Submission for OMB Review; Comment Request, 14089-14090 [2014-05318]
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Federal Register / Vol. 79, No. 48 / Wednesday, March 12, 2014 / Notices
tkelley on DSK3SPTVN1PROD with NOTICES
intended to ensure that the depository is
subject to basic safeguards deemed
appropriate for all depositories. The
requirement that the fund or its adviser
must receive from the primary
custodian (or its agent) an initial risk
analysis of the depository arrangements,
and that the fund’s contract with its
primary custodian must state that the
custodian will monitor risks and
promptly notify the fund or its adviser
of material changes in risks, is intended
to provide essential information about
custody risks to the fund’s investment
adviser as necessary for it to approve the
continued use of the depository. The
requirement that the primary custodian
agree to exercise reasonable care is
intended to provide assurances that its
services and the information it provides
will meet an appropriate standard of
care.
The staff estimates that each of
approximately 938 investment advisers 1
will make an average of 8 responses
annually under the rule to address
depository compliance with minimum
requirements, any indemnification or
insurance arrangements, and reviews of
risk analyses or notifications. The staff
estimates each response will take 6
hours, requiring a total of approximately
48 hours for each adviser.2 Thus the
total annual burden associated with
these requirements of the rule is
approximately 45,024 hours.3 The staff
further estimates that during each year,
each of approximately 15 global
custodians will make an average of 4
responses to analyze custody risks and
provide notice of any material changes
to custody risk under the rule. The staff
estimates that each response will take
260 hours, requiring approximately
1,040 hours annually per global
custodian.4 Thus the total annual
burden associated with these
requirements is approximately 15,600
hours.5 The staff estimates that the total
annual hour burden associated with all
collection of information requirements
of the rule is therefore 60,624 hours.6
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
1 As of October 2013, 938 investment advisers
managed or sponsored open-end registered funds
(including exchange-traded funds) and closed-end
registered funds.
2 8 responses per adviser × 6 hours per response
= 48 hours per adviser.
3 938 hours × 48 hours per adviser = 45,024 hours.
4 260 hours per response × 4 responses per global
custodian = 1,040 hours per global custodian.
5 15 global custodians × 1,040 hours per global
custodian = 15,600 hours.
6 45,024 hours + 15,600 hours = 60,624 hours.
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17:51 Mar 11, 2014
Jkt 232001
costs of Commission rules and forms.
Compliance with the collection of
information requirements of the rule is
necessary to obtain the benefit of relying
on the rule’s permission for funds to
maintain their assets in foreign
custodians. The information provided
under rule 17f–7 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 OMB 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: March 6, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–05317 Filed 3–11–14; 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 19b–1, OMB Control No. 3235–0354,
SEC File No. 270–312.
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
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Section 19(b) of the Investment
Company Act of 1940 (the ‘‘Act’’) (15
U.S.C. 80a–19(b)) authorizes the
Commission to regulate registered
investment company (‘‘fund’’)
distributions of long-term capital gains
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Fmt 4703
Sfmt 4703
14089
made more frequently than once every
twelve months. Accordingly, rule 19b–
1 under the Act (17 CFR 270.19b–1)
regulates the frequency of fund
distributions of capital gains. Rule 19b–
1(c) states that the rule does not apply
to a unit investment trust (‘‘UIT’’) if it
is engaged exclusively in the business of
investing in certain eligible securities
(generally, fixed-income securities),
provided that: (i) The capital gains
distribution falls within one of five
categories specified in the rule 1 and (ii)
the distribution is accompanied by a
report to the unitholder that clearly
describes the distribution as a capital
gains distribution (the ‘‘notice
requirement’’).2 Rule 19b–1(e) permits a
fund to apply to the Commission for
permission to distribute long-term
capital gains that would otherwise be
prohibited by the rule if the fund did
not foresee the circumstances that
created the need for the distribution.
The application must set forth the
pertinent facts and explain the
circumstances that justify the
distribution.3 An application that meets
those requirements is deemed to be
granted unless the Commission denies
the request within 15 days after the
Commission receives the application.
Commission staff estimates that zero
funds will file an application under rule
19b–1(e) each year. The staff
understands that if a fund files an
application it generally uses outside
counsel to prepare the application. The
cost burden of using outside counsel is
discussed below. The staff estimates
that, on average, a fund’s investment
adviser would spend approximately 4
hours to review an application,
including 3.5 hours by an assistant
general counsel at a cost of $467 per
hour and 0.5 hours by an administrative
assistant at a cost of $72 per hour, and
the fund’s board of directors would
spend an additional 1 hour at a cost of
$4,500 per hour, for a total of 5 hours.4
1 17
CFR 270.19b–1(c)(1).
notice requirement in rule 19b–1(c)(2)
supplements the notice requirement of section 19(a)
[15 U.S.C. 80a–19(a)], which requires any
distribution in the nature of a dividend payment to
be accompanied by a notice disclosing the source
of the distribution.
3 Rule 19b–1(e) also requires that the application
comply with rule 0–2 [17 CFR 270.02] under the
Act, which sets forth the general requirements for
papers and applications filed with the Commission
pursuant to the Act and rules thereunder.
4 The estimate for assistant general counsels is
from SIFMA’s Management & Professional Earnings
in the Securities Industry 2012, modified by
Commission staff to account for an 1800-hour workyear and multiplied by 5.35 to account for bonuses,
firm size, employee benefits and overhead. The
estimate for administrative assistants is from
SIFMA’s Office Salaries in the Securities Industry
2 The
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Federal Register / Vol. 79, No. 48 / Wednesday, March 12, 2014 / Notices
tkelley on DSK3SPTVN1PROD with NOTICES
Thus, the staff estimates that the annual
hour burden of the collection of
information imposed by rule 19b–1(e)
would be approximately five hours per
fund, at a cost of $6173.50.5 Because the
staff estimates that, each year, zero
funds will file an application pursuant
to rule 19b–1(e), the total burden for the
information collection is 0 hours at a
cost of $0.6
Commission staff estimates that there
is no hour burden associated with
complying with the collection of
information component of rule 19b–1(c).
Although Commission staff estimates
that there is no hour burden associated
with rule 19b–1, the staff is requesting
an hour burden of one hour for
administrative purposes.
As noted above, Commission staff
understands that funds that file an
application under rule 19b–1(e)
generally use outside counsel to prepare
the application.7 The staff estimates
that, on average, outside counsel spends
10 hours preparing a rule 19b–1(e)
application, including eight hours by an
associate and two hours by a partner.
Outside counsel billing arrangements
and rates vary based on numerous
factors, but the staff has estimated the
average cost of outside counsel as $450
per hour, based on information received
from funds, intermediaries, and their
counsel. The staff therefore estimates
that the average cost of outside counsel
preparation of the rule 19b–1(e)
exemptive application is $4,500.8
Because the staff estimates that, each
year, zero funds will file an application
pursuant to rule 19b–1(e), the total
annual cost burden imposed by the
exemptive application requirements of
rule 19b–1(e) is estimated to be $0.9
The Commission staff estimates that
there are approximately 3,361 UITs10
2012, modified by Commission staff to account for
an 1800-hour work-year and multiplied by 2.93 to
account for bonuses, firm size, employee benefits
and overhead. The estimate for the board of
directors as a whole is derived from estimates made
by the staff regarding typical board size and
compensation that is based on information received
from fund representatives and publicly available
sources.
5 This estimate is based on the following
calculations: $1634.50 (3.5 hours × $467 =
$1634.50) plus $36 (0.5 hours × $72 = $36) plus
$4500 equals $6173.50 (cost of one application).
6 This estimate is based on the following
calculation: $6173.50 (cost of one application)
multiplied by 0 applications = $0 total cost.
7 This understanding is based on conversations
with representatives from the fund industry.
8 This estimate is based on the following
calculation: 10 hours multiplied by $450 per hour
equals $4,500.
9 This estimate is based on the following
calculation: $4,500 multiplied by 0 (funds) equals
$0.
10 See 2013 Investment Company Fact Book,
Investment Company Institute, available at https://
www.ici.org/pdf/2013_factbook.pdf.
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17:51 Mar 11, 2014
Jkt 232001
that may rely on rule 19b–1(c) to make
capital gains distributions. The staff
estimates that, on average, these UITs
rely on rule 19b–1(c) once a year to
make a capital gains distribution.11 In
most cases, the trustee of the UIT is
responsible for preparing and sending
the notices that must accompany a
capital gains distribution under rule
19b–1(c)(2). These notices require
limited preparation, the cost of which
accounts for only a small, indiscrete
portion of the comprehensive fee
charged by the trustee for its services to
the UIT. The staff believes that as a
matter of good business practice, and for
tax preparation reasons, UITs would
collect and distribute the capital gains
information required to be sent to
unitholders under rule 19b–1(c) even in
the absence of the rule. The staff
estimates that the cost of preparing a
notice for a capital gains distribution
under rule 19b–1(c)(2) is approximately
$50. There is no separate cost to mail
the notices because they are mailed with
the capital gains distribution. Thus, the
staff estimates that the capital gains
distribution notice requirement imposes
an annual cost on UITs of
approximately $168,050.12 The staff
therefore estimates that the total cost
imposed by rule 19b–1 is $168,050
($168,050 plus $0 (total cost associated
with rule 19b–1(e)) equals $168,050).
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 OMB
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, 100 F Street
NE., Washington, DC 20549 or send an
email to: PRA_Mailbox@sec.gov.
11 The number of times UITs rely on the rule to
make capital gains distributions depends on a wide
range of factors and, thus, can vary greatly across
years and UITs. UITs may distribute capital gains
biannually, annually, quarterly, or at other
intervals. Additionally, a number of UITs are
organized as grantor trusts, and therefore do not
generally make capital gains distributions under
rule 19b–1(c), or may not rely on rule 19b–1(c) as
they do not meet the rule’s requirements.
12 This estimate is based on the following
calculation: 3361 UITs multiplied by $50 equals
$168,050.
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
Comments must be submitted to OMB
within 30 days of this notice.
Dated: March 6, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–05318 Filed 3–11–14; 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:
Form N–8B–4, OMB Control No. 3235–
0247, SEC File No. 270–180.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) requests for extension of the
previously approved collection of
information discussed below.
Form N–8B–4 (17 CFR 274.14) is the
form used by face-amount certificate
companies to comply with the filing and
disclosure requirements imposed by
Section 8(b) of the Investment Company
Act of 1940 (15 U.S.C. 80a–8(b)). Among
other items, Form N–8B–4 requires
disclosure of the following information
about the face-amount certificate
company: date and form of organization;
controlling persons; current business
and contemplated changes to the
company’s business; investment,
borrowing, and lending policies, as well
as other fundamental policies; securities
issued by the company; investment
adviser; depositaries; management
personnel; compensation paid to
directors, officers, and certain
employees; and financial statements.
The Commission uses the information
provided in the collection of
information to determine compliance
with Section 8(b) of the Investment
Company Act of 1940.
Form N–8B–4 and the burden of
compliance have not changed since the
last approval. Each registrant files Form
N–8B–4 for its initial filing and does not
file post-effective amendments to Form
N–8B–4.1 Commission staff estimates
1 Pursuant to Section 30(b)(1) of the Act, each
respondent keeps its registration statement current
through the filing of periodic reports as required by
Section 13 of the Securities Exchange Act of 1934
and the rules thereunder. Post-effective
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]]>Agencies
[Federal Register Volume 79, Number 48 (Wednesday, March 12, 2014)]
[Notices]
[Pages 14089-14090]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-05318]
-----------------------------------------------------------------------
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 19b-1, OMB Control No. 3235-0354, SEC File No. 270-312.
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 (``OMB'') a request for extension of the previously approved
collection of information discussed below.
Section 19(b) of the Investment Company Act of 1940 (the ``Act'')
(15 U.S.C. 80a-19(b)) authorizes the Commission to regulate registered
investment company (``fund'') distributions of long-term capital gains
made more frequently than once every twelve months. Accordingly, rule
19b-1 under the Act (17 CFR 270.19b-1) regulates the frequency of fund
distributions of capital gains. Rule 19b-1(c) states that the rule does
not apply to a unit investment trust (``UIT'') if it is engaged
exclusively in the business of investing in certain eligible securities
(generally, fixed-income securities), provided that: (i) The capital
gains distribution falls within one of five categories specified in the
rule \1\ and (ii) the distribution is accompanied by a report to the
unitholder that clearly describes the distribution as a capital gains
distribution (the ``notice requirement'').\2\ Rule 19b-1(e) permits a
fund to apply to the Commission for permission to distribute long-term
capital gains that would otherwise be prohibited by the rule if the
fund did not foresee the circumstances that created the need for the
distribution. The application must set forth the pertinent facts and
explain the circumstances that justify the distribution.\3\ An
application that meets those requirements is deemed to be granted
unless the Commission denies the request within 15 days after the
Commission receives the application.
---------------------------------------------------------------------------
\1\ 17 CFR 270.19b-1(c)(1).
\2\ The notice requirement in rule 19b-1(c)(2) supplements the
notice requirement of section 19(a) [15 U.S.C. 80a-19(a)], which
requires any distribution in the nature of a dividend payment to be
accompanied by a notice disclosing the source of the distribution.
\3\ Rule 19b-1(e) also requires that the application comply with
rule 0-2 [17 CFR 270.02] under the Act, which sets forth the general
requirements for papers and applications filed with the Commission
pursuant to the Act and rules thereunder.
---------------------------------------------------------------------------
Commission staff estimates that zero funds will file an application
under rule 19b-1(e) each year. The staff understands that if a fund
files an application it generally uses outside counsel to prepare the
application. The cost burden of using outside counsel is discussed
below. The staff estimates that, on average, a fund's investment
adviser would spend approximately 4 hours to review an application,
including 3.5 hours by an assistant general counsel at a cost of $467
per hour and 0.5 hours by an administrative assistant at a cost of $72
per hour, and the fund's board of directors would spend an additional 1
hour at a cost of $4,500 per hour, for a total of 5 hours.\4\
[[Page 14090]]
Thus, the staff estimates that the annual hour burden of the collection
of information imposed by rule 19b-1(e) would be approximately five
hours per fund, at a cost of $6173.50.\5\ Because the staff estimates
that, each year, zero funds will file an application pursuant to rule
19b-1(e), the total burden for the information collection is 0 hours at
a cost of $0.\6\
---------------------------------------------------------------------------
\4\ The estimate for assistant general counsels is from SIFMA's
Management & Professional Earnings in the Securities Industry 2012,
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. The estimate for administrative assistants is
from SIFMA's Office Salaries in the Securities Industry 2012,
modified by Commission staff to account for an 1800-hour work-year
and multiplied by 2.93 to account for bonuses, firm size, employee
benefits and overhead. The estimate for the board of directors as a
whole is derived from estimates made by the staff regarding typical
board size and compensation that is based on information received
from fund representatives and publicly available sources.
\5\ This estimate is based on the following calculations:
$1634.50 (3.5 hours x $467 = $1634.50) plus $36 (0.5 hours x $72 =
$36) plus $4500 equals $6173.50 (cost of one application).
\6\ This estimate is based on the following calculation:
$6173.50 (cost of one application) multiplied by 0 applications = $0
total cost.
---------------------------------------------------------------------------
Commission staff estimates that there is no hour burden associated
with complying with the collection of information component of rule
19b-1(c). Although Commission staff estimates that there is no hour
burden associated with rule 19b-1, the staff is requesting an hour
burden of one hour for administrative purposes.
As noted above, Commission staff understands that funds that file
an application under rule 19b-1(e) generally use outside counsel to
prepare the application.\7\ The staff estimates that, on average,
outside counsel spends 10 hours preparing a rule 19b-1(e) application,
including eight hours by an associate and two hours by a partner.
Outside counsel billing arrangements and rates vary based on numerous
factors, but the staff has estimated the average cost of outside
counsel as $450 per hour, based on information received from funds,
intermediaries, and their counsel. The staff therefore estimates that
the average cost of outside counsel preparation of the rule 19b-1(e)
exemptive application is $4,500.\8\ Because the staff estimates that,
each year, zero funds will file an application pursuant to rule 19b-
1(e), the total annual cost burden imposed by the exemptive application
requirements of rule 19b-1(e) is estimated to be $0.\9\
---------------------------------------------------------------------------
\7\ This understanding is based on conversations with
representatives from the fund industry.
\8\ This estimate is based on the following calculation: 10
hours multiplied by $450 per hour equals $4,500.
\9\ This estimate is based on the following calculation: $4,500
multiplied by 0 (funds) equals $0.
---------------------------------------------------------------------------
The Commission staff estimates that there are approximately 3,361
UITs\10\ that may rely on rule 19b-1(c) to make capital gains
distributions. The staff estimates that, on average, these UITs rely on
rule 19b-1(c) once a year to make a capital gains distribution.\11\ In
most cases, the trustee of the UIT is responsible for preparing and
sending the notices that must accompany a capital gains distribution
under rule 19b-1(c)(2). These notices require limited preparation, the
cost of which accounts for only a small, indiscrete portion of the
comprehensive fee charged by the trustee for its services to the UIT.
The staff believes that as a matter of good business practice, and for
tax preparation reasons, UITs would collect and distribute the capital
gains information required to be sent to unitholders under rule 19b-
1(c) even in the absence of the rule. The staff estimates that the cost
of preparing a notice for a capital gains distribution under rule 19b-
1(c)(2) is approximately $50. There is no separate cost to mail the
notices because they are mailed with the capital gains distribution.
Thus, the staff estimates that the capital gains distribution notice
requirement imposes an annual cost on UITs of approximately
$168,050.\12\ The staff therefore estimates that the total cost imposed
by rule 19b-1 is $168,050 ($168,050 plus $0 (total cost associated with
rule 19b-1(e)) equals $168,050).
---------------------------------------------------------------------------
\10\ See 2013 Investment Company Fact Book, Investment Company
Institute, available at https://www.ici.org/pdf/2013_factbook.pdf.
\11\ The number of times UITs rely on the rule to make capital
gains distributions depends on a wide range of factors and, thus,
can vary greatly across years and UITs. UITs may distribute capital
gains biannually, annually, quarterly, or at other intervals.
Additionally, a number of UITs are organized as grantor trusts, and
therefore do not generally make capital gains distributions under
rule 19b-1(c), or may not rely on rule 19b-1(c) as they do not meet
the rule's requirements.
\12\ This estimate is based on the following calculation: 3361
UITs multiplied by $50 equals $168,050.
---------------------------------------------------------------------------
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 OMB 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, 100 F Street
NE., Washington, DC 20549 or send an email to: PRA_Mailbox@sec.gov.
Comments must be submitted to OMB within 30 days of this notice.
Dated: March 6, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-05318 Filed 3-11-14; 8:45 am]
BILLING CODE 8011-01-P
