Submission for OMB Review; Comment Request, 53546-53547 [2017-24749]
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Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Extension:
Rule 17f–2(d); SEC File No. 270–36, OMB
Control No. 3235–0028
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’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 17f–2(d) (17 CFR 240.17f–2(d)),
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 17f–2(d) requires that records
created pursuant to the fingerprinting
requirements of Section 17(f)(2) of the
Act be maintained and preserved by
every member of a national securities
exchange, broker, dealer, registered
transfer agent and registered clearing
agency (‘‘covered entities’’ or
‘‘respondents’’); permits, under certain
circumstances, the records required to
be maintained and preserved by a
member of a national securities
exchange, broker, or dealer to be
maintained and preserved by a selfregulatory organization that is also the
designated examining authority for that
member, broker or dealer; and permits
the required records to be preserved on
microfilm. The general purpose of Rule
17f–2 is to: (i) Identify security risk
personnel; (ii) provide criminal record
information so that employers can make
fully informed employment decisions;
and (iii) deter persons with criminal
records from seeking employment or
association with covered entities. The
rule enables the Commission or other
examining authority to ascertain
whether all covered persons are being
fingerprinted and whether proper
procedures regarding fingerprinting are
being followed. Retention of these
records for a period of not less than
three years after termination of a
covered person’s employment or
relationship with a covered entity
ensures that law enforcement officials
will have easy access to fingerprint
cards on a timely basis. This in turn acts
as an effective deterrent to employee
misconduct.
Approximately 4,200 respondents are
subject to the recordkeeping
requirements of the rule. Each
respondent maintains approximately 68
new records per year, each of which
takes approximately 2 minutes per
record to maintain, for an annual
burden of approximately 2.2666667
hours (68 records times 2 minutes). The
VerDate Sep<11>2014
16:52 Nov 15, 2017
Jkt 244001
total annual burden for all respondents
is approximately 9,520 (4,200
respondents times 2.2666667 hours). As
noted above, all records maintained
subject to the rule must be retained for
a period of not less than three years after
termination of a covered person’s
employment or relationship with a
covered entity. In addition, we estimate
the total cost to respondents is
approximately $42,000 in third party
storage costs.
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.
The public may view background
documentation for this information
collection at the following Web site:
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Remi Pavlik-Simon,
100 F Street NE., Washington, DC
20549, or by sending an email to: PRA_
Mailbox@sec.gov. Comments must be
submitted to OMB within 30 days of
this notice.
Dated: November 9, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–24752 Filed 11–15–17; 8:45 am]
BILLING CODE P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
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’’) has submitted to the
Office of Management and Budget a
request for extension of the previously
approved collection of information
discussed below.
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
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
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 11,818 series of
registered investment companies that
are management companies may be
subject to rule 19a–1 each year,3 and
1 15
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.’’
3 This estimate is based on statistics compiled by
Commission staff as of April 30, 2017. 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.
2 Section
E:\FR\FM\16NON1.SGM
16NON1
Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices
asabaliauskas on DSKBBXCHB2PROD with NOTICES
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 23,636 burden hours.5
The staff estimates that approximately
one-third of the total annual burden
(7,879 hours) would be incurred by a
paralegal with an average hourly wage
rate of approximately $205 per hour,6
and approximately two-thirds of the
annual burden (15,757 hours) would be
incurred by a compliance clerk with an
average hourly wage rate of $66 per
hour.7 The staff therefore estimates that
the aggregate annual cost of complying
with the paperwork requirements of the
rule is approximately $2,655,157 ((7,879
hours × $205 = $1,615,195) + (15,757
hours × $66 = $1,039,962)).
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
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: 11,818 management investment
company portfolios × 2 statements per year × 1 hour
per statement = 23,636 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 inflation, 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.
VerDate Sep<11>2014
16:52 Nov 15, 2017
Jkt 244001
of information unless it displays a
currently valid control number.
The public may view the background
documentation for this information
collection at the following Web site,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) 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. Comments must be submitted to
OMB within 30 days of this notice.
Dated: November 9, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–24749 Filed 11–15–17; 8:45 am]
BILLING CODE P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82052; File No. SRBatsBZX–2017–76]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Modify Its
Fees for Physical Ports as They Apply
to the Exchange’s Equity Options
Platform
November 9, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
2, 2017, Cboe BZX Exchange, Inc.
(‘‘BZX’’ or the ‘‘Exchange’’) (formerly
known as Bats BZX Exchange, Inc.) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Exchange has designated the
proposed rule change as one
establishing or changing a member due,
fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. The
Commission is publishing this notice to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
53547
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the fee schedule applicable to
Members 5 and non-Members of the
Exchange pursuant to BZX Rules 15.1(a)
and (c) to modify its fees for physical
ports as they apply to the Exchange’s
equity options platform (‘‘BZX
Options’’).
The text of the proposed rule change
is available at the Exchange’s Web site
at www.markets.cboe.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
A physical port is utilized by a
Member or non-Member to connect to
the Exchange at the data centers where
the Exchange’s servers are located. The
Exchange currently maintains a
presence in two third-party data centers:
(i) The primary data center where the
Exchange’s business is primarily
conducted on a daily basis, and (ii) a
secondary data center, which is
predominantly maintained for business
continuity purposes. The Exchange
currently assesses the following
physical connectivity fees for Members
and non-Members on a monthly basis:
$2,000 per physical port that connects
to the System 6 via 1 gigabyte circuit;
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
6 The term ‘‘System’’ is defined as ‘‘the electronic
communications and trading facility designated by
the Board through which securities orders of Users
are consolidated for ranking, execution and, when
Continued
E:\FR\FM\16NON1.SGM
16NON1
]]>Agencies
[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Notices]
[Pages 53546-53547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24749]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; 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'') has submitted to the Office of
Management and Budget a request for extension of the previously
approved collection of information discussed below.
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 11,818 series of registered investment
companies that are management companies may be subject to rule 19a-1
each year,\3\ and
[[Page 53547]]
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 23,636 burden hours.\5\
---------------------------------------------------------------------------
\3\ This estimate is based on statistics compiled by Commission
staff as of April 30, 2017. 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: 11,818
management investment company portfolios x 2 statements per year x 1
hour per statement = 23,636 burden hours.
---------------------------------------------------------------------------
The staff estimates that approximately one-third of the total
annual burden (7,879 hours) would be incurred by a paralegal with an
average hourly wage rate of approximately $205 per hour,\6\ and
approximately two-thirds of the annual burden (15,757 hours) would be
incurred by a compliance clerk with an average hourly wage rate of $66
per hour.\7\ The staff therefore estimates that the aggregate annual
cost of complying with the paperwork requirements of the rule is
approximately $2,655,157 ((7,879 hours x $205 = $1,615,195) + (15,757
hours x $66 = $1,039,962)).
---------------------------------------------------------------------------
\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 inflation, 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.
The public may view the background documentation for this
information collection at the following Web site, www.reginfo.gov.
Comments should be directed to: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503, or by sending an email to:
Shagufta_Ahmed@omb.eop.gov; and (ii) 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. Comments must be submitted to OMB within 30
days of this notice.
Dated: November 9, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24749 Filed 11-15-17; 8:45 am]
BILLING CODE P
