Proposed Collection; Comment Request, 69254-69255 [2015-28399]
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srobinson on DSK5SPTVN1PROD with NOTICES
69254
Federal Register / Vol. 80, No. 216 / Monday, November 9, 2015 / Notices
information is needed to adjust the tier
I annuity component for the receipt of
the Social Security benefit. This
information is available from no other
source.
Second, the RRB will receive from
SSA the amount of certain social
security benefits which the RRB pays on
behalf of SSA. Section 7(b)(2) of the
Railroad Retirement Act (45 U.S.C.
231f(b)(2)) provides that the RRB shall
make the payment of certain social
security benefits. The RRB also requires
this information in order to adjust the
amount of any annuity due to the
receipt of a social security benefit.
Section 10(a) of the Railroad Retirement
Act (45 U.S.C. 231i(a)) permits the RRB
to recover any overpayment from the
accrual of social security benefits. This
information is not available from any
other source.
Third, once a year the RRB will
receive from SSA a copy of SSA’s
Master Benefit Record for earmarked
RRB annuitants. Section 7(b)(7)) of the
Railroad Retirement Act (45 U.S.C.
231f(b)(7)) requires that SSA provide the
requested information. The RRB needs
this information to make the necessary
cost-of-living computation adjustments
quickly and accurately for those RRB
annuitants who are also SSA
beneficiaries.
SSA will receive weekly from RRB
earnings information for all railroad
employees. SSA will match the
identifying information of the records
furnished by the RRB against the
identifying information contained in its
Master Benefit Record and its Master
Earnings File. If there is a match, SSA
will use the RRB earnings to adjust the
amount of Social Security benefits in its
Annual Earnings Reappraisal Operation.
This information is available from no
other source.
SSA will also receive daily from RRB
earnings information on selected
individuals. The transfer of information
may be initiated either by RRB or by
SSA. SSA needs this information to
determine eligibility to Social Security
benefits and, if eligibility is met, to
determine the benefit amount payable.
Section 18 of the Railroad Retirement
Act (45 U.S.C. 231q(2)) requires that
earnings considered as compensation
under the Railroad Retirement Act be
considered as wages under the Social
Security Act for the purposes of
determining entitlement under the
Social Security Act if the person has
less than 10 years of railroad service or
has 10 or more years of service but does
not have a current connection with the
railroad industry at the time of his/her
death.
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19:52 Nov 06, 2015
Jkt 238001
C. Authority for Conducting the Match
Section 7(b)(7) of the Railroad
Retirement Act (45 U.S.C. 231f(b)(7))
provides that the Social Security
Administration shall supply
information necessary to administer the
Railroad Retirement Act. Sections 202,
205(o) and 215(f) of the Social Security
Act (42 U.S.C. 402, 405(o) and 415(f))
relate to benefit provisions, inclusion of
railroad compensation together with
wages for payment of benefits under
certain circumstances, and the recomputation of benefits.
D. Categories of Records and Individuals
Covered
All applicants for benefits under the
Railroad Retirement Act and current
beneficiaries will have a record of any
social security wages and the amount of
any social security benefits furnished to
the RRB by SSA. In addition, all persons
who ever worked in the railroad
industry after 1936 will have a record of
their service and compensation
furnished to SSA by RRB.
The applicable RRB Privacy Act
Systems of Records and their Federal
Register citation used in the matching
program are:
1. RRB–5, Master File of Railroad
Employees’ Creditable Compensation,
September 30, 2014 (79 FR 58877)
2. RRB–22, Railroad Retirement,
Survivor, Pensioner Benefit System,
May 15, 2015 (80 FR 28018)
The applicable SSA Privacy Act
Systems of Records used and their
Federal Register citation used in the
matching program are:
1. SSA 60–0058, Master Files of
Social Security Number (SSN) Holders
and SSN Applications (the Enumeration
System), February 13, 2014 (79 FR 8780)
2. SSA/OS, 60–0059, Earnings
Recording and Self-Employment Income
System (MEF), January 11, 2006 (71 FR
1819)
3. SSA/ORSIS 60–0090, Master
Beneficiary Record (MBR), July 5, 2013
(78 FR 40542)
4. SSA/ODISSIS 60–103,
Supplemental Security Income Record
and Special Veteran Benefits December
10, 2007 (72 FR 69723)
5. SSA/OPB 60–0269, Prisoner
Update Processing System (PUPS), July
5, 2013 (78 FR 40542)
E. Inclusive Dates of the Matching
Program
This matching program will become
effective January 6, 2016 or 40 days after
a copy of the agreement, as approved by
the Data Integrity Board of each agency,
is sent to Congress and the Office of
Management and Budget, or 30 days
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Frm 00067
Fmt 4703
Sfmt 4703
after publication of this notice in the
Federal Register, whichever date is
latest. The matching program will
continue for 18 months after the
effective date and may be extended for
an additional 12 months, if the
conditions specified in 5 U.S.C.
552a(o)(2)(D) have been met. This
matching program expires on July 6,
2017.
Dated: November 4, 2015.
By authority of the Board.
Martha P. Rico,
Secretary to the Board.
[FR Doc. 2015–28433 Filed 11–6–15; 8:45 am]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–232, OMB Control No.
3235–0225]
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 17f–4.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520) (the ‘‘Paperwork
Reduction Act’’), 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 17(f) (15 U.S.C. 80a–17(f))
under the Investment Company Act of
1940 (the ‘‘Act’’) 1 permits registered
management investment companies and
their custodians to deposit the securities
they own in a system for the central
handling of securities (‘‘securities
depositories’’), subject to rules adopted
by the Commission.
Rule 17f–4 (17 CFR 270.17f–4) under
the Act specifies the conditions for the
use of securities depositories by funds 2
and their custodians.
1 15
U.S.C. 80a.
amended in 2003, rule 17f–4 permits any
registered investment company, including a unit
investment trust or a face-amount certificate
company, to use a security depository. See Custody
of Investment Company Assets With a Securities
Depository, Investment Company Act Release No.
25934 (Feb. 13, 2003) (68 FR 8438 (Feb. 20, 2003)).
The term ‘‘fund’’ is used in this Notice to mean a
registered investment company.
2 As
E:\FR\FM\09NON1.SGM
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Federal Register / Vol. 80, No. 216 / Monday, November 9, 2015 / Notices
srobinson on DSK5SPTVN1PROD with NOTICES
The Commission staff estimates that
152 respondents (including an
estimated 81 active funds that may deal
directly with a securities depository, an
estimated 50 custodians, and 21
possible securities depositories) 3 are
subject to the requirements in rule 17f–
4. The rule is elective, but most, if not
all, funds use depository custody
arrangements.4
Rule 17f–4 contains two general
conditions. First, a fund’s custodian
must be obligated, at a minimum, to
exercise due care in accordance with
reasonable commercial standards in
discharging its duty as a securities
intermediary to obtain and thereafter
maintain financial assets.5 This
obligation does not contain a collection
of information because it does not
impose identical reporting,
recordkeeping or disclosure
requirements. Funds and custodians
may determine the specific measures
the custodian will take to comply with
this obligation.6 If the fund deals
directly with a depository, the
depository’s contract or written rules for
its participants must provide that the
depository will meet similar obligations,
7 which is a collection of information
for purposes of the Paperwork
Reduction Act. All funds that deal
directly with securities depositories in
reliance on rule 17f–4 should have
either modified their contracts with the
relevant securities depository, or
negotiated a modification in the
securities depository’s written rules
when the rule was amended. Therefore,
we estimate there is no ongoing burden
3 The Commission staff estimates that, as
permitted by the rule, an estimated 2% of all active
funds may deal directly with a securities depository
instead of using an intermediary. The number of
custodians is estimated based on information from
Morningstar DirectSM. The Commission staff
estimates the number of possible securities
depositories by adding the 12 Federal Reserve
Banks and 9 active registered clearing agencies. The
Commission staff recognizes that not all of these
entities may currently be acting as a securities
depository for fund securities.
4 Based on responses to Item 18 of Form N–SAR
(17 CFR 274.101), approximately 97 percent of
funds’ custodians maintain some or all fund
securities in a securities depository pursuant to rule
17f–4.
5 Rule 17f–4(a)(1). This provision incorporates
into the rule the standard of care provided by
section 504(c) of Article 8 of the Uniform
Commercial Code when the parties have not agreed
to a standard. Rule 17f–4 does not impose any
substantive obligations beyond those contained in
Article 8. Uniform Commercial Code, Revised
Article 8—Investment Securities (1994 Official Text
with Comments) (‘‘Revised Article 8’’).
6 Moreover, the rule does not impose any
requirement regarding evidence of the obligation.
7 Rule 17f–4(b)(1)(i).
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19:52 Nov 06, 2015
Jkt 238001
associated with this collection of
information.8
Second, the custodian must provide,
promptly upon request by the fund,
such reports as are available about the
internal accounting controls and
financial strength of the custodian.9 If a
fund deals directly with a depository,
the depository’s contract with or written
rules for its participants must provide
that the depository will provide similar
financial reports,10 which is a collection
of information for purposes of the
Paperwork Reduction Act. Custodians
and depositories usually transmit
financial reports to funds twice each
year.11 The Commission staff estimates
that 50 custodians spend approximately
926 hours (by support staff) annually in
transmitting such reports to funds.12 In
addition, approximately 81 funds (i.e.,
two percent of all funds) deal directly
with a securities depository and may
request periodic reports from their
depository. Commission staff estimates
that depositories spend approximately
19 hours (by support staff) annually
transmitting reports to the 81 funds.13
The total annual burden estimate for
compliance with rule 17f–4’s reporting
requirement is therefore 945 hours.14
If a fund deals directly with a
securities depository, rule 17f–4
requires that the fund implement
internal control systems reasonably
designed to prevent an unauthorized
officer’s instructions (by providing at
least for the form, content, and means of
8 The Commission staff assumes that new funds
relying on 17f–4 would choose to use a custodian
instead of directly dealing with a securities
depository because of the high costs associated with
maintaining an account with a securities
depository. Thus new funds would not be subject
to this condition.
9 Rule 17f–4(a)(2).
10 Rule 17f–4(b)(1)(ii).
11 The estimated 50 custodians would handle
requests for reports from an estimated 3,968 fund
clients (approximately 80 fund clients per
custodian) and the depositories from the remaining
81 funds that choose to deal directly with a
depository. It is our understanding based on staff
conversations with industry representatives that
custodians and depositories transmit these reports
to clients in the normal course of their activities as
a good business practice regardless of whether they
are requested. Therefore, for purposes of this
Paperwork Reduction Act estimate, the Commission
staff assumes that custodians transmit the reports to
all fund clients.
12 (3,968 fund clients × 2 reports) = 7,936
transmissions. The staff estimates that each
transmission would take approximately 7 minutes
for a total of approximately 926 hours (7 minutes
× 7,936 transmissions).
13 (81 fund clients who may deal directly with a
securities depository × 2 reports) = 162
transmissions. The staff estimates that each
transmission would take approximately 7 minutes
for a total of approximately 19 hours (7 minutes ×
162 transmissions).
14 926 hours for custodians and 19 hours for
securities depositories.
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Frm 00068
Fmt 4703
Sfmt 9990
69255
giving, recording, and reviewing all
officers’ instructions).15 All funds that
seek to rely on rule 17f–4 should have
already implemented these internal
control systems when the rule was
amended. Therefore, there is no ongoing
burden associated with this collection of
information requirement.16
Based on the foregoing, the
Commission staff estimates that the total
annual hour burden of the rule’s
collection of information requirement is
945 hours.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. This estimate
is not derived from a comprehensive or
even representative survey or study of
the costs of Commission rules.
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 will
have 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 burdens
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: November 3, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015–28399 Filed 11–6–15; 8:45 am]
BILLING CODE 8011–01–P
15 Rule
17f–4(b)(2).
Commission staff assumes that new funds
relying on 17f–4 would choose to use a custodian
instead of directly dealing with a securities
depository because of the high costs associated with
maintaining an account with a securities
depository. Thus new funds would not be subject
to this condition.
16 The
E:\FR\FM\09NON1.SGM
09NON1
]]>Agencies
[Federal Register Volume 80, Number 216 (Monday, November 9, 2015)]
[Notices]
[Pages 69254-69255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28399]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-232, OMB Control No. 3235-0225]
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 17f-4.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520) (the ``Paperwork Reduction Act''),
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 17(f) (15 U.S.C. 80a-17(f)) under the Investment Company
Act of 1940 (the ``Act'') \1\ permits registered management investment
companies and their custodians to deposit the securities they own in a
system for the central handling of securities (``securities
depositories''), subject to rules adopted by the Commission.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 80a.
---------------------------------------------------------------------------
Rule 17f-4 (17 CFR 270.17f-4) under the Act specifies the
conditions for the use of securities depositories by funds \2\ and
their custodians.
---------------------------------------------------------------------------
\2\ As amended in 2003, rule 17f-4 permits any registered
investment company, including a unit investment trust or a face-
amount certificate company, to use a security depository. See
Custody of Investment Company Assets With a Securities Depository,
Investment Company Act Release No. 25934 (Feb. 13, 2003) (68 FR 8438
(Feb. 20, 2003)). The term ``fund'' is used in this Notice to mean a
registered investment company.
---------------------------------------------------------------------------
[[Page 69255]]
The Commission staff estimates that 152 respondents (including an
estimated 81 active funds that may deal directly with a securities
depository, an estimated 50 custodians, and 21 possible securities
depositories) \3\ are subject to the requirements in rule 17f-4. The
rule is elective, but most, if not all, funds use depository custody
arrangements.\4\
---------------------------------------------------------------------------
\3\ The Commission staff estimates that, as permitted by the
rule, an estimated 2% of all active funds may deal directly with a
securities depository instead of using an intermediary. The number
of custodians is estimated based on information from Morningstar
Direct\SM\. The Commission staff estimates the number of possible
securities depositories by adding the 12 Federal Reserve Banks and 9
active registered clearing agencies. The Commission staff recognizes
that not all of these entities may currently be acting as a
securities depository for fund securities.
\4\ Based on responses to Item 18 of Form N-SAR (17 CFR
274.101), approximately 97 percent of funds' custodians maintain
some or all fund securities in a securities depository pursuant to
rule 17f-4.
---------------------------------------------------------------------------
Rule 17f-4 contains two general conditions. First, a fund's
custodian must be obligated, at a minimum, to exercise due care in
accordance with reasonable commercial standards in discharging its duty
as a securities intermediary to obtain and thereafter maintain
financial assets.\5\ This obligation does not contain a collection of
information because it does not impose identical reporting,
recordkeeping or disclosure requirements. Funds and custodians may
determine the specific measures the custodian will take to comply with
this obligation.\6\ If the fund deals directly with a depository, the
depository's contract or written rules for its participants must
provide that the depository will meet similar obligations, \7\ which is
a collection of information for purposes of the Paperwork Reduction
Act. All funds that deal directly with securities depositories in
reliance on rule 17f-4 should have either modified their contracts with
the relevant securities depository, or negotiated a modification in the
securities depository's written rules when the rule was amended.
Therefore, we estimate there is no ongoing burden associated with this
collection of information.\8\
---------------------------------------------------------------------------
\5\ Rule 17f-4(a)(1). This provision incorporates into the rule
the standard of care provided by section 504(c) of Article 8 of the
Uniform Commercial Code when the parties have not agreed to a
standard. Rule 17f-4 does not impose any substantive obligations
beyond those contained in Article 8. Uniform Commercial Code,
Revised Article 8--Investment Securities (1994 Official Text with
Comments) (``Revised Article 8'').
\6\ Moreover, the rule does not impose any requirement regarding
evidence of the obligation.
\7\ Rule 17f-4(b)(1)(i).
\8\ The Commission staff assumes that new funds relying on 17f-4
would choose to use a custodian instead of directly dealing with a
securities depository because of the high costs associated with
maintaining an account with a securities depository. Thus new funds
would not be subject to this condition.
---------------------------------------------------------------------------
Second, the custodian must provide, promptly upon request by the
fund, such reports as are available about the internal accounting
controls and financial strength of the custodian.\9\ If a fund deals
directly with a depository, the depository's contract with or written
rules for its participants must provide that the depository will
provide similar financial reports,\10\ which is a collection of
information for purposes of the Paperwork Reduction Act. Custodians and
depositories usually transmit financial reports to funds twice each
year.\11\ The Commission staff estimates that 50 custodians spend
approximately 926 hours (by support staff) annually in transmitting
such reports to funds.\12\ In addition, approximately 81 funds (i.e.,
two percent of all funds) deal directly with a securities depository
and may request periodic reports from their depository. Commission
staff estimates that depositories spend approximately 19 hours (by
support staff) annually transmitting reports to the 81 funds.\13\ The
total annual burden estimate for compliance with rule 17f-4's reporting
requirement is therefore 945 hours.\14\
---------------------------------------------------------------------------
\9\ Rule 17f-4(a)(2).
\10\ Rule 17f-4(b)(1)(ii).
\11\ The estimated 50 custodians would handle requests for
reports from an estimated 3,968 fund clients (approximately 80 fund
clients per custodian) and the depositories from the remaining 81
funds that choose to deal directly with a depository. It is our
understanding based on staff conversations with industry
representatives that custodians and depositories transmit these
reports to clients in the normal course of their activities as a
good business practice regardless of whether they are requested.
Therefore, for purposes of this Paperwork Reduction Act estimate,
the Commission staff assumes that custodians transmit the reports to
all fund clients.
\12\ (3,968 fund clients x 2 reports) = 7,936 transmissions. The
staff estimates that each transmission would take approximately 7
minutes for a total of approximately 926 hours (7 minutes x 7,936
transmissions).
\13\ (81 fund clients who may deal directly with a securities
depository x 2 reports) = 162 transmissions. The staff estimates
that each transmission would take approximately 7 minutes for a
total of approximately 19 hours (7 minutes x 162 transmissions).
\14\ 926 hours for custodians and 19 hours for securities
depositories.
---------------------------------------------------------------------------
If a fund deals directly with a securities depository, rule 17f-4
requires that the fund implement internal control systems reasonably
designed to prevent an unauthorized officer's instructions (by
providing at least for the form, content, and means of giving,
recording, and reviewing all officers' instructions).\15\ All funds
that seek to rely on rule 17f-4 should have already implemented these
internal control systems when the rule was amended. Therefore, there is
no ongoing burden associated with this collection of information
requirement.\16\
---------------------------------------------------------------------------
\15\ Rule 17f-4(b)(2).
\16\ The Commission staff assumes that new funds relying on 17f-
4 would choose to use a custodian instead of directly dealing with a
securities depository because of the high costs associated with
maintaining an account with a securities depository. Thus new funds
would not be subject to this condition.
---------------------------------------------------------------------------
Based on the foregoing, the Commission staff estimates that the
total annual hour burden of the rule's collection of information
requirement is 945 hours.
The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act. This estimate is not derived
from a comprehensive or even representative survey or study of the
costs of Commission rules.
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 will have 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 burdens 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: November 3, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-28399 Filed 11-6-15; 8:45 am]
BILLING CODE 8011-01-P
