Submission for OMB Review; Comment Request, 54194-54196 [2010-22030]
Download as PDF
<![CDATA[
srobinson on DSKHWCL6B1PROD with NOTICES
54194
Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
2 to decide whether the applicant
should be deemed to be entitled to the
action requested by the application.
Applicants for orders can include
registered investment companies,
affiliated persons of registered
investment companies, and issuers
seeking to avoid investment company
status, among other entities.
Commission staff estimates that it
receives approximately 125 applications
per year under the Act. Although each
application typically is submitted on
behalf of multiple entities, the entities
in the vast majority of cases are related
companies and are treated as a single
respondent for purposes of this analysis.
The time to prepare an application
depends on the complexity and/or
novelty of the issues covered by the
application. We estimate that the
Commission receives 20 of the most
time-consuming applications annually,
80 applications of medium difficulty,
and 25 of the least difficult applications.
Based on conversations with applicants,
we estimate that in-house counsel
would spend from ten to fifty hours
helping to draft and review an
application. We estimate a total annual
hour burden to all respondents of 3,650
hours [(50 hours × 20 applications) + (30
hours x 80 applications) + (10 hours x
25 applications)].
Much of the work of preparing an
application is performed by outside
counsel. The cost outside counsel
charges applicants depends on the
complexity of the issues covered by the
application and the time required for
preparation. Based on conversations
with attorneys who serve as outside
counsel, the cost ranges from
approximately $10,000 for preparing a
well-precedented, routine application to
approximately $150,000 to prepare a
complex and/or novel application. This
distribution gives a total estimated
annual cost burden to applicants of
filing all applications of $9,650,000 [(20
x $150,000) + (80 x $80,000) + (25 x
$10,000)].
These estimates of average costs are
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.
This collection of information is
necessary to obtain a benefit and 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 OMB control number.
Please direct general comments
regarding the above information to the
following persons: (i) Desk Officer for
the Securities and Exchange
VerDate Mar<15>2010
15:33 Sep 02, 2010
Jkt 220001
Commission, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503
or e-mail to: Shagufta Ahmed at
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher, Director/CIO,
Securities and Exchange Commission,
C/O Remi Pavlik-Simon, 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 30, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–22025 Filed 9–2–10; 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 0–2, Form ADV–NR; SEC File No.
270–214; OMB Control No. 3235–0240.
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 extension of the previously
approved collection of information
discussed below.
The title for the collection of
information is ‘‘Rule 0–2’’ (17 CFR
275.0–2) and ‘‘Form ADV–NR’’ (17 CFR
279.4) under the Investment Advisers
Act of 1940 (15 U.S.C. 80b–1). Rule 0–
2 and Form ADV–NR facilitate service
of process to non-resident investment
advisers and their non-resident general
partners or non-resident managing
agents. The Form requires these persons
to designate the Commission as agent
for service of process. The purpose of
this collection of information is to
enable the commencement of legal and
or regulatory actions against investment
advisers that are doing business in the
United States, but are not residents.
The respondents to this information
collection would be each non-resident
general partner or non-resident
managing agent of an SEC-registered
adviser. The Commission has estimated
that compliance with the requirement to
complete Form ADV–NR imposes a total
burden of approximately 1 hour for an
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
adviser. Based on our experience with
these filings, we estimate that we will
receive 18 Form ADV–NR filings
annually. Based on the 1.0 hour per
respondent estimate, the Commission
staff estimates a total annual burden of
18 hours for this collection of
information.
Rule 0–2 and Form ADV–NR do not
require recordkeeping or records
retention. The collection of information
requirements under the rule and form
are mandatory. The information
collected pursuant to the rule and Form
ADV–NR is a filing with the
Commission. This filing is not kept
confidential and must be preserved
until at least three years after
termination of the enterprise. 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.
General comments regarding the
above information should be directed 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 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 Remi Pavlik-Simon, 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 30, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–22028 Filed 9–2–10; 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 7d–1; SEC File No. 270–176; OMB
Control No. 3235–0311.
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’’) has submitted to the
Office of Management and Budget a
E:\FR\FM\03SEN1.SGM
03SEN1
srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
request for extension of the previously
approved collection of information
discussed below.
Section 7(d) of the Investment
Company Act of 1940 (15 U.S.C. 80a–
7(d)) (the ‘‘Act’’ or ‘‘Investment Company
Act’’) requires an investment company
(‘‘fund’’) organized outside the United
States (‘‘foreign fund’’) to obtain an order
from the Commission allowing the fund
to register under the Act before making
a public offering of its securities through
the United States mail or any means of
interstate commerce. The Commission
may issue an order only if it finds that
it is both legally and practically feasible
effectively to enforce the provisions of
the Act against the foreign fund, and
that the registration of the fund is
consistent with the public interest and
protection of investors.
Rule 7d–1 (17 CFR 270.7d–1) under
the Act, which was adopted in 1954,
specifies the conditions under which a
Canadian management investment
company (‘‘Canadian fund’’) may request
an order from the Commission
permitting it to register under the Act.
Although rule 7d–1 by its terms applies
only to Canadian funds, other foreign
funds generally have agreed to comply
with the requirements of rule 7d–1 as a
prerequisite to receiving an order
permitting the foreign fund’s
registration under the Act.
The rule requires a Canadian fund
proposing to register under the Act to
file an application with the Commission
that contains various undertakings and
agreements of the fund. The
requirement for the Canadian fund to
file an application is a collection of
information under the Paperwork
Reduction Act. Certain of the
undertakings and agreements, in turn,
impose the following additional
information collection requirements:
(1) The fund must file agreements
between the fund and its directors,
officers, and service providers requiring
them to comply with the fund’s charter
and bylaws, the Act, and certain other
obligations relating to the undertakings
and agreements in the application;
(2) The fund and each of its directors,
officers, and investment advisers that is
not a U.S. resident, must file an
irrevocable designation of the fund’s
custodian in the United States as agent
for service of process;
(3) The fund’s charter and bylaws
must provide that (a) the fund will
comply with certain provisions of the
Act applicable to all funds, (b) the fund
will maintain originals or copies of its
books and records in the United States,
and (c) the fund’s contracts with its
custodian, investment adviser, and
principal underwriter, will contain
VerDate Mar<15>2010
15:33 Sep 02, 2010
Jkt 220001
certain terms, including a requirement
that the adviser maintain originals or
copies of pertinent records in the United
States;
(4) The fund’s contracts with service
providers will require that the provider
perform the contract in accordance with
the Act, the Securities Act of 1933 (15
U.S.C. 77a), and the Securities Exchange
Act of 1934 (15 U.S.C. 78a), as
applicable; and
(5) The fund must file, and
periodically revise, a list of persons
affiliated with the fund or its adviser or
underwriter.
As noted above, under section 7(d) of
the Act the Commission may issue an
order permitting a foreign fund’s
registration only if the Commission
finds that ‘‘by reason of special
circumstances or arrangements, it is
both legally and practically feasible
effectively to enforce the provisions of
the (Act).’’ The information collection
requirements are necessary to assure
that the substantive provisions of the
Act may be enforced as a matter of
contract right in the United States or
Canada by the fund’s shareholders or by
the Commission.
Rule 7d–1 also contains certain
information collection requirements that
are associated with other provisions of
the Act. These requirements are
applicable to all registered funds and
are outside the scope of this request.
The Commission believes that one
foreign fund is registered under rule 7d–
1 and currently active. Apart from
requirements under the Act applicable
to all registered funds, rule 7d–1
imposes ongoing burdens to maintain
records in the United States, and to
update, as necessary, certain fund
agreements, designations of the fund’s
custodian as service agent, and the
fund’s list of affiliated persons. The
Commission staff estimates that each
year under the rule, the active registrant
and its directors, officers, and service
providers engage in the following
collections of information and
associated burden hours:
• For the fund and its investment
adviser to maintain records in the
United States: 1 0 hours: 0 minutes of
compliance clerk time.
1 The rule requires an applicant and its
investment adviser to maintain records in the
United States (which, without the requirement,
might be maintained in Canada or another foreign
jurisdiction), which facilitates routine inspections
and any special investigations of the fund by
Commission staff. The registrant and its investment
adviser, however, already maintain the registrant’s
records in the United States and in no other
jurisdiction. Therefore, maintenance of the
registrant’s records in the United States does not
impose an additional burden beyond that imposed
by other provisions of the Act. Those provisions are
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
54195
• For the fund to update its list of
affiliated persons: 2 hours: 2 hours of
support staff time.
• For new officers, directors, and
service providers to enter into and file
agreements requiring them to comply
with the fund’s charter and bylaws, the
Act, and certain other obligations: 0.5
hours: 7.5 minutes of director time; 2.5
minutes of officer time; 20 minutes of
support staff time.
• For new officers, directors, and
investment advisers who are not
residents of the United States to file
irrevocable designation of the fund’s
custodian as agent for process of service:
0.25 hours: 5 minutes of director time;
10 minutes of support staff time.
Based on the estimates above, the
Commission estimates that the total
annual burden of the rule’s paperwork
requirements is 2.75 hours.2 We
estimate that directors perform 0.21
hours of these burden hours at a total
cost of $945,3 officers perform 0.04 of
these burden hours at a total cost of
$16.72,4 and support staff perform 2.5 of
these burden hours at a total cost of
$147.50.5 Thus, the Commission
estimates the aggregate annual cost of
the burden hours associated with rule
7d–1 is $1109.6
If a fund were to file an application
under rule 7d–1 to register under the
Act, the Commission estimates that the
rule would impose initial information
collection burdens (for filing an
application, preparing the specified
charter, bylaw, and contract provisions,
designations of agents for service of
applicable to all registered funds and the
compliance burden of those provisions is outside
the scope of this request.
2 This estimate is based on the following
calculation: (0 + 2 + 0.5 + 0.25) = 2.75 hours.
3 The director estimates are based on the
following calculations: (7.5 minutes + 5 minutes)/
60 minutes per hour = 0.21 hours; and 0.21 hours
× $4500/hour = $945. The per hour cost estimate
is based on estimated hourly compensation for each
board member of $500 and an average board size
of 9 members.
4 The officer estimates are based on the following
calculations: 2.5 minutes/60 minutes per hour =
0.04 hours; 0.04 hours × $418/hour = $16.72. The
per hour cost estimate is based on the figure for
chief compliance officers found in 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.
5 The support staff estimates are based on the
following calculations: 2 hours + 20 minutes + 10
minutes = 2.5 hours; and 2.5 hours × $59/hour =
$147.50. The per hour cost estimate is based on the
figure for compliance clerks found in 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 2.93 to account for bonuses, firm size,
employee benefits and overhead.
6 This estimate is based on the following
calculation: $1109.22 = $945 + $16.72 + 147.50.
E:\FR\FM\03SEN1.SGM
03SEN1
srobinson on DSKHWCL6B1PROD with NOTICES
54196
Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
process, and an initial list of affiliated
persons, and establishing a means of
keeping records in the United States) of
approximately 90 hours for the fund and
its associated persons. The Commission
is not including these hours in its
calculation of the annual burden
because no fund has applied to register
under the Act pursuant to rule 7d–1 in
the last three years.
As noted above, after registration, a
Canadian fund may file a supplemental
application seeking special relief
designed for the fund’s particular
circumstances. Rule 7d–1 does not
mandate these applications. The active
registrant has not filed a substantive
supplemental application in the past
three years. Therefore, the Commission
has not allocated any burden hours for
these applications.
These estimates of average burden
hours are 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 Commission rules.
If a Canadian or other foreign fund in
the future applied to register under the
Act under rule 7d–1, the fund initially
might have capital and start-up costs
(not including hourly burdens) of an
estimated $17,280 to comply with the
rule’s initial information collection
requirements. These costs include legal
and processing-related fees for
preparing the required documentation
(such as the application, charter, bylaw,
and contract provisions), designations
for service of process, and the list of
affiliated persons. Other related costs
would include fees for establishing
arrangements with a custodian or other
agent for maintaining records in the
United States, copying and
transportation costs for records, and the
costs of purchasing or leasing computer
equipment, software, or other record
storage equipment for records
maintained in electronic or
photographic form.
The Commission expects that a
foreign fund and its sponsors would
incur these costs immediately, and that
the annualized cost of the expenditures
would be $17,280 in the first year. Some
expenditures might involve capital
improvements, such as computer
equipment, having expected useful lives
for which annualized figures beyond the
first year would be meaningful. These
annualized figures are not provided,
however, because, in most cases, the
expenses would be incurred
immediately rather than on an annual
basis. The Commission is not including
these costs in its calculation of the
annualized capital/start-up costs
because no fund has applied under rule
VerDate Mar<15>2010
15:33 Sep 02, 2010
Jkt 220001
7d–1 to register under the Act pursuant
to rule 7d–1 in the last three years.
These estimates of average costs are
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.
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.
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: Shagufta Ahmed at
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher, Director/CIO,
Securities and Exchange Commission, c/
o Remi Pavlik-Simon, 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 30, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–22030 Filed 9–2–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copy Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Form N–14; SEC File No. 270–297; OMB
Control No. 3235–0336.
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’’) has submitted to the
Office of Management and Budget
requests for extension of the previously
approved collection of information
discussed below.
Form N–14 (17 CFR 239.23)—
Registration Statement Under the
Securities Act of 1933 for Securities
Issued in Business Combination
Transactions by Investment Companies
and Business Development Companies.
Form N–14 is used by investment
companies registered under the
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
Investment Company Act of 1940 (15
U.S.C. 80a–1 et seq.) (‘‘Investment
Company Act’’) and business
development companies as defined by
Section 2(a)(48) of the Investment
Company Act to register securities
under the Securities Act of 1933 (15
U.S.C. 77a et seq.) (‘‘Securities Act’’) to
be issued in business combination
transactions specified in rule 145(a)
under the Securities Act (17 CFR
230.145(a)) and exchange offers. The
securities are registered under the
Securities Act to ensure that investors
receive the material information
necessary to evaluate securities issued
in business combination transactions.
The Commission staff reviews
registration statements on Form N–14
for the adequacy and accuracy of the
disclosure contained therein. Without
Form N–14, the Commission would be
unable to verify compliance with
securities law requirements. The
respondents to the collection of
information are investment companies
or business development companies
issuing securities in business
combination transactions. The estimated
number of responses is 286 (including
266 registrants that file one new
registration statement on Form N–14
each year and 20 registrants that file one
amendment to Form N–14 each year)
and the collection occurs only when a
merger or other business combination is
planned. The estimated total annual
reporting burden of the collection of
information is approximately 620 hours
per response for a new registration
statement, and approximately 350 hours
per response for an amended Form
N–14, for a total of 171,920 annual
burden hours. Providing the information
on Form N–14 is mandatory. Responses
will not be kept confidential. Estimates
of the burden hours are made solely for
the 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 and forms.
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.
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 send an
e-mail to Shagufta Ahmed at
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher, Director/CIO,
Securities and Exchange Commission,
E:\FR\FM\03SEN1.SGM
03SEN1
]]>Agencies
[Federal Register Volume 75, Number 171 (Friday, September 3, 2010)]
[Notices]
[Pages 54194-54196]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-22030]
-----------------------------------------------------------------------
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 7d-1; SEC File No. 270-176; OMB Control No. 3235-0311.
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'') has submitted to the Office of Management and Budget a
[[Page 54195]]
request for extension of the previously approved collection of
information discussed below.
Section 7(d) of the Investment Company Act of 1940 (15 U.S.C. 80a-
7(d)) (the ``Act'' or ``Investment Company Act'') requires an
investment company (``fund'') organized outside the United States
(``foreign fund'') to obtain an order from the Commission allowing the
fund to register under the Act before making a public offering of its
securities through the United States mail or any means of interstate
commerce. The Commission may issue an order only if it finds that it is
both legally and practically feasible effectively to enforce the
provisions of the Act against the foreign fund, and that the
registration of the fund is consistent with the public interest and
protection of investors.
Rule 7d-1 (17 CFR 270.7d-1) under the Act, which was adopted in
1954, specifies the conditions under which a Canadian management
investment company (``Canadian fund'') may request an order from the
Commission permitting it to register under the Act. Although rule 7d-1
by its terms applies only to Canadian funds, other foreign funds
generally have agreed to comply with the requirements of rule 7d-1 as a
prerequisite to receiving an order permitting the foreign fund's
registration under the Act.
The rule requires a Canadian fund proposing to register under the
Act to file an application with the Commission that contains various
undertakings and agreements of the fund. The requirement for the
Canadian fund to file an application is a collection of information
under the Paperwork Reduction Act. Certain of the undertakings and
agreements, in turn, impose the following additional information
collection requirements:
(1) The fund must file agreements between the fund and its
directors, officers, and service providers requiring them to comply
with the fund's charter and bylaws, the Act, and certain other
obligations relating to the undertakings and agreements in the
application;
(2) The fund and each of its directors, officers, and investment
advisers that is not a U.S. resident, must file an irrevocable
designation of the fund's custodian in the United States as agent for
service of process;
(3) The fund's charter and bylaws must provide that (a) the fund
will comply with certain provisions of the Act applicable to all funds,
(b) the fund will maintain originals or copies of its books and records
in the United States, and (c) the fund's contracts with its custodian,
investment adviser, and principal underwriter, will contain certain
terms, including a requirement that the adviser maintain originals or
copies of pertinent records in the United States;
(4) The fund's contracts with service providers will require that
the provider perform the contract in accordance with the Act, the
Securities Act of 1933 (15 U.S.C. 77a), and the Securities Exchange Act
of 1934 (15 U.S.C. 78a), as applicable; and
(5) The fund must file, and periodically revise, a list of persons
affiliated with the fund or its adviser or underwriter.
As noted above, under section 7(d) of the Act the Commission may
issue an order permitting a foreign fund's registration only if the
Commission finds that ``by reason of special circumstances or
arrangements, it is both legally and practically feasible effectively
to enforce the provisions of the (Act).'' The information collection
requirements are necessary to assure that the substantive provisions of
the Act may be enforced as a matter of contract right in the United
States or Canada by the fund's shareholders or by the Commission.
Rule 7d-1 also contains certain information collection requirements
that are associated with other provisions of the Act. These
requirements are applicable to all registered funds and are outside the
scope of this request.
The Commission believes that one foreign fund is registered under
rule 7d-1 and currently active. Apart from requirements under the Act
applicable to all registered funds, rule 7d-1 imposes ongoing burdens
to maintain records in the United States, and to update, as necessary,
certain fund agreements, designations of the fund's custodian as
service agent, and the fund's list of affiliated persons. The
Commission staff estimates that each year under the rule, the active
registrant and its directors, officers, and service providers engage in
the following collections of information and associated burden hours:
For the fund and its investment adviser to maintain
records in the United States: \1\ 0 hours: 0 minutes of compliance
clerk time.
---------------------------------------------------------------------------
\1\ The rule requires an applicant and its investment adviser to
maintain records in the United States (which, without the
requirement, might be maintained in Canada or another foreign
jurisdiction), which facilitates routine inspections and any special
investigations of the fund by Commission staff. The registrant and
its investment adviser, however, already maintain the registrant's
records in the United States and in no other jurisdiction.
Therefore, maintenance of the registrant's records in the United
States does not impose an additional burden beyond that imposed by
other provisions of the Act. Those provisions are applicable to all
registered funds and the compliance burden of those provisions is
outside the scope of this request.
---------------------------------------------------------------------------
For the fund to update its list of affiliated persons: 2
hours: 2 hours of support staff time.
For new officers, directors, and service providers to
enter into and file agreements requiring them to comply with the fund's
charter and bylaws, the Act, and certain other obligations: 0.5 hours:
7.5 minutes of director time; 2.5 minutes of officer time; 20 minutes
of support staff time.
For new officers, directors, and investment advisers who
are not residents of the United States to file irrevocable designation
of the fund's custodian as agent for process of service: 0.25 hours: 5
minutes of director time; 10 minutes of support staff time.
Based on the estimates above, the Commission estimates that the
total annual burden of the rule's paperwork requirements is 2.75
hours.\2\ We estimate that directors perform 0.21 hours of these burden
hours at a total cost of $945,\3\ officers perform 0.04 of these burden
hours at a total cost of $16.72,\4\ and support staff perform 2.5 of
these burden hours at a total cost of $147.50.\5\ Thus, the Commission
estimates the aggregate annual cost of the burden hours associated with
rule 7d-1 is $1109.\6\
---------------------------------------------------------------------------
\2\ This estimate is based on the following calculation: (0 + 2
+ 0.5 + 0.25) = 2.75 hours.
\3\ The director estimates are based on the following
calculations: (7.5 minutes + 5 minutes)/60 minutes per hour = 0.21
hours; and 0.21 hours x $4500/hour = $945. The per hour cost
estimate is based on estimated hourly compensation for each board
member of $500 and an average board size of 9 members.
\4\ The officer estimates are based on the following
calculations: 2.5 minutes/60 minutes per hour = 0.04 hours; 0.04
hours x $418/hour = $16.72. The per hour cost estimate is based on
the figure for chief compliance officers found in 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.
\5\ The support staff estimates are based on the following
calculations: 2 hours + 20 minutes + 10 minutes = 2.5 hours; and 2.5
hours x $59/hour = $147.50. The per hour cost estimate is based on
the figure for compliance clerks found in 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 2.93 to account for bonuses, firm size, employee
benefits and overhead.
\6\ This estimate is based on the following calculation:
$1109.22 = $945 + $16.72 + 147.50.
---------------------------------------------------------------------------
If a fund were to file an application under rule 7d-1 to register
under the Act, the Commission estimates that the rule would impose
initial information collection burdens (for filing an application,
preparing the specified charter, bylaw, and contract provisions,
designations of agents for service of
[[Page 54196]]
process, and an initial list of affiliated persons, and establishing a
means of keeping records in the United States) of approximately 90
hours for the fund and its associated persons. The Commission is not
including these hours in its calculation of the annual burden because
no fund has applied to register under the Act pursuant to rule 7d-1 in
the last three years.
As noted above, after registration, a Canadian fund may file a
supplemental application seeking special relief designed for the fund's
particular circumstances. Rule 7d-1 does not mandate these
applications. The active registrant has not filed a substantive
supplemental application in the past three years. Therefore, the
Commission has not allocated any burden hours for these applications.
These estimates of average burden hours are 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
Commission rules.
If a Canadian or other foreign fund in the future applied to
register under the Act under rule 7d-1, the fund initially might have
capital and start-up costs (not including hourly burdens) of an
estimated $17,280 to comply with the rule's initial information
collection requirements. These costs include legal and processing-
related fees for preparing the required documentation (such as the
application, charter, bylaw, and contract provisions), designations for
service of process, and the list of affiliated persons. Other related
costs would include fees for establishing arrangements with a custodian
or other agent for maintaining records in the United States, copying
and transportation costs for records, and the costs of purchasing or
leasing computer equipment, software, or other record storage equipment
for records maintained in electronic or photographic form.
The Commission expects that a foreign fund and its sponsors would
incur these costs immediately, and that the annualized cost of the
expenditures would be $17,280 in the first year. Some expenditures
might involve capital improvements, such as computer equipment, having
expected useful lives for which annualized figures beyond the first
year would be meaningful. These annualized figures are not provided,
however, because, in most cases, the expenses would be incurred
immediately rather than on an annual basis. The Commission is not
including these costs in its calculation of the annualized capital/
start-up costs because no fund has applied under rule 7d-1 to register
under the Act pursuant to rule 7d-1 in the last three years.
These estimates of average costs are 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.
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.
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: Shagufta Ahmed at
Shagufta_Ahmed@omb.eop.gov; and (ii) Charles Boucher, Director/CIO,
Securities and Exchange Commission, c/o Remi Pavlik-Simon, 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 30, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-22030 Filed 9-2-10; 8:45 am]
BILLING CODE 8011-01-P
