Proposed Collection; Comment Request, 73137 [2010-29889]
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Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Notices
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Dated: November 22, 2010.
Rochelle C. Bavol,
Policy Coordinator, Office of the Secretary.
[FR Doc. 2010–30093 Filed 11–24–10; 4:15 pm]
BILLING CODE 7590–01–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.
mstockstill on DSKH9S0YB1PROD with NOTICES
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 701 (17 CFR 230.701) under the
Securities Act of 1933 (‘‘Securities Act’’)
(15 U.S.C. 77a et seq.) provides an
exemption for certain issuers from the
registration requirements of the
Securities Act for limited offerings and
sales of securities issued under
compensatory benefit plans or contracts.
The purpose of Rule 701 is to ensure
that a basic level of information is
available to employees and others when
substantial amounts of securities are
issued in compensatory arrangements.
Approximately 300 companies annually
17:57 Nov 26, 2010
Jkt 223001
Dated: November 22, 2010.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–29889 Filed 11–26–10; 8:45 am]
BILLING CODE 8011–01–P
Extension:
Rule 701, OMB Control No. 3235–0522,
SEC File No. 270–306.
VerDate Mar<15>2010
rely on the Rule 701 exemption. The
Rule 701 disclosure takes an estimated
2 hours per response to prepare for a
total annual burden of 600 hours. We
estimate that 25% of the 2 hours per
response (0.5 hours) is prepared by the
company for a total annual reporting
burden of 150 hours (0.5 hours per
response × 300 responses).
Written comments are invited on: (a)
Whether this 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 imposed
by 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 Thomas Bayer, Chief Information
Officer, Securities and Exchange
Commission, C/O Remi Pavlik-Simon,
6432 General Green Way, Alexandria,
Virginia 22312; or send an e-mail to:
PRA_Mailbox@sec.gov.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63363; File No. S7–04–09]
Order Extending Temporary
Conditional Exemption for Nationally
Recognized Statistical Rating
Organizations From Requirements of
Rule 17g–5 Under the Securities
Exchange Act of 1934 and Request for
Comment
November 23, 2010.
I. Introduction
On May 19, 2010, the Securities and
Exchange Commission (‘‘Commission’’)
conditionally exempted, with respect to
certain credit ratings and until
December 2, 2010, nationally recognized
statistical rating organizations
(‘‘NRSROs’’) from certain requirements
in Rule 17g–5(a)(3) 1 under the
Securities Exchange Act of 1934
1 See
PO 00000
17 CFR 240.17g–5(a)(3).
Frm 00111
Fmt 4703
Sfmt 4703
73137
(‘‘Exchange Act’’), which had a
compliance date of June 2, 2010.2
Pursuant to the Order, an NRSRO is not
required to comply with Rule 17g–
5(a)(3) until December 2, 2010 with
respect to credit ratings where: (1) The
issuer of the structured finance product
is a non-U.S. person; and (2) the NRSRO
has a reasonable basis to conclude that
the structured finance product will be
offered and sold upon issuance, and that
any arranger linked to the structured
finance product will effect transactions
of the structured finance product after
issuance, only in transactions that occur
outside the U.S. (‘‘covered
transactions’’).3 The Commission is
extending the temporary conditional
exemption exempting NRSROs from
complying with Rule 17g–5(a)(3) with
respect to rating covered transactions
until December 2, 2011.
II. Background
Rule 17g–5 identifies, in paragraphs
(b) and (c) of the rule, a series of
conflicts of interest arising from the
business of determining credit ratings.4
Paragraph (a) of Rule 17g–5 5 prohibits
an NRSRO from issuing or maintaining
a credit rating if it is subject to the
conflicts of interest identified in
paragraph (b) of Rule 17g–5 unless the
NRSRO has taken the steps prescribed
in paragraph (a)(1) (i.e., disclosed the
type of conflict of interest in Exhibit 6
to Form NRSRO in accordance with
Section 15E(a)(1)(B)(vi) of the Exchange
Act 6 and Rule 17g–1) 7 and paragraph
(a)(2) (i.e., established and is
maintaining and enforcing written
policies and procedures to address and
manage conflicts of interest in
accordance with Section 15E(h) of the
Exchange Act).8 Paragraph (c) of Rule
17g–5 specifically prohibits seven types
of conflicts of interest. Consequently, an
NRSRO is prohibited from issuing or
maintaining a credit rating when it is
subject to these conflicts regardless of
whether it had disclosed them and
established procedures reasonably
designed to address them.
In December 2009, the Commission
adopted subparagraph (a)(3) to Rule
17g–5. This provision requires an
NRSRO that is hired by an arranger to
determine an initial credit rating for a
structured finance product to take
2 See Securities Exchange Act Release No. 62120
(May 19, 2010), 75 FR 28825 (May 24, 2010)
(‘‘Order’’).
3 See id. at 28827–28 (setting forth conditions of
relief).
4 17 CFR 240.17g–5(b) and (c).
5 17 CFR 240.17g–5(a).
6 15 U.S.C. 78o–7(a)(1)(B)(vi).
7 17 CFR 240.17g–1.
8 15 U.S.C. 78o–7(h).
E:\FR\FM\29NON1.SGM
29NON1
Agencies
[Federal Register Volume 75, Number 228 (Monday, November 29, 2010)]
[Notices]
[Page 73137]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29889]
-----------------------------------------------------------------------
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 701, OMB Control No. 3235-0522, SEC File No. 270-306.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit this
existing collection of information to the Office of Management and
Budget for extension and approval.
Rule 701 (17 CFR 230.701) under the Securities Act of 1933
(``Securities Act'') (15 U.S.C. 77a et seq.) provides an exemption for
certain issuers from the registration requirements of the Securities
Act for limited offerings and sales of securities issued under
compensatory benefit plans or contracts. The purpose of Rule 701 is to
ensure that a basic level of information is available to employees and
others when substantial amounts of securities are issued in
compensatory arrangements. Approximately 300 companies annually rely on
the Rule 701 exemption. The Rule 701 disclosure takes an estimated 2
hours per response to prepare for a total annual burden of 600 hours.
We estimate that 25% of the 2 hours per response (0.5 hours) is
prepared by the company for a total annual reporting burden of 150
hours (0.5 hours per response x 300 responses).
Written comments are invited on: (a) Whether this 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
imposed by 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 Thomas Bayer, Chief
Information Officer, Securities and Exchange Commission, C/O Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312; or
send an e-mail to: PRA_Mailbox@sec.gov.
Dated: November 22, 2010.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-29889 Filed 11-26-10; 8:45 am]
BILLING CODE 8011-01-P