Submission for OMB Review; Comment Request, 69305-69306 [2011-28909]

Download as PDF 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, http://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 VerDate Mar<15>2010 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. PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 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, http://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, http://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, http://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