Submission for OMB Review; Comment Request, 1809-1810 [2019-01042]

Download as PDF Federal Register / Vol. 84, No. 24 / Tuesday, February 5, 2019 / Notices 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. SUMMARY: Date of required notice: February 5, 2019. DATES: FOR FURTHER INFORMATION CONTACT: The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on December 27, 2018, it filed with the Postal Regulatory Commission a USPS Request to Add Priority Mail Contract 503 to Competitive Product List. Documents are available at www.prc.gov, Docket Nos. MC2019–67, CP2019–72. SUPPLEMENTARY INFORMATION: Elizabeth Reed, Attorney, Corporate and Postal Business Law. [FR Doc. 2019–01074 Filed 2–4–19; 8:45 am] BILLING CODE 7710–12–P POSTAL SERVICE Product Change—Priority Mail Express and Priority Mail Negotiated Service Agreement ACTION: Postal ServiceTM. Notice. 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. SUMMARY: Date of required notice: February 5, 2019. DATES: FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202–268–3179. The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on December 28, 2018, it filed with the Postal Regulatory Commission a USPS Request to Add Priority Mail Express & Priority Mail Contract 84 to Competitive Product List. Documents are available at www.prc.gov, Docket Nos. MC2019–74, CP2019–79. SUPPLEMENTARY INFORMATION: Elizabeth Reed, Attorney, Corporate and Postal Business Law. [FR Doc. 2019–01097 Filed 2–4–19; 8:45 am] BILLING CODE 7710–12–P VerDate Sep<11>2014 17:22 Feb 04, 2019 Jkt 247001 Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change Relating to FINRA Rule 4512 (Customer Account Information) January 30, 2019. Elizabeth Reed, 202–268–3179. AGENCY: [Release No. 34–85003; File No. SR–FINRA– 2018–040] On November 28, 2018, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to amend paragraph (a)(3) of FINRA Rule 4512 (Customer Account Information) to permit the use of electronic signatures and to clarify the scope of the rule. The proposed rule change was published for comment in the Federal Register on December 17, 2018.3 The Commission has received two comment letters regarding the proposed rule change.4 Section 19(b)(2) of the Act 5 provides that, within 45 days of publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it find such longer period to be appropriate and publishes its reasons for so finding, or as to which the selfregulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day after publication of the notice for this proposed rule change is January 31, 2019. The Commission is extending this 45-day time period. The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.6 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 84788 (December 11, 2018), 83 FR 64609 (December 17, 2018). 4 See Letter from Paul J. Tolley, Senior Vice President, Chief Compliance Officer, Commonwealth Financial Network, dated December 31, 2018; letter from Kevin Zambrowicz, Associate General Counsel & Managing Director, SIFMA, dated January 7, 2019. 5 15 U.S.C. 78s(b)(2). 6 By letter dated December 27, 2018, FINRA also consented to extending to March 17, 2019 the time period for Commission action on SR–FINRA–2018– 2 17 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 1809 Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,7 designates March 17, 2019, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR–FINRA–2018–040). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–00943 Filed 2–4–19; 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: Rule 17e–1, SEC File No. 270–224, OMB Control No. 3235–0217 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (‘‘Paperwork Reduction Act’’), the Securities and Exchange Commission (the ‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for extension of the previously approved collection of information described below. Rule 17e–1 (17 CFR 270.17e–1) under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) (the ‘‘Investment Company Act’’) deems a remuneration as ‘‘not exceeding the usual and customary broker’s commission’’ for purposes of Section 17(e)(2)(A) of the Act (15 U.S.C. 80a– 17(e)(2)(A)) if, among other things, a registered investment company’s (‘‘fund’s’’) board of directors has adopted procedures reasonably designed to provide that the remuneration to an affiliated broker is reasonable and fair compared to that received by other brokers in connection with comparable transactions involving similar securities being purchased or sold on a securities exchange during a comparable period of time and the board makes and approves such changes as it deems necessary. In addition, each quarter, the board must determine that 040. See https://www.finra.org/sites/default/files/ rule_filing_file/SR-FINRA-2018-40-Extension-1.pdf. 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(31). E:\FR\FM\05FEN1.SGM 05FEN1 1810 Federal Register / Vol. 84, No. 24 / Tuesday, February 5, 2019 / Notices all transactions effected under the rule during the preceding quarter complied with the established procedures. Rule 17e–1 also requires the fund to (i) maintain permanently a written copy of the procedures adopted by the board for complying with the requirements of the rule; and (ii) maintain for a period of six years, the first two in an easily accessible place, a written record of each transaction subject to the rule, setting forth the amount and source of the commission, fee, or other remuneration received; the identity of the broker; the terms of the transaction; and the materials used to determine that the transactions were effected in compliance with the procedures adopted by the board. The recordkeeping requirements under rule 17e–1 enable the Commission to ensure that affiliated brokers receive compensation that does not exceed the usual and customary broker’s commission. Without the recordkeeping requirements, Commission inspectors would have difficulty ascertaining whether funds were complying with rule 17e–1. Based on an analysis of fund filings, the staff estimates that approximately 266 funds enter into subadvisory agreements each year.1 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 17e–1. 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, 10f–3, and 17a–10, 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 17e–1 for this contract change would be 0.75 hours.2 Assuming that all 266 funds enter into new subadvisory contracts each year make the modification to their contract required by the rule, we estimate that the rule’s 1 Based on data from Morningstar, as of June 30, 2018, there are 12,393 registered funds (open-end funds, closed-end funds, and exchange-traded funds), 4,594 funds of which have subadvisory relationships (approximately 37%). Based on data from the 2018 ICI Factbook, 720 new funds were established in 2017 (705 open-end funds and exchange-traded funds + 15 closed-end funds (from the ICI Research Perspective, April 2018)). 720 new funds × 37% = 266 funds. 2 3 hours ÷ 4 rules = 0.75 hours. VerDate Sep<11>2014 17:22 Feb 04, 2019 Jkt 247001 contract modification requirement will result in 200 burden hours annually.3 Based on an analysis of fund filings, we estimate that approximately 1,609 funds use at least one affiliated broker. Based on staff experience and conversations with fund representatives, the staff estimates approximately 40 percent of transactions (and thus, 40% of funds) that occur under the rule 17e– 1 would be exempt from its recordkeeping and review requirements. This would leave approximately 965 funds 4 still subject to the rule’s recordkeeping and review requirements. Based on staff experience and conversations with fund representatives, we estimate that the burden of compliance with rule 17e–1 is approximately 50 hours per fund per year. This time is spent, for example, reviewing the applicable transactions and maintaining records. Accordingly, we calculate the total estimated annual internal burden of complying with the review and recordkeeping requirements of rule 17e–1 to be approximately 48,250 hours,5 and the total annual burden of the rule’s paperwork requirements is 48,450 hours.6 Estimates of the average burden hours are made solely for the purposes of the Paperwork Reduction Act and are not derived from a comprehensive or even a representative survey or study of the costs of Commission rules and forms. The collection of information under rule 17e–1 is mandatory. The information provided under rule 17e–1 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: Lindsay.M.Abate@omb.eop.gov and (ii) Charles Riddle, Acting 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 3 This estimate is based on the following calculation: 0.75 hours × 266 funds = 200 burden hours. 4 1,609 funds × 0.6 = 965 funds. 5 965 funds × 50 hours per fund = 48,250 hours. 6 200 hours + 48,250 hours = 48,450 hours. PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 submitted to OMB within 30 days of this notice. Dated: January 31, 2019. Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–01042 Filed 2–4–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–85018; File No. SR–CBOE– 2018–075] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend its Fees Schedule With Respect to the SPX Select Market-Maker Program January 31, 2019. 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 December 19, 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, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to 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 Cboe Exchange, Inc. (the ‘‘Exchange’’ or ‘‘Cboe Options’’) proposes to amend its Fees Schedule with respect to the SPX Select Market-Maker Program. The text of the proposed rule change is provided in Exhibit 5. The text of the proposed rule change is also available on the Exchange’s website (https://www.cboe.com/ AboutCBOE/ CBOELegalRegulatoryHome.aspx), at the Exchange’s Office of the Secretary, 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 1 15 2 17 E:\FR\FM\05FEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 05FEN1

Agencies

[Federal Register Volume 84, Number 24 (Tuesday, February 5, 2019)]
[Notices]
[Pages 1809-1810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01042]


-----------------------------------------------------------------------

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 17e-1, SEC File No. 270-224, OMB Control No. 3235-0217

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``Paperwork Reduction Act''), the 
Securities and Exchange Commission (the ``Commission'') has submitted 
to the Office of Management and Budget (``OMB'') a request for 
extension of the previously approved collection of information 
described below.
    Rule 17e-1 (17 CFR 270.17e-1) under the Investment Company Act of 
1940 (15 U.S.C. 80a-1 et seq.) (the ``Investment Company Act'') deems a 
remuneration as ``not exceeding the usual and customary broker's 
commission'' for purposes of Section 17(e)(2)(A) of the Act (15 U.S.C. 
80a-17(e)(2)(A)) if, among other things, a registered investment 
company's (``fund's'') board of directors has adopted procedures 
reasonably designed to provide that the remuneration to an affiliated 
broker is reasonable and fair compared to that received by other 
brokers in connection with comparable transactions involving similar 
securities being purchased or sold on a securities exchange during a 
comparable period of time and the board makes and approves such changes 
as it deems necessary. In addition, each quarter, the board must 
determine that

[[Page 1810]]

all transactions effected under the rule during the preceding quarter 
complied with the established procedures. Rule 17e-1 also requires the 
fund to (i) maintain permanently a written copy of the procedures 
adopted by the board for complying with the requirements of the rule; 
and (ii) maintain for a period of six years, the first two in an easily 
accessible place, a written record of each transaction subject to the 
rule, setting forth the amount and source of the commission, fee, or 
other remuneration received; the identity of the broker; the terms of 
the transaction; and the materials used to determine that the 
transactions were effected in compliance with the procedures adopted by 
the board. The recordkeeping requirements under rule 17e-1 enable the 
Commission to ensure that affiliated brokers receive compensation that 
does not exceed the usual and customary broker's commission. Without 
the recordkeeping requirements, Commission inspectors would have 
difficulty ascertaining whether funds were complying with rule 17e-1.
    Based on an analysis of fund filings, the staff estimates that 
approximately 266 funds enter into subadvisory agreements each year.\1\ 
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 17e-
1. 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, 10f-3, and 17a-10, 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 17e-1 for this contract change would be 
0.75 hours.\2\ Assuming that all 266 funds 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 200 burden hours annually.\3\
---------------------------------------------------------------------------

    \1\ Based on data from Morningstar, as of June 30, 2018, there 
are 12,393 registered funds (open-end funds, closed-end funds, and 
exchange-traded funds), 4,594 funds of which have subadvisory 
relationships (approximately 37%). Based on data from the 2018 ICI 
Factbook, 720 new funds were established in 2017 (705 open-end funds 
and exchange-traded funds + 15 closed-end funds (from the ICI 
Research Perspective, April 2018)). 720 new funds x 37% = 266 funds.
    \2\ 3 hours / 4 rules = 0.75 hours.
    \3\ This estimate is based on the following calculation: 0.75 
hours x 266 funds = 200 burden hours.
---------------------------------------------------------------------------

    Based on an analysis of fund filings, we estimate that 
approximately 1,609 funds use at least one affiliated broker. Based on 
staff experience and conversations with fund representatives, the staff 
estimates approximately 40 percent of transactions (and thus, 40% of 
funds) that occur under the rule 17e-1 would be exempt from its 
recordkeeping and review requirements. This would leave approximately 
965 funds \4\ still subject to the rule's recordkeeping and review 
requirements. Based on staff experience and conversations with fund 
representatives, we estimate that the burden of compliance with rule 
17e-1 is approximately 50 hours per fund per year. This time is spent, 
for example, reviewing the applicable transactions and maintaining 
records. Accordingly, we calculate the total estimated annual internal 
burden of complying with the review and recordkeeping requirements of 
rule 17e-1 to be approximately 48,250 hours,\5\ and the total annual 
burden of the rule's paperwork requirements is 48,450 hours.\6\
---------------------------------------------------------------------------

    \4\ 1,609 funds x 0.6 = 965 funds.
    \5\ 965 funds x 50 hours per fund = 48,250 hours.
    \6\ 200 hours + 48,250 hours = 48,450 hours.
---------------------------------------------------------------------------

    Estimates of the average burden hours are made solely for the 
purposes of the Paperwork Reduction Act and are not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms. The collection of information under rule 
17e-1 is mandatory. The information provided under rule 17e-1 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: 
Lindsay.M.Abate@omb.eop.gov and (ii) Charles Riddle, Acting 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: January 31, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-01042 Filed 2-4-19; 8:45 am]
 BILLING CODE 8011-01-P
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