Proposed Collection; Comment Request, 4123-4125 [2019-02307]

Download as PDF Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices (i) The amount of the opportunity proposed to be made available to any Regulated Fund is not based on the Regulated Funds’ and the Affiliated Funds’ outstanding investments in the issuer or the security at issue, as appropriate, immediately preceding the Follow-On Investment; and (ii) the aggregate amount recommended by the Advisers to be invested in the Follow-On Investment by the participating Regulated Funds and any participating Affiliated Funds, collectively, exceeds the amount of the investment opportunity, then the Follow-On Investment opportunity will be allocated among them pro rata based on the size of the Internal Orders, as described in section III.A.1.(b) of the application. (e) Other Conditions. The acquisition of Follow-On Investments as permitted by this Condition will be considered a Co-Investment Transaction for all purposes and subject to the other Conditions set forth in the application. 10. Board Reporting, Compliance and Annual Re-Approval. (a) Each Adviser to a Regulated Fund will present to the Board of each Regulated Fund, on a quarterly basis, and at such other times as the Board may request, (i) a record of all investments in Potential Co-Investment Transactions made by any of the other Regulated Funds or any of the Affiliated Funds during the preceding quarter that fell within the Regulated Fund’s thencurrent Objectives and Strategies and Board-Established Criteria that were not made available to the Regulated Fund, and an explanation of why such investment opportunities were not made available to the Regulated Fund; (ii) a record of all Follow-On Investments in and Dispositions of investments in any issuer in which the Regulated Fund holds any investments by any Affiliated Fund or other Regulated Fund during the prior quarter; and (iii) all information concerning Potential CoInvestment Transactions and CoInvestment Transactions, including investments made by other Regulated Funds or Affiliated Funds that the Regulated Fund considered but declined to participate in, so that the Independent Directors, may determine whether all Potential Co-Investment Transactions and Co-Investment Transactions during the preceding quarter, including those investments that the Regulated Fund considered but declined to participate in, comply with the Conditions. (b) All information presented to the Regulated Fund’s Board pursuant to this Condition will be kept for the life of the Regulated Fund and at least two years VerDate Sep<11>2014 17:54 Feb 13, 2019 Jkt 247001 thereafter, and will be subject to examination by the Commission and its staff. (c) Each Regulated Fund’s chief compliance officer, as defined in rule 38a–1(a)(4), will prepare an annual report for its Board each year that evaluates (and documents the basis of that evaluation) the Regulated Fund’s compliance with the terms and Conditions of the application and the procedures established to achieve such compliance. (d) The Independent Directors will consider at least annually whether continued participation in new and existing Co-Investment Transactions is in the Regulated Fund’s best interests. 11. Record Keeping. Each Regulated Fund will maintain the records required by Section 57(f)(3) of the Act as if each of the Regulated Funds were a BDC and each of the investments permitted under these Conditions were approved by the Required Majority under Section 57(f). 12. Director Independence. No Independent Director of a Regulated Fund will also be a director, general partner, managing member or principal, or otherwise be an ‘‘affiliated person’’ (as defined in the Act) of any Affiliated Fund. 13. Expenses. The expenses, if any, associated with acquiring, holding or disposing of any securities acquired in a Co-Investment Transaction (including, without limitation, the expenses of the distribution of any such securities registered for sale under the Securities Act) will, to the extent not payable by the Advisers under their respective advisory agreements with the Regulated Funds and the Affiliated Funds, be shared by the Regulated Funds and the participating Affiliated Funds in proportion to the relative amounts of the securities held or being acquired or disposed of, as the case may be. 14. Transaction Fees.29 Any transaction fee (including break-up, structuring, monitoring or commitment fees but excluding brokerage or underwriting compensation permitted by Section 17(e) or 57(k)) received in connection with any Co-Investment Transaction will be distributed to the participants on a pro rata basis based on the amounts they invested or committed, as the case may be, in such Co-Investment Transaction. If any transaction fee is to be held by an Adviser pending consummation of the transaction, the fee will be deposited into an account maintained by the 29 Applicants are not requesting and the Commission is not providing any relief for transaction fees received in connection with any Co-Investment Transaction. PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 4123 Adviser at a bank or banks having the qualifications prescribed in Section 26(a)(1), and the account will earn a competitive rate of interest that will also be divided pro rata among the participants. None of the Advisers, the Affiliated Funds, the other Regulated Funds or any affiliated person of the Affiliated Funds or the Regulated Funds will receive any additional compensation or remuneration of any kind as a result of or in connection with a Co-Investment Transaction other than (i) in the case of the Regulated Funds and the Affiliated Funds, the pro rata transaction fees described above and fees or other compensation described in Condition 2(c)(iii)(B)(z), (ii) brokerage or underwriting compensation permitted by Section 17(e) or 57(k) or (iii) in the case of the Advisers, investment advisory compensation paid in accordance with investment advisory agreements between the applicable Regulated Fund(s) or Affiliated Fund(s) and its Adviser. 15. Independence. If the Holders own in the aggregate more than 25 percent of the Shares of a Regulated Fund, then the Holders will vote such Shares as directed by an independent third party when voting on (1) the election of directors; (2) the removal of one or more directors; or (3) any other matter under either the Act or applicable State law affecting the Board’s composition, size or manner of election. For the Commission, by the Division of Investment Management, under delegated authority. Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–02285 Filed 2–13–19; 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: Form N–MFP and Rule 30b1–7, SEC File No. 270–604, OMB Control No. 3235– 0657 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection E:\FR\FM\14FEN1.SGM 14FEN1 4124 Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Section 30(b) of the Investment Company Act of 1940 (‘‘Investment Company Act’’) 1 provides that ‘‘[e]very registered investment company shall file with the Commission . . . such information, documents, and reports (other than financial statements), as the Commission may require to keep reasonably current the information and documents contained in the registration statement of such company . . . .’’ 2 Rule 30b1–7 under the Investment Company Act, entitled ‘‘Monthly Report for Money Market Funds,’’ provides that every registered investment company, or series thereof, that is regulated as a money market funds under rule 2a–7 3 must file with the Commission a monthly report of portfolio holdings on Form N–MFP 4 no later than the fifth business day of each month.5 Form N– MFP sets forth the specific disclosure items that money market funds must provide. Filers must submit this report electronically using the Commission’s electronic filing system (‘‘EDGAR’’) in Extensible Markup Language (‘‘XML’’) format. Compliance with rule 30b1–7 is mandatory for any fund that holds itself out as a money market fund in reliance on rule 2a–7. Responses to the disclosure requirements 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 following estimates of average burden hours and costs are made solely for purposes of the Paperwork Reduction Act and are not derived from a comprehensive or even representative survey or study of the cost of Commission rules and forms. A fund must comply with the requirement to prepare Form N–MFP in order to hold itself out to investors as a money market fund or the equivalent of a money market fund in reliance on rule 2a–7. The collection of information is mandatory for money market funds that rely on rule 2a–7, and responses to the information collections will not be kept confidential. The Commission estimates there are currently 429 6 money market funds that report information on Form N–MFP, 1 15 U.S.C. 80a–1 et seq. U.S.C. 80a–30(b). 3 17 CFR 270.2a–7. 4 17 CFR 274.201. 5 17 CFR 270.30b1–7. 6 This estimate is based on staff review of reports on Form N–MFP filed with the Commission for the month ended February 28, 2018. 2 15 VerDate Sep<11>2014 17:54 Feb 13, 2019 Jkt 247001 with approximately 10 7 of them being new money market funds that are filing reports on Form N–PORT for the first time. We estimate that 35% of money market funds (or 150 money market funds, broken down into 146 existing funds and 4 new funds) 8 license a software solution and file reports on Form N–MFP in house; we further estimate that each fund that files reports on Form N–MFP in house requires an average of approximately 47 burden hours to compile (including review of the information), tag, and electronically file the Form N–MFP for the first time and an average of approximately 13 burden hours for subsequent filings.9 Therefore, we estimate the per fund average annual hour burden is 96 hours 10 for existing funds and 130 hours 11 for new money market funds. Based on an estimate of 146 existing fund filers and 4 new fund filers each year, we estimate that filing reports on Form N–MFP in house takes 23,536 hours and costs funds, in aggregate, $6,754,832 per year.12 We estimate that 65% of money market funds (or 279 money market funds, broken down into 272 existing fund and 7 new funds) 13 retain the services of a third party to provide data aggregation and validation services as part of the preparation and filing of reports on Form N–MFP on the fund’s behalf; we further estimate that each fund requires an average of approximately 26 burden hours to compile and review the information with the service provider prior to electronically filing the report for the first time and an average of approximately 9 burden hours for subsequent filings. Therefore, we estimate the per fund average annual hour burden is 108 hours 14 for existing funds and 125 hours 15 for new money market funds. Based on an estimate of 272 existing fund filers and 7 new fund filers each year, we estimate that filing reports on Form N–MFP using a service provider takes 41,131 hours and costs funds, in aggregate, $8,682,037 per year.16 In sum, we estimate that filing 7 This estimate is based on staff review of reports on Form N–MFP filed with the Commission for 2015 (1 new filer), 2016 (23 new filers), and 2017 (6 new filers). Amortizing those numbers over three years provides an estimate of 10 new filers per year. 8 The estimate is based on the following calculation: (429 money market funds × 35% = 150 money market funds. Of that amount, we estimate that 4 are new money market funds (10 new money market fund filers each year × 35% = 3.5 funds, rounded to 4). Therefore, 150 money market funds¥4 new money market funds = 146 existing money market funds. 9 We understand that the required information is currently maintained by money market funds pursuant to other regulatory requirements or in the ordinary course of business. Accordingly, for the purposes of our analysis, we do not ascribe any time to producing the required information. 10 This estimate is based on the following calculation: 12 filings per year × 13 burden hours per filing = 156 burden hours per year. 11 This estimate is based on the following calculation: (First month’s initial filing × 47 burden hours) + (11 subsequent month filings × 13 burden hours per filing) = 190 burden hours per year. 12 These estimates are based on the following calculations: Existing fund filers: (156 hours × blended hourly rate of $287 for a Financial Reporting Manager ($280 per hour), Fund Senior Accountant ($209 per hour), Senior Database Administrator ($329 per hour), Senior Portfolio Manager ($317 per hour), Compliance Manager ($298 per hour)) = $44,772. The blended hourly rate was calculated as ($280 + $209 + $329 + $317 + 209)/5 = $287. There are 146 existing money market funds who use in house solutions × 156 hours with a monetized cost of $44,772 per fund = 22,776 hours with a monetized cost of $6,536,712. New money market fund filers: (190 hours × blended hourly rate of $287 for a Financial Reporting Manager ($280 per hour), Fund Senior Accountant ($209 per hour), Senior Database Administrator ($329 per hour), Senior Portfolio Manager ($317 per hour), Compliance Manager ($298 per hour)) = $54,530. The blended hourly rate was calculated as ($280 + $209 + $329 + $317 + 209)/5 = $287. Four new money market funds × 190 hours with a monetized cost of $54,530 per fund = 760 hours with a monetized cost of $218,120. Aggregate annual hourly burden for all funds filing reports on Form N–MFP in house: 22,776 hours + 760 hours = 23,536 hours. Aggregate annual costs for all funds filing reports on Form N–MFP in house: $6,536,712 + $218,120= $6,754,832. 13 The estimate is based on the following calculation: (429 money market funds × 65% = 279 money market funds. Of that amount, we estimate that 7 are new money market funds (10 new money market fund filers each year × 65% = 6.5 funds, rounded to 7). Therefore, 279 money market funds¥7 new money market funds = 272 existing money market funds. 14 This estimate is based on the following calculation: 12 filings per year × 9 burden hours per filing = 108 burden hours per year. 15 This estimate is based on the following calculation: (First month’s initial filing × 26 burden hours) + (11 subsequent month filings × 9 burden hours per filing) = 125 burden hours per year. 16 These estimates are based on the following calculations: Existing fund filers: (108 hours × blended hourly rate of $287 for a Financial Reporting Manager ($280 per hour), Fund Senior Accountant ($209 per hour), Senior Database Administrator ($329 per hour), Senior Portfolio Manager ($317 per hour), Compliance Manager ($298 per hour)) = $30,996. The blended hourly rate was calculated as ($280 + $209 + $329 + $317 + 209)/5 = $287. There are 272 existing money market funds who use a third-party service provider × 148 hours with a monetized cost of $30,996 per fund = 40,256 hours with a monetized cost of $8,430,912. New money market fund filers: (125 hours × blended hourly rate of $287 for a Financial Reporting Manager ($280 per hour), Fund Senior Accountant ($209 per hour), Senior Database Administrator ($329 per hour), Senior Portfolio Manager ($317 per hour), Compliance Manager ($298 per hour)) = $35,875. The blended hourly rate was calculated as ($280 + $209 + $329 + $317 + 209)/5 = $287. Seven new money market funds × 125 hours with a monetized cost of $35,875 per fund = 875 hours with a monetized cost of $251,125. PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\14FEN1.SGM 14FEN1 Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices reports on Form N–MFP imposes a total annual hour burden of 64,667 hours,17 at an aggregate cost of $15,436,869 on all money market funds.18 Exchange Commission, C/O Candace Kenner, 100 F Street NE, Washington, DC 20549; or send an email to: PRA_ Mailbox@sec.gov. Cost to Respondents Cost burden is the cost of goods and services purchased in connection with complying with the collection of information requirements of rule 30b1– 7 and Form N–MFP. The cost burden does not include the cost of the hour burden discussed in Item 12 above. Based on discussions with industry participants, we estimate that money market funds that file reports on Form N–MFP in house license a third-party software solution to assist in filing their reports at an average cost of $3,900 per fund per year. In addition, we estimate that money market funds that use a service provider to prepare and file reports on Form N–MFP pay an average fee of $9,300 per fund per year. In sum, we estimate that all money market funds incur on average, in the aggregate, external annual costs of $3,179,700.19 Written comments are invited on: (a) Whether the collection of information is 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 burden 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 Charles Riddle, Acting Director/Chief Information Officer, Securities and Dated: February 11, 2019. Eduardo A. Aleman, Deputy Secretary. Aggregate annual hourly burden for all funds filing reports on Form N–MFP in house: 40,256 hours + 875 hours = 41,131 hours. Aggregate annual costs for all funds filing reports on Form N–MFP in house: $8,430,912 + $251,125= $8,682,037. 17 This estimate is based on the following calculation: 23,536 hours for filers licensing a software solution and filing in-house + 41,131 hours for filers using a third-party service provider = 64,667 hours in total. 18 This estimate is based on the following calculation: $6,754,832 (in-house filers) + $8,682,037 (filers using a service provider) = $15,436,869. 19 This estimate is based on the following calculation: (150 money market funds (146 existing funds + 4 new funds) that file reports on Form N– MFP in house × $3,900 per fund, per year) + (279 money market funds (272 existing funds + 7 new funds) that file reports on Form N–MFP using a service provider × $9,300 per fund, per year) = $3,179,700. VerDate Sep<11>2014 17:54 Feb 13, 2019 Jkt 247001 [FR Doc. 2019–02307 Filed 2–13–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–85082; File No. SR–C2– 2019–002] Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Options Regulatory Fee February 8, 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 January 29, 2019, Cboe C2 Exchange, Inc. (the ‘‘Exchange’’ or ‘‘C2’’) 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 C2 Exchange, Inc. (the ‘‘Exchange’’ or ‘‘C2 Options’’) proposes to amend its Fees Schedule relating to the Options Regulatory Fee. 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://markets.cboe.com/us/ options/regulation/rule_filings/ctwo/), 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 statements may be examined at the 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00085 Fmt 4703 Sfmt 4703 4125 places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to increase the Options Regulatory Fee (‘‘ORF’’) from $.0011 per contract to $.0012 per contract in order to help ensure that revenue collected from the ORF, in combination with other regulatory fees and fines, meets the Exchange’s total regulatory costs. The ORF is assessed by C2 Options to each Trading Permit Holder (‘‘TPH’’) for options transactions cleared by the TPH that are cleared by the Options Clearing Corporation (OCC) in the customer range, regardless of the exchange on which the transaction occurs. In other words, the Exchange imposes the ORF on all customer-range transactions cleared by a TPH, even if the transactions do not take place on the Exchange. The ORF is collected by OCC on behalf of the Exchange from the Clearing Trading Permit Holder (‘‘CTPH’’) or non-CTPH that ultimately clears the transaction. With respect to linkage transactions, C2 Options reimburses its routing broker providing Routing Services pursuant to C2 Options Rule 6.15 for options regulatory fees it incurs in connection with the Routing Services it provides. Revenue generated from ORF, when combined with all of the Exchange’s other regulatory fees and fines, is designed to recover a material portion of the regulatory costs to the Exchange of the supervision and regulation of TPH customer options business. Regulatory costs include direct regulatory expenses and certain indirect expenses for work allocated in support of the regulatory function. The direct expenses include in-house and third party service provider costs to support the day to day regulatory work such as surveillances, investigations and examinations. The indirect expenses include support from such areas as human resources, legal, information technology and accounting. These indirect expenses are estimated to be approximately 4% of C2 Options’ total regulatory costs for 2019. Thus, direct expenses are estimated to be approximately 96% of total regulatory costs for 2019. In addition, it is C2 Options’ practice that revenue generated from ORF not exceed more than 75% of total annual regulatory costs. These E:\FR\FM\14FEN1.SGM 14FEN1

Agencies

[Federal Register Volume 84, Number 31 (Thursday, February 14, 2019)]
[Notices]
[Pages 4123-4125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02307]


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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:
    Form N-MFP and Rule 30b1-7, SEC File No. 270-604, OMB Control 
No. 3235-0657

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit this 
existing collection

[[Page 4124]]

of information to the Office of Management and Budget (``OMB'') for 
extension and approval.
    Section 30(b) of the Investment Company Act of 1940 (``Investment 
Company Act'') \1\ provides that ``[e]very registered investment 
company shall file with the Commission . . . such information, 
documents, and reports (other than financial statements), as the 
Commission may require to keep reasonably current the information and 
documents contained in the registration statement of such company . . . 
.'' \2\ Rule 30b1-7 under the Investment Company Act, entitled 
``Monthly Report for Money Market Funds,'' provides that every 
registered investment company, or series thereof, that is regulated as 
a money market funds under rule 2a-7 \3\ must file with the Commission 
a monthly report of portfolio holdings on Form N-MFP \4\ no later than 
the fifth business day of each month.\5\ Form N-MFP sets forth the 
specific disclosure items that money market funds must provide. Filers 
must submit this report electronically using the Commission's 
electronic filing system (``EDGAR'') in Extensible Markup Language 
(``XML'') format.
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    \1\ 15 U.S.C. 80a-1 et seq.
    \2\ 15 U.S.C. 80a-30(b).
    \3\ 17 CFR 270.2a-7.
    \4\ 17 CFR 274.201.
    \5\ 17 CFR 270.30b1-7.
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    Compliance with rule 30b1-7 is mandatory for any fund that holds 
itself out as a money market fund in reliance on rule 2a-7. Responses 
to the disclosure requirements 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 following estimates of average burden hours and costs are made 
solely for purposes of the Paperwork Reduction Act and are not derived 
from a comprehensive or even representative survey or study of the cost 
of Commission rules and forms. A fund must comply with the requirement 
to prepare Form N-MFP in order to hold itself out to investors as a 
money market fund or the equivalent of a money market fund in reliance 
on rule 2a-7. The collection of information is mandatory for money 
market funds that rely on rule 2a-7, and responses to the information 
collections will not be kept confidential.
    The Commission estimates there are currently 429 \6\ money market 
funds that report information on Form N-MFP, with approximately 10 \7\ 
of them being new money market funds that are filing reports on Form N-
PORT for the first time.
---------------------------------------------------------------------------

    \6\ This estimate is based on staff review of reports on Form N-
MFP filed with the Commission for the month ended February 28, 2018.
    \7\ This estimate is based on staff review of reports on Form N-
MFP filed with the Commission for 2015 (1 new filer), 2016 (23 new 
filers), and 2017 (6 new filers). Amortizing those numbers over 
three years provides an estimate of 10 new filers per year.
---------------------------------------------------------------------------

    We estimate that 35% of money market funds (or 150 money market 
funds, broken down into 146 existing funds and 4 new funds) \8\ license 
a software solution and file reports on Form N-MFP in house; we further 
estimate that each fund that files reports on Form N-MFP in house 
requires an average of approximately 47 burden hours to compile 
(including review of the information), tag, and electronically file the 
Form N-MFP for the first time and an average of approximately 13 burden 
hours for subsequent filings.\9\ Therefore, we estimate the per fund 
average annual hour burden is 96 hours \10\ for existing funds and 130 
hours \11\ for new money market funds. Based on an estimate of 146 
existing fund filers and 4 new fund filers each year, we estimate that 
filing reports on Form N-MFP in house takes 23,536 hours and costs 
funds, in aggregate, $6,754,832 per year.\12\
---------------------------------------------------------------------------

    \8\ The estimate is based on the following calculation: (429 
money market funds x 35% = 150 money market funds. Of that amount, 
we estimate that 4 are new money market funds (10 new money market 
fund filers each year x 35% = 3.5 funds, rounded to 4). Therefore, 
150 money market funds-4 new money market funds = 146 existing money 
market funds.
    \9\ We understand that the required information is currently 
maintained by money market funds pursuant to other regulatory 
requirements or in the ordinary course of business. Accordingly, for 
the purposes of our analysis, we do not ascribe any time to 
producing the required information.
    \10\ This estimate is based on the following calculation: 12 
filings per year x 13 burden hours per filing = 156 burden hours per 
year.
    \11\ This estimate is based on the following calculation: (First 
month's initial filing x 47 burden hours) + (11 subsequent month 
filings x 13 burden hours per filing) = 190 burden hours per year.
    \12\ These estimates are based on the following calculations: 
Existing fund filers: (156 hours x blended hourly rate of $287 for a 
Financial Reporting Manager ($280 per hour), Fund Senior Accountant 
($209 per hour), Senior Database Administrator ($329 per hour), 
Senior Portfolio Manager ($317 per hour), Compliance Manager ($298 
per hour)) = $44,772. The blended hourly rate was calculated as 
($280 + $209 + $329 + $317 + 209)/5 = $287. There are 146 existing 
money market funds who use in house solutions x 156 hours with a 
monetized cost of $44,772 per fund = 22,776 hours with a monetized 
cost of $6,536,712.
    New money market fund filers: (190 hours x blended hourly rate 
of $287 for a Financial Reporting Manager ($280 per hour), Fund 
Senior Accountant ($209 per hour), Senior Database Administrator 
($329 per hour), Senior Portfolio Manager ($317 per hour), 
Compliance Manager ($298 per hour)) = $54,530. The blended hourly 
rate was calculated as ($280 + $209 + $329 + $317 + 209)/5 = $287. 
Four new money market funds x 190 hours with a monetized cost of 
$54,530 per fund = 760 hours with a monetized cost of $218,120.
    Aggregate annual hourly burden for all funds filing reports on 
Form N-MFP in house: 22,776 hours + 760 hours = 23,536 hours.
    Aggregate annual costs for all funds filing reports on Form N-
MFP in house: $6,536,712 + $218,120= $6,754,832.
---------------------------------------------------------------------------

    We estimate that 65% of money market funds (or 279 money market 
funds, broken down into 272 existing fund and 7 new funds) \13\ retain 
the services of a third party to provide data aggregation and 
validation services as part of the preparation and filing of reports on 
Form N-MFP on the fund's behalf; we further estimate that each fund 
requires an average of approximately 26 burden hours to compile and 
review the information with the service provider prior to 
electronically filing the report for the first time and an average of 
approximately 9 burden hours for subsequent filings. Therefore, we 
estimate the per fund average annual hour burden is 108 hours \14\ for 
existing funds and 125 hours \15\ for new money market funds. Based on 
an estimate of 272 existing fund filers and 7 new fund filers each 
year, we estimate that filing reports on Form N-MFP using a service 
provider takes 41,131 hours and costs funds, in aggregate, $8,682,037 
per year.\16\ In sum, we estimate that filing

[[Page 4125]]

reports on Form N-MFP imposes a total annual hour burden of 64,667 
hours,\17\ at an aggregate cost of $15,436,869 on all money market 
funds.\18\
---------------------------------------------------------------------------

    \13\ The estimate is based on the following calculation: (429 
money market funds x 65% = 279 money market funds. Of that amount, 
we estimate that 7 are new money market funds (10 new money market 
fund filers each year x 65% = 6.5 funds, rounded to 7). Therefore, 
279 money market funds-7 new money market funds = 272 existing money 
market funds.
    \14\ This estimate is based on the following calculation: 12 
filings per year x 9 burden hours per filing = 108 burden hours per 
year.
    \15\ This estimate is based on the following calculation: (First 
month's initial filing x 26 burden hours) + (11 subsequent month 
filings x 9 burden hours per filing) = 125 burden hours per year.
    \16\ These estimates are based on the following calculations: 
Existing fund filers: (108 hours x blended hourly rate of $287 for a 
Financial Reporting Manager ($280 per hour), Fund Senior Accountant 
($209 per hour), Senior Database Administrator ($329 per hour), 
Senior Portfolio Manager ($317 per hour), Compliance Manager ($298 
per hour)) = $30,996. The blended hourly rate was calculated as 
($280 + $209 + $329 + $317 + 209)/5 = $287. There are 272 existing 
money market funds who use a third-party service provider x 148 
hours with a monetized cost of $30,996 per fund = 40,256 hours with 
a monetized cost of $8,430,912.
    New money market fund filers: (125 hours x blended hourly rate 
of $287 for a Financial Reporting Manager ($280 per hour), Fund 
Senior Accountant ($209 per hour), Senior Database Administrator 
($329 per hour), Senior Portfolio Manager ($317 per hour), 
Compliance Manager ($298 per hour)) = $35,875. The blended hourly 
rate was calculated as ($280 + $209 + $329 + $317 + 209)/5 = $287. 
Seven new money market funds x 125 hours with a monetized cost of 
$35,875 per fund = 875 hours with a monetized cost of $251,125.
    Aggregate annual hourly burden for all funds filing reports on 
Form N-MFP in house: 40,256 hours + 875 hours = 41,131 hours.
    Aggregate annual costs for all funds filing reports on Form N-
MFP in house: $8,430,912 + $251,125= $8,682,037.
    \17\ This estimate is based on the following calculation: 23,536 
hours for filers licensing a software solution and filing in-house + 
41,131 hours for filers using a third-party service provider = 
64,667 hours in total.
    \18\ This estimate is based on the following calculation: 
$6,754,832 (in-house filers) + $8,682,037 (filers using a service 
provider) = $15,436,869.
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Cost to Respondents
    Cost burden is the cost of goods and services purchased in 
connection with complying with the collection of information 
requirements of rule 30b1-7 and Form N-MFP. The cost burden does not 
include the cost of the hour burden discussed in Item 12 above.
    Based on discussions with industry participants, we estimate that 
money market funds that file reports on Form N-MFP in house license a 
third-party software solution to assist in filing their reports at an 
average cost of $3,900 per fund per year. In addition, we estimate that 
money market funds that use a service provider to prepare and file 
reports on Form N-MFP pay an average fee of $9,300 per fund per year. 
In sum, we estimate that all money market funds incur on average, in 
the aggregate, external annual costs of $3,179,700.\19\
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    \19\ This estimate is based on the following calculation: (150 
money market funds (146 existing funds + 4 new funds) that file 
reports on Form N-MFP in house x $3,900 per fund, per year) + (279 
money market funds (272 existing funds + 7 new funds) that file 
reports on Form N-MFP using a service provider x $9,300 per fund, 
per year) = $3,179,700.
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    Written comments are invited on: (a) Whether the collection of 
information is 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 burden 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 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.

    Dated: February 11, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-02307 Filed 2-13-19; 8:45 am]
 BILLING CODE 8011-01-P
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