Submission for OMB Review; Comment Request, 69305-69306 [2011-28909]
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Federal Register / Vol. 76, No. 216 / Tuesday, November 8, 2011 / Notices
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
email 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 email
to: PRA_Mailbox@sec.gov. Comments
must be submitted to OMB within 30
days of this notice.
Dated: November 3, 2011.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–28907 Filed 11–7–11; 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
Extension:
Rule 3a–8, SEC File No. 270–516, OMB
Control No. 3235–0574.
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 extension of the previously
approved collection of information
discussed below.
Rule 3a–8 (17 CFR 270.3a–8) of the
Investment Company Act of 1940 (15
U.S.C. 80a) (the ‘‘Act’’), serves as a
nonexclusive safe harbor from
investment company status for certain
research and development companies
(‘‘R&D companies’’).
The rule requires that the board of
directors of an R&D company seeking to
rely on the safe harbor adopt an
appropriate resolution evidencing that
the company is primarily engaged in a
non-investment business and record
that resolution contemporaneously in its
minute books or comparable
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16:29 Nov 07, 2011
Jkt 226001
documents.1 An R&D company seeking
to rely on the safe harbor must retain
these records only as long as such
records must be maintained in
accordance with state law.
Rule 3a–8 contains an additional
requirement that is also a collection of
information within the meaning of the
PRA. The board of directors of a
company that relies on the safe harbor
under rule 3a–8 must adopt a written
policy with respect to the company’s
capital preservation investments. We
expect that the board of directors will
base its decision to adopt the resolution
discussed above, in part, on investment
guidelines that the company will follow
to ensure its investment portfolio is in
compliance with the rule’s
requirements.
The collection of information
imposed by rule 3a–8 is voluntary
because the rule is an exemptive safe
harbor, and therefore, R&D companies
may choose whether or not to rely on it.
The purposes of the information
collection requirements in rule 3a–8 are
to ensure that: (i) The board of directors
of an R&D company is involved in
determining whether the company
should be considered an investment
company and subject to regulation
under the Act, and (ii) adequate records
are available for Commission review, if
necessary. Rule 3a–8 would not require
the reporting of any information or the
filing of any documents with the
Commission.
Commission staff estimates that there
is no annual recordkeeping burden
associated with the rule’s requirements.
Nevertheless, the Commission requests
authorization to maintain an inventory
of one burden hour for administrative
purposes.
Commission staff estimates that
approximately 1,851 R&D companies
may rely on rule 3a–8. Given that the
board resolutions and investment
guidelines will generally need to be
adopted only once (unless relevant
circumstances change),2 the
Commission believes that all the
companies that rely on rule 3a–8
adopted their board resolutions and
established written investment
guidelines in 2003 when the rule was
adopted. We expect that newly formed
R&D companies would adopt the board
resolution and investment guidelines
simultaneously with their formation
documents in the ordinary course of
1 Rule
3a–8(a)(6) (17 CFR 270.3a–8(6)).
2 In the event of changed circumstances, the
Commission believes that the board resolution and
investment guidelines will be amended and
recorded in the ordinary course of business and
would not create additional time burdens.
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69305
business.3 Therefore, we estimate that
rule 3a-8 will not create an additional
time burden.
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
email 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 email
to: PRA_Mailbox@sec.gov. Comments
must be submitted to OMB within 30
days of this notice.
Dated: November 3, 2011.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–28908 Filed 11–7–11; 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 18f–3, SEC File No. 270–385, OMB
Control No. 3235–0441.
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
request for extension of the previously
approved collection of information
discussed below.
3 In order for these companies to raise sufficient
capital to fund their product development stage, we
believe they will need to present potential investors
with investment guidelines. Investors would want
to be assured that the company’s funds are invested
consistent with the goals of capital preservation and
liquidity.
E:\FR\FM\08NON1.SGM
08NON1
69306
Federal Register / Vol. 76, No. 216 / Tuesday, November 8, 2011 / Notices
Section 18(f)(1) 1 of the Investment
Company Act of 1940 2 (the ‘‘Investment
Company Act’’ or ‘‘Act’’) prohibits
registered open-end management
investment companies (‘‘funds’’) from
issuing any senior security. Rule 18f–3
under the Act 3 exempts from section
18(f)(1) a fund that issues multiple
classes of shares representing interests
in the same portfolio of securities (a
‘‘multiple class fund’’) if the fund
satisfies the conditions of the rule. In
general, each class must differ in its
arrangement for shareholder services or
distribution or both, and must pay the
related expenses of that different
arrangement.
The rule includes one requirement for
the collection of information. A
multiple class fund must prepare, and
fund directors must approve, a written
plan setting forth the separate
arrangement and expense allocation of
each class, and any related conversion
features or exchange privileges (‘‘rule
18f–3 plan’’).4 Approval of the plan
must occur before the fund issues any
shares of multiple classes and whenever
the fund materially amends the plan. In
approving the plan, a majority of the
fund board, including a majority of the
fund’s independent directors, must
determine that the plan is in the best
interests of each class and the fund as
a whole.
The requirement that the fund prepare
and directors approve a written rule
18f–3 plan is intended to ensure that the
fund compiles information relevant to
the fairness of the separate arrangement
and expense allocation for each class,
and that directors review and approve
the information. Without a blueprint
that highlights material differences
among classes, directors might not
perceive potential conflicts of interests
when they determine whether the plan
is in the best interests of each class and
the fund. In addition, the plan may be
useful to Commission staff in reviewing
the fund’s compliance with the rule.
There are approximately 5,655
multiple class funds offered by 1,020
registrants.5 Based on a review of
typical rule 18f–3 plans, the
Commission’s staff estimates that the
1,020 registrants together make an
average of 510 responses each year to
1 15
U.S.C. 80a–18(f)(1).
U.S.C. 80a.
3 17 CFR 270.18f–3.
4 Rule 18f–3(d).
5 This estimate is based on data from Form N–
SAR, the semi-annual report that funds file with the
Commission. In previous years, the staff estimated
that each multiple class fund prepared and
approved a rule 18f–3 plan. However, the staff has
revised this estimate to reflect its belief that most
registrants prepare and approve a single rule 18f–
3 plan for all series funds offered by the registrants.
mstockstill on DSK4VPTVN1PROD with NOTICES
2 15
VerDate Mar<15>2010
16:29 Nov 07, 2011
Jkt 226001
prepare and approve a written rule 18f–
3 plan, requiring approximately 8 hours
per response and a total of 4,080 burden
hours per year in the aggregate.6 The
staff estimates that preparation of the
rule 18f–3 plan may require 5 hours of
the services of an attorney employed by
the fund, at a cost of approximately
$354.00 per hour for professional time,7
and approval of the plan may require 3
hours of the services of the board of
directors, at a cost of approximately
$4,000.00 per hour.8 The staff therefore
estimates that the aggregate annual cost
of complying with the paperwork
requirements of the rule is
approximately $7,022,700.00 ((5 hours ×
510 responses × $354.00.00 =
$902,700.00) + (3 hours × 510 responses
× $4,000.00 = $6,120,000.00)).
The estimated annual burden of 4,080
hours represents a decrease of 1,520
hours from the prior estimate of 5,600
hours. The decrease in burden hours is
attributable to changes in the estimates
of the average hour burden per response
and the number of responses that are
submitted pursuant to the rule.
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 mandatory.
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,
6 The estimate reflects the assumption that each
registrant prepares and approves a rule 18f–3 plan
every two years when issuing a new fund or new
class or amending a plan (or that 510 of all 1020
registrants prepare and approve a plan each year).
The estimate assumes that the time required to
prepare a plan is 5 hours per plan (or 2550 hours
for 510 registrants annually), and the time required
to approve a plan is an additional 3 hours per plan
(or 1530 hours for 510 registrants annually).
7 This hourly rate estimate is derived from annual
salaries reported in: Securities Industry and
Financial Markets Association, Management and
Professional Earnings in the Securities Industry
(2010), 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.
8 This hourly rate estimate is derived from fund
representatives.
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
New Executive Office Building,
Washington, DC 20503, or by sending an
email 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 email
to: PRA_Mailbox@sec.gov. Comments
must be submitted to OMB within 30
days of this notice.
November 3, 2011.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–28909 Filed 11–7–11; 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 30b2–1, SEC File No. 270–213, OMB
Control No. 3235–0220.
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 extension of the
previously approved collection of
information discussed below.
Rule 30b2–1 (17 CFR 270.30b2–1)
under the Investment Company Act of
1940 (15 U.S.C. 80a–1 et seq.) (the
‘‘Investment Company Act’’) requires a
registered management investment
company (‘‘fund’’) to (1) file a report
with the Commission on Form N–CSR
(17 CFR 249.331 and 274.128) not later
than 10 days after the transmission of
any report required to be transmitted to
shareholders under rule 30e–1 under
the Investment Company Act, and (2)
file with the Commission a copy of
every periodic or interim report or
similar communication containing
financial statements that is transmitted
by or on behalf of such fund to any class
of such fund’s security holders and that
is not required to be filed with the
Commission under (1) above, not later
than 10 days after the transmission to
security holders. The purpose of the
collection of information required by
rule 30b2–1 is to meet the disclosure
requirements of the Investment
Company Act and certification
E:\FR\FM\08NON1.SGM
08NON1
]]>Agencies
[Federal Register Volume 76, Number 216 (Tuesday, November 8, 2011)]
[Notices]
[Pages 69305-69306]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-28909]
-----------------------------------------------------------------------
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 18f-3, SEC File No. 270-385, OMB Control No. 3235-0441.
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 request for extension of the previously approved collection
of information discussed below.
[[Page 69306]]
Section 18(f)(1) \1\ of the Investment Company Act of 1940 \2\ (the
``Investment Company Act'' or ``Act'') prohibits registered open-end
management investment companies (``funds'') from issuing any senior
security. Rule 18f-3 under the Act \3\ exempts from section 18(f)(1) a
fund that issues multiple classes of shares representing interests in
the same portfolio of securities (a ``multiple class fund'') if the
fund satisfies the conditions of the rule. In general, each class must
differ in its arrangement for shareholder services or distribution or
both, and must pay the related expenses of that different arrangement.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 80a-18(f)(1).
\2\ 15 U.S.C. 80a.
\3\ 17 CFR 270.18f-3.
---------------------------------------------------------------------------
The rule includes one requirement for the collection of
information. A multiple class fund must prepare, and fund directors
must approve, a written plan setting forth the separate arrangement and
expense allocation of each class, and any related conversion features
or exchange privileges (``rule 18f-3 plan'').\4\ Approval of the plan
must occur before the fund issues any shares of multiple classes and
whenever the fund materially amends the plan. In approving the plan, a
majority of the fund board, including a majority of the fund's
independent directors, must determine that the plan is in the best
interests of each class and the fund as a whole.
---------------------------------------------------------------------------
\4\ Rule 18f-3(d).
---------------------------------------------------------------------------
The requirement that the fund prepare and directors approve a
written rule 18f-3 plan is intended to ensure that the fund compiles
information relevant to the fairness of the separate arrangement and
expense allocation for each class, and that directors review and
approve the information. Without a blueprint that highlights material
differences among classes, directors might not perceive potential
conflicts of interests when they determine whether the plan is in the
best interests of each class and the fund. In addition, the plan may be
useful to Commission staff in reviewing the fund's compliance with the
rule.
There are approximately 5,655 multiple class funds offered by 1,020
registrants.\5\ Based on a review of typical rule 18f-3 plans, the
Commission's staff estimates that the 1,020 registrants together make
an average of 510 responses each year to prepare and approve a written
rule 18f-3 plan, requiring approximately 8 hours per response and a
total of 4,080 burden hours per year in the aggregate.\6\ The staff
estimates that preparation of the rule 18f-3 plan may require 5 hours
of the services of an attorney employed by the fund, at a cost of
approximately $354.00 per hour for professional time,\7\ and approval
of the plan may require 3 hours of the services of the board of
directors, at a cost of approximately $4,000.00 per hour.\8\ The staff
therefore estimates that the aggregate annual cost of complying with
the paperwork requirements of the rule is approximately $7,022,700.00
((5 hours x 510 responses x $354.00.00 = $902,700.00) + (3 hours x 510
responses x $4,000.00 = $6,120,000.00)).
---------------------------------------------------------------------------
\5\ This estimate is based on data from Form N-SAR, the semi-
annual report that funds file with the Commission. In previous
years, the staff estimated that each multiple class fund prepared
and approved a rule 18f-3 plan. However, the staff has revised this
estimate to reflect its belief that most registrants prepare and
approve a single rule 18f-3 plan for all series funds offered by the
registrants.
\6\ The estimate reflects the assumption that each registrant
prepares and approves a rule 18f-3 plan every two years when issuing
a new fund or new class or amending a plan (or that 510 of all 1020
registrants prepare and approve a plan each year). The estimate
assumes that the time required to prepare a plan is 5 hours per plan
(or 2550 hours for 510 registrants annually), and the time required
to approve a plan is an additional 3 hours per plan (or 1530 hours
for 510 registrants annually).
\7\ This hourly rate estimate is derived from annual salaries
reported in: Securities Industry and Financial Markets Association,
Management and Professional Earnings in the Securities Industry
(2010), 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.
\8\ This hourly rate estimate is derived from fund
representatives.
---------------------------------------------------------------------------
The estimated annual burden of 4,080 hours represents a decrease of
1,520 hours from the prior estimate of 5,600 hours. The decrease in
burden hours is attributable to changes in the estimates of the average
hour burden per response and the number of responses that are submitted
pursuant to the rule.
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 mandatory. 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 email
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
email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB
within 30 days of this notice.
November 3, 2011.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-28909 Filed 11-7-11; 8:45 am]
BILLING CODE 8011-01-P
