Submission for OMB Review; Comment Request, 2696-2698 [2013-00517]
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2696
Federal Register / Vol. 78, No. 9 / Monday, January 14, 2013 / Notices
threats, assaults, and overall workplace
environment issues. The purpose is to
create a national application and central
repository for all four workplace
environment processes identified above.
The application will enable the Postal
Service headquarters Equal Employment
Opportunity and Workplace
Environment Improvement Departments
to standardize documentation, case
management, operating procedures, and
outcome measures.
II. Rationale for Changes to USPS
Privacy Act Systems of Records
Establishing a user friendly tracking
system for these four processes will
reasonably assure that workplace
harassment policies and protocols are
standardized, instituted, and utilized to
resolve complaints in a timely manner
and to formulate action plans and
appropriate analysis of the outcomes.
The application will allow the Postal
Service to better achieve the
organization’s goal to provide a
workplace environment that is safe and
free of workplace harassment,
discrimination, threats, and assaults.
Short-term goals are to create a system
that allows immediate access to
workplace environment data and
individual cases at a district, area, and
headquarter level. It will centralize and
standardize the processes regarding
documentation, protocols, and risk
abatement plans.
Long-term goals are to decrease Postal
Service liability, decrease the frequency
and severity of complaints, threats, and
assaults and to track the timelines of
Postal Service responses. Additionally,
the data will enable the Postal Service
to identify trends to improve the
workplace environment processes and
develop proactive, preventative
measures.
mstockstill on DSK4VPTVN1PROD with
III. Description of Changes to Systems
of Records
The Postal Service is modifying one
system of records listed below. Pursuant
to 5 U.S.C. 552a (e)(11), interested
persons are invited to submit written
data, views, or arguments on this
proposal. A report of the proposed
modifications has been sent to Congress
and to the Office of Management and
Budget for their evaluation. The Postal
Service does not expect this amended
notice to have any adverse effect on
individual privacy rights. The affected
system is as follows:
USPS 100.900
SYSTEM NAME:
Employee Inquiry, Complaint, and
Investigative Records
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16:53 Jan 11, 2013
Jkt 229001
Accordingly, for the reasons stated,
the Postal Service proposes changes in
the existing system of records as
follows:
USPS 100.900
SYSTEM NAME:
Employee Inquiry, Complaint, and
Investigative Records
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM
[CHANGE TO READ]
USPS employees and non-employees
who contact USPS with an inquiry or
complaint, and employees and nonemployees who are subjects of
management inquiries or investigations
of workplace issues.
CATEGORIES OF RECORDS IN THE SYSTEM:
[CHANGE TO READ]
1. Employee information: Name,
gender, Social Security Number,
Employee Identification Number, postal
assignment information, veteran status,
contact information, finance number(s),
duty location, and pay location.
2. Non-employee information: Name,
gender, and contact information.
[RENUMBER REMAINING TEXT]
*
*
*
*
*
PURPOSE:
[CHANGE TO READ]
1. To enable review and response to
inquiries and complaints concerning
employees and non-employees.
*
*
*
*
*
RETRIEVABILITY:
[CHANGE TO READ]
By employee and non-employee
name, subject category, facility, finance
number, district, area, nationally, or
case number.
SYSTEM MANAGER(S) AND ADDRESS:
*
*
*
*
*
[ADD NEW TEXT]
Vice President, Labor Relations,
United States Postal Service, 475
L’Enfant Plaza SW., Washington, DC
20260.
*
*
*
*
*
NOTIFICATION PROCEDURE:
[CHANGE TO READ]
Employees wanting to know if
information about them is maintained in
this system of records must address
inquiries to the facility head where
currently or last employed.
Headquarters employees must submit
inquiries to Corporate Personnel
Management, 475 L’Enfant Plaza SW.,
Washington, DC 20260. Non-employees
wanting to know if information about
them is maintained in this system of
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Fmt 4703
Sfmt 4703
records must address inquiries to the
District Manager, Human Resources that
governs the facility where the inquiry,
complaint, or investigative records are
stored. Inquiries must include full
name, address, and other identifying
information. In addition, employees
must include Social Security Number or
Employee Identification Number, name
and address of facility where last
employed, and dates of USPS
employment. Likewise employees may
also be required to furnish where the
inquiry, complaint, or investigation
occurred.
RECORD SOURCE CATEGORIES:
[CHANGE TO READ]
Employees, non-employees,
supervisors, managers, and witnesses.
*
*
*
*
*
Stanley F. Mires,
Attorney, Legal Policy & Legislative Advice.
[FR Doc. 2013–00480 Filed 1–11–13; 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.
Extension:
Rule 2a–7, OMB Control No. 3235–0268,
SEC File No. 270–258.
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 2a–7 (17 CFR 270.2a–7) under
the Investment Company Act of 1940
(15 U.S.C. 80a) (the ‘‘Act’’) governs
money market funds. Money market
funds are open-end management
investment companies that differ from
other open-end management investment
companies in that they seek to maintain
a stable price per share, usually $1.00.
The rule exempts money market funds
from the valuation requirements of the
Act, and, subject to certain risk-limiting
conditions, permits money market funds
to use the ‘‘amortized cost method’’ of
asset valuation or the ‘‘penny-rounding
method’’ of share pricing.
Rule 2a–7 also imposes certain
recordkeeping and reporting obligations
E:\FR\FM\14JAN1.SGM
14JAN1
mstockstill on DSK4VPTVN1PROD with
Federal Register / Vol. 78, No. 9 / Monday, January 14, 2013 / Notices
on money market funds. The board of
directors of a money market fund, in
supervising the fund’s operations, must
establish written procedures designed to
stabilize the fund’s net asset value
(‘‘NAV’’). The board must also adopt
guidelines and procedures relating to
certain responsibilities it delegates to
the fund’s investment adviser. These
procedures and guidelines typically
address various aspects of the fund’s
operations. The fund must maintain and
preserve for six years a written copy of
both these procedures and guidelines.
The fund also must maintain and
preserve for six years a written record of
the board’s considerations and actions
taken in connection with the discharge
of its responsibilities, to be included in
the board’s minutes. In addition, the
fund must maintain and preserve for
three years written records of certain
credit risk analyses, evaluations with
respect to securities subject to demand
features or guarantees, and
determinations with respect to
adjustable rate securities and asset
backed securities. If the board takes
action with respect to defaulted
securities, events of insolvency, or
deviations in share price, the fund must
file with the Commission an exhibit to
Form N–SAR describing the nature and
circumstances of the action. If any
portfolio security fails to meet certain
eligibility standards under the rule, the
fund also must identify those securities
in an exhibit to Form N–SAR. After
certain events of default or insolvency
relating to a portfolio security, the fund
must notify the Commission of the event
and the actions the fund intends to take
in response to the situation.
The 2010 amendments to rule 2a–7
also added new collection of
information requirements. First, money
market fund boards must adopt written
procedures that provide for periodic
testing (and reporting to the board) of
the fund’s ability to maintain a stable
NAV per share based on certain
hypothetical events. Second, funds must
post monthly portfolio information on
their Web sites. Third, funds must
maintain records of creditworthiness
evaluations on counterparties to
repurchase agreements that the fund
intends to ‘‘look through’’ for purposes
of rule 2a–7’s diversification limitations.
Finally, money market funds must
promptly notify the Commission of the
purchase of any money market fund’s
portfolio security by an affiliated person
in reliance on rule 17a–9 under the Act
and explain the reasons for such
purchase.
The recordkeeping requirements in
rule 2a–7 are designed to enable
Commission staff in its examinations of
VerDate Mar<15>2010
16:53 Jan 11, 2013
Jkt 229001
money market funds to determine
compliance with the rule, as well as to
ensure that money market funds have
established procedures for collecting the
information necessary to make adequate
credit reviews of securities in their
portfolios. The reporting requirements
of rule 2a–7 are intended to assist
Commission staff in overseeing money
market funds and reduce the likelihood
that a fund is unable to maintain a
stable NAV.
Commission staff estimates that there
are 664 money market funds (136 fund
complexes), all of which are subject to
rule 2a–7. Commission staff further
estimates that there will be
approximately 10 new money market
funds established each year.
Commission staff estimates that rule 2a–
7 contains the following collection of
information requirements:
• Record of credit risk analyses, and
determinations regarding adjustable rate
securities, asset backed securities,
securities subject to a demand feature or
guarantee, and counterparties to
repurchase agreements. Commission
staff estimates a total annual hour
burden for 664 funds to be 451,520
hours.
• Establishment of written procedures
designed to stabilize NAV and
guidelines and procedures for board
delegation of authority. Commission
staff estimates a total annual hour
burden for 10 new money market funds
to be 155 hours.
• Board review of procedures and
guidelines of any investment adviser or
officers to whom the fund’s board has
delegated responsibility under rule 2a–
7 and amendment of such procedures
and guidelines. Commission staff
estimates a total annual hour burden for
166 funds to be 830 hours.
• Written record of board
determinations and actions related to
failure of a security to meet certain
eligibility standards or an event of
default or insolvency and notice to the
Commission of an event of default or
insolvency. Commission staff estimates
a total annual hour burden for 20 funds
to be 30 hours.
• Establishment of written procedures
to test periodically the ability of the
fund to maintain a stable NAV per share
based on certain hypothetical events
(‘‘stress testing’’). Commission staff
estimates a total annual hour burden for
10 new money market funds to be 220
hours.
• Review, revise, and approve written
procedures to stress test a fund’s
portfolio. Commission staff estimates a
total annual hour burden for 136 fund
complexes to be 1,632 hours.
PO 00000
Frm 00043
Fmt 4703
Sfmt 4703
2697
• Reports to fund boards on the
results of stress testing. Commission
staff estimates a total annual hour
burden for 136 fund complexes to be
6,800 hours.
• Monthly posting of money market
fund portfolio information on a fund’s
Web site. Commission staff estimates a
total annual hour burden for 664 funds
and 10 new money market funds to be
56,016 hours.
• Notice to the Commission of the
purchase of a money market fund’s
portfolio security by certain affiliated
persons in reliance on rule 17a–9.
Commission staff estimates a total
annual hour burden for 25 fund
complexes to be 25 hours.
Thus, the Commission estimates the
total annual burden of the rule’s
information collection requirements is
517,228 hours.1
The estimated total annual burden is
being increased from 395,779 hours to
517,228 hours. This net increase is
attributable to a combination of factors,
including a decrease in the number of
money market funds and fund
complexes, and updated information
from money market funds regarding
hourly burdens, including revised staff
estimates of the burden hours required
to comply with rule 2a–7 as a result of
new information received from
surveyed fund representatives.
These estimates of burden hours are
made solely for the purposes of the
Paperwork Reduction Act. The
estimates are not derived from a
comprehensive or even a representative
survey or study of Commission rules.
Commission staff estimates that in
addition to the costs described above,
money market funds will incur costs to
preserve records, as required under rule
2a–7. These costs will vary significantly
for individual funds, depending on the
amount of assets under fund
management and whether the fund
preserves its records in a storage facility
in hard copy or has developed and
maintains a computer system to create
and preserve compliance records.
Commission staff estimates that the
amount an individual fund may spend
ranges from $100 per year to $300,000.
Based on a cost of $0.0051295 per dollar
of assets under management for small
funds, $0.0005041 per dollar assets
under management for medium funds,
and $0.0000009 per dollar of assets
under management for large funds, the
staff estimates compliance with the
record storage requirements of rule 2a–
1 This estimate is based on the following
calculation: 451,520 hours + 155 hours + 830 hours
+ 30 hours + 220 hours + 1,632 hours + 6,800 hours
+ 56,016 hours + 25 hours = 517,228 hours.
E:\FR\FM\14JAN1.SGM
14JAN1
2698
Federal Register / Vol. 78, No. 9 / Monday, January 14, 2013 / Notices
7 costs the fund industry approximately
$57.3 million per year. Based on
responses from individuals in the
money market fund industry, the staff
estimates that some of the largest fund
complexes have created computer
programs for maintaining and
preserving compliance records for rule
2a–7. Based on a cost of $0.0000132 per
dollar of assets under management for
large funds, the staff estimates that total
annualized capital/startup costs range
from $0 for small funds to $35.6 million
for all large funds. Commission staff
further estimates that, even absent the
requirements of rule 2a–7, money
market funds would spend at least half
of the amount for capital costs ($17.8
million) and for record preservation
($28.65 million) to establish and
maintain these records and the systems
for preserving them as a part of sound
business practices to ensure
diversification and minimal credit risk
in a portfolio for a fund that seeks to
maintain a stable price per share.
The collection of information under
Rule 2a–7 is mandatory. The
information provided by the rule is not
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.
Please direct general comments
regarding the above information to the
following persons: (i) Desk Officer for
the Securities and Exchange
Commission, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503
or send an email to Shagufta Ahmed at
Shagufta_Ahmed@omb.eop.gov; and (ii)
Thomas Bayer, Director/CIO, 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.
Dated: January 8, 2013.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–00517 Filed 1–11–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSK4VPTVN1PROD with
[OMB Control No. 3235–0658, SEC File No.
270–603]
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of Investor
VerDate Mar<15>2010
16:53 Jan 11, 2013
Jkt 229001
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 22e–3.
Notice is hereby given that, under 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.
Section 22(e) of the Investment
Company Act [15 U.S.C. 80a–22(e)]
(‘‘Act’’) generally prohibits funds,
including money market funds, from
suspending the right of redemption, and
from postponing the payment or
satisfaction upon redemption of any
redeemable security for more than seven
days. The provision was designed to
prevent funds and their investment
advisers from interfering with the
redemption rights of shareholders for
improper purposes, such as the
preservation of management fees.
Although section 22(e) permits funds to
postpone the date of payment or
satisfaction upon redemption for up to
seven days, it does not permit funds to
suspend the right of redemption for any
amount of time, absent certain specified
circumstances or a Commission order.
Rule 22e–3 under the Act [17 CFR
270.22e–3] exempts money market
funds from section 22(e) to permit them
to suspend redemptions in order to
facilitate an orderly liquidation of the
fund. Specifically, rule 22e–3 permits a
money market fund to suspend
redemptions and postpone the payment
of proceeds pending board-approved
liquidation proceedings if: (i) the fund’s
board of directors, including a majority
of disinterested directors, determines
pursuant to § 270.2a–7(c)(8)(ii)(C) that
the extent of the deviation between the
fund’s amortized cost price per share
and its current net asset value per share
calculated using available market
quotations (or an appropriate substitute
that reflects current market conditions)
may result in material dilution or other
unfair results to investors or existing
shareholders; (ii) the fund’s board of
directors, including a majority of
disinterested directors, irrevocably
approves the liquidation of the fund;
and (iii) the fund, prior to suspending
redemptions, notifies the Commission of
its decision to liquidate and suspend
redemptions. Rule 22e–3 also provides
an exemption from section 22(e) for
registered investment companies that
own shares of a money market fund
pursuant to section 12(d)(1)(E) of the
Act (‘‘conduit funds’’), if the underlying
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Frm 00044
Fmt 4703
Sfmt 4703
money market fund has suspended
redemptions pursuant to the rule. A
conduit fund that suspends redemptions
in reliance on the exemption provided
by rule 22e–3 is required to provide
prompt notice of the suspension of
redemptions to the Commission. Notices
required by the rule must be provided
by electronic mail, directed to the
attention of the Director of the Division
of Investment Management or the
Director’s designee.1 Compliance with
the notification requirement is
mandatory for money market funds and
conduit funds that rely on rule 22e–3 to
suspend redemptions and postpone
payment of proceeds pending a
liquidation, and are not kept
confidential.
Commission staff estimates that, on
average, one money market fund would
break the buck and liquidate every six
years.2 In addition, Commission staff
estimate that there are an average of two
conduit funds that may be invested in
a money market fund that breaks the
buck.3 Commission staff further
estimate that a money market fund or
conduit fund would spend
approximately one hour of an in-house
attorney’s time to prepare and submit
the notice required by the rule. Given
these estimates, the total annual burden
of the notification requirement of rule
22e–3 for all money market funds and
conduit funds would be approximately
30 minutes,4 at a cost of $189.5 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 and forms.
1 See
rule 22e–3(a)(3).
estimate is based upon the Commission’s
experience with the frequency with which money
market funds have historically required sponsor
support. Although the vast majority of money
market fund sponsors have supported their money
market funds in times of market distress, for
purposes of this estimate Commission staff
conversatively estimates that one or more sponsors
may not provide support.
3 These estimates are based on a review of filings
with the Commission.
4 This estimate is based on the following
calculations: (1 hour ÷ 6 years) = 10 minutes per
year for each fund and conduit fund that is required
to provide notice under the rule. 10 minutes per
year × 3 (combined number of affected funds and
conduit funds) = 30 minutes.
5 This estimate is based on the following
calculation: $378/hour × 30 minutes = $189. The
estimated hourly wages used in this PRA analysis
were derived from reports prepared by the
Securities Industry and Financial Markets
Association, modified to account for an 1800-hour
work year and multiplied by 5.35 to account for
bonuses, firm size, employee benefits and overhead.
See Securities Industry and Financial Markets
Association, Management & Professional Earnings
in the Securities Industry 2011.
2 This
E:\FR\FM\14JAN1.SGM
14JAN1
]]>Agencies
[Federal Register Volume 78, Number 9 (Monday, January 14, 2013)]
[Notices]
[Pages 2696-2698]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00517]
=======================================================================
-----------------------------------------------------------------------
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 2a-7, OMB Control No. 3235-0268, SEC File No. 270-258.
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 2a-7 (17 CFR 270.2a-7) under the Investment Company Act of
1940 (15 U.S.C. 80a) (the ``Act'') governs money market funds. Money
market funds are open-end management investment companies that differ
from other open-end management investment companies in that they seek
to maintain a stable price per share, usually $1.00. The rule exempts
money market funds from the valuation requirements of the Act, and,
subject to certain risk-limiting conditions, permits money market funds
to use the ``amortized cost method'' of asset valuation or the ``penny-
rounding method'' of share pricing.
Rule 2a-7 also imposes certain recordkeeping and reporting
obligations
[[Page 2697]]
on money market funds. The board of directors of a money market fund,
in supervising the fund's operations, must establish written procedures
designed to stabilize the fund's net asset value (``NAV''). The board
must also adopt guidelines and procedures relating to certain
responsibilities it delegates to the fund's investment adviser. These
procedures and guidelines typically address various aspects of the
fund's operations. The fund must maintain and preserve for six years a
written copy of both these procedures and guidelines. The fund also
must maintain and preserve for six years a written record of the
board's considerations and actions taken in connection with the
discharge of its responsibilities, to be included in the board's
minutes. In addition, the fund must maintain and preserve for three
years written records of certain credit risk analyses, evaluations with
respect to securities subject to demand features or guarantees, and
determinations with respect to adjustable rate securities and asset
backed securities. If the board takes action with respect to defaulted
securities, events of insolvency, or deviations in share price, the
fund must file with the Commission an exhibit to Form N-SAR describing
the nature and circumstances of the action. If any portfolio security
fails to meet certain eligibility standards under the rule, the fund
also must identify those securities in an exhibit to Form N-SAR. After
certain events of default or insolvency relating to a portfolio
security, the fund must notify the Commission of the event and the
actions the fund intends to take in response to the situation.
The 2010 amendments to rule 2a-7 also added new collection of
information requirements. First, money market fund boards must adopt
written procedures that provide for periodic testing (and reporting to
the board) of the fund's ability to maintain a stable NAV per share
based on certain hypothetical events. Second, funds must post monthly
portfolio information on their Web sites. Third, funds must maintain
records of creditworthiness evaluations on counterparties to repurchase
agreements that the fund intends to ``look through'' for purposes of
rule 2a-7's diversification limitations. Finally, money market funds
must promptly notify the Commission of the purchase of any money market
fund's portfolio security by an affiliated person in reliance on rule
17a-9 under the Act and explain the reasons for such purchase.
The recordkeeping requirements in rule 2a-7 are designed to enable
Commission staff in its examinations of money market funds to determine
compliance with the rule, as well as to ensure that money market funds
have established procedures for collecting the information necessary to
make adequate credit reviews of securities in their portfolios. The
reporting requirements of rule 2a-7 are intended to assist Commission
staff in overseeing money market funds and reduce the likelihood that a
fund is unable to maintain a stable NAV.
Commission staff estimates that there are 664 money market funds
(136 fund complexes), all of which are subject to rule 2a-7. Commission
staff further estimates that there will be approximately 10 new money
market funds established each year. Commission staff estimates that
rule 2a-7 contains the following collection of information
requirements:
Record of credit risk analyses, and determinations
regarding adjustable rate securities, asset backed securities,
securities subject to a demand feature or guarantee, and counterparties
to repurchase agreements. Commission staff estimates a total annual
hour burden for 664 funds to be 451,520 hours.
Establishment of written procedures designed to stabilize
NAV and guidelines and procedures for board delegation of authority.
Commission staff estimates a total annual hour burden for 10 new money
market funds to be 155 hours.
Board review of procedures and guidelines of any
investment adviser or officers to whom the fund's board has delegated
responsibility under rule 2a-7 and amendment of such procedures and
guidelines. Commission staff estimates a total annual hour burden for
166 funds to be 830 hours.
Written record of board determinations and actions related
to failure of a security to meet certain eligibility standards or an
event of default or insolvency and notice to the Commission of an event
of default or insolvency. Commission staff estimates a total annual
hour burden for 20 funds to be 30 hours.
Establishment of written procedures to test periodically
the ability of the fund to maintain a stable NAV per share based on
certain hypothetical events (``stress testing''). Commission staff
estimates a total annual hour burden for 10 new money market funds to
be 220 hours.
Review, revise, and approve written procedures to stress
test a fund's portfolio. Commission staff estimates a total annual hour
burden for 136 fund complexes to be 1,632 hours.
Reports to fund boards on the results of stress testing.
Commission staff estimates a total annual hour burden for 136 fund
complexes to be 6,800 hours.
Monthly posting of money market fund portfolio information
on a fund's Web site. Commission staff estimates a total annual hour
burden for 664 funds and 10 new money market funds to be 56,016 hours.
Notice to the Commission of the purchase of a money market
fund's portfolio security by certain affiliated persons in reliance on
rule 17a-9. Commission staff estimates a total annual hour burden for
25 fund complexes to be 25 hours.
Thus, the Commission estimates the total annual burden of the
rule's information collection requirements is 517,228 hours.\1\
---------------------------------------------------------------------------
\1\ This estimate is based on the following calculation: 451,520
hours + 155 hours + 830 hours + 30 hours + 220 hours + 1,632 hours +
6,800 hours + 56,016 hours + 25 hours = 517,228 hours.
---------------------------------------------------------------------------
The estimated total annual burden is being increased from 395,779
hours to 517,228 hours. This net increase is attributable to a
combination of factors, including a decrease in the number of money
market funds and fund complexes, and updated information from money
market funds regarding hourly burdens, including revised staff
estimates of the burden hours required to comply with rule 2a-7 as a
result of new information received from surveyed fund representatives.
These estimates of burden hours are made solely for the purposes of
the Paperwork Reduction Act. The estimates are not derived from a
comprehensive or even a representative survey or study of Commission
rules.
Commission staff estimates that in addition to the costs described
above, money market funds will incur costs to preserve records, as
required under rule 2a-7. These costs will vary significantly for
individual funds, depending on the amount of assets under fund
management and whether the fund preserves its records in a storage
facility in hard copy or has developed and maintains a computer system
to create and preserve compliance records. Commission staff estimates
that the amount an individual fund may spend ranges from $100 per year
to $300,000. Based on a cost of $0.0051295 per dollar of assets under
management for small funds, $0.0005041 per dollar assets under
management for medium funds, and $0.0000009 per dollar of assets under
management for large funds, the staff estimates compliance with the
record storage requirements of rule 2a-
[[Page 2698]]
7 costs the fund industry approximately $57.3 million per year. Based
on responses from individuals in the money market fund industry, the
staff estimates that some of the largest fund complexes have created
computer programs for maintaining and preserving compliance records for
rule 2a-7. Based on a cost of $0.0000132 per dollar of assets under
management for large funds, the staff estimates that total annualized
capital/startup costs range from $0 for small funds to $35.6 million
for all large funds. Commission staff further estimates that, even
absent the requirements of rule 2a-7, money market funds would spend at
least half of the amount for capital costs ($17.8 million) and for
record preservation ($28.65 million) to establish and maintain these
records and the systems for preserving them as a part of sound business
practices to ensure diversification and minimal credit risk in a
portfolio for a fund that seeks to maintain a stable price per share.
The collection of information under Rule 2a-7 is mandatory. The
information provided by the rule is not 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.
Please direct general comments regarding the above information to
the following persons: (i) Desk Officer for the Securities and Exchange
Commission, Office of Management and Budget, Room 10102, New Executive
Office Building, Washington, DC 20503 or send an email to Shagufta
Ahmed at Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/
CIO, 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.
Dated: January 8, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-00517 Filed 1-11-13; 8:45 am]
BILLING CODE 8011-01-P
