Sunshine Act Meeting, 11161 [2014-04396]
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Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: [79 FR 10578, February
25, 2014].
Closed Meeting.
PLACE: 100 F Street NE., Washington,
DC.
STATUS:
DATE AND TIME OF PREVIOUSLY ANNOUNCED
MEETING: Thursday, February 27, 2014 at
2:00 p.m.
Time Change.
The Closed Meeting scheduled for
Thursday, February 27, 2014 at 2:00
p.m. has been changed to Thursday,
February 27, 2014 at 11:00 a.m.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items. For further
information and to ascertain what, if
any, matters have been added, deleted
or postponed, please contact the Office
of the Secretary at (202) 551–5400.
CHANGE IN THE MEETING:
Dated: February 25, 2014.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2014–04396 Filed 2–25–14; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71598; File No. SR–MSRB–
2013–04]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing of Amendment
No. 1 and Order Granting Accelerated
Approval of Proposed Rule Change, as
Modified by Amendment No. 1 Thereto,
Relating to a New MSRB Rule G–45, on
Reporting of Information on Municipal
Fund Securities
February 21, 2014.
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I. Introduction
On June 10, 2013, the Municipal
Securities Rulemaking Board (‘‘MSRB’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change consisting of (1) MSRB Rule G–
45 (reporting of information on
municipal fund securities), (2) MSRB
Form G–45, (3) amendments to MSRB
Rule G–8 (books and records), and (4)
MSRB Rule G–9 (preservation of
records). The proposed rule change was
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
17:58 Feb 26, 2014
Jkt 232001
published for comment in the Federal
Register on June 28, 2013.3
The Commission initially received
five comment letters on the proposal.4
On August 9, 2013, the MSRB granted
an extension of time, until September
26, 2013, for the Commission to act on
the filing. On September 26, 2013, the
Commission instituted proceedings to
determine whether to disapprove the
proposed rule change.5 In response to
the Order Instituting Proceedings, the
Commission received four additional
comment letters on the proposal.6 On
December 19, 2013, the Commission
extended the time period for
Commission action to February 23,
2014.7 On January 14, 2014, the MSRB
submitted a response to the comment
letters8 and filed Amendment No. 1 to
the proposed rule change.9 The
3 Securities Exchange Act Release No. 69835
(June 24, 2013), 78 FR 39048 (‘‘Notice’’).
4 See letters to Elizabeth M. Murphy, Secretary,
Commission, from Tamara K. Salmon, Senior
Associate Counsel, Investment Company Institute,
dated July 16, 2013 (‘‘ICI Letter’’); David L. Cohen,
Managing Director, Associate General Counsel,
Securities Industry and Financial Markets
Association, dated July 18, 2013 (‘‘SIFMA Letter’’);
Roger Michaud, Chairman, College Savings
Foundation, dated July 19, 2013 (‘‘CSF Letter’’);
Michael L. Fitzgerald, Chairman, College Savings
Plans Network, dated July 19, 2013 (‘‘CSPN
Letter’’); and Michael B. Koffler, Partner,
Sutherland Asbill & Brennan, dated July 19, 2013
(‘‘Sutherland Letter’’).
5 Securities Exchange Act Release No. 70531
(Sept. 26, 2013), 78 FR 60985 (Oct. 2, 2013) (‘‘Order
Instituting Proceedings’’).
6 See letters to Elizabeth M. Murphy, Secretary,
Commission, from Tamara K. Salmon, Senior
Associate Counsel, Investment Company Institute,
dated November 8, 2013 (‘‘ICI Letter II’’); Roger
Michaud, Chairman, College Savings Foundation,
dated November 18, 2013 (‘‘CSF Letter II’’); Michael
L. Fitzgerald, Chairman, College Savings Plans
Network, dated November 18, 2013 (‘‘CSPN Letter
II’’); and Michael B. Koffler, Partner, Sutherland
Asbill & Brennan, dated November 18, 2013
(‘‘Sutherland Letter II’’).
7 Securities Exchange Act Release No. 71144
(December 19, 2013), 78 FR 78451 (December 26,
2013).
8 See letter to Elizabeth M. Murphy, Secretary,
Commission, from Lawrence P. Sandor, Deputy
General Counsel, MSRB, dated January 14, 2014
(‘‘MSRB Response Letter’’).
9 Amendment No. 1 has been placed in the public
comment file for SR–MSRB–2013–04 at https://
www.sec.gov/comments/sr-msrb-2013-04/
msrb201304-11.pdf (see letter from Lawrence P.
Sandor, Deputy General Counsel, MSRB, to
Elizabeth M. Murphy, Secretary, Commission, dated
January 14, 2014). In Amendment No. 1, the MSRB
amended and restated the original proposed rule
change to: (i) Clarify that the information submitted
by underwriters includes asset allocation
information for the assets of each investment
option; (ii) omit statements concerning the
interpretation of the meaning of ‘‘underwriter’’
under the federal securities laws and rules
thereunder; (iii) clarify that each entity must
determine, based on the facts and circumstances,
whether it is an underwriter under the federal
securities laws; (iv) revise the rule text to clarify
that an underwriter that submits Form G–45 would
be obligated to submit information only for itself
PO 00000
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11161
Commission is publishing this notice to
solicit comments on Amendment No. 1
to the proposed rule change from
interested persons and is approving the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis.
II. Description of the Proposed Rule
Change
The MSRB’s Electronic Municipal
Market Access (‘‘EMMA’’) system
currently serves as a centralized venue
for the submission by underwriters of
529 plan primary offering disclosure
documents (‘‘plan disclosure
documents’’) and continuing
disclosures, such as annual financial
reports submitted by issuers or their
agents. The MSRB, however, does not
currently receive detailed underwriting
or transaction information as it does for
other types of municipal securities.
According to the MSRB, the proposed
rule change will, for the first time,
provide the MSRB with more
comprehensive information regarding
529 plans underwritten by brokers,
dealers, or municipal securities dealers
by gathering data directly from such
persons.
The MSRB proposes to adopt Rule G–
45. Rule G–45 will require each
underwriter of a primary offering of
municipal fund securities 10 (excluding
interests in local government
and those entities that identify themselves as
underwriters of the 529 plan and aggregate their
information with the submitter’s information; (v)
clarify that underwriters must identify the
percentage of each underlying investment in an
investment option but not submit information
regarding the assets in each underlying investment;
(vi) clarify that, for each investment option offered
by a 529 plan, the underwriter will provide the
MSRB with the name and allocation percentage of
each underlying investment in each investment
option as of the end of the most recent semi-annual
period; (vii) clarify that the MSRB does not
contemplate that a state sponsor of a 529 plan, as
an instrumentality of the state, would be an
underwriter under federal securities laws; (viii)
explain that an underwriter would not be required
to submit information on Form G–45 that it neither
possesses nor has the legal right to obtain; (ix)
explain that, to the extent the information
submitted was prepared by the underwriter or,
through delegation, one of its contractors or subcontractors, and the information was inaccurate or
incomplete, the underwriter would be responsible
for the information and therefore be liable for such
information under proposed Rule G–45; and (x)
clarify in Rule G–45 that performance data shall be
reported annually. The MSRB also clarified various
aspects of how the information should be reported
on Form G–45.
10 The term ‘‘municipal fund security’’ is defined
in MSRB Rule D–12 to mean a municipal security
issued by an issuer that, but for the application of
Section 2(b) of the Investment Company Act of
1940, would constitute an investment company
within the meaning of Section 3 of the Investment
Company Act of 1940. Interests in 529 plans are the
only type of municipal fund security that will be
covered by the proposed rule change.
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27FEN1
Agencies
[Federal Register Volume 79, Number 39 (Thursday, February 27, 2014)]
[Notices]
[Page 11161]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-04396]
[[Page 11161]]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting
FEDERAL REGISTER CITATION OF PREVIOUS ANNOUNCEMENT: [79 FR 10578,
February 25, 2014].
STATUS: Closed Meeting.
PLACE: 100 F Street NE., Washington, DC.
DATE AND TIME OF PREVIOUSLY ANNOUNCED MEETING: Thursday, February 27,
2014 at 2:00 p.m.
CHANGE IN THE MEETING: Time Change.
The Closed Meeting scheduled for Thursday, February 27, 2014 at
2:00 p.m. has been changed to Thursday, February 27, 2014 at 11:00 a.m.
At times, changes in Commission priorities require alterations in
the scheduling of meeting items. For further information and to
ascertain what, if any, matters have been added, deleted or postponed,
please contact the Office of the Secretary at (202) 551-5400.
Dated: February 25, 2014.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2014-04396 Filed 2-25-14; 11:15 am]
BILLING CODE 8011-01-P