Proposed Collection; Comment Request, 35304-35305 [2018-15853]

Download as PDF 35304 Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices Commission’s experience with disclosure documents, we estimate that the burden from compliance with Form 1–E and the offering circular requires approximately 100 hours per filing. The annual burden hours for compliance with Form 1–E and the offering circular would be 200 hours (2 responses × 100 hours per response). Estimates of the burden hours are made solely for the purposes of the PRA, and are not derived from a comprehensive or even a representative survey or study of the costs of SEC rules and forms. Compliance with the information collection requirements of the rules is necessary to obtain the benefit of relying on the rules. The information provided on Form 1–E and in the offering circular will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The public may view the background documentation for this information collection at the following website, 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 Candace Kenner, 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: July 19, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–15855 Filed 7–24–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION daltland on DSKBBV9HB2PROD with NOTICES 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 10f–3; SEC File No. 270–237, OMB Control No. 3235–0226 and Exchange Commission (‘‘Commission’’) is soliciting comments on the collections of information discussed below. The Commission plans to submit these existing collections of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Section 10(f) of the Investment Company Act of 1940 (15 U.S.C. 80a) (the ‘‘Act’’) prohibits a registered investment company (‘‘fund’’) from purchasing any security during an underwriting or selling syndicate if the fund has certain relationships with a principal underwriter for the security.1 Congress enacted this provision in 1940 to protect funds and their shareholders by preventing underwriters from ‘‘dumping’’ unmarketable securities on affiliated funds. Rule 10f–3 permits a fund to engage in a securities transaction that otherwise would violate section 10(f) if, among other things: (i) The fund’s directors have approved procedures for purchases made in reliance on the rule, regularly review fund purchases to determine whether they comply with these procedures, and approve necessary changes to the procedures; and (ii) a written record of each transaction effected under the rule is maintained for six years, the first two of which in an easily accessible place.2 The written record must state: (i) From whom the securities were acquired; (ii) the identity of the underwriting syndicate’s members; (iii) the terms of the transactions; and (iv) the information or materials on which the fund’s board of directors has determined that the purchases were made in compliance with procedures established by the board. Rule 10f–3 also conditionally allows managed portions of fund portfolios to purchase securities offered in otherwise off-limits primary offerings. To qualify for this exemption, rule 10f-3 requires that the subadviser that is advising the purchaser be contractually prohibited from providing investment advice to any other portion of the fund’s portfolio and consulting with any other of the fund’s advisers that is a principal underwriter or affiliated person of a principal underwriter concerning the fund’s securities transactions. These requirements provide a mechanism for fund boards to oversee compliance with the rule. The required recordkeeping facilitates the Commission staff’s review of rule 10f– 3 transactions during routine fund Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520), the Securities VerDate Sep<11>2014 18:50 Jul 24, 2018 Jkt 244001 PO 00000 1 15 2 17 U.S.C. 80a-10(f). CFR 270.10f–3. Frm 00103 Fmt 4703 Sfmt 4703 inspections and, when necessary, in connection with enforcement actions. The staff estimates that approximately 236 funds engage in a total of approximately 2,928 rule 10f–3 transactions each year.3 Rule 10f–3 requires that the purchasing fund create a written record of each transaction that includes, among other things, from whom the securities were purchased and the terms of the transaction. The staff estimates 4 that it takes an average fund approximately 30 minutes per transaction and approximately 1,464 hours 5 in the aggregate to comply with this portion of the rule. The funds also must maintain and preserve these transactional records in accordance with the rule’s recordkeeping requirement, and the staff estimates that it takes a fund approximately 20 minutes per transaction and that annually, in the aggregate, funds spend approximately 976 hours 6 to comply with this portion of the rule. In addition, fund boards must, no less than quarterly, examine each of these transactions to ensure that they comply with the fund’s policies and procedures. The information or materials upon which the board relied to come to this determination also must be maintained and the staff estimates that it takes a fund 1 hour per quarter and, in the aggregate, approximately 944 hours 7 annually to comply with this rule requirement. The staff estimates that reviewing and revising as needed written procedures for rule 10f-3 transactions takes, on average for each fund, two hours of a compliance attorney’s time per year.8 Thus, annually, in the aggregate, the staff estimates that funds spend a total of approximately 472 hours 9 on monitoring and revising rule 10f–3 procedures. Based on an analysis of fund filings, the staff estimates that approximately 299 fund portfolios enter into 3 These estimates are based on staff extrapolations from filings with the Commission. 4 Unless stated otherwise, the information collection burden estimates are based on conversations between the staff and representatives of funds. 5 This estimate is based on the following calculation: (0.5 hours × 2,928 = 1,464 hours). 6 This estimate is based on the following calculations: (20 minutes × 2,928 transactions = 58,560 minutes; 58,560 minutes/60 = 976 hours). 7 This estimate is based on the following calculation: (1 hour per quarter × 4 quarters × 236 funds = 944 hours). 8 These averages take into account the fact that in most years, fund attorneys and boards spend little or no time modifying procedures and in other years, they spend significant time doing so. 9 This estimate is based on the following calculation: (236 funds × 2 hours = 472 hours). E:\FR\FM\25JYN1.SGM 25JYN1 Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices daltland on DSKBBV9HB2PROD with NOTICES subadvisory agreements each year.10 Based on discussions with industry representatives, the staff estimates that it will require approximately 3 attorney hours to draft and execute additional clauses in new subadvisory contracts in order for funds and subadvisers to be able to rely on the exemptions in rule 10f–3. Because these additional clauses are identical to the clauses that a fund would need to insert in their subadvisory contracts to rely on rules 12d3–1, 17a–10, and 17e–1, and because we believe that funds that use one such rule generally use all of these rules, we apportion this 3 hour time burden equally to all four rules. Therefore, we estimate that the burden allocated to rule 10f–3 for this contract change would be 0.75 hours.11 Assuming that all 299 funds that enter into new subadvisory contracts each year make the modification to their contract required by the rule, we estimate that the rule’s contract modification requirement will result in 224 burden hours annually.12 The staff estimates, therefore, that rule 10f–3 imposes an information collection burden of 4,080 hours.13 Written comments are invited 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 collections of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burdens of the collections 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 Candace Kenner, 100 F Street NE, Washington, DC 20549; or send an email to: PRA_ Mailbox@sec.gov. 10 Based on information in Commission filings, we estimate that 38 percent of funds are advised by subadvisers. 11 This estimate is based on the following calculation (3 hours ÷ 4 rules = .75 hours). 12 These estimates are based on the following calculations: (0.75 hours × 299 portfolios = 224 burden hours). 13 This estimate is based on the following calculation: (1,464 hours + 976 hours + 944 hours + 472 + 224 hours = 4,080 total burden hours). VerDate Sep<11>2014 18:50 Jul 24, 2018 Jkt 244001 Dated: July 19, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–15853 Filed 7–24–18; 8:45 am] BILLING CODE 8011–01–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: Interagency Statement on Sound Practices, SEC File No. 270–560, OMB Control No. 3235–0622 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 the Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities (‘‘Statement’’) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange Act’’) and the Investment Advisers Act of 1940 (15 U.S.C. 80b et seq.) (‘‘Advisers Act’’). The Statement was issued by the Commission, together with the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision (together, the ‘‘Agencies’’), in May 2006. The Statement describes the types of internal controls and risk management procedures that the Agencies believe are particularly effective in assisting financial institutions to identify and address the reputational, legal, and other risks associated with elevated risk complex structured finance transactions. The primary purpose of the Statement is to ensure that these transactions receive enhanced scrutiny by the institution and to ensure that the institution does not participate in illegal or inappropriate transactions. The Commission estimates that approximately 5 registered brokerdealers or investment advisers will spend an average of approximately 25 hours per year complying with the Statement. Thus, the total compliance PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 35305 burden is estimated to be approximately 125 burden-hours per year. 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 website, 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 Candace Kenner 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: July 19, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–15856 Filed 7–24–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83672; File No. SR–CBOE– 2018–052] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Credit Option Margin Pilot Program Through July 18, 2019 July 19, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on July 18, 2018, Cboe Exchange, Inc. (the ‘‘Exchange’’ or ‘‘Cboe Options’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act3 and Rule 19b–4(f)(6) thereunder.4 The Commission is publishing this notice to solicit 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 2 17 E:\FR\FM\25JYN1.SGM 25JYN1

Agencies

[Federal Register Volume 83, Number 143 (Wednesday, July 25, 2018)]
[Notices]
[Pages 35304-35305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15853]


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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 10f-3; SEC File No. 270-237, OMB Control No. 3235-0226

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collections 
of information discussed below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Section 10(f) of the Investment Company Act of 1940 (15 U.S.C. 80a) 
(the ``Act'') prohibits a registered investment company (``fund'') from 
purchasing any security during an underwriting or selling syndicate if 
the fund has certain relationships with a principal underwriter for the 
security.\1\ Congress enacted this provision in 1940 to protect funds 
and their shareholders by preventing underwriters from ``dumping'' 
unmarketable securities on affiliated funds.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 80a-10(f).
---------------------------------------------------------------------------

    Rule 10f-3 permits a fund to engage in a securities transaction 
that otherwise would violate section 10(f) if, among other things: (i) 
The fund's directors have approved procedures for purchases made in 
reliance on the rule, regularly review fund purchases to determine 
whether they comply with these procedures, and approve necessary 
changes to the procedures; and (ii) a written record of each 
transaction effected under the rule is maintained for six years, the 
first two of which in an easily accessible place.\2\ The written record 
must state: (i) From whom the securities were acquired; (ii) the 
identity of the underwriting syndicate's members; (iii) the terms of 
the transactions; and (iv) the information or materials on which the 
fund's board of directors has determined that the purchases were made 
in compliance with procedures established by the board.
---------------------------------------------------------------------------

    \2\ 17 CFR 270.10f-3.
---------------------------------------------------------------------------

    Rule 10f-3 also conditionally allows managed portions of fund 
portfolios to purchase securities offered in otherwise off-limits 
primary offerings. To qualify for this exemption, rule 10f-3 requires 
that the subadviser that is advising the purchaser be contractually 
prohibited from providing investment advice to any other portion of the 
fund's portfolio and consulting with any other of the fund's advisers 
that is a principal underwriter or affiliated person of a principal 
underwriter concerning the fund's securities transactions.
    These requirements provide a mechanism for fund boards to oversee 
compliance with the rule. The required recordkeeping facilitates the 
Commission staff's review of rule 10f-3 transactions during routine 
fund inspections and, when necessary, in connection with enforcement 
actions.
    The staff estimates that approximately 236 funds engage in a total 
of approximately 2,928 rule 10f-3 transactions each year.\3\ Rule 10f-3 
requires that the purchasing fund create a written record of each 
transaction that includes, among other things, from whom the securities 
were purchased and the terms of the transaction. The staff estimates 
\4\ that it takes an average fund approximately 30 minutes per 
transaction and approximately 1,464 hours \5\ in the aggregate to 
comply with this portion of the rule.
---------------------------------------------------------------------------

    \3\ These estimates are based on staff extrapolations from 
filings with the Commission.
    \4\ Unless stated otherwise, the information collection burden 
estimates are based on conversations between the staff and 
representatives of funds.
    \5\ This estimate is based on the following calculation: (0.5 
hours x 2,928 = 1,464 hours).
---------------------------------------------------------------------------

    The funds also must maintain and preserve these transactional 
records in accordance with the rule's recordkeeping requirement, and 
the staff estimates that it takes a fund approximately 20 minutes per 
transaction and that annually, in the aggregate, funds spend 
approximately 976 hours \6\ to comply with this portion of the rule.
---------------------------------------------------------------------------

    \6\ This estimate is based on the following calculations: (20 
minutes x 2,928 transactions = 58,560 minutes; 58,560 minutes/60 = 
976 hours).
---------------------------------------------------------------------------

    In addition, fund boards must, no less than quarterly, examine each 
of these transactions to ensure that they comply with the fund's 
policies and procedures. The information or materials upon which the 
board relied to come to this determination also must be maintained and 
the staff estimates that it takes a fund 1 hour per quarter and, in the 
aggregate, approximately 944 hours \7\ annually to comply with this 
rule requirement.
---------------------------------------------------------------------------

    \7\ This estimate is based on the following calculation: (1 hour 
per quarter x 4 quarters x 236 funds = 944 hours).
---------------------------------------------------------------------------

    The staff estimates that reviewing and revising as needed written 
procedures for rule 10f-3 transactions takes, on average for each fund, 
two hours of a compliance attorney's time per year.\8\ Thus, annually, 
in the aggregate, the staff estimates that funds spend a total of 
approximately 472 hours \9\ on monitoring and revising rule 10f-3 
procedures.
---------------------------------------------------------------------------

    \8\ These averages take into account the fact that in most 
years, fund attorneys and boards spend little or no time modifying 
procedures and in other years, they spend significant time doing so.
    \9\ This estimate is based on the following calculation: (236 
funds x 2 hours = 472 hours).
---------------------------------------------------------------------------

    Based on an analysis of fund filings, the staff estimates that 
approximately 299 fund portfolios enter into

[[Page 35305]]

subadvisory agreements each year.\10\ Based on discussions with 
industry representatives, the staff estimates that it will require 
approximately 3 attorney hours to draft and execute additional clauses 
in new subadvisory contracts in order for funds and subadvisers to be 
able to rely on the exemptions in rule 10f-3. Because these additional 
clauses are identical to the clauses that a fund would need to insert 
in their subadvisory contracts to rely on rules 12d3-1, 17a-10, and 
17e-1, and because we believe that funds that use one such rule 
generally use all of these rules, we apportion this 3 hour time burden 
equally to all four rules. Therefore, we estimate that the burden 
allocated to rule 10f-3 for this contract change would be 0.75 
hours.\11\ Assuming that all 299 funds that enter into new subadvisory 
contracts each year make the modification to their contract required by 
the rule, we estimate that the rule's contract modification requirement 
will result in 224 burden hours annually.\12\
---------------------------------------------------------------------------

    \10\ Based on information in Commission filings, we estimate 
that 38 percent of funds are advised by subadvisers.
    \11\ This estimate is based on the following calculation (3 
hours / 4 rules = .75 hours).
    \12\ These estimates are based on the following calculations: 
(0.75 hours x 299 portfolios = 224 burden hours).
---------------------------------------------------------------------------

    The staff estimates, therefore, that rule 10f-3 imposes an 
information collection burden of 4,080 hours.\13\
---------------------------------------------------------------------------

    \13\ This estimate is based on the following calculation: (1,464 
hours + 976 hours + 944 hours + 472 + 224 hours = 4,080 total burden 
hours).
---------------------------------------------------------------------------

    Written comments are invited 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 collections of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burdens of the collections 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 Candace 
Kenner, 100 F Street NE, Washington, DC 20549; or send an email to: 
[email protected].

    Dated: July 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-15853 Filed 7-24-18; 8:45 am]
 BILLING CODE 8011-01-P
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