International Product Change-Global Plus 1C and 2C Negotiated Service Agreements, 2573 [2012-766]
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Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices
POSTAL SERVICE
International Product Change—Global
Plus 1C and 2C Negotiated Service
Agreements
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service hereby
gives notice of its filing a request with
the Postal Regulatory Commission to
add Global Plus 1C and 2C Negotiated
Service Agreements to the Competitive
Products List.
DATES: January 18, 2012.
FOR FURTHER INFORMATION CONTACT:
Margaret M. Falwell, (202) 268–2576.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642, on December 30, 2011, and
January 4, 2012, it filed with the Postal
Regulatory Commission, Requests of
United States Postal Service to Add
Global Plus 1C and 2C Negotiated
Service Agreements to the Competitive
Products List, and Notices of Filing Two
Functionally Equivalent Agreements
and Applications for Non-Public
Treatment of Materials Filed Under Seal
for each filing. Documents are available
at https://www.prc.gov, Docket Nos.
MC2012–5, MC2012–6, CP2012–10,
CP2012–11, CP2012–12 and CP2012–13.
SUMMARY:
B. J. Meadows III,
Attorney, Legal Strategy.
[FR Doc. 2012–766 Filed 1–17–12; 8:45 am]
BILLING CODE 7710–12–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.
tkelley on DSK3SPTVN1PROD with NOTICES
Extension:
Rule 22c–2; SEC File No. 270–541; OMB
Control No. 3235–0620.
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 a
request for extension of the previously
approved collection of information
discussed below.
Rule 22c–2 (17 CFR 270.22c–2
‘‘Mutual Fund Redemption Fees’’)
under the Investment Company Act of
1940 (15 U.S.C. 80a) (the ‘‘Investment
VerDate Mar<15>2010
16:07 Jan 17, 2012
Jkt 226001
Company Act’’ or ‘‘Act’’) requires the
board of directors (including a majority
of independent directors) of most
registered investment companies
(‘‘funds’’) to either approve a
redemption fee of up to two percent or
determine that imposition of a
redemption fee is not necessary or
appropriate for the fund. Rule 22c–2
also requires a fund to enter into written
agreements with their financial
intermediaries (such as broker-dealers
and retirement plan administrators)
under which the fund, upon request,
can obtain certain shareholder identity
and trading information from the
intermediaries. The written agreement
must also allow the fund to direct the
intermediary to prohibit further
purchases or exchanges by specific
shareholders that the fund has
identified as being engaged in
transactions that violate the fund’s
market timing policies. These
requirements enable funds to obtain the
information that they need to monitor
the frequency of short-term trading in
omnibus accounts and enforce their
market timing policies.
The rule includes three ‘‘collections
of information’’ within the meaning of
the Paperwork Reduction Act of 1995
(‘‘PRA’’).1 First, the rule requires boards
to either approve a redemption fee of up
to two percent or determine that
imposition of a redemption fee is not
necessary or appropriate for the fund.
Second, funds must enter into
information sharing agreements with all
of their ‘‘financial intermediaries’’2 and
maintain a copy of the written
information sharing agreement with
each intermediary in an easily
accessible place for six years. Third,
pursuant to the information sharing
agreements, funds must have systems
that enable them to request frequent
trading information upon demand from
their intermediaries, and to enforce any
restrictions on trading required by funds
under the rule.
1 44
U.S.C. 3501–3520.
rule defines a Financial Intermediary as: (i)
Any broker, dealer, bank, or other person that holds
securities issued by the fund in nominee name; (ii)
a unit investment trust or fund that invests in the
fund in reliance on section 12(d)(i)(E) of the Act;
and (iii) in the case of a participant directed
employee benefit plan that owns the securities
issued by the fund, a retirement plan’s
administrator under section 316(A) of the Employee
Retirement Security Act of 1974 (29 U.S.C.
1002(16)(A) or any person that maintains the plans’
participant records. Financial Intermediary does not
include any person that the fund treats as an
individual investor with respect to the fund’s
policies established for the purpose of eliminating
or reducing any dilution of the value of the
outstanding securities issued by the fund. Rule 22c–
2(c)(1).
2 The
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2573
The collections of information created
by Rule 22c–2 are necessary for funds to
effectively assess redemption fees,
enforce their policies in frequent
trading, and monitor short-term trading,
including market timing, in omnibus
accounts. These collections of
information are mandatory for funds
that redeem shares within seven days of
purchase. The collections of information
also are necessary to allow Commission
staff to fulfill its examination and
oversight responsibilities.
Rule 22c–2(a)(1) requires the board of
directors of all registered investment
companies and series thereof (except for
money market funds, ETFs, or funds
that affirmatively permit short-term
trading of its securities) to approve a
redemption fee for the fund, or instead
make a determination that a redemption
fee is either not necessary or appropriate
for the fund. Commission staff
understands that the boards of all funds
currently in operation have undertaken
this process for the funds they currently
oversee, and the rule does not require
boards to review this determination
periodically once it has been made.
Accordingly, we expect that only boards
of newly registered funds or newly
created series thereof would undertake
this determination. Commission staff
estimates that approximately 117 funds
or series thereof (excluding money
market funds and ETFs) are newly
formed each year and would need to
make this determination.
Based on conversations with fund
representatives,3 Commission staff
estimates that it takes approximately 2
hours of the boards’ time, as a whole, to
approve a redemption fee or make the
required determination. In addition,
Commission staff estimates that it takes
compliance personnel of the fund
approximately 8 hours to prepare
trading, compliance, and other
information regarding the fund’s
operations to enable the board to make
its determination, and takes internal
counsel of the fund approximately 3
hours to review this information and
present its recommendations to the
board. Therefore, for each fund board
that undertakes this determination
process, Commission staff estimates it
expends approximately 13 hours.4 As a
result, Commission staff estimates that
3 Unless otherwise stated, estimates throughout
this analysis are derived from a survey of funds and
conversations with fund representatives.
4 This calculation is based on the following
estimate: (2 hours of board time + 3 hours of
internal counsel time + 8 hours of compliance time
= 13 hours).
E:\FR\FM\18JAN1.SGM
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[Federal Register Volume 77, Number 11 (Wednesday, January 18, 2012)]
[Notices]
[Page 2573]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-766]
[[Page 2573]]
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POSTAL SERVICE
International Product Change--Global Plus 1C and 2C Negotiated
Service Agreements
AGENCY: Postal ServiceTM.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Postal Service hereby gives notice of its filing a request
with the Postal Regulatory Commission to add Global Plus 1C and 2C
Negotiated Service Agreements to the Competitive Products List.
DATES: January 18, 2012.
FOR FURTHER INFORMATION CONTACT: Margaret M. Falwell, (202) 268-2576.
SUPPLEMENTARY INFORMATION: The United States Postal Service[reg] hereby
gives notice that, pursuant to 39 U.S.C. 3642, on December 30, 2011,
and January 4, 2012, it filed with the Postal Regulatory Commission,
Requests of United States Postal Service to Add Global Plus 1C and 2C
Negotiated Service Agreements to the Competitive Products List, and
Notices of Filing Two Functionally Equivalent Agreements and
Applications for Non-Public Treatment of Materials Filed Under Seal for
each filing. Documents are available at https://www.prc.gov, Docket Nos.
MC2012-5, MC2012-6, CP2012-10, CP2012-11, CP2012-12 and CP2012-13.
B. J. Meadows III,
Attorney, Legal Strategy.
[FR Doc. 2012-766 Filed 1-17-12; 8:45 am]
BILLING CODE 7710-12-P
