Proposed Collection; Comment Request, 15007-15008 [2011-6362]
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Federal Register / Vol. 76, No. 53 / Friday, March 18, 2011 / Notices
foreign securities depositories based on
conditions that reflect the operations
and role of these depositories.1 Rule
17f–7 contains some ‘‘collection of
information’’ requirements. An eligible
securities depository has to meet
minimum standards for a depository.
The fund or its investment adviser
generally determines whether the
depository complies with those
requirements based on information
provided by the fund’s primary
custodian (a bank that acts as global
custodian). The depository custody
arrangement has to meet certain risk
limiting requirements. The fund can
obtain indemnification or insurance
arrangements that adequately protect
the fund against custody risks. The fund
or its investment adviser generally
determines whether indemnification or
insurance provisions are adequate. If the
fund does not rely on indemnification
or insurance, the fund’s contract with its
primary custodian is required to state
that the custodian will provide to the
fund or its investment adviser a custody
risk analysis of each depository, monitor
risks on a continuous basis, and
promptly notify the fund or its adviser
of material changes in risks. The
primary custodian and other custodians
also are required to agree to exercise
reasonable care.
The collection of information
requirements in rule 17f–7 are intended
to provide workable standards that
protect funds from the risks of using
securities depositories while assigning
appropriate responsibilities to the
fund’s primary custodian and
investment adviser based on their
capabilities. The requirement that the
depository meet specified minimum
standards is intended to ensure that the
depository is subject to basic safeguards
deemed appropriate for all depositories.
The requirement that the custody
contract state that the fund’s primary
custodian will provide an analysis of
the custody risks of depository
arrangements, monitor the risks, and
report on material changes is intended
to provide essential information about
custody risks to the fund’s investment
adviser as necessary for it to approve the
continued use of the depository. The
requirement that the primary custodian
agree to exercise reasonable care is
intended to provide assurances that its
services and the information it provides
will meet an appropriate standard of
care. The alternative requirement that
the funds obtain adequate
1 Custody of Investment Company Assets Outside
the United States, Investment Company Act Release
No. IC–23815 (April 29, 1999) (64 FR 24489 (May
6, 1999)).
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18:30 Mar 17, 2011
Jkt 223001
indemnification or insurance against the
custody risks of depository
arrangements is intended to provide
another, potentially less burdensome
means to protect assets held in
depository arrangements.
The staff estimates that each of
approximately 836 investment advisers 2
will make an average of 8 responses
annually under the rule to address
depository compliance with minimum
requirements, any indemnification or
insurance arrangements, and reviews of
risk analyses or notifications. The staff
estimates each response will take 6
hours, requiring a total of approximately
48 hours for each adviser. The total
annual burden associated with these
requirements of the rule will be
approximately 40,128 hours (836
advisers × 48 hours per adviser). The
staff further estimates that during each
year, each of approximately 15 global
custodians will make an average of 4
responses to analyze custody risks and
provide notice of any material changes
to custody risk under the rule. The staff
estimates that each response will take
260 hours, requiring approximately
1040 hours annually per custodian.3
The total annual burden associated with
these requirements is approximately
15,600 hours (15 custodians × 1040
hours). Therefore, the staff estimates
that the total annual burden associated
with all collection of information
requirements of the rule is 55,728 hours
(40,128 + 15,600). The total annual cost
of burden hours is estimated to be
$14,948,736 (40,128 × $287 for a
portfolio manager, plus 15,600 hours ×
$220/hour for a trust administrator’s
time).4 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 and forms.
Compliance with the collection of
information requirements of the rule is
necessary to obtain the benefit of relying
on the rule’s permission for funds to
maintain their assets in foreign
custodians.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the Commission,
2 At the start of 2011, 836 investment advisers
managed or sponsored open-end (including ETFs)
portfolios and closed-end registered funds.
3 These estimates are based on conversations with
representatives of the fund industry.
4 The salaries for a portfolio manager and a trust
administrator are from SIFMA’s Management &
Professional Earnings in the Securities Industry
2010, modified to account for an 1800-hour workyear and multiplied by 5.35 to account for bonuses,
firm size, employee benefits and overhead.
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15007
including whether the information has
practical utility; (b) the accuracy of the
Commission’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.
Dated: March 15, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–6364 Filed 3–17–11; 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:
Form N–17D–1; SEC File No. 270–
231; OMB Control No. 3235–0229.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520), the Securities
and Exchange Commission
(‘‘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(d) (15 U.S.C. 80a–17(d)) of
the Investment Company Act of 1940
(‘‘Act’’) authorizes the Commission to
adopt rules that protect funds and their
security holders from overreaching by
affiliated persons when the fund and the
affiliated person participate in any joint
enterprise or other joint arrangement or
profit-sharing plan. Rule 17d–1 under
the Act (17 CFR 270.17d–1) prohibits
funds and their affiliated persons from
participating in a joint enterprise, unless
an application regarding the transaction
has been filed with and approved by the
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Emcdonald on DSK2BSOYB1PROD with NOTICES
15008
Federal Register / Vol. 76, No. 53 / Friday, March 18, 2011 / Notices
Commission. Paragraph (d)(3) of the rule
provides an exemption from this
requirement for any loan or advance of
credit to, or acquisition of securities or
other property of, a small business
concern, or any agreement to do any of
the foregoing (‘‘investments’’) made by a
small business investment company
(‘‘SBIC’’) and an affiliated bank,
provided that reports about the
investments are made on forms the
Commission may prescribe. Rule 17d–2
(17 CFR 270.17d–2) designates Form N–
17D–1 (17 CFR 274.00) (‘‘form’’) as the
form for reports required by rule 17d–
1.
SBICs and their affiliated banks use
form N–17D–1 to report any
contemporaneous investments in a
small business concern. The form
provides shareholders and persons
seeking to make an informed decision
about investing in an SBIC an
opportunity to learn about transactions
of the SBIC that have the potential for
self dealing and other forms of
overreaching by affiliated persons at the
expense of shareholders.
Form N–17D–1 requires SBICs and
their affiliated banks to report
identifying information about the small
business concern and the affiliated
bank. The report must include, among
other things, the SBIC’s and affiliated
bank’s outstanding investments in the
small business concern, the use of the
proceeds of the investments made
during the reporting period, any
changes in the nature and amount of the
affiliated bank’s investment, the name of
any affiliated person of the SBIC or the
affiliated bank (or any affiliated person
of the affiliated person of the SBIC or
the affiliated bank) who has any interest
in the transactions, the basis of the
affiliation, the nature of the interest, and
the consideration the affiliated person
has received or will receive.
Up to three SBICs may file the form
in any year.1 The Commission estimates
the burden of filling out the form is
approximately one hour per response
and would likely be completed by an
accountant or other professional. Based
on past filings, the Commission
estimates that no more than one SBIC is
likely to use the form each year. Most
of the information requested on the form
should be readily available to the SBIC
or the affiliated bank in records kept in
the ordinary course of business, or with
respect to the SBIC, pursuant to the
recordkeeping requirements under the
Act. Commission staff estimates that it
should take approximately one hour for
an accountant or other professional to
1 As of February 4, 2011, three SBICs were
registered with the Commission.
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18:30 Mar 17, 2011
Jkt 223001
complete the form.2 The estimated total
annual burden of filling out the form is
1 hour, at an estimated total annual cost
of $198.3 The Commission will not keep
responses on Form N–17D–1
confidential.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act, and 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.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the Commission,
including whether the information has
practical utility; (b) the accuracy of the
Commission’s estimate of the 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.
Dated: March 15, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–6362 Filed 3–17–11; 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
2 This estimate of hours is based on past
conversations with representatives of SBICs and
accountants that have filed the form.
3 Commission staff estimates that the annual
burden would be incurred by a senior accountant
with an average hourly wage rate of $198 per hour.
See Securities Industry and Financial Markets
Association, Report on Management and
Professional Earnings in the Securities Industry
2010, modified to account for an 1,800-hour work
year and multiplied by 5.35 to account for bonuses,
firm size, employee benefits and overhead.
PO 00000
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Sfmt 4703
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 15c3–3; SEC File No. 270–087;
OMB Control No. 3235–0078.
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 Rule 15c3–
3 (17 CFR 240.15c3–3), under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 15c3–3 requires that a brokerdealer that hold customer securities
obtain and maintain possession and
control of fully-paid and excess margin
securities they hold for customers. In
addition, the Rule requires that a brokerdealer that holds customer funds make
either a weekly or monthly computation
to determine whether certain customer
funds need to be segregated in a special
reserve bank account for the exclusive
benefit of the firm’s customers. It also
requires that a broker-dealer maintain a
written notification from each bank
where a Special Reserve Bank Account
is held acknowledging that all assets in
the account are for the exclusive benefit
of the broker-dealer’s customers, and to
provide written notification to the
Commission (and its designated
examining authority) under certain,
specified circumstances. Finally,
paragraph (o) of Rule 15c3–3, which
only applies to broker-dealers that sell
securities futures products (‘‘SFP’’) to
customers, requires that such brokerdealers provide certain notifications to
customers, and to make a record of any
changes of account type.
There are approximately 279 brokerdealers fully subject to the Rule (i.e.,
broker-dealers that cannot claim any of
the exemptions enumerated at
paragraph (k)), of which approximately
13 make daily, 210 make weekly, and 56
make monthly, reserve computations.
On average, each of these respondents
require approximately 2.5 hours to
complete a computation. Accordingly,
Commission staff estimates that the
resulting burden totals 36,780 hours
annually ((2.5 hours × 240 computations
× 13 respondents that calculate daily) +
(2.5 hours × 52 computations × 210
respondents that calculate weekly) +
(2.5 hours × 12 computations × 56
respondents that calculate monthly)).
A broker-dealer required to maintain
the Special Reserve Bank Account
prescribed by Rule 15c3–3 must obtain
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]]>Agencies
[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Pages 15007-15008]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6362]
-----------------------------------------------------------------------
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:
Form N-17D-1; SEC File No. 270-231; OMB Control No. 3235-0229.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange
Commission (``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(d) (15 U.S.C. 80a-17(d)) of the Investment Company Act
of 1940 (``Act'') authorizes the Commission to adopt rules that protect
funds and their security holders from overreaching by affiliated
persons when the fund and the affiliated person participate in any
joint enterprise or other joint arrangement or profit-sharing plan.
Rule 17d-1 under the Act (17 CFR 270.17d-1) prohibits funds and their
affiliated persons from participating in a joint enterprise, unless an
application regarding the transaction has been filed with and approved
by the
[[Page 15008]]
Commission. Paragraph (d)(3) of the rule provides an exemption from
this requirement for any loan or advance of credit to, or acquisition
of securities or other property of, a small business concern, or any
agreement to do any of the foregoing (``investments'') made by a small
business investment company (``SBIC'') and an affiliated bank, provided
that reports about the investments are made on forms the Commission may
prescribe. Rule 17d-2 (17 CFR 270.17d-2) designates Form N-17D-1 (17
CFR 274.00) (``form'') as the form for reports required by rule 17d-1.
SBICs and their affiliated banks use form N-17D-1 to report any
contemporaneous investments in a small business concern. The form
provides shareholders and persons seeking to make an informed decision
about investing in an SBIC an opportunity to learn about transactions
of the SBIC that have the potential for self dealing and other forms of
overreaching by affiliated persons at the expense of shareholders.
Form N-17D-1 requires SBICs and their affiliated banks to report
identifying information about the small business concern and the
affiliated bank. The report must include, among other things, the
SBIC's and affiliated bank's outstanding investments in the small
business concern, the use of the proceeds of the investments made
during the reporting period, any changes in the nature and amount of
the affiliated bank's investment, the name of any affiliated person of
the SBIC or the affiliated bank (or any affiliated person of the
affiliated person of the SBIC or the affiliated bank) who has any
interest in the transactions, the basis of the affiliation, the nature
of the interest, and the consideration the affiliated person has
received or will receive.
Up to three SBICs may file the form in any year.\1\ The Commission
estimates the burden of filling out the form is approximately one hour
per response and would likely be completed by an accountant or other
professional. Based on past filings, the Commission estimates that no
more than one SBIC is likely to use the form each year. Most of the
information requested on the form should be readily available to the
SBIC or the affiliated bank in records kept in the ordinary course of
business, or with respect to the SBIC, pursuant to the recordkeeping
requirements under the Act. Commission staff estimates that it should
take approximately one hour for an accountant or other professional to
complete the form.\2\ The estimated total annual burden of filling out
the form is 1 hour, at an estimated total annual cost of $198.\3\ The
Commission will not keep responses on Form N-17D-1 confidential.
---------------------------------------------------------------------------
\1\ As of February 4, 2011, three SBICs were registered with the
Commission.
\2\ This estimate of hours is based on past conversations with
representatives of SBICs and accountants that have filed the form.
\3\ Commission staff estimates that the annual burden would be
incurred by a senior accountant with an average hourly wage rate of
$198 per hour. See Securities Industry and Financial Markets
Association, Report on Management and Professional Earnings in the
Securities Industry 2010, modified to account for an 1,800-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, and 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.
Written comments are invited on: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information has practical
utility; (b) the accuracy of the Commission's estimate of the 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.
Dated: March 15, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-6362 Filed 3-17-11; 8:45 am]
BILLING CODE 8011-01-P
