Proposed Collection; Comment Request, 44069-44070 [2014-17777]
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Federal Register / Vol. 79, No. 145 / Tuesday, July 29, 2014 / Notices
provisions of section 8(a) of the Act if
the account files with the Commission
Form N–6EI–1, a notification of claim of
exemption.
The rule also exempts a separate
account from a number of other sections
of the Act, provided that the separate
account makes certain disclosure in its
registration statements (in the case of
those separate accounts that elect to
register), reports to contractholders,
proxy solicitations, and submissions to
state regulatory authorities, as
prescribed by the rule.
Paragraph (b)(9) of Rule 6e–2 provides
an exemption from the requirements of
section 17(f) of the Act and imposes a
reporting burden and certain other
conditions. Section 17(f) requires that
every registered management company
meet various custody requirements for
its securities and similar investments.
The exemption provided in paragraph
(b)(9) applies only to management
accounts that offer life insurance
contracts.
Since 2008, there have been no filings
under paragraph (b)(9) of Rule 6e–2 by
management accounts. Therefore, since
2008, there has been no cost or burden
to the industry regarding the
information collection requirements of
paragraph (b)(9) of Rule 6e–2. In
addition, there have been no filings of
Form N–6EI–1 by separate accounts
since 2008. Therefore, there has been no
cost or burden to the industry since that
time. The Commission requests
authorization to maintain an inventory
of one burden hour for administrative
purposes.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Please direct your written comments
to 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.
VerDate Mar<15>2010
15:02 Jul 28, 2014
Jkt 232001
Dated: July 23, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–17776 Filed 7–28–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension:
Rule 19a–1.
SEC File No. 270–240, OMB Control No.
3235–0216.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520), the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Section 19(a) (15 U.S.C. 80a–19(a)) of
the Investment Company Act of 1940
(the ‘‘Act’’) 1 makes it unlawful for any
registered investment company to pay
any dividend or similar distribution
from any source other than the
company’s net income, unless the
payment is accompanied by a written
statement to the company’s
shareholders which adequately
discloses the sources of the payment.
Section 19(a) authorizes the
Commission to prescribe the form of
such statement by rule.
Rule 19a–1 (17 CFR 270.19a–1) under
the Act, entitled ‘‘Written Statement to
Accompany Dividend Payments by
Management Companies,’’ sets forth
specific requirements for the
information that must be included in
statements made pursuant to section
19(a) by or on behalf of management
companies.2 The rule requires that the
statement indicate what portions of
distribution payments are made from
net income, net profits from the sale of
a security or other property (‘‘capital
gains’’) and paid-in capital. When any
part of the payment is made from capital
gains, Rule 19a–1 also requires that the
statement disclose certain other
U.S.C. 80a.
4(3) of the Act (15 U.S. C. 80a–4(3))
defines ‘‘management company’’ as ‘‘any
investment company other than a face amount
certificate company or a unit investment trust.’’
PO 00000
1 15
2 Section
Frm 00070
Fmt 4703
Sfmt 4703
44069
information relating to the appreciation
or depreciation of portfolio securities. If
an estimated portion is subsequently
determined to be significantly
inaccurate, a correction must be made
on a statement made pursuant to section
19(a) or in the first report to
shareholders following the discovery of
the inaccuracy.
The purpose of Rule 19a–1 is to afford
fund shareholders adequate disclosure
of the sources from which distribution
payments are made. The rule is
intended to prevent shareholders from
confusing income dividends with
distributions made from capital sources.
Absent Rule 19a–1, shareholders might
receive a false impression of fund gains.
Based on a review of filings made
with the Commission, the staff estimates
that approximately 11,066 series of
registered investment companies that
are management companies may be
subject to Rule 19a–1 each year,3 and
that each portfolio on average mails two
statements per year to meet the
requirements of the rule.4 The staff
further estimates that the time needed to
make the determinations required by the
rule and to prepare the statement
required under the rule is
approximately 1 hour per statement.
The total annual burden for all
portfolios therefore is estimated to be
approximately 22,132 burden hours.5
The staff estimates that approximately
one-third of the total annual burden
(7,377 hours) would be incurred by a
paralegal with an average hourly wage
rate of approximately $199 per hour,6
and approximately two-thirds of the
annual burden (14,755 hours) would be
incurred by a compliance clerk with an
average hourly wage rate of $64 per
3 This estimate is based on statistics compiled by
Commission staff as of May 31, 2014. The number
of management investment company portfolios that
make distributions for which compliance with Rule
19a–1 is required depends on a wide range of
factors and can vary greatly across years. Therefore,
the calculation of estimated burden hours is based
on the total number of management investment
company portfolios, each of which may be subject
to Rule 19a–1.
4 A few portfolios make monthly distributions
from sources other than net income, so the rule
requires them to send out a statement 12 times a
year. Other portfolios never make such
distributions.
5 This estimate is based on the following
calculation: 11,066 management investment
company portfolios × 2 statements per year × 1 hour
per statement = 22,132 burden hours.
6 Hourly rates are derived from the Securities
Industry and Financial Markets Association
(‘‘SIFMA’’), Management and Professional Earnings
in the Securities Industry 2013, modified to account
for an 1800-hour work-year and multiplied by 5.35
to account for bonuses, firm size, employee
benefits, and overhead.
E:\FR\FM\29JYN1.SGM
29JYN1
44070
Federal Register / Vol. 79, No. 145 / Tuesday, July 29, 2014 / Notices
rmajette on DSK2TPTVN1PROD with NOTICES
hour.7 The staff therefore estimates that
the aggregate annual cost of complying
with the paperwork requirements of the
rule is approximately $2,412,343 ((7,377
hours × $199 = $1,468,023) + (14,755
hours × $64 = $944,320)).
To comply with state law, many
investment companies already must
distinguish the different sources from
which a shareholder distribution is paid
and disclose that information to
shareholders. Thus, many investment
companies would be required to
distinguish the sources of shareholder
dividends whether or not the
Commission required them to do so
under Rule 19a–1.
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. Compliance
with the collection of information
required by Rule 19a–1 is mandatory for
management companies that make
statements to shareholders pursuant to
section 19(a) of the Act. 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.
Written comments are invited on: (a)
Whether the collections of information
are necessary for the proper
performance of the functions of the
Commission, including whether the
information has practical utility; (b) the
accuracy of the Commission’s estimate
of the burdens of the collections of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burdens of the collections
of information on respondents,
including through the use of automated
collection techniques or other forms of
information technology. Consideration
will be given to comments and
suggestions submitted in writing within
60 days of this publication.
Please direct your written comments
to 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.
Dated: July 23, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–17777 Filed 7–28–14; 8:45 am]
BILLING CODE 8011–01–P
7 Hourly rates are derived from SIFMA’s Office
Salaries in the Securities Industry 2013, modified
to account for an 1800-hour work-year and
multiplied by 2.93 to account for bonuses, firm size,
employee benefits and overhead.
VerDate Mar<15>2010
15:02 Jul 28, 2014
Jkt 232001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72661; File No. 10–214]
Automated Matching Systems
Exchange, LLC; Notice of Filing of
Application for Limited Volume
Exemption From Registration as a
National Securities Exchange Under
Section 5 of the Securities Exchange
Act of 1934
July 23, 2014.
On July 7, 2014, Automated Matching
Systems Exchange, LLC (‘‘AMSE’’)
submitted to the Securities and
Exchange Commission (‘‘Commission’’)
an application seeking a limited volume
exemption under Section 5 of the
Securities Exchange Act (‘‘Exchange
Act’’) from registration as a national
securities exchange under Section 6 of
the Exchange Act. Although Section 5 of
the Exchange Act does not require
publication of such a request for
exemption, the Commission has
determined, in its discretion, to publish
this notice in order to solicit the views
of interested persons on AMSE’s
exemption application.1
AMSE proposes to conduct business
in reliance upon an exemption from
registration as a national securities
exchange due to the limited volume of
transactions proposed to be effected on
AMSE. In general, AMSE seeks to
operate as a centralized marketplace for
alternative trading systems. AMSE
proposes to operate solely on an ‘‘offorder-book’’ trading basis. Each member
of AMSE would maintain its own
automated matching system or
electronic order book and would report
its transactions to AMSE at such
intervals as required by AMSE. Trades
would occur when an order to buy and
an order to sell match on the member’s
electronic order book. Each member of
AMSE would adopt rules governing the
execution and priority of orders. AMSE
does not intend to have a physical
exchange trading floor, centralized order
book, or specialists or market makers
with affirmative and negative market
making obligations.
AMSE’s exemption application is
available at the Commission’s Public
Reference Room and www.sec.gov.
Interested persons are invited to submit
written data, views, and arguments
concerning AMSE’s exemption
1 Section 5 of the Exchange Act authorizes the
Commission to grant an exemption from registration
if, ‘‘in the opinion of the Commission, by reason of
the limited volume of transactions effected on [the]
exchange, it is not practicable and not necessary or
appropriate in the public interest for the protection
of investors to require such registration.’’ 15 U.S.C.
78e.
PO 00000
Frm 00071
Fmt 4703
Sfmt 9990
application, including whether AMSE’s
exemption application is consistent
with the Exchange Act and whether
AMSE qualifies as an ‘‘exchange’’ under
the Exchange Act. Comments may be
submitted by any of the following
methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/other.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number 10–
214 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, Station Place, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number 10–214. This file number
should be included on the subject line
if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/other.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to AMSE’s exemption
application filed with the Commission,
and all written communications relating
to the application between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number 10–214 and
should be submitted on or before
September 12, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.2
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–17774 Filed 7–28–14; 8:45 am]
BILLING CODE 8011–01–P
2 17
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CFR 200.30–3(a)(71)(i).
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]]>Agencies
[Federal Register Volume 79, Number 145 (Tuesday, July 29, 2014)]
[Notices]
[Pages 44069-44070]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17777]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.
Extension:
Rule 19a-1.
SEC File No. 270-240, OMB Control No. 3235-0216.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange
Commission (the ``Commission'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit this existing collection of information to the Office of
Management and Budget for extension and approval.
Section 19(a) (15 U.S.C. 80a-19(a)) of the Investment Company Act
of 1940 (the ``Act'') \1\ makes it unlawful for any registered
investment company to pay any dividend or similar distribution from any
source other than the company's net income, unless the payment is
accompanied by a written statement to the company's shareholders which
adequately discloses the sources of the payment. Section 19(a)
authorizes the Commission to prescribe the form of such statement by
rule.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 80a.
---------------------------------------------------------------------------
Rule 19a-1 (17 CFR 270.19a-1) under the Act, entitled ``Written
Statement to Accompany Dividend Payments by Management Companies,''
sets forth specific requirements for the information that must be
included in statements made pursuant to section 19(a) by or on behalf
of management companies.\2\ The rule requires that the statement
indicate what portions of distribution payments are made from net
income, net profits from the sale of a security or other property
(``capital gains'') and paid-in capital. When any part of the payment
is made from capital gains, Rule 19a-1 also requires that the statement
disclose certain other information relating to the appreciation or
depreciation of portfolio securities. If an estimated portion is
subsequently determined to be significantly inaccurate, a correction
must be made on a statement made pursuant to section 19(a) or in the
first report to shareholders following the discovery of the inaccuracy.
---------------------------------------------------------------------------
\2\ Section 4(3) of the Act (15 U.S. C. 80a-4(3)) defines
``management company'' as ``any investment company other than a face
amount certificate company or a unit investment trust.''
---------------------------------------------------------------------------
The purpose of Rule 19a-1 is to afford fund shareholders adequate
disclosure of the sources from which distribution payments are made.
The rule is intended to prevent shareholders from confusing income
dividends with distributions made from capital sources. Absent Rule
19a-1, shareholders might receive a false impression of fund gains.
Based on a review of filings made with the Commission, the staff
estimates that approximately 11,066 series of registered investment
companies that are management companies may be subject to Rule 19a-1
each year,\3\ and that each portfolio on average mails two statements
per year to meet the requirements of the rule.\4\ The staff further
estimates that the time needed to make the determinations required by
the rule and to prepare the statement required under the rule is
approximately 1 hour per statement. The total annual burden for all
portfolios therefore is estimated to be approximately 22,132 burden
hours.\5\
---------------------------------------------------------------------------
\3\ This estimate is based on statistics compiled by Commission
staff as of May 31, 2014. The number of management investment
company portfolios that make distributions for which compliance with
Rule 19a-1 is required depends on a wide range of factors and can
vary greatly across years. Therefore, the calculation of estimated
burden hours is based on the total number of management investment
company portfolios, each of which may be subject to Rule 19a-1.
\4\ A few portfolios make monthly distributions from sources
other than net income, so the rule requires them to send out a
statement 12 times a year. Other portfolios never make such
distributions.
\5\ This estimate is based on the following calculation: 11,066
management investment company portfolios x 2 statements per year x 1
hour per statement = 22,132 burden hours.
---------------------------------------------------------------------------
The staff estimates that approximately one-third of the total
annual burden (7,377 hours) would be incurred by a paralegal with an
average hourly wage rate of approximately $199 per hour,\6\ and
approximately two-thirds of the annual burden (14,755 hours) would be
incurred by a compliance clerk with an average hourly wage rate of $64
per
[[Page 44070]]
hour.\7\ The staff therefore estimates that the aggregate annual cost
of complying with the paperwork requirements of the rule is
approximately $2,412,343 ((7,377 hours x $199 = $1,468,023) + (14,755
hours x $64 = $944,320)).
---------------------------------------------------------------------------
\6\ Hourly rates are derived from the Securities Industry and
Financial Markets Association (``SIFMA''), Management and
Professional Earnings in the Securities Industry 2013, modified to
account for an 1800-hour work-year and multiplied by 5.35 to account
for bonuses, firm size, employee benefits, and overhead.
\7\ Hourly rates are derived from SIFMA's Office Salaries in the
Securities Industry 2013, modified to account for an 1800-hour work-
year and multiplied by 2.93 to account for bonuses, firm size,
employee benefits and overhead.
---------------------------------------------------------------------------
To comply with state law, many investment companies already must
distinguish the different sources from which a shareholder distribution
is paid and disclose that information to shareholders. Thus, many
investment companies would be required to distinguish the sources of
shareholder dividends whether or not the Commission required them to do
so under Rule 19a-1.
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. Compliance with the collection of information
required by Rule 19a-1 is mandatory for management companies that make
statements to shareholders pursuant to section 19(a) of the Act. 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.
Written comments are invited on: (a) Whether the collections of
information are necessary for the proper performance of the functions
of the Commission, including whether the information has practical
utility; (b) the accuracy of the Commission's estimate of the burdens
of the collections of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burdens of the collections of information on respondents,
including through the use of automated collection techniques or other
forms of information technology. Consideration will be given to
comments and suggestions submitted in writing within 60 days of this
publication.
Please direct your written comments to 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.
Dated: July 23, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-17777 Filed 7-28-14; 8:45 am]
BILLING CODE 8011-01-P
