Proposed Collection; Comment Request, 18358 [2018-08821]

Download as PDF 18358 Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices 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. amozie on DSK30RV082PROD with NOTICES Extension: Rule 15c2–12, SEC File No. 270–330, OMB Control No. 3235–0372. 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 15c2–12— Municipal Securities Disclosure (17 CFR 240.15c2–12) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange Act’’). The Commission plans to submit this existing collection of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Paragraph (b) of Rule 15c2–12 requires underwriters of municipal securities: (1) To obtain and review an official statement ‘‘deemed final’’ by an issuer of the securities, except for the omission of specified information prior to making a bid, purchase, offer, or sale of municipal securities; (2) in noncompetitively bid offerings, to send, upon request, a copy of the most recent preliminary official statement (if one exists) to potential customers; (3) to contract with the issuer to receive, within a specified time, sufficient copies of the final official statement to comply with Rule 15c2–12’s delivery requirement and the rules of the Municipal Securities Rulemaking Board (‘‘MSRB’’); (4) to send, upon request, a copy of the final official statement to potential customers for a specified period of time; and (5) before purchasing or selling municipal securities in connection with an offering, to reasonably determine that the issuer or the obligated person has undertaken, in a written agreement or contract, for the benefit of holders of such municipal securities, to provide certain information on a continuing basis to the MSRB in an electronic format as prescribed by the MSRB. The information to be provided consists of: (1) Certain annual financial and operating information and audited financial statements (‘‘annual filings’’); (2) notices of the occurrence of any of 14 specific events (‘‘event notices’’); and (3) notices of the failure of an issuer or obligated person to make a submission VerDate Sep<11>2014 16:58 Apr 25, 2018 Jkt 244001 required by a continuing disclosure agreement (‘‘failure to file notices’’). Rule 15c2–12 is intended to enhance disclosure in the municipal securities market, and thereby reduce fraud, by establishing standards for obtaining, reviewing and disseminating information about municipal securities by their underwriters. Municipal offerings of less than $1 million are exempt from the rule, as are offerings of municipal securities issued in large denominations that are sold to no more than 35 sophisticated investors or have short-term maturities. It is estimated that approximately 20,000 issuers, 250 broker-dealers and the MSRB will spend a total of 115,248 hours per year complying with Rule 15c2–12. Based on data from the MSRB through September 2014 and annualized through December 2014, issuers will submit approximately 62,596 annual filings to the MSRB in 2014. Commission staff estimates that an issuer will require approximately 45 minutes to prepare and submit annual filings to the MSRB. Therefore, the total annual burden on issuers to prepare and submit 62,596 annual filings to the MSRB is estimated to be 46,947 hours. Based on data from the MSRB through September 2014 and annualized through December 2014, issuers will submit approximately 73,480 event notices to the MSRB in 2014. Commission staff estimates that an issuer will require approximately 45 minutes to prepare and submit event notices to the MSRB. Therefore, the total annual burden on issuers to prepare and submit 73,480 event notices to the MSRB is estimated to be 55,110 hours. Based on data from the MSRB through September 2014 and annualized through December 2014, issuers will submit approximately 7,063 failure to file notices to the MSRB in 2014. Commission staff estimates that an issuer will require approximately 30 minutes to prepare and submit failure to file notices to the MSRB. Therefore, the total annual burden on issuers to prepare and submit 7,063 failure to file notices to the MSRB is estimated to be 3,531 hours. Commission staff estimates that the total annual burden on brokerdealers to comply with Rule 15c2–12 is 300 hours. Finally, Commission staff estimates that the MSRB will incur an annual burden of 9,360 hours to collect, index, store, retrieve and make available the pertinent documents under Rule 15c2–12. Based on data provided by the MSRB, the Commission estimates that up to 65% of issuers may use designated agents to submit some or all of their continuing disclosure documents to the MSRB. The Commission estimates that PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 the average total annual cost that may be incurred by issuers that use the services of a designated agent will be $9,750,000.1 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 to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. 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 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: April 23, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–08821 Filed 4–25–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83077; File No. SR–Phlx– 2018–30] Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Incorporate by Reference The Nasdaq Stock Market LLC’s Consolidated Audit Trail Rules Into the Rules of Nasdaq Phlx April 20, 2018. 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 April 10, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or 1 20,000 (number of issuers) × .65 (percentage of issuers that may use designated agents) × $750 (estimated average annual cost for issuer’s use of designated agent) = $9,750,000. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. E:\FR\FM\26APN1.SGM 26APN1

Agencies

[Federal Register Volume 83, Number 81 (Thursday, April 26, 2018)]
[Notices]
[Page 18358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08821]



[[Page 18358]]

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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 15c2-12, SEC File No. 270-330, OMB Control No. 3235-0372.

    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 15c2-12--Municipal 
Securities Disclosure (17 CFR 240.15c2-12) under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange Act''). The 
Commission plans to submit this existing collection of information to 
the Office of Management and Budget (``OMB'') for extension and 
approval.
    Paragraph (b) of Rule 15c2-12 requires underwriters of municipal 
securities: (1) To obtain and review an official statement ``deemed 
final'' by an issuer of the securities, except for the omission of 
specified information prior to making a bid, purchase, offer, or sale 
of municipal securities; (2) in non-competitively bid offerings, to 
send, upon request, a copy of the most recent preliminary official 
statement (if one exists) to potential customers; (3) to contract with 
the issuer to receive, within a specified time, sufficient copies of 
the final official statement to comply with Rule 15c2-12's delivery 
requirement and the rules of the Municipal Securities Rulemaking Board 
(``MSRB''); (4) to send, upon request, a copy of the final official 
statement to potential customers for a specified period of time; and 
(5) before purchasing or selling municipal securities in connection 
with an offering, to reasonably determine that the issuer or the 
obligated person has undertaken, in a written agreement or contract, 
for the benefit of holders of such municipal securities, to provide 
certain information on a continuing basis to the MSRB in an electronic 
format as prescribed by the MSRB. The information to be provided 
consists of: (1) Certain annual financial and operating information and 
audited financial statements (``annual filings''); (2) notices of the 
occurrence of any of 14 specific events (``event notices''); and (3) 
notices of the failure of an issuer or obligated person to make a 
submission required by a continuing disclosure agreement (``failure to 
file notices'').
    Rule 15c2-12 is intended to enhance disclosure in the municipal 
securities market, and thereby reduce fraud, by establishing standards 
for obtaining, reviewing and disseminating information about municipal 
securities by their underwriters.
    Municipal offerings of less than $1 million are exempt from the 
rule, as are offerings of municipal securities issued in large 
denominations that are sold to no more than 35 sophisticated investors 
or have short-term maturities.
    It is estimated that approximately 20,000 issuers, 250 broker-
dealers and the MSRB will spend a total of 115,248 hours per year 
complying with Rule 15c2-12. Based on data from the MSRB through 
September 2014 and annualized through December 2014, issuers will 
submit approximately 62,596 annual filings to the MSRB in 2014. 
Commission staff estimates that an issuer will require approximately 45 
minutes to prepare and submit annual filings to the MSRB. Therefore, 
the total annual burden on issuers to prepare and submit 62,596 annual 
filings to the MSRB is estimated to be 46,947 hours. Based on data from 
the MSRB through September 2014 and annualized through December 2014, 
issuers will submit approximately 73,480 event notices to the MSRB in 
2014. Commission staff estimates that an issuer will require 
approximately 45 minutes to prepare and submit event notices to the 
MSRB. Therefore, the total annual burden on issuers to prepare and 
submit 73,480 event notices to the MSRB is estimated to be 55,110 
hours. Based on data from the MSRB through September 2014 and 
annualized through December 2014, issuers will submit approximately 
7,063 failure to file notices to the MSRB in 2014. Commission staff 
estimates that an issuer will require approximately 30 minutes to 
prepare and submit failure to file notices to the MSRB. Therefore, the 
total annual burden on issuers to prepare and submit 7,063 failure to 
file notices to the MSRB is estimated to be 3,531 hours. Commission 
staff estimates that the total annual burden on broker-dealers to 
comply with Rule 15c2-12 is 300 hours. Finally, Commission staff 
estimates that the MSRB will incur an annual burden of 9,360 hours to 
collect, index, store, retrieve and make available the pertinent 
documents under Rule 15c2-12.
    Based on data provided by the MSRB, the Commission estimates that 
up to 65% of issuers may use designated agents to submit some or all of 
their continuing disclosure documents to the MSRB. The Commission 
estimates that the average total annual cost that may be incurred by 
issuers that use the services of a designated agent will be 
$9,750,000.\1\
---------------------------------------------------------------------------

    \1\ 20,000 (number of issuers) x .65 (percentage of issuers that 
may use designated agents) x $750 (estimated average annual cost for 
issuer's use of designated agent) = $9,750,000.
---------------------------------------------------------------------------

    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 to 
be collected; and (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology. 
Consideration will be given to comments and suggestions submitted in 
writing within 60 days of this publication.
    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 OMB control number.
    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: [email protected].

    Dated: April 23, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08821 Filed 4-25-18; 8:45 am]
 BILLING CODE 8011-01-P
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