Proposed Collection; Comment Request, 9005-9007 [2016-03640]
Download as PDF
<![CDATA[
Federal Register / Vol. 81, No. 35 / Tuesday, February 23, 2016 / Notices
due no later than February 25, 2016.
The public portions of these filings can
be accessed via the Commission’s Web
site (https://www.prc.gov).
The Commission appoints Katalin K.
Clendenin to serve as Public
Representative in these dockets.
POSTAL SERVICE
III. Ordering Paragraphs
ACTION:
It is ordered:
1. The Commission establishes Docket
Nos. MC2016–77 and CP2016–102 to
consider the matters raised in each
docket.
2. Pursuant to 39 U.S.C. 505, Katalin
K. Clendenin is appointed to serve as an
officer of the Commission to represent
the interests of the general public in
these proceedings (Public
Representative).
3. Comments are due no later than
February 25, 2016.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: February 23, 2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on February 17,
2016, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Express, Priority Mail, & First-Class
Package Service Contract 9 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2016–78, CP2016–103.
By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2016–03720 Filed 2–22–16; 8:45 am]
BILLING CODE 7710–FW–P
Product Change—Priority Mail
Express, Priority Mail, & First-Class
Package Service Negotiated Service
Agreement
Postal ServiceTM.
Notice.
AGENCY:
SUMMARY:
Stanley F. Mires,
Attorney, Federal Compliance.
POSTAL SERVICE
[FR Doc. 2016–03678 Filed 2–22–16; 8:45 am]
Product Change—Priority Mail Express
Negotiated Service Agreement
BILLING CODE 7710–12–P
AGENCY:
Postal ServiceTM.
ACTION: Notice.
SECURITIES AND EXCHANGE
COMMISSION
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: February 23, 2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on February 17,
2016, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Express Contract 32 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2016–77,
CP2016–102.
Proposed Collection; Comment
Request
mstockstill on DSK4VPTVN1PROD with NOTICES
SUMMARY:
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016–03677 Filed 2–22–16; 8:45 am]
BILLING CODE 7710–12–P
VerDate Sep<11>2014
17:06 Feb 22, 2016
Jkt 238001
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension:
Rule 7d–1, SEC File No. 270–176, OMB
Control No. 3235–0311.
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 collections of information
summarized below. The Commission
plans to submit these existing
collections of information to the Office
of Management and Budget for
extension and approval.
Section 7(d) of the Investment
Company Act of 1940 (15 U.S.C. 80a–
7(d)) (the ‘‘Act’’ or ‘‘Investment
Company Act’’) requires an investment
company (‘‘fund’’) organized outside the
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
9005
United States (‘‘foreign fund’’) to obtain
an order from the Commission allowing
the fund to register under the Act before
making a public offering of its securities
through the United States mail or any
means of interstate commerce. The
Commission may issue an order only if
it finds that it is both legally and
practically feasible effectively to enforce
the provisions of the Act against the
foreign fund, and that the registration of
the fund is consistent with the public
interest and protection of investors.
Rule 7d–1 (17 CFR 270.7d–1) under
the Act, which was adopted in 1954,
specifies the conditions under which a
Canadian management investment
company (‘‘Canadian fund’’) may
request an order from the Commission
permitting it to register under the Act.
Although rule 7d–1 by its terms applies
only to Canadian funds, other foreign
funds generally have agreed to comply
with the requirements of rule 7d–1 as a
prerequisite to receiving an order
permitting those foreign funds’
registration under the Act.
The rule requires a Canadian fund
that wishes to register to file an
application with the Commission that
contains various undertakings and
agreements by the fund. The
requirement of the Canadian fund to file
an application is a collection of
information under the Paperwork
Reduction Act. Certain of the
undertakings and agreements, in turn,
impose the following additional
information collection requirements:
(1) The fund must file with the
Commission agreements between the
fund and its directors, officers, and
service providers requiring them to
comply with the fund’s charter and
bylaws, the Act, and certain other
obligations relating to the undertakings
and agreements in the application;
(2) the fund and each of its directors,
officers, and investment advisers that is
not a U.S. resident, must file with the
Commission an irrevocable designation
of the fund’s custodian in the United
States as agent for service of process;
(3) the fund’s charter and bylaws must
provide that (a) the fund will comply
with certain provisions of the Act
applicable to all funds, (b) the fund will
maintain originals or copies of its books
and records in the United States, and (c)
the fund’s contracts with its custodian,
investment adviser, and principal
underwriter, will contain certain terms,
including a requirement that the adviser
maintain originals or copies of pertinent
records in the United States;
(4) the fund’s contracts with service
providers will require that the provider
perform the contract in accordance with
the Act, the Securities Act of 1933 (15
E:\FR\FM\23FEN1.SGM
23FEN1
9006
Federal Register / Vol. 81, No. 35 / Tuesday, February 23, 2016 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
U.S.C. 77a), and the Securities Exchange
Act of 1934 (15 U.S.C. 78a), as
applicable; and
(5) the fund must file, and
periodically revise, a list of persons
affiliated with the fund or its adviser or
underwriter.
As noted above, under section 7(d) of
the Act the Commission may issue an
order permitting a foreign fund’s
registration only if the Commission
finds that ‘‘by reason of special
circumstances or arrangements, it is
both legally and practically feasible
effectively to enforce the provisions of
the (Act).’’ The information collection
requirements are necessary to assure
that the substantive provisions of the
Act may be enforced as a matter of
contract right in the United States or
Canada by the fund’s shareholders or by
the Commission.
Rule 7d–1 also contains certain
information collection requirements that
are associated with other provisions of
the Act. These requirements are
applicable to all registered funds and
are outside the scope of this request.
The Commission believes that one
foreign fund is registered under rule 7d–
1 and currently active. Apart from
requirements under the Act applicable
to all registered funds, rule 7d–1
imposes ongoing burdens to maintain
records in the United States, and to
update, as necessary, certain fund
agreements, designations of the fund’s
custodian as service agent, and the
fund’s list of affiliated persons. The
Commission staff estimates that each
year under the rule, the active registrant
and its directors, officers, and service
providers engage in the following
collections of information and
associated burden hours:
For the fund and its investment adviser
to maintain records in the United
States: 1
0 hours: 0 minutes of compliance
clerk time.
• For the fund to update its list of
affiliated persons:
2 hours: 2 hours of support staff time.
• For new officers, directors, and
service providers to enter into and
1 The rule requires an applicant and its
investment adviser to maintain records in the
United States (which, without the requirement,
might be maintained in Canada or another foreign
jurisdiction), which facilitates routine inspections
and any special investigations of the fund by
Commission staff. The registrant and its investment
adviser, however, already maintain the registrant’s
records in the United States and in no other
jurisdiction. Therefore, maintenance of the
registrant’s records in the United States does not
impose an additional burden beyond that imposed
by other provisions of the Act. Those provisions are
applicable to all registered funds and the
compliance burden of those provisions is outside
the scope of this request.
VerDate Sep<11>2014
17:06 Feb 22, 2016
Jkt 238001
file agreements requiring them to
comply with the fund’s charter and
bylaws, the Act, and certain other
obligations:
0.5 hours: 7.5 minutes of director
time;
2.5 minutes of officer time;
20 minutes of support staff time.
• For new officers, directors, and
investment advisers who are not
residents of the United States to file
irrevocable designation of the
fund’s custodian as agent for
process of service:
0.25 hours: 5 minutes of director time;
10 minutes of support staff time.
Based on the estimates above, the
Commission estimates that the total
annual burden of the rule’s paperwork
requirements is 2.75 hours.2 We
estimate that directors perform 0.21
hours of these burden hours at a total
cost of $924,3 officers perform 0.04 of
these burden hours at a total cost of
$19.40,4 and support staff perform 2.5 of
these burden hours at a total cost of
$142.50.5 Thus, the Commission
estimates the aggregate annual cost of
these burden hours associated with rule
7d–1 is $1,085.90.6
If a fund were to file an application
under the rule, the Commission
estimates that the rule would impose
initial information collection burdens
(for filing an application, preparing the
specified charter, bylaw, and contract
provisions, designations of agents for
service of process, and an initial list of
affiliated persons, and establishing a
means of keeping records in the United
2 This estimate is based on the following
calculation: (0 + 2 + 0.5 + 0.25) = 2.75 hours.
3 The director estimates are based on the
following calculations: (7.5 minutes + 5 minutes)/
60 minutes per hour = 0.21 hours; and 0.21 hours
× $4400 per hour = $924. The per hour cost estimate
is based on estimated hourly compensation for each
board member of $550 and an average board size
of 8 members.
4 The officer estimates are based on the following
calculations: 2.5 minutes/60 minutes per hour =
0.04 hours; 0.04 hours × $485 per hour = $19.40.
This per hour cost estimate, as well as other
internal cost estimates for management and
professional earnings, is based on the figure for
chief compliance officers found in SIFMA’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 support staff estimates are based on the
following calculations: 2 hours + 20 minutes + 10
minutes = 2.5 hours; and 2.5 hours × $60 per hour
= $150. The per hour cost estimate, as well as other
internal cost estimates for office salaries, is based
on the figure for compliance clerks found in
SIFMA’s Management & Professional Earnings in
the Securities Industry 2011, modified by
Commission staff to account for an 1800-hour workyear and multiplied by 2.93 to account for bonuses,
firm size, employee benefits and overhead.
6 This estimate is based on the following
calculation: $1085.90 = $924 + $19.40 + $142.50.
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
States) of approximately 90 hours for
the fund and its associated persons. The
Commission is not including these
hours in its calculation of the annual
burden because no foreign fund has
applied under rule 7d–1 to register
under the Act in the last three years.
After registration, a Canadian fund
may file a supplemental application
seeking special relief designed for the
fund’s particular circumstances. Rule
7d–1 does not mandate these
applications. The active registrant last
filed a substantive supplemental
application in 2013. Therefore, the
Commission staff estimates that the rule
would impose an additional collection
information burden of 5 hours on a fund
to comply with the Commission’s
application process at a cost of $5,928.7
The staff understands that funds also
obtain assistance from outside counsel
to comply with the Commission’s
application process and the cost burden
of using outside counsel is set forth
below.
Therefore, the Commission estimates
the aggregate annual burden hours of
the collection of information associated
with rule 7d–1 is 7.75 hours, at a cost
of $7,013.90.8 The estimates of burden
hours are made solely for the purposes
of the Paperwork Reduction Act. The
estimates are not derived from a
comprehensive or even a representative
survey or study of Commission rules
and forms.
If a Canadian or other foreign fund in
the future applied to register under the
Act under rule 7d–1, the fund initially
might have capital and start-up costs
(not including hourly burdens) of an
estimated $20,000 to comply with the
rule’s initial information collection
requirements. These costs include legal
and processing-related fees for
preparing the required documentation
(such as the application, charter, bylaw,
and contract provisions, designations
for service of process, and the list of
affiliated persons). Other related costs
would include fees for establishing
arrangements with a custodian or other
agent for maintaining records in the
United States, copying and
transportation costs for records, and the
7 The staff estimates that, on average, the fund’s
investment adviser spends approximately 4 hours
to review an application, including 3.5 hours by an
assistant general counsel at a cost of $426 per hour,
0.5 hours by an administrative assistant, at a cost
of $74 per hour, and the fund’s board of directors
spends an additional 1 hour at a cost of $4,400 per
hour for a total of 5 hours, for a total cost of $5,928.
This estimate is based on the following calculation:
(3.5 hours × $426 per hour) + (0.5 hours × $74 per
hour) + (1 hour × $4,400 per hour) = $5,928.
8 These estimates are based on the following
calculations: 2.75 hours + 5 hours = 7.75 hours;
$1,085.90 + $5,928 = $7,013.90.
E:\FR\FM\23FEN1.SGM
23FEN1
mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 35 / Tuesday, February 23, 2016 / Notices
costs of purchasing or leasing computer
equipment, software, or other record
storage equipment for records
maintained in electronic or
photographic form.
The Commission expects that a fund
and its sponsors would incur these costs
immediately, and that the annualized
cost of the expenditures would be
$20,000 in the first year. Some
expenditures might involve capital
improvements, such as computer
equipment, having expected useful lives
for which annualized figures beyond the
first year would be meaningful.
These annualized figures are not
provided, however, because, in most
cases, the expenses would be incurred
immediately rather than on an annual
basis. The Commission is not including
these costs in its calculation of the
annualized capital/start-up costs
because no fund has applied under rule
7d–1 to register under the Act pursuant
to rule 7d–1 in the last three years.
As indicated above, a Canadian or
fund may file a supplemental
application seeking special relief
designed for the fund’s particular
circumstances. Rule 7d–1 does not
mandate these applications. The active
registrant filed a substantive
supplemental application in the past
three years. As noted above, the staff
understands that funds generally use
outside counsel to prepare the
application. The staff estimates that
outside counsel spends 10 hours
preparing a supplemental application,
including 8 hours by an associate and 2
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 $400 per hour, based on
information received from funds,
intermediaries and their counsel. The
Commission staff therefore estimates
that the fund would obtain assistance
from outside counsel at a cost of
$4,000.9
We request written comment 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 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
9 This estimate is based on the following
calculation: 10 hours × $400 per hour = $4000.
VerDate Sep<11>2014
17:06 Feb 22, 2016
Jkt 238001
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: February 17, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–03640 Filed 2–22–16; 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 6h–1, SEC File No. 270–497, OMB
Control No. 3235–0555.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 6h–1 (17 CFR
240.6h–1) under the Securities
Exchange Act of 1934, as amended
(‘‘Act’’) (15 U.S.C. 78a et seq.). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Section 6(h) of the Act (15 U.S.C.
78f(h)) requires national securities
exchanges and national securities
associations that trade security futures
products to establish listing standards
that, among other things, require that: (i)
Trading in such products not be readily
susceptible to price manipulation; and
(ii) the market on which the security
futures product trades has in place
procedures to coordinate trading halts
with the listing market for the security
or securities underlying the security
futures product. Rule 6h-1 implements
these statutory requirements and
requires that (1) the final settlement
price for each cash-settled security
futures product fairly reflect the
opening price of the underlying security
or securities, and (2) the exchanges and
associations trading security futures
products halt trading in any security
PO 00000
Frm 00113
Fmt 4703
Sfmt 9990
9007
futures product for as long as trading in
the underlying security, or trading in
50% or more of the underlying
securities, is halted on the listing
market.
It is estimated that approximately 1
respondent, consisting of a designated
contract market not already registered as
a national securities exchange under
Section 6(g) of the Exchange Act that
seeks to list or trade security futures
products, will incur an average burden
of 10 hours per year to comply with this
rule, for a total burden of 10 hours. At
an average cost per hour of
approximately $387, the resultant total
cost of compliance for the respondents
is $3,870 per year (1 respondent × 10
hours/respondent × $387/hour).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
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.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
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: February 17, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–03639 Filed 2–22–16; 8:45 am]
BILLING CODE 8011–01–P
E:\FR\FM\23FEN1.SGM
23FEN1
]]>Agencies
[Federal Register Volume 81, Number 35 (Tuesday, February 23, 2016)]
[Notices]
[Pages 9005-9007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03640]
=======================================================================
-----------------------------------------------------------------------
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 7d-1, SEC File No. 270-176, OMB Control No. 3235-0311.
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
collections of information summarized below. The Commission plans to
submit these existing collections of information to the Office of
Management and Budget for extension and approval.
Section 7(d) of the Investment Company Act of 1940 (15 U.S.C. 80a-
7(d)) (the ``Act'' or ``Investment Company Act'') requires an
investment company (``fund'') organized outside the United States
(``foreign fund'') to obtain an order from the Commission allowing the
fund to register under the Act before making a public offering of its
securities through the United States mail or any means of interstate
commerce. The Commission may issue an order only if it finds that it is
both legally and practically feasible effectively to enforce the
provisions of the Act against the foreign fund, and that the
registration of the fund is consistent with the public interest and
protection of investors.
Rule 7d-1 (17 CFR 270.7d-1) under the Act, which was adopted in
1954, specifies the conditions under which a Canadian management
investment company (``Canadian fund'') may request an order from the
Commission permitting it to register under the Act. Although rule 7d-1
by its terms applies only to Canadian funds, other foreign funds
generally have agreed to comply with the requirements of rule 7d-1 as a
prerequisite to receiving an order permitting those foreign funds'
registration under the Act.
The rule requires a Canadian fund that wishes to register to file
an application with the Commission that contains various undertakings
and agreements by the fund. The requirement of the Canadian fund to
file an application is a collection of information under the Paperwork
Reduction Act. Certain of the undertakings and agreements, in turn,
impose the following additional information collection requirements:
(1) The fund must file with the Commission agreements between the
fund and its directors, officers, and service providers requiring them
to comply with the fund's charter and bylaws, the Act, and certain
other obligations relating to the undertakings and agreements in the
application;
(2) the fund and each of its directors, officers, and investment
advisers that is not a U.S. resident, must file with the Commission an
irrevocable designation of the fund's custodian in the United States as
agent for service of process;
(3) the fund's charter and bylaws must provide that (a) the fund
will comply with certain provisions of the Act applicable to all funds,
(b) the fund will maintain originals or copies of its books and records
in the United States, and (c) the fund's contracts with its custodian,
investment adviser, and principal underwriter, will contain certain
terms, including a requirement that the adviser maintain originals or
copies of pertinent records in the United States;
(4) the fund's contracts with service providers will require that
the provider perform the contract in accordance with the Act, the
Securities Act of 1933 (15
[[Page 9006]]
U.S.C. 77a), and the Securities Exchange Act of 1934 (15 U.S.C. 78a),
as applicable; and
(5) the fund must file, and periodically revise, a list of persons
affiliated with the fund or its adviser or underwriter.
As noted above, under section 7(d) of the Act the Commission may
issue an order permitting a foreign fund's registration only if the
Commission finds that ``by reason of special circumstances or
arrangements, it is both legally and practically feasible effectively
to enforce the provisions of the (Act).'' The information collection
requirements are necessary to assure that the substantive provisions of
the Act may be enforced as a matter of contract right in the United
States or Canada by the fund's shareholders or by the Commission.
Rule 7d-1 also contains certain information collection requirements
that are associated with other provisions of the Act. These
requirements are applicable to all registered funds and are outside the
scope of this request.
The Commission believes that one foreign fund is registered under
rule 7d-1 and currently active. Apart from requirements under the Act
applicable to all registered funds, rule 7d-1 imposes ongoing burdens
to maintain records in the United States, and to update, as necessary,
certain fund agreements, designations of the fund's custodian as
service agent, and the fund's list of affiliated persons. The
Commission staff estimates that each year under the rule, the active
registrant and its directors, officers, and service providers engage in
the following collections of information and associated burden hours:
For the fund and its investment adviser to maintain records in the
United States: \1\
---------------------------------------------------------------------------
\1\ The rule requires an applicant and its investment adviser to
maintain records in the United States (which, without the
requirement, might be maintained in Canada or another foreign
jurisdiction), which facilitates routine inspections and any special
investigations of the fund by Commission staff. The registrant and
its investment adviser, however, already maintain the registrant's
records in the United States and in no other jurisdiction.
Therefore, maintenance of the registrant's records in the United
States does not impose an additional burden beyond that imposed by
other provisions of the Act. Those provisions are applicable to all
registered funds and the compliance burden of those provisions is
outside the scope of this request.
---------------------------------------------------------------------------
0 hours: 0 minutes of compliance clerk time.
For the fund to update its list of affiliated persons:
2 hours: 2 hours of support staff time.
For new officers, directors, and service providers to enter
into and file agreements requiring them to comply with the fund's
charter and bylaws, the Act, and certain other obligations:
0.5 hours: 7.5 minutes of director time;
2.5 minutes of officer time;
20 minutes of support staff time.
For new officers, directors, and investment advisers who are
not residents of the United States to file irrevocable designation of
the fund's custodian as agent for process of service:
0.25 hours: 5 minutes of director time;
10 minutes of support staff time.
Based on the estimates above, the Commission estimates that the total
annual burden of the rule's paperwork requirements is 2.75 hours.\2\ We
estimate that directors perform 0.21 hours of these burden hours at a
total cost of $924,\3\ officers perform 0.04 of these burden hours at a
total cost of $19.40,\4\ and support staff perform 2.5 of these burden
hours at a total cost of $142.50.\5\ Thus, the Commission estimates the
aggregate annual cost of these burden hours associated with rule 7d-1
is $1,085.90.\6\
---------------------------------------------------------------------------
\2\ This estimate is based on the following calculation: (0 + 2
+ 0.5 + 0.25) = 2.75 hours.
\3\ The director estimates are based on the following
calculations: (7.5 minutes + 5 minutes)/60 minutes per hour = 0.21
hours; and 0.21 hours x $4400 per hour = $924. The per hour cost
estimate is based on estimated hourly compensation for each board
member of $550 and an average board size of 8 members.
\4\ The officer estimates are based on the following
calculations: 2.5 minutes/60 minutes per hour = 0.04 hours; 0.04
hours x $485 per hour = $19.40. This per hour cost estimate, as well
as other internal cost estimates for management and professional
earnings, is based on the figure for chief compliance officers found
in SIFMA'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 support staff estimates are based on the following
calculations: 2 hours + 20 minutes + 10 minutes = 2.5 hours; and 2.5
hours x $60 per hour = $150. The per hour cost estimate, as well as
other internal cost estimates for office salaries, is based on the
figure for compliance clerks found in SIFMA's Management &
Professional Earnings in the Securities Industry 2011, 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.
\6\ This estimate is based on the following calculation:
$1085.90 = $924 + $19.40 + $142.50.
---------------------------------------------------------------------------
If a fund were to file an application under the rule, the
Commission estimates that the rule would impose initial information
collection burdens (for filing an application, preparing the specified
charter, bylaw, and contract provisions, designations of agents for
service of process, and an initial list of affiliated persons, and
establishing a means of keeping records in the United States) of
approximately 90 hours for the fund and its associated persons. The
Commission is not including these hours in its calculation of the
annual burden because no foreign fund has applied under rule 7d-1 to
register under the Act in the last three years.
After registration, a Canadian fund may file a supplemental
application seeking special relief designed for the fund's particular
circumstances. Rule 7d-1 does not mandate these applications. The
active registrant last filed a substantive supplemental application in
2013. Therefore, the Commission staff estimates that the rule would
impose an additional collection information burden of 5 hours on a fund
to comply with the Commission's application process at a cost of
$5,928.\7\ The staff understands that funds also obtain assistance from
outside counsel to comply with the Commission's application process and
the cost burden of using outside counsel is set forth below.
---------------------------------------------------------------------------
\7\ The staff estimates that, on average, the fund's investment
adviser spends approximately 4 hours to review an application,
including 3.5 hours by an assistant general counsel at a cost of
$426 per hour, 0.5 hours by an administrative assistant, at a cost
of $74 per hour, and the fund's board of directors spends an
additional 1 hour at a cost of $4,400 per hour for a total of 5
hours, for a total cost of $5,928. This estimate is based on the
following calculation: (3.5 hours x $426 per hour) + (0.5 hours x
$74 per hour) + (1 hour x $4,400 per hour) = $5,928.
---------------------------------------------------------------------------
Therefore, the Commission estimates the aggregate annual burden
hours of the collection of information associated with rule 7d-1 is
7.75 hours, at a cost of $7,013.90.\8\ The estimates of burden hours
are made solely for the purposes of the Paperwork Reduction Act. The
estimates are not derived from a comprehensive or even a representative
survey or study of Commission rules and forms.
---------------------------------------------------------------------------
\8\ These estimates are based on the following calculations:
2.75 hours + 5 hours = 7.75 hours; $1,085.90 + $5,928 = $7,013.90.
---------------------------------------------------------------------------
If a Canadian or other foreign fund in the future applied to
register under the Act under rule 7d-1, the fund initially might have
capital and start-up costs (not including hourly burdens) of an
estimated $20,000 to comply with the rule's initial information
collection requirements. These costs include legal and processing-
related fees for preparing the required documentation (such as the
application, charter, bylaw, and contract provisions, designations for
service of process, and the list of affiliated persons). Other related
costs would include fees for establishing arrangements with a custodian
or other agent for maintaining records in the United States, copying
and transportation costs for records, and the
[[Page 9007]]
costs of purchasing or leasing computer equipment, software, or other
record storage equipment for records maintained in electronic or
photographic form.
The Commission expects that a fund and its sponsors would incur
these costs immediately, and that the annualized cost of the
expenditures would be $20,000 in the first year. Some expenditures
might involve capital improvements, such as computer equipment, having
expected useful lives for which annualized figures beyond the first
year would be meaningful.
These annualized figures are not provided, however, because, in
most cases, the expenses would be incurred immediately rather than on
an annual basis. The Commission is not including these costs in its
calculation of the annualized capital/start-up costs because no fund
has applied under rule 7d-1 to register under the Act pursuant to rule
7d-1 in the last three years.
As indicated above, a Canadian or fund may file a supplemental
application seeking special relief designed for the fund's particular
circumstances. Rule 7d-1 does not mandate these applications. The
active registrant filed a substantive supplemental application in the
past three years. As noted above, the staff understands that funds
generally use outside counsel to prepare the application. The staff
estimates that outside counsel spends 10 hours preparing a supplemental
application, including 8 hours by an associate and 2 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 $400 per hour, based on information received from
funds, intermediaries and their counsel. The Commission staff therefore
estimates that the fund would obtain assistance from outside counsel at
a cost of $4,000.\9\
---------------------------------------------------------------------------
\9\ This estimate is based on the following calculation: 10
hours x $400 per hour = $4000.
---------------------------------------------------------------------------
We request written comment 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 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: February 17, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-03640 Filed 2-22-16; 8:45 am]
BILLING CODE 8011-01-P
