Proposed Collection; Comment Request, 18664-18665 [2015-07852]

Download as PDF 18664 Federal Register / Vol. 80, No. 66 / Tuesday, April 7, 2015 / Notices for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 16 and Rule 19b–4(f)(6)(iii) thereunder.17 The Exchange represents that this proposed rule change will be implemented during the Second Quarter of 2015 subject to the issuance of an Equity Trader Alert that will provide at least 30 days of notice prior to the operative date for the respective amendments to Rule 4751(h). At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the 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/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– Phlx–2015–32 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Phlx–2015–32. 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 16 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 17 17 VerDate Sep<11>2014 17:46 Apr 06, 2015 Jkt 235001 Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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. Copies of such filing also will be available for inspection and copying at the principal offices of the Exchange. 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 SR–Phlx– 2015–32, and should be submitted on or before May 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Brent J. Fields, Secretary. reserved for meetings of the Committee’s subcommittees), and inviting the public to submit written comments to the Committee. This Sunshine Act notice is being issued because a quorum of the Commission may attend the meeting. The agenda for the meeting includes: Remarks from Commissioners; nomination of candidates for officer positions and election of officers; a discussion of the Commodity Futures Trading Commission’s investor behavior survey results; a discussion of background checks as a means to address elder financial abuse (which may include a recommendation); a discussion of proxy access and staff review of Rule 14a–8(i)(9) under the Securities Exchange Act of 1934 (which may include a recommendation); an update on the SEC proxy voting roundtable; an update on the recommendations of the SEC Advisory Committee on Small and Emerging Companies; and nonpublic subcommittee meetings. For further information, please contact the Office of the Secretary at (202) 551–5400. Dated: April 2, 2015. Brent J. Fields, Secretary. [FR Doc. 2015–08020 Filed 4–3–15; 11:15 am] BILLING CODE CODE 8011–01–P [FR Doc. 2015–07851 Filed 4–6–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Sunshine Act Meeting Upon Written Request Copies Available From: U.S. Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549–2736. Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission Investor Advisory Committee will hold a meeting on Thursday, April 9, 2015, in MultiPurpose Room LL–006 at the Commission’s headquarters, 100 F Street NE., Washington, DC. The meeting will begin at 9:30 a.m. (ET) and will be open to the public. Seating will be on a first-come, first-served basis. Doors will open at 9 a.m. Visitors will be subject to security checks. The meeting will be webcast on the Commission’s Web site at www.sec.gov. On March 18, 2015, the Commission issued notice of the Committee meeting (Release No. 33–9739), indicating that the meeting is open to the public (except during portions of the meeting 18 17 PO 00000 CFR 200.30–3(a)(12). Frm 00079 Fmt 4703 Sfmt 4703 Extension: Rule 17f–2. SEC File No. 270–233, OMB Control No. 3235–0223. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 350l et seq.), 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. Rule 17f–2 (17 CFR 270.17f–2), entitled ‘‘Custody of Investments by Registered Management Investment Company,’’ was adopted in 1940 under section 17(f) of the Investment Company Act of 1940 (15 U.S.C. 80a–17(f)) (the ‘‘Act’’), and was last amended E:\FR\FM\07APN1.SGM 07APN1 Federal Register / Vol. 80, No. 66 / Tuesday, April 7, 2015 / Notices materially in 1947. Rule 17f–2 establishes safeguards for arrangements in which a registered management investment company (‘‘fund’’) is deemed to maintain custody of its own assets, such as when the fund maintains its assets in a facility that provides safekeeping but not custodial services.1 The rule includes several recordkeeping or reporting requirements. The fund’s directors must prepare a resolution designating not more than five fund officers or responsible employees who may have access to the fund’s assets. The designated access persons (two or more of whom must act jointly when handling fund assets) must prepare a written notation providing certain information about each deposit or withdrawal of fund assets, and must transmit the notation to another officer or director designated by the directors. An independent public accountant must verify the fund’s assets three times each year, and two of those examinations must be unscheduled.2 Rule 17f–2’s requirement that directors designate access persons is intended to ensure that directors evaluate the trustworthiness of insiders who handle fund assets. The requirements that access persons act jointly in handling fund assets, prepare a written notation of each transaction, and transmit the notation to another designated person are intended to reduce the risk of misappropriation of fund assets by access persons, and to ensure that adequate records are prepared, reviewed by a responsible third person, and available for examination by the Commission. The requirement that auditors verify fund assets without notice twice each year is intended to provide an additional deterrent to the misappropriation of fund assets and to detect any irregularities. The Commission staff estimates that each fund makes 974 responses and spends an average of 252 hours annually in complying with the rule’s requirements.3 Commission staff mstockstill on DSK4VPTVN1PROD with NOTICES 1 The rule generally requires all assets to be deposited in the safekeeping of a ‘‘bank or other company whose functions and physical facilities are supervised by Federal or State authority.’’ The fund’s securities must be physically segregated at all times from the securities of any other person. 2 The accountant must transmit to the Commission promptly after each examination a certificate describing the examination on Form N– 17f–2. The third (scheduled) examination may coincide with the annual verification required for every fund by section 30(g) of the Act (15 U.S.C. 80a–29(g)). 3 The 974 responses are: 1 (one) response to draft and adopt the resolution and 973 notations. Estimates of the number of hours are based on conversations with individuals in the fund VerDate Sep<11>2014 17:46 Apr 06, 2015 Jkt 235001 estimates that on an annual basis it takes: (i) 0.5 hours of fund accounting personnel at a total cost of $99 to draft director resolutions; 4 (ii) 0.5 hours of the fund’s board of directors at a total cost of $2200 to adopt the resolution; 5 (iii) 244 hours for the fund’s accounting personnel at a total cost of $63,797 to prepare written notations of transactions; 6 and (iv) 7 hours for the fund’s accounting personnel at a total cost of $1386 to assist the independent public accountants when they perform verifications of fund assets.7 Commission staff estimates that approximately 188 funds file Form N– 17f–2 each year.8 Thus, the total annual hour burden for rule 17f–2 is estimated to be 47,376 hours.9 Based on the total costs per fund listed above, the total cost of rule 17f–2’s collection of information requirements is estimated to be approximately $12.7 million.10 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. Complying with the collections of information required by rule 17f–2 is mandatory for those funds that maintain industry. The actual number of hours may vary significantly depending on individual fund assets. 4 This estimate is based on the following calculation: 0.5 (burden hours per fund) × $198 (senior accountant’s hourly rate) = $99. Unless otherwise indicated, the hourly wage figures used herein are from the Securities Industry and Financial Markets Association’s Management & Professional Earnings in the Securities Industry 2013, 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. 5 The estimate for the cost of board time 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. 6 Respondents estimated that each fund makes 974 responses on an annual basis and spends a total of 0.25 hours per response. The fund personnel involved are Accounts Payable Manager ($186 hourly rate), Operations Manager ($334 hourly rate) and Accounting Manager ($265 hourly rate). The average hourly rate of these personnel is $262. The estimated cost of preparing notations is based on the following calculation: 974 × 0.25 × $262 = $63,797. 7 This estimate is based on the following calculation: 7 × $198 (senior accountant’s hourly rate) = $1386. 8 On average, each year approximately 188 funds filed Form N–17f–2 with the Commission during calendar years 2011–2013. 9 This estimate is based on the following calculation: 188 (funds) × 252 (total annual hourly burden per fund) = 47,376 hours for rule. The annual burden for rule 17f–2 does not include time spent preparing Form N–17f–2. The burden for Form N–17f–2 is included in a separate collection of information. 10 This estimate is based on the following calculation: $67,482 (total annual cost per fund) × 188 funds = $12,686,616. PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 18665 custody of their own assets. Responses 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. Written comments are invited on: (a) Whether the collection of information is 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 burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information 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 Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington, DC 20549; or send an email to: PRA_ Mailbox@sec.gov. Dated: April 1, 2015. Brent J. Fields, Secretary. [FR Doc. 2015–07852 Filed 4–6–15; 8:45 am] BILLING CODE CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74622; File No. SR– ISEGemini–2015–08] Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Share MemberDesignated Risk Settings in the Trading System With Clearing Members Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 30, 2015 ISE Gemini, LLC (the ‘‘Exchange’’ or ‘‘ISE Gemini’’) filed with the Securities and Exchange Commission the proposed rule change, as described in Items I, II, and III below, which items have been prepared by the self-regulatory organization. The Commission is publishing this notice to APRIL 1, 2015. 1 15 2 17 E:\FR\FM\07APN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 07APN1

Agencies

[Federal Register Volume 80, Number 66 (Tuesday, April 7, 2015)]
[Notices]
[Pages 18664-18665]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07852]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request Copies Available From: U.S. Securities and 
Exchange Commission, Office of FOIA Services, 100 F Street NE., 
Washington, DC 20549-2736.

Extension: Rule 17f-2. SEC File No. 270-233, OMB Control No. 3235-
0223.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 350l et seq.), 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.
    Rule 17f-2 (17 CFR 270.17f-2), entitled ``Custody of Investments by 
Registered Management Investment Company,'' was adopted in 1940 under 
section 17(f) of the Investment Company Act of 1940 (15 U.S.C. 80a-
17(f)) (the ``Act''), and was last amended

[[Page 18665]]

materially in 1947. Rule 17f-2 establishes safeguards for arrangements 
in which a registered management investment company (``fund'') is 
deemed to maintain custody of its own assets, such as when the fund 
maintains its assets in a facility that provides safekeeping but not 
custodial services.\1\ The rule includes several recordkeeping or 
reporting requirements. The fund's directors must prepare a resolution 
designating not more than five fund officers or responsible employees 
who may have access to the fund's assets. The designated access persons 
(two or more of whom must act jointly when handling fund assets) must 
prepare a written notation providing certain information about each 
deposit or withdrawal of fund assets, and must transmit the notation to 
another officer or director designated by the directors. An independent 
public accountant must verify the fund's assets three times each year, 
and two of those examinations must be unscheduled.\2\
---------------------------------------------------------------------------

    \1\ The rule generally requires all assets to be deposited in 
the safekeeping of a ``bank or other company whose functions and 
physical facilities are supervised by Federal or State authority.'' 
The fund's securities must be physically segregated at all times 
from the securities of any other person.
    \2\ The accountant must transmit to the Commission promptly 
after each examination a certificate describing the examination on 
Form N-17f-2. The third (scheduled) examination may coincide with 
the annual verification required for every fund by section 30(g) of 
the Act (15 U.S.C. 80a-29(g)).
---------------------------------------------------------------------------

    Rule 17f-2's requirement that directors designate access persons is 
intended to ensure that directors evaluate the trustworthiness of 
insiders who handle fund assets. The requirements that access persons 
act jointly in handling fund assets, prepare a written notation of each 
transaction, and transmit the notation to another designated person are 
intended to reduce the risk of misappropriation of fund assets by 
access persons, and to ensure that adequate records are prepared, 
reviewed by a responsible third person, and available for examination 
by the Commission. The requirement that auditors verify fund assets 
without notice twice each year is intended to provide an additional 
deterrent to the misappropriation of fund assets and to detect any 
irregularities.
    The Commission staff estimates that each fund makes 974 responses 
and spends an average of 252 hours annually in complying with the 
rule's requirements.\3\ Commission staff estimates that on an annual 
basis it takes: (i) 0.5 hours of fund accounting personnel at a total 
cost of $99 to draft director resolutions; \4\ (ii) 0.5 hours of the 
fund's board of directors at a total cost of $2200 to adopt the 
resolution; \5\ (iii) 244 hours for the fund's accounting personnel at 
a total cost of $63,797 to prepare written notations of transactions; 
\6\ and (iv) 7 hours for the fund's accounting personnel at a total 
cost of $1386 to assist the independent public accountants when they 
perform verifications of fund assets.\7\ Commission staff estimates 
that approximately 188 funds file Form N-17f-2 each year.\8\ Thus, the 
total annual hour burden for rule 17f-2 is estimated to be 47,376 
hours.\9\ Based on the total costs per fund listed above, the total 
cost of rule 17f-2's collection of information requirements is 
estimated to be approximately $12.7 million.\10\
---------------------------------------------------------------------------

    \3\ The 974 responses are: 1 (one) response to draft and adopt 
the resolution and 973 notations. Estimates of the number of hours 
are based on conversations with individuals in the fund industry. 
The actual number of hours may vary significantly depending on 
individual fund assets.
    \4\ This estimate is based on the following calculation: 0.5 
(burden hours per fund) x $198 (senior accountant's hourly rate) = 
$99. Unless otherwise indicated, the hourly wage figures used herein 
are from the Securities Industry and Financial Markets Association's 
Management & Professional Earnings in the Securities Industry 2013, 
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.
    \5\ The estimate for the cost of board time 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.
    \6\ Respondents estimated that each fund makes 974 responses on 
an annual basis and spends a total of 0.25 hours per response. The 
fund personnel involved are Accounts Payable Manager ($186 hourly 
rate), Operations Manager ($334 hourly rate) and Accounting Manager 
($265 hourly rate). The average hourly rate of these personnel is 
$262. The estimated cost of preparing notations is based on the 
following calculation: 974 x 0.25 x $262 = $63,797.
    \7\ This estimate is based on the following calculation: 7 x 
$198 (senior accountant's hourly rate) = $1386.
    \8\ On average, each year approximately 188 funds filed Form N-
17f-2 with the Commission during calendar years 2011-2013.
    \9\ This estimate is based on the following calculation: 188 
(funds) x 252 (total annual hourly burden per fund) = 47,376 hours 
for rule. The annual burden for rule 17f-2 does not include time 
spent preparing Form N-17f-2. The burden for Form N-17f-2 is 
included in a separate collection of information.
    \10\ This estimate is based on the following calculation: 
$67,482 (total annual cost per fund) x 188 funds = $12,686,616.
---------------------------------------------------------------------------

    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. Complying with the collections of 
information required by rule 17f-2 is mandatory for those funds that 
maintain custody of their own assets. Responses 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.
    Written comments are invited on: (a) Whether the collection of 
information is 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 burden of 
the collection of information; (c) ways to enhance the quality, 
utility, and clarity of the information 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 Pamela Dyson, Director/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: April 1, 2015.
 Brent J. Fields,
Secretary.
[FR Doc. 2015-07852 Filed 4-6-15; 8:45 am]
BILLING CODE CODE 8011-01-P
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