Proposed Collection; Comment Request, 2698-2699 [2013-00518]

Download as PDF 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 PO 00000 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 Federal Register / Vol. 78, No. 9 / Monday, January 14, 2013 / Notices Compliance with the collection of information requirements of the rule is necessary to obtain the benefit of relying on the rule. 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, 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, 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. Dated: January 8, 2013. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–00518 Filed 1–11–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [OMB Control No. 3235–0307, SEC File No. 270–21] 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 Extension: Form N–1A. 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 (‘‘OMB’’) a request for extension of the previously approved collection of information discussed below. Form N–1A (17 CFR 239.15A and 274.11A) is the form used by open-end management investment companies (‘‘funds’’) under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) (‘‘Investment Company Act’’) and/or to register their securities under the Securities Act of 1933 (15 U.S.C. 77a et seq.) (‘‘Securities Act’’). Section 5 of VerDate Mar<15>2010 16:53 Jan 11, 2013 Jkt 229001 the Securities Act (15 U.S.C. 77e) requires the filing of a registration statement prior to the offer of securities to the public and that the statement be effective before any securities are sold, and Section 8 of the Investment Company Act (15 U.S.C. 80a–8) requires a fund to register as an investment company. Form N–1A also permits funds to provide investors with a prospectus and a statement of additional information (‘‘SAI’’) covering essential information about the fund when it makes an initial or additional offering of its securities. Section 5(b) of the Securities Act requires that investors be provided with a prospectus containing the information required in a registration statement prior to the sale or at the time of confirmation or delivery of the securities. The form also may be used by the Commission in its regulatory review, inspection, and policy-making roles. The Commission estimates that there are 48 initial registration statements and 5,642 post-effective amendments to initial registration statements filed on Form N–1A annually and that the average number of portfolios referenced in initial registration statements is 7.5, and the average number of portfolios referenced in post-effective amendment is 1.7. The Commission further estimates that the hour burden for preparing and filing a post-effective amendment on Form N–1A is 133.75 hours per portfolio. The total annual hour burden for preparing and filing post-effective amendments is 1,279,720 hours (5,642 post-effective amendments × 133.75 hours per portfolio). The estimated annual hour burden for preparing and filing initial registration statements is 298,969 hours (48 initial registration statements × 830.47 hours per portfolio). The total annual hour burden for Form N–1A, therefore, is estimated to be 1,578,689 hours (1,279,720 hours + 298,969 hours). The information collection requirements imposed by Form N–1A are mandatory. Responses to the collection of information 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, 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, PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 2699 or by sending an email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, 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. Dated: January 8, 2013. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–00519 Filed 1–11–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request Copy Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Form N–8A, OMB Control No. 3235–0175, File No. 270–135. 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. The Investment Company Act of 1940, as amended (‘‘1940 Act’’) (15 U.S.C. 80a–1 et seq.), requires investment companies to register with the Commission before they conduct any business in interstate commerce. Section 8(a) of the 1940 Act provides that an investment company shall be deemed to be registered upon receipt by the Commission of a notification of registration in such form as the Commission prescribes. Form N–8A (17 CFR 274.10) is the form for notification of registration that the Commission has adopted under section 8(a). The purpose of such notification of registration provided on Form N–8A is to notify the Commission of the existence of investment companies required to be registered under the 1940 Act and to enable the Commission to administer the provisions of the 1940 Act with respect to those companies. After an investment company has filed its notification of registration under section 8(a), the company is then subject to the provisions of the 1940 Act which govern certain aspects of its organization and E:\FR\FM\14JAN1.SGM 14JAN1

Agencies

[Federal Register Volume 78, Number 9 (Monday, January 14, 2013)]
[Notices]
[Pages 2698-2699]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00518]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[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 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 Sec.  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 
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.
---------------------------------------------------------------------------

    \1\ See rule 22e-3(a)(3).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \2\ This 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 x 3 (combined number of affected funds and conduit funds) = 30 
minutes.
    \5\ This estimate is based on the following calculation: $378/
hour x 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.

---------------------------------------------------------------------------

[[Page 2699]]

    Compliance with the collection of information requirements of the 
rule is necessary to obtain the benefit of relying on the rule. 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, 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, 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.

    Dated: January 8, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-00518 Filed 1-11-13; 8:45 am]
BILLING CODE 8011-01-P