Submission for OMB Review; Comment Request, 28824-28825 [2011-12203]
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Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices
srobinson on DSKHWCL6B1PROD with NOTICES
Extension:
Form N–8B–4; SEC File No. 270–180; OMB
Control No. 3235–0247.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) requests for extension of the
previously approved collection of
information discussed below.
Form N–8B–4 (17 CFR 274.14) is the
form used by face-amount certificate
companies to comply with the filing and
disclosure requirements imposed by
Section 8(b) of the Investment Company
Act of 1940 (15 U.S.C. 80a–8(b)). Form
N–8B–4 requires disclosure about the
face-amount certificate company’s
organization, controlling persons,
business, policies, securities,
investment adviser, depositary,
management personnel, compensation,
and financial statements. The
Commission uses the information
provided in the collection of
information to determine compliance
with Section 8(b) of the Investment
Company Act of 1940.
Based on the Commission’s industry
statistics, the Commission estimates that
there would be approximately one
annual filing on Form N–8B–4. The
Commission estimates that each
registrant filing a Form N–8b–4 would
spend 171 hours in preparing and filing
the form and that the total annual time
burden for all Form N–8B–4 filings
would be 171 hours. Estimates of the
burden hours are made solely for the
purposes of the PRA, and are not
derived from a comprehensive or even
a representative survey or study of the
costs of SEC rules and forms.
The information provided on Form
N–8B–4 is mandatory. The information
provided on Form N–8B–4 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, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi Pavlik-
VerDate Mar<15>2010
16:31 May 17, 2011
Jkt 223001
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: May 13, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–12204 Filed 5–17–11; 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
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 17f–5; SEC File No. 270–259; OMB
Control No. 3235–0269.
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’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) requests for extension of the
previously approved collections of
information discussed below.
Rule 17f–5 under the Investment
Company Act of 1940 (15 U.S.C. 80a)
(‘‘Investment Company Act’’ or ‘‘Act’’)
governs the custody of the assets of
registered management investment
companies (‘‘funds’’) with custodians
outside the United States.1 Under rule
17f–5, the fund’s board of directors must
find that it is reasonable to rely on each
delegate it selects to act as the fund’s
foreign custody manager. The delegate
must agree to provide written reports
that notify the board when the fund’s
assets are placed with a foreign
custodian and when any material
change occurs in the fund’s custody
arrangements. The delegate must agree
to exercise reasonable care, prudence,
and diligence, or to adhere to a higher
standard of care. When the foreign
custody manager selects an eligible
foreign custodian, it must determine
that the fund’s assets will be subject to
reasonable care if maintained with that
custodian, and that the written contract
that governs each custody arrangement
will provide reasonable care for fund
assets. The contract must contain
certain specified provisions or others
1 17 CFR 270.17f–5. All references to rules 17f–
5, 17f–7, 17d–1, or 19b–1 in this notice are to 17
CFR 270.17f–5, 17 CFR 270.17f–7, 17 CFR 270.17d–
1, and 17 CFR 270.19b–1, respectively.
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
that provide at least equivalent care.
The foreign custody manager must
establish a system to monitor the
performance of the contract and the
appropriateness of continuing to
maintain assets with the eligible foreign
custodian.
The collection of information
requirements in rule 17f–5 are intended
to provide protection for fund assets
maintained with a foreign bank
custodian whose use is not authorized
by statutory provisions that govern fund
custody arrangements,2 and that is not
subject to regulation and examination
by U.S. regulators. The requirement that
the fund board determine that it is
reasonable to rely on each delegate is
intended to ensure that the board
carefully considers each delegate’s
qualifications to perform its
responsibilities. The requirement that
the delegate provide written reports to
the board is intended to ensure that the
delegate notifies the board of important
developments concerning custody
arrangements so that the board may
exercise effective oversight. The
requirement that the delegate agree to
exercise reasonable care is intended to
provide assurances to the fund that the
delegate will properly perform its
duties.
The requirements that the foreign
custody manager determine that fund
assets will be subject to reasonable care
with the eligible foreign custodian and
under the custody contract, and that
each contract contain specified
provisions or equivalent provisions, are
intended to ensure that the delegate has
evaluated the level of care provided by
the custodian, that it weighs the
adequacy of contractual provisions, and
that fund assets are protected by
minimal contractual safeguards. The
requirement that the foreign custody
manager establish a monitoring system
is intended to ensure that the manager
periodically reviews each custody
arrangement and takes appropriate
action if developing custody risks may
threaten fund assets.
Commission staff estimates that each
year, approximately 135 registrants 3
could be required to make an average of
one response per registrant under rule
17f–5, requiring approximately 2.5
hours of board of director time per
response, to make the necessary
findings concerning foreign custody
managers. The total annual burden
2 See section 17(f) of the Investment Company Act
[15 U.S.C. 80a–17(f)].
3 This figure is an estimate of the number of new
funds each year, based on data reported by funds
in 2010 on Form N–1A and Form N–2. In practice,
not all funds will use foreign custody managers,
and the actual figure may be smaller.
E:\FR\FM\18MYN1.SGM
18MYN1
srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices
associated with these requirements of
the rule is up to approximately 337.5
hours (135 registrants × 2.5 hours per
registrant). The staff further estimates
that during each year, approximately 15
global custodians 4 are required to make
an average of 4 responses per custodian
concerning the use of foreign custodians
other than depositories. The staff
estimates that each response will take
approximately 270 hours, requiring
approximately 1,080 total hours
annually per custodian. The total
annual burden associated with these
requirements of the rule is
approximately 16,200 hours (15 global
custodians × 1,080 hours per custodian).
Therefore, the total annual time burden
of all collection of information
requirements of rule 17f–5 is estimated
to be up to 16,537.5 hours (337.5 +
16,200). The total annual internal cost of
the burden is estimated to be $4,914,000
(337.5 hours × $4,000/hour for board of
director’s time, plus 16,200 hours ×
$220/hour for a trust administrator’s
time).5 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.
The estimate of average time burden
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. Rule 17f–5 does not impose any
paperwork related cost burden.
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, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 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.
4 This
estimate is based on staff research.
board hourly rate is based on fund industry
representations. The $220/hour figure for a trust
administrator is from SIFMA’s Management &
Professional Earnings in the Securities Industry
2010, modified to account for an 1,800-hour workyear and multiplied by 5.35 to account for bonuses,
firm size, employee benefits and overhead.
5 The
VerDate Mar<15>2010
16:31 May 17, 2011
Jkt 223001
Dated: May 13, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–12203 Filed 5–17–11; 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
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’’) has submitted to the
Office of Management and Budget a
request for extension of the previously
approved collection of information
discussed below.
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
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 274.200) (‘‘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
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
28825
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.
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
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 1800-hour work
year and multiplied by 5.35 to account for bonuses,
firm size, employee benefits and overhead.
E:\FR\FM\18MYN1.SGM
18MYN1
]]>Agencies
[Federal Register Volume 76, Number 96 (Wednesday, May 18, 2011)]
[Notices]
[Pages 28824-28825]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12203]
-----------------------------------------------------------------------
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 17f-5; SEC File No. 270-259; OMB Control No. 3235-0269.
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'') has submitted to the Office of Management
and Budget (``OMB'') requests for extension of the previously approved
collections of information discussed below.
Rule 17f-5 under the Investment Company Act of 1940 (15 U.S.C. 80a)
(``Investment Company Act'' or ``Act'') governs the custody of the
assets of registered management investment companies (``funds'') with
custodians outside the United States.\1\ Under rule 17f-5, the fund's
board of directors must find that it is reasonable to rely on each
delegate it selects to act as the fund's foreign custody manager. The
delegate must agree to provide written reports that notify the board
when the fund's assets are placed with a foreign custodian and when any
material change occurs in the fund's custody arrangements. The delegate
must agree to exercise reasonable care, prudence, and diligence, or to
adhere to a higher standard of care. When the foreign custody manager
selects an eligible foreign custodian, it must determine that the
fund's assets will be subject to reasonable care if maintained with
that custodian, and that the written contract that governs each custody
arrangement will provide reasonable care for fund assets. The contract
must contain certain specified provisions or others that provide at
least equivalent care. The foreign custody manager must establish a
system to monitor the performance of the contract and the
appropriateness of continuing to maintain assets with the eligible
foreign custodian.
---------------------------------------------------------------------------
\1\ 17 CFR 270.17f-5. All references to rules 17f-5, 17f-7, 17d-
1, or 19b-1 in this notice are to 17 CFR 270.17f-5, 17 CFR 270.17f-
7, 17 CFR 270.17d-1, and 17 CFR 270.19b-1, respectively.
---------------------------------------------------------------------------
The collection of information requirements in rule 17f-5 are
intended to provide protection for fund assets maintained with a
foreign bank custodian whose use is not authorized by statutory
provisions that govern fund custody arrangements,\2\ and that is not
subject to regulation and examination by U.S. regulators. The
requirement that the fund board determine that it is reasonable to rely
on each delegate is intended to ensure that the board carefully
considers each delegate's qualifications to perform its
responsibilities. The requirement that the delegate provide written
reports to the board is intended to ensure that the delegate notifies
the board of important developments concerning custody arrangements so
that the board may exercise effective oversight. The requirement that
the delegate agree to exercise reasonable care is intended to provide
assurances to the fund that the delegate will properly perform its
duties.
---------------------------------------------------------------------------
\2\ See section 17(f) of the Investment Company Act [15 U.S.C.
80a-17(f)].
---------------------------------------------------------------------------
The requirements that the foreign custody manager determine that
fund assets will be subject to reasonable care with the eligible
foreign custodian and under the custody contract, and that each
contract contain specified provisions or equivalent provisions, are
intended to ensure that the delegate has evaluated the level of care
provided by the custodian, that it weighs the adequacy of contractual
provisions, and that fund assets are protected by minimal contractual
safeguards. The requirement that the foreign custody manager establish
a monitoring system is intended to ensure that the manager periodically
reviews each custody arrangement and takes appropriate action if
developing custody risks may threaten fund assets.
Commission staff estimates that each year, approximately 135
registrants \3\ could be required to make an average of one response
per registrant under rule 17f-5, requiring approximately 2.5 hours of
board of director time per response, to make the necessary findings
concerning foreign custody managers. The total annual burden
[[Page 28825]]
associated with these requirements of the rule is up to approximately
337.5 hours (135 registrants x 2.5 hours per registrant). The staff
further estimates that during each year, approximately 15 global
custodians \4\ are required to make an average of 4 responses per
custodian concerning the use of foreign custodians other than
depositories. The staff estimates that each response will take
approximately 270 hours, requiring approximately 1,080 total hours
annually per custodian. The total annual burden associated with these
requirements of the rule is approximately 16,200 hours (15 global
custodians x 1,080 hours per custodian). Therefore, the total annual
time burden of all collection of information requirements of rule 17f-5
is estimated to be up to 16,537.5 hours (337.5 + 16,200). The total
annual internal cost of the burden is estimated to be $4,914,000 (337.5
hours x $4,000/hour for board of director's time, plus 16,200 hours x
$220/hour for a trust administrator's time).\5\ 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.
---------------------------------------------------------------------------
\3\ This figure is an estimate of the number of new funds each
year, based on data reported by funds in 2010 on Form N-1A and Form
N-2. In practice, not all funds will use foreign custody managers,
and the actual figure may be smaller.
\4\ This estimate is based on staff research.
\5\ The board hourly rate is based on fund industry
representations. The $220/hour figure for a trust administrator is
from SIFMA's Management & 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 time burden 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. Rule 17f-5 does not impose any paperwork
related cost burden.
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, Director/
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: May 13, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-12203 Filed 5-17-11; 8:45 am]
BILLING CODE 8011-01-P
