Proposed Collection; Comment Request, 81680-81681 [2010-32521]
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Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices
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,
VA 22312; or send an e-mail to:
PRA_Mailbox@sec.gov.
December 20, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32517 Filed 12–27–10; 8:45 am]
BILLING CODE 8011–01–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.
emcdonald on DSK2BSOYB1PROD with NOTICES
Extension: Regulation S–AM; SEC File No.
270–548; OMB Control No. 3235–0609.
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 provided for in Regulation
S–AM (17 CFR part 248, subpart B),
under the Fair and Accurate Credit
Transactions Act of 2003 (Pub. L. 108–
159, Section 214, 117 Stat. 1952 (2003))
(‘‘FACT Act’’), the Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.), the
Investment Company Act of 1940 (15
U.S.C. 80a–1 et seq.), and the
Investment Advisers Act of 1940 (15
U.S.C. 80b–1 et seq.).
Regulation S–AM implements the
requirements of Section 214 of the
FACT Act as applied to brokers, dealers,
and investment companies, as well as
investment advisers and transfer agents
that are registered with the Commission
(collectively, ‘‘Covered Persons’’). As
directed by Section 214 of the FACT
Act, before a receiving affiliate may
make marketing solicitations based on
the communication of certain consumer
financial information from a Covered
Person, the Covered Person must
provide a notice to each affected
individual informing the individual of
VerDate Mar<15>2010
22:37 Dec 27, 2010
Jkt 223001
his or her right to prohibit such
marketing. The regulation potentially
applies to all of the approximately
21,496 Covered Persons registered with
the Commission, although only
approximately 12,038 of them have one
or more corporate affiliates, and the
regulation would require only
approximately 2,150 of them to provide
consumers with notice and an opt-out
opportunity.
The Commission staff estimates that
there are approximately 12,038 Covered
Persons having one or more affiliates,
and that they would require an average
one-time burden of 1 hour to review
affiliate marketing practices, for a total
of 12,038 hours, at a total staff cost of
approximately $2,527,929. The staff also
estimates that approximately 2,150
Covered Persons would be required to
provide notice and opt-out
opportunities to consumers, and would
incur an average first-year burden of 18
hours in doing so, for a total estimated
first-year burden of 38,700 hours, at a
total staff cost of approximately
$10,294,200. With regard to continuing
notice burdens, the staff estimates that
each of the approximately 2,150
Covered Persons required to provide
notice and opt-out opportunities to
consumers would incur a burden of
approximately 4 hours per year to create
and deliver notices to new consumers
and record any opt outs that are
received on an ongoing basis, for a total
of 8,600 hours, at a total staff cost of
approximately $490,200 per year.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information on respondents; 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.
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.
The public may view the background
documentation for this information
collection at the following Web site,
https://www.reginfo.gov. Comments
should be directed to: (i) Desk Officer
for the Securities and Exchange
Commission, Office of Information and
Regulatory Affairs, Office of
Management and Budget, Room 10102,
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
New Executive Office Building,
Washington, DC 20503, or by sending an
e-mail to:
Shagufta_Ahmed@omb.eop.gov; and (ii)
Thomas Bayer, Chief Information
Officer, 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: December 21, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32522 Filed 12–27–10; 8:45 am]
BILLING CODE 8011–01–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 17a–10; SEC File No. 270–
507; OMB Control No. 3235–0563.
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 collections of information
summarized below. The Commission
plans to submit these existing
collections of information to the Office
of Management and Budget (‘‘OMB’’) for
extension and approval.
Section 17(a) of the Investment
Company Act of 1940 (the ‘‘Act’’),
generally prohibits affiliated persons of
a registered investment company
(‘‘fund’’) from borrowing money or other
property from, or selling or buying
securities or other property to or from,
the fund or any company that the fund
controls.1 Section 2(a)(3) of the Act
defines ‘‘affiliated person’’ of a fund to
include its investment advisers.2 Rule
17a–10 (17 CFR 270.17a–10) permits (i)
a subadviser of a fund to enter into
transactions with funds the subadviser
does not advise but that are affiliated
persons of a fund that it does advise
(e.g., other funds in the fund complex),
and (ii) a subadviser (and its affiliated
persons) to enter into transactions and
arrangements with funds the subadviser
does advise, but only with respect to
discrete portions of the subadvised fund
1 15
2 15
E:\FR\FM\28DEN1.SGM
U.S.C. 80a–17(a).
U.S.C. 80a–2(a)(3)(E).
28DEN1
emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices
for which the subadviser does not
provide investment advice.
To qualify for the exemptions in rule
17a–10, the subadvisory relationship
must be the sole reason why section
17(a) prohibits the transaction. In
addition, the advisory contracts of the
subadviser entering into the transaction,
and any subadviser that is advising the
purchasing portion of the fund, must
prohibit the subadvisers from consulting
with each other concerning securities
transactions of the fund, and limit their
responsibility to providing advice with
respect to discrete portions of the fund’s
portfolio.3 Section 17(a) of the
Investment Company Act of 1940 (the
‘‘Act’’), generally prohibits affiliated
persons of a registered investment
company (‘‘fund’’) from borrowing
money or other property from, or selling
or buying securities or other property to
or from, the fund or any company that
the fund controls. Section 2(a)(3) of the
Act defines ‘‘affiliated person’’ of a fund
to include its investment advisers. Rule
17a–10 permits (i) a subadviser of a
fund to enter into transactions with
funds the subadviser does not advise
but that are affiliated persons of a fund
that it does advise (e.g., other funds in
the fund complex), and (ii) a subadviser
(and its affiliated persons) to enter into
transactions and arrangements with
funds the subadviser does advise, but
only with respect to discrete portions of
the subadvised fund for which the
subadviser does not provide investment
advice.
To qualify for the exemptions in rule
17a–10, the subadvisory relationship
must be the sole reason why section
17(a) prohibits the transaction. In
addition, the advisory contracts of the
subadviser entering into the transaction,
and any subadviser that is advising the
purchasing portion of the fund, must
prohibit the subadvisers from consulting
with each other concerning securities
transactions of the fund, and limit their
responsibility to providing advice with
respect to discrete portions of the fund’s
portfolio. This requirement regarding
the prohibitions and limitations in
advisory contracts of subadvisors
relying on the rule constitutes a
collection of information under the
Paperwork Reduction Act of 1995
(‘‘PRA’’).4
The staff assumes that all funds
existing in 2003 amended their advisory
contracts following the amendments to
rule 17a–10 that year that conditioned
certain exemptions upon these
contractual alterations, and therefore
there is no continuing burden for those
3 17
4 44
CFR 270.17a–10(a)(2).
U.S.C. 3501.
VerDate Mar<15>2010
22:37 Dec 27, 2010
Jkt 223001
funds.5 Staff also assumes that funds
that came into existence after 2003
included the contractual requirements
in rule 17a–10 in their subadvisory
agreements and therefore there is no
continuing burden for those funds.
Based on an analysis of fund filings,
the staff estimates that approximately
252 fund portfolios enter into new
subadvisory agreements each year.6
Based on discussions with industry
representatives, the staff estimates that
it will require approximately 3 attorney
hours to draft and execute additional
clauses in new subadvisory contracts in
order for funds and subadvisers to be
able to rely on the exemptions in rule
17a–10. Because these additional
clauses are identical to 7 the clauses that
a fund would need to insert in their
subadvisory contracts to rely on rules
10f–3, 12d3–1, and 17e–1, and because
we believe that funds that use one such
rule generally use all of these rules, we
apportion this 3 hour time burden
equally among all four rules. Therefore,
we estimate that the burden allocated to
rule 17a–10 for this contract change
would be 0.75 hours.8 Assuming that all
252 funds that enter into new
subadvisory contracts each year include
in their contract the provisions required
by the rule, we estimate that the rule’s
contract requirement will result in 189
burden hours annually, with an
associated cost of approximately
$59,724.9
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.
Complying with this collection of
information requirement is necessary to
obtain the benefit of relying on rule
17a–10. Responses will not be kept
5 We assume that funds formed after 2003 that
intended to rely on rule 17a–10 would have
included the required provision as a standard
element in their initial subadvisory contracts.
6 Based on information in Commission filings, we
estimate that 42.5 percent of funds are advised by
subadvisers.
7 17 CFR 270.17a–10(a)(2).
8 This estimate is based on the following
calculation: 3 hours ÷ 4 rules = 0.75 hours.
9 These estimates are based on the following
calculations: 0.75 hours × 252 portfolios = 189
burden hours; $316 per hour × 189 hours = $59,724
total cost. The Commission staff’s estimates
concerning the wage rates for attorney time are
based on salary information for the securities
industry compiled by the Securities Industry and
Financial Markets Association. The $316 per hour
figure for an attorney is from the Securities Industry
and Financial Markets Association’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.
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
81681
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 Thomas Bayer, Chief Information
Officer, 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.
December 20, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32521 Filed 12–27–10; 8:45 am]
BILLING CODE 8011–01–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 17a–6, SEC File No. 270–
506, OMB Control No. 3235–0564.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501), the Securities and
Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collections of information
summarized below. The Commission
plans to submit these existing
collections of information to the Office
of Management and Budget (‘‘OMB’’) for
extension and approval.
Section 17(a) of the Investment
Company Act of 1940 (the ‘‘Act’’)
generally prohibits affiliated persons of
a registered investment company
(‘‘fund’’) from borrowing money or other
property from, or selling or buying
E:\FR\FM\28DEN1.SGM
28DEN1
]]>Agencies
[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Notices]
[Pages 81680-81681]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32521]
-----------------------------------------------------------------------
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 17a-10; SEC File No. 270-507; OMB Control No. 3235-
0563.
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 collections of
information summarized below. The Commission plans to submit these
existing collections of information to the Office of Management and
Budget (``OMB'') for extension and approval.
Section 17(a) of the Investment Company Act of 1940 (the ``Act''),
generally prohibits affiliated persons of a registered investment
company (``fund'') from borrowing money or other property from, or
selling or buying securities or other property to or from, the fund or
any company that the fund controls.\1\ Section 2(a)(3) of the Act
defines ``affiliated person'' of a fund to include its investment
advisers.\2\ Rule 17a-10 (17 CFR 270.17a-10) permits (i) a subadviser
of a fund to enter into transactions with funds the subadviser does not
advise but that are affiliated persons of a fund that it does advise
(e.g., other funds in the fund complex), and (ii) a subadviser (and its
affiliated persons) to enter into transactions and arrangements with
funds the subadviser does advise, but only with respect to discrete
portions of the subadvised fund
[[Page 81681]]
for which the subadviser does not provide investment advice.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 80a-17(a).
\2\ 15 U.S.C. 80a-2(a)(3)(E).
---------------------------------------------------------------------------
To qualify for the exemptions in rule 17a-10, the subadvisory
relationship must be the sole reason why section 17(a) prohibits the
transaction. In addition, the advisory contracts of the subadviser
entering into the transaction, and any subadviser that is advising the
purchasing portion of the fund, must prohibit the subadvisers from
consulting with each other concerning securities transactions of the
fund, and limit their responsibility to providing advice with respect
to discrete portions of the fund's portfolio.\3\ Section 17(a) of the
Investment Company Act of 1940 (the ``Act''), generally prohibits
affiliated persons of a registered investment company (``fund'') from
borrowing money or other property from, or selling or buying securities
or other property to or from, the fund or any company that the fund
controls. Section 2(a)(3) of the Act defines ``affiliated person'' of a
fund to include its investment advisers. Rule 17a-10 permits (i) a
subadviser of a fund to enter into transactions with funds the
subadviser does not advise but that are affiliated persons of a fund
that it does advise (e.g., other funds in the fund complex), and (ii) a
subadviser (and its affiliated persons) to enter into transactions and
arrangements with funds the subadviser does advise, but only with
respect to discrete portions of the subadvised fund for which the
subadviser does not provide investment advice.
---------------------------------------------------------------------------
\3\ 17 CFR 270.17a-10(a)(2).
---------------------------------------------------------------------------
To qualify for the exemptions in rule 17a-10, the subadvisory
relationship must be the sole reason why section 17(a) prohibits the
transaction. In addition, the advisory contracts of the subadviser
entering into the transaction, and any subadviser that is advising the
purchasing portion of the fund, must prohibit the subadvisers from
consulting with each other concerning securities transactions of the
fund, and limit their responsibility to providing advice with respect
to discrete portions of the fund's portfolio. This requirement
regarding the prohibitions and limitations in advisory contracts of
subadvisors relying on the rule constitutes a collection of information
under the Paperwork Reduction Act of 1995 (``PRA'').\4\
---------------------------------------------------------------------------
\4\ 44 U.S.C. 3501.
---------------------------------------------------------------------------
The staff assumes that all funds existing in 2003 amended their
advisory contracts following the amendments to rule 17a-10 that year
that conditioned certain exemptions upon these contractual alterations,
and therefore there is no continuing burden for those funds.\5\ Staff
also assumes that funds that came into existence after 2003 included
the contractual requirements in rule 17a-10 in their subadvisory
agreements and therefore there is no continuing burden for those funds.
---------------------------------------------------------------------------
\5\ We assume that funds formed after 2003 that intended to rely
on rule 17a-10 would have included the required provision as a
standard element in their initial subadvisory contracts.
---------------------------------------------------------------------------
Based on an analysis of fund filings, the staff estimates that
approximately 252 fund portfolios enter into new subadvisory agreements
each year.\6\ Based on discussions with industry representatives, the
staff estimates that it will require approximately 3 attorney hours to
draft and execute additional clauses in new subadvisory contracts in
order for funds and subadvisers to be able to rely on the exemptions in
rule 17a-10. Because these additional clauses are identical to \7\ the
clauses that a fund would need to insert in their subadvisory contracts
to rely on rules 10f-3, 12d3-1, and 17e-1, and because we believe that
funds that use one such rule generally use all of these rules, we
apportion this 3 hour time burden equally among all four rules.
Therefore, we estimate that the burden allocated to rule 17a-10 for
this contract change would be 0.75 hours.\8\ Assuming that all 252
funds that enter into new subadvisory contracts each year include in
their contract the provisions required by the rule, we estimate that
the rule's contract requirement will result in 189 burden hours
annually, with an associated cost of approximately $59,724.\9\
---------------------------------------------------------------------------
\6\ Based on information in Commission filings, we estimate that
42.5 percent of funds are advised by subadvisers.
\7\ 17 CFR 270.17a-10(a)(2).
\8\ This estimate is based on the following calculation: 3 hours
/ 4 rules = 0.75 hours.
\9\ These estimates are based on the following calculations:
0.75 hours x 252 portfolios = 189 burden hours; $316 per hour x 189
hours = $59,724 total cost. The Commission staff's estimates
concerning the wage rates for attorney time are based on salary
information for the securities industry compiled by the Securities
Industry and Financial Markets Association. The $316 per hour figure
for an attorney is from the Securities Industry and Financial
Markets Association'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.
---------------------------------------------------------------------------
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. Complying with this collection of
information requirement is necessary to obtain the benefit of relying
on rule 17a-10. Responses 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 Thomas Bayer, Chief
Information Officer, 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.
December 20, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32521 Filed 12-27-10; 8:45 am]
BILLING CODE 8011-01-P
