore estimates that the annual
burden associated with the rule 7d–2
disclosure requirement would be 52
hours (312 offering documents × 10
minutes per document). The total
annual cost of these burden hours is
estimated to be $16,432 (52 hours ×
$316 per hour of attorney time).6
These burden hour estimates are
based upon the Commission staff’s
experience and discussions with the
fund industry. The estimates of average
burden hours are made solely for the
purposes of the Paperwork Reduction
Act. These estimates are not derived
from a comprehensive or even a
representative survey or study of the
costs of Commission rules.
Compliance with the collection of
information requirements of the rule is
mandatory and is necessary to comply
with the requirements of the rule in
general. 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 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 burdens of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burdens 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.
6 The Commission’s estimate concerning the wage
rate for attorney time is based on salary information
for the securities industry compiled by the
Securities Industry and Financial Markets
Association (‘‘SIFMA’’). The $316 per hour figure for
an attorney is from SIFMA’s Management &
Professional Earnings in the Securities Industry
2009, modified by Commission staff to account for
an 1800-hour work-year and multiplied by 5.35 to
account for bonuses, firm size, employee benefits,
and overhead.
VerDate Mar<15>2010
16:35 Aug 12, 2010
Jkt 220001
Dated: August 9, 2010.
Florence E. Harmon,
Deputy Secretary.
and C below, of the most significant
aspects of such statements.
[FR Doc. 2010–19973 Filed 8–12–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62664; File No. SR–FINRA–
2010–037]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change To Amend
FINRA Rule 5190 (Notification
Requirements for Offering
Participants)
August 9, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 27,
2010, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have substantially
been prepared by FINRA. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 5190 (Notification Requirements
for Offering Participants) relating to the
notice requirements applicable to
distributions of ‘‘actively traded’’
securities, as defined under SEC
Regulation M.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00089
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
FINRA Rule 5190 imposes certain
notice requirements on members
participating in distributions of listed
and unlisted securities and is designed
to ensure that FINRA receives pertinent
distribution-related information from its
members in a timely fashion to facilitate
its Regulation M compliance program.
Rule 5190(d) sets forth the notice
requirements applicable to distributions
of securities that are considered
‘‘actively traded’’ and thus are not
subject to a restricted period under Rule
101 of Regulation M.3 In connection
with such distributions, pursuant to
Rule 5190(d)(1), members are required
to provide written notice to FINRA of
the member’s determination that no
restricted period applies and the basis
for such determination. Members must
provide such notice at least one
business day prior to the pricing of the
distribution, unless later notification is
necessary under specific circumstances.
Rule 5190(d)(2) requires that upon
pricing a distribution of an ‘‘actively
traded’’ security, members provide
written notice to FINRA, along with
pricing-related information such as the
offering price, the last sale before the
distribution and the pricing basis.
Notice of pricing must be provided no
later than the close of business the next
business day following the pricing of
the distribution, unless later notification
is necessary under specific
circumstances.
FINRA is proposing to amend Rule
5190(d) to require that notice under
subparagraphs (1) and (2) be provided at
the same time; specifically, no later than
the close of business the next business
day following the pricing of the
distribution. While the timing of notice
under subparagraph (1) would change,
the information required would not
change. Thus, pursuant to the proposed
rule change, members will be required
to provide a single notice after pricing
of the distribution and will be required
to provide all of the same information
that they provide today.
FINRA has determined that it will be
sufficient for members to provide notice
3 The exclusion for ‘‘actively traded’’ securities
removes from Rule 101 of Regulation M securities
with an ‘‘ADTV’’ value, as defined in Rule 100 of
Regulation M, of at least $1 million where the
issuer’s common equity securities have a public
float value of at least $150 million.
E:\FR\FM\13AUN1.SGM
13AUN1
]]>Agencies
[Federal Register Volume 75, Number 156 (Friday, August 13, 2010)]
[Notices]
[Pages 49541-49542]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19973]
=======================================================================
-----------------------------------------------------------------------
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 7d-2; SEC File No. 270-464; OMB Control No. 3235-0527.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520), 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.
In Canada, as in the United States, individuals can invest a
portion of their earnings in tax-deferred retirement savings accounts
(``Canadian retirement accounts''). These accounts, which operate in a
manner similar to individual retirement accounts in the United States,
encourage retirement savings by permitting savings on a tax-deferred
basis. Individuals who establish Canadian retirement accounts while
living and working in Canada and who later move to the United States
(``Canadian-U.S. Participants'' or ``participants'') often continue to
hold their retirement assets in their Canadian retirement accounts
rather than prematurely withdrawing (or ``cashing out'') those assets,
which would result in immediate taxation in Canada.
Once in the United States, however, these participants historically
have been unable to manage their Canadian retirement account
investments. Most investment companies (``funds'') that are ``qualified
companies'' for Canadian retirement accounts are not registered under
the U.S. securities laws. Securities of those unregistered funds,
therefore, generally cannot be publicly offered and sold in the United
States without violating the registration requirement of the Investment
Company Act of 1940 (``Investment Company Act'').\1\ As a result of
this registration requirement, Canadian-U.S. Participants previously
were not able to purchase or exchange securities for their Canadian
retirement accounts as needed to meet their changing investment goals
or income needs.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 80a. In addition, the offering and selling of
securities that are not registered pursuant to the Securities Act of
1933 (``Securities Act'') is generally prohibited by U.S. securities
laws. 15 U.S.C. 77.
---------------------------------------------------------------------------
The Commission issued a rulemaking in 2000 that enabled Canadian-
U.S. Participants to manage the assets in their Canadian retirement
accounts by providing relief from the U.S. registration requirements
for offers of securities of foreign issuers to Canadian-U.S.
Participants and sales to Canadian retirement accounts.\2\ Rule 7d-2
under the Investment Company Act \3\ permits foreign funds to offer
securities to Canadian-U.S. Participants and sell securities to
Canadian retirement accounts without registering as investment
companies under the Investment Company Act.
---------------------------------------------------------------------------
\2\ See Offer and Sale of Securities to Canadian Tax-Deferred
Retirement Savings Accounts, Release Nos. 33-7860, 34-42905, IC-
24491 (June 7, 2000) [65 FR 37672 (June 15, 2000)]. This rulemaking
also included new rule 237 under the Securities Act, permitting
securities of foreign issuers to be offered to Canadian-U.S.
Participants and sold to Canadian retirement accounts without being
registered under the Securities Act. 17 CFR 230.237.
\3\ 17 CFR 270.7d-2.
---------------------------------------------------------------------------
Rule 7d-2 contains a ``collection of information'' requirement
within the meaning of the Paperwork Reduction Act of 1995.\4\ Rule 7d-2
requires written offering materials for securities offered or sold in
reliance on that rule to disclose prominently that those securities and
the fund issuing those securities are not registered with the
Commission, and that those securities and the fund issuing those
securities are exempt from registration under U.S. securities laws.
Rule 7d-2 does not require any documents to be filed with the
Commission.
---------------------------------------------------------------------------
\4\ 44 U.S.C. 3501-3502.
---------------------------------------------------------------------------
Rule 7d-2 requires written offering documents for securities
offered or sold in reliance on the rule to disclose prominently that
the securities are not registered with the Commission and may not be
offered or sold in the United States unless registered or exempt from
registration under the U.S. securities laws, and also to disclose
prominently that the fund that issued the securities is not registered
with the Commission. The burden under the rule associated with adding
this disclosure to written offering documents is minimal and is non-
recurring. The foreign issuer, underwriter, or broker-dealer can
redraft an existing prospectus or other written offering material to
add this disclosure statement, or may draft a sticker or supplement
containing this disclosure to be added to existing offering materials.
In either case, based on discussions with representatives of the
Canadian fund industry, the staff estimates that it would take an
average of 10 minutes per document to draft the requisite disclosure
statement.
The staff estimates that there are 2075 publicly offered Canadian
funds that potentially would rely on the rule to offer securities to
participants and sell securities to their Canadian retirement accounts
without registering under the Investment Company Act.\5\ Most of these
funds have already relied upon the rule and have made the one-time
change to their offering documents required to rely on the rule. The
staff estimates that 104 (5 percent) additional Canadian funds may
newly rely on the rule each year to offer securities to Canadian-U.S.
Participants and sell securities to their Canadian retirement accounts,
thus incurring the paperwork burden required under the rule. The staff
estimates that each of those funds, on average, distributes 3 different
written offering documents concerning
[[Page 49542]]
those securities, for a total of 312 offering documents. The staff
therefore estimates that 104 respondents would make 312 responses by
adding the new disclosure statement to approximately 312 written
offering documents. The staff therefore estimates that the annual
burden associated with the rule 7d-2 disclosure requirement would be 52
hours (312 offering documents x 10 minutes per document). The total
annual cost of these burden hours is estimated to be $16,432 (52 hours
x $316 per hour of attorney time).\6\
---------------------------------------------------------------------------
\5\ Investment Company Institute, 2010 Investment Company Fact
Book (2010) at 183, tbl. 60.
\6\ The Commission's estimate concerning the wage rate for
attorney time is based on salary information for the securities
industry compiled by the Securities Industry and Financial Markets
Association (``SIFMA''). The $316 per hour figure for an attorney is
from SIFMA's Management & Professional Earnings in the Securities
Industry 2009, modified by Commission staff to account for an 1800-
hour work-year and multiplied by 5.35 to account for bonuses, firm
size, employee benefits, and overhead.
---------------------------------------------------------------------------
These burden hour estimates are based upon the Commission staff's
experience and discussions with the fund industry. The estimates of
average burden hours are made solely for the purposes of the Paperwork
Reduction Act. These estimates are not derived from a comprehensive or
even a representative survey or study of the costs of Commission rules.
Compliance with the collection of information requirements of the
rule is mandatory and is necessary to comply with the requirements of
the rule in general. 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 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 burdens
of the collection of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burdens 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 9, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19973 Filed 8-12-10; 8:45 am]
BILLING CODE 8010-01-P
