Submission for OMB Review; Comment Request, 11827-11828 [2011-4730]
Download as PDF
<![CDATA[
Federal Register / Vol. 76, No. 42 / Thursday, March 3, 2011 / Notices
on this exemption to the term ‘‘financial
interest’’ as defined in rule 17a–6.
The estimate of 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–6. 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,
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: February 25, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–4724 Filed 3–2–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
srobinson on DSKHWCL6B1PROD with NOTICES
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 27d–2, SEC File No. 270–500,
OMB Control No. 3235–0566.
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
(‘‘OMB’’) a request for approval of the
collections of information under the
Investment Company Act of 1940
(‘‘Act’’) summarized below.
VerDate Mar<15>2010
16:47 Mar 02, 2011
Jkt 223001
Rule 27d–2 (17 CFR 270.27d–2) is
entitled ‘‘Insurance Company
Undertaking in Lieu of Segregated Trust
Account.’’ Rule 27d–1 (17 CFR 270.27d–
1) under the Act requires the depositor
or principal underwriter for an issuer of
periodic payment plans to deposit funds
into a segregated trust account to
provide assurance of its ability to fulfill
its refund obligations under sections
27(d) and 27(f) of the Act.1 Rule 27d–
2 provides an exemption from rule 27d–
1 under the Act for depositors or
principal underwriters for the issuers of
periodic payment plans. In order to
comply with the rule: (i) The depositor
or principal underwriter must secure
from an insurance company a written
guarantee of the refund requirements;
(ii) the insurance company must satisfy
certain financial criteria; and (iii) the
depositor or principal underwriter must
file as an exhibit to the issuer’s
registration statement, a copy of the
written undertaking, an annual
statement that the insurance company
has met the requisite financial criteria
on a monthly basis, and an annual
audited balance sheet.
Rule 27d–2, which was explicitly
authorized by statute, provides
assurance that depositors and principal
underwriters of issuers have access to
sufficient cash to meet the demands of
certificate holders who reconsider their
decisions to invest in a periodic
payment plan. The information
collection requirement in rule 27d–2
enables the Commission to monitor
compliance with insurance company
undertaking requirements.
Effective October 27, 2006, the
Military Personnel Financial Services
Protection Act banned the issuance or
sale of new periodic payment plans.
Accordingly, the staff estimates that
there is no longer any information
collection burden associated with rule
27d–2. For administrative purposes,
however, we are requesting approval for
an information collection burden of one
hour per year. This estimate of burden
hours is not derived from a
comprehensive or even a representative
survey or study of the costs of
Commission rules and forms.
1 The rule sets forth minimum reserve amounts
and guidelines for the management and
disbursement of the assets in the account. Rule
27d–1(j) directs depositors and principal
underwriters annually to make an accounting of
their segregated trust accounts on Form N–27D–1,
which is filed with the Commission. The form
requires depositors and principal underwriters to
report deposits to a segregated trust account,
including those made pursuant to paragraphs (c)
and (e) of the rule. Withdrawals pursuant to
paragraph (f) of the rule also must be reported. In
addition, the form solicits information regarding the
minimum amount required to be maintained under
paragraphs (d) and (e) of rule 27d–1.
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
11827
Complying with the collection of
information requirements of rule 27d–2
is mandatory for depositors or principal
underwriters of issuers of periodic
payment plans who rely on the rule for
an exemption from complying with rule
27d–1 and filing Form N–27D–1. The
information provided pursuant to rule
27d–2 is public and, therefore, 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.
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,
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: February 25, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–4727 Filed 3–2–11; 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.
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
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Section 17(a) of the Investment
Company Act of 1940 (the ‘‘Act’’),
generally prohibits affiliated persons of
a registered investment company
E:\FR\FM\03MRN1.SGM
03MRN1
srobinson on DSKHWCL6B1PROD with NOTICES
11828
Federal Register / Vol. 76, No. 42 / Thursday, March 3, 2011 / Notices
(‘‘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
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
1 15
U.S.C. 80a–17(a).
U.S.C. 80a–2(a)(3)(E).
3 17 CFR 270.17a–10(a)(2).
2 15
VerDate Mar<15>2010
16:47 Mar 02, 2011
Jkt 223001
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
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 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.7 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
$59,724.8
4 44
U.S.C. 3501.
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 This estimate is based on the following
calculation: 3 hours ÷ 4 rules = 0.75 hours.
8 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
5 We
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
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.
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,
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: February 25, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–4730 Filed 3–2–11; 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.
Extension:
Rule 12d3–1; SEC File No. 270–504;
OMB Control No. 3235–0561.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
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.
E:\FR\FM\03MRN1.SGM
03MRN1
]]>Agencies
[Federal Register Volume 76, Number 42 (Thursday, March 3, 2011)]
[Notices]
[Pages 11827-11828]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-4730]
-----------------------------------------------------------------------
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 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
(``Commission'') has submitted to the Office of Management and Budget
(``OMB'') a request for extension of the previously approved collection
of information discussed below.
Section 17(a) of the Investment Company Act of 1940 (the ``Act''),
generally prohibits affiliated persons of a registered investment
company
[[Page 11828]]
(``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 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 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.\7\ 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.\8\
---------------------------------------------------------------------------
\6\ Based on information in Commission filings, we estimate that
42.5 percent of funds are advised by subadvisers.
\7\ This estimate is based on the following calculation: 3 hours
/ 4 rules = 0.75 hours.
\8\ 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.
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, 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: February 25, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-4730 Filed 3-2-11; 8:45 am]
BILLING CODE 8011-01-P
