Proposed Collection; Comment Request; 30 Day Notice-Submission for OMB Review; Comment Request; Extension: Rule 22e-4 (30 Day Notice 2019), 8085-8086 [2020-02733]

Download as PDF Federal Register / Vol. 85, No. 29 / Wednesday, February 12, 2020 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) 15 of the Act. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 16 of the Act to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: lotter on DSKBCFDHB2PROD with NOTICES Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– IEX–2020–02 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File Number SR–IEX–2020–02. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–IEX–2020–02 and should be submitted on or before March 4, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–02749 Filed 2–11–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–794, OMB Control No. 3235–0737] Proposed Collection; Comment Request; 30 Day Notice—Submission for OMB Review; Comment Request; Extension: Rule 22e–4 (30 Day Notice 2019) Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 30 day notice—Submission for OMB Review; Comment Request Extension: Rule 22e–4 (30 Day Notice 2019) Notice is hereby given that, under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520), the Securities and Exchange Commission (the ‘‘Commission’’) is soliciting comments on the collections of information summarized below. The Commission plans to submit 1 this existing collection 17 17 CFR 200.30–3(a)(12). 30-day notice supersedes the notice originally published in the Federal Register on February 5, 2020 (85 FR 6588, Feb. 5, 2020). That 8085 of information to the Office of Management and Budget for extension and approval. Section 22(e) of the Investment Company Act of 1940 (‘‘Investment Company Act’’) provides that no registered investment company shall suspend the right of redemption or postpone the date of payment of redemption proceeds for more than seven days after tender of the security absent specified unusual circumstances. The provision was designed to prevent funds and their investment advisers from interfering with the redemption rights of shareholders for improper purposes, such as the preservation of management fees. Although section 22(e) permits funds to postpone the date of payment or satisfaction upon redemption for up to seven days, it does not permit funds to suspend the right of redemption for any amount of time, absent certain specified circumstances or a Commission order. Rule 22e–4 under the Act [17 CFR 270.22e–4] requires an open-end fund and an exchange-traded fund that redeems in kind (‘‘In-Kind ETF’’) to establish a written liquidity risk management program that is reasonably designed to assess and manage the fund’s or In-Kind ETF’s liquidity risk. The rule also requires board approval and oversight of a fund’s or In-Kind ETF’s liquidity risk management program and recordkeeping. Rule 22e–4 also requires a limited liquidity review, under which a UIT’s principal underwriter or depositor determines, on or before the date of the initial deposit of portfolio securities into the UIT, that the portion of the illiquid investments that the UIT holds or will hold at the date of deposit that are assets is consistent with the redeemable nature of the securities it issues and retains a record of such determination for the life of the UIT and for five years thereafter. 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. Commission staff estimates that funds within 846 fund complexes are subject to rule 22e–4. Compliance with rule 22e–4 is mandatory for all such funds and In-Kind ETFs, with certain program elements applicable to certain funds within a fund complex based upon whether the fund is an In-Kind ETF or does not primarily hold assets that are highly liquid investments. The 1 This 15 15 16 15 U.S.C. 78s(b)(3)(A)(ii). U.S.C. 78s(b)(2)(B). VerDate Sep<11>2014 17:03 Feb 11, 2020 Jkt 250001 PO 00000 Frm 00169 Fmt 4703 Sfmt 4703 notice incorrectly contained the heading ‘‘Proposed Collection’’. E:\FR\FM\12FEN1.SGM 12FEN1 lotter on DSKBCFDHB2PROD with NOTICES 8086 Federal Register / Vol. 85, No. 29 / Wednesday, February 12, 2020 / Notices Commission estimates that a fund complex will incur a one time average burden of 40 hours associated with documenting the liquidity risk management programs adopted by each fund within a fund complex, in addition to a one time burden of 10 hours per fund complex associated with fund boards’ review and approval of the funds’ liquidity risk management programs and preparation of board materials. We estimate that the total burden for initial documentation and review of funds’ written liquidity risk management program will be 42,300 hours. Rule 22e–4 requires any fund that does not primarily hold assets that are highly liquid investments to determine a highly liquid investment minimum for the fund, which must be reviewed at least annually, and may not be changed during any period of time that a fund’s assets that are highly liquid investments are below the determined minimum without approval from the fund’s board of directors. We estimate that fund complexes will have at least one fund that will be subject to the highly liquid investment minimum requirement. Thus, we estimate that 846 fund complexes will be subject to this requirement under rule 22e–4 and that the total burden for preparation of the board report associated will be 11,844 hours. Rule 22e–4 requires a fund or In-Kind ETF to maintain a written copy of the policies and procedures adopted pursuant to its liquidity risk management program for five years in an easily accessible place. The rule also requires a fund to maintain copies of materials provided to the board in connection with its initial approval of the liquidity risk management program and any written reports provided to the board, for at least five years, the first two years in an easily accessible place. If applicable, a fund must also maintain a written record of how its highly liquid investment minimum and any adjustments to the minimum were determined, as well as any reports to the board regarding a shortfall in the fund’s highly liquid investment minimum, for five years, the first two years in an easily accessible place. We estimate that the total burden for recordkeeping related to the liquidity risk management program requirement of rule 22e–4 will be 3,384 hours. We estimate that the hour burdens and time costs associated with rule 22e– 4 for open-end funds, including the burden associated with (1) funds’ initial documentation and review of the required written liquidity risk management program, (2) reporting to a VerDate Sep<11>2014 17:03 Feb 11, 2020 Jkt 250001 fund’s board regarding the fund’s highly liquid investment minimum, and (3) recordkeeping requirements will result in an average aggregate annual burden of 25,380 hours, UITs may in some circumstances be subject to liquidity risk (particularly where the UIT is not a pass-through vehicle and the sponsor does not maintain an active secondary market for UIT shares). On or before the date of initial deposit of portfolio securities into a registered UIT, the UIT’s principal underwriter or depositor is required to determine that the portion of the illiquid investments that the UIT holds or will hold at the date of deposit that are assets is consistent with the redeemable nature of the securities it issues, and maintain a record of that determination for the life of the UIT and for five years thereafter. We estimate that 1,385 newly registered UITs will be subject to the UIT liquidity determination requirement under rule 22e–4 each year. We estimate that the total burden for the initial documentation and review of UIT funds’ written liquidity risk management program would be 13,850 hours. We estimate that the total burden for recordkeeping related to UIT liquidity risk management programs will be 2,770 hours. Compliance with the collection of information requirements of the rule is necessary to obtain the benefit of relying on the rule. ‘‘An agency’’ may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. The public may view the background documentation for this information collection at the following 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) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o Cynthia Roscoe, 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: February 6, 2020. J. Matthew DeLesDernier, Assistant Secretary. PO 00000 Frm 00170 Fmt 4703 Sfmt 4703 National Small Business Development Centers Advisory Board Small Business Administration. Notice of open Federal Advisory Committee meeting. AGENCY: ACTION: The SBA is issuing this notice to announce the date, time and agenda for a meeting of the National Small Business Development Center Advisory Board. The meeting will be open to the public; however, advance notice of attendance is required. DATES: Wednesday, February 12, 2020 at 11:00 a.m. EST. ADDRESSES: Meeting will be held via conference call. FOR FURTHER INFORMATION CONTACT: Alanna Falcone, Office of Small Business Development Centers, U.S. Small Business Administration, 409 Third Street SW, Washington, DC 20416; alanna.falcone@sba.gov; 202– 619–1612. If anyone wishes to be a listening participant or would like to request accommodations, please contact Alanna Falcone at the information above. SUPPLEMENTARY INFORMATION: Pursuant to section l0(a) of the Federal Advisory Committee Act (5 U.S.C. Appendix 2), the SBA announces the meetings of the National SBDC Advisory Board. This Board provides advice and counsel to the SBA Administrator and Associate Administrator for Small Business Development Centers. SUMMARY: Purpose The purpose of the meeting is to onboard the new members and discuss the following issues pertaining to the SBDC Program: • SBA Briefing • Member Introductions • Annual Meetings • Board Assignments Nicole Nelson, Acting Committee Management Officer. [FR Doc. 2020–02732 Filed 2–11–20; 8:45 am] BILLING CODE P SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 16253 and # 16254; PUERTO RICO Disaster Number PR–00034] Presidential Declaration Amendment of a Major Disaster for the Commonwealth of Puerto Rico U.S. Small Business Administration. ACTION: Amendment 2. AGENCY: [FR Doc. 2020–02733 Filed 2–11–20; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION E:\FR\FM\12FEN1.SGM 12FEN1

Agencies

[Federal Register Volume 85, Number 29 (Wednesday, February 12, 2020)]
[Notices]
[Pages 8085-8086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02733]


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

SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-794, OMB Control No. 3235-0737]


Proposed Collection; Comment Request; 30 Day Notice--Submission 
for OMB Review; Comment Request; Extension: Rule 22e-4 (30 Day Notice 
2019)

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

30 day notice--Submission for OMB Review; Comment Request

Extension:
    Rule 22e-4 (30 Day Notice 2019)

    Notice is hereby given that, under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520), the Securities and Exchange Commission (the 
``Commission'') is soliciting comments on the collections of 
information summarized below. The Commission plans to submit \1\ this 
existing collection of information to the Office of Management and 
Budget for extension and approval.
---------------------------------------------------------------------------

    \1\ This 30-day notice supersedes the notice originally 
published in the Federal Register on February 5, 2020 (85 FR 6588, 
Feb. 5, 2020). That notice incorrectly contained the heading 
``Proposed Collection''.
---------------------------------------------------------------------------

    Section 22(e) of the Investment Company Act of 1940 (``Investment 
Company Act'') provides that no registered investment company shall 
suspend the right of redemption or postpone the date of payment of 
redemption proceeds for more than seven days after tender of the 
security absent specified unusual circumstances. The provision was 
designed to prevent funds and their investment advisers from 
interfering with the redemption rights of shareholders for improper 
purposes, such as the preservation of management fees. Although section 
22(e) permits funds to postpone the date of payment or satisfaction 
upon redemption for up to seven days, it does not permit funds to 
suspend the right of redemption for any amount of time, absent certain 
specified circumstances or a Commission order.
    Rule 22e-4 under the Act [17 CFR 270.22e-4] requires an open-end 
fund and an exchange-traded fund that redeems in kind (``In-Kind ETF'') 
to establish a written liquidity risk management program that is 
reasonably designed to assess and manage the fund's or In-Kind ETF's 
liquidity risk. The rule also requires board approval and oversight of 
a fund's or In-Kind ETF's liquidity risk management program and 
recordkeeping. Rule 22e-4 also requires a limited liquidity review, 
under which a UIT's principal underwriter or depositor determines, on 
or before the date of the initial deposit of portfolio securities into 
the UIT, that the portion of the illiquid investments that the UIT 
holds or will hold at the date of deposit that are assets is consistent 
with the redeemable nature of the securities it issues and retains a 
record of such determination for the life of the UIT and for five years 
thereafter.
    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.
    Commission staff estimates that funds within 846 fund complexes are 
subject to rule 22e-4. Compliance with rule 22e-4 is mandatory for all 
such funds and In-Kind ETFs, with certain program elements applicable 
to certain funds within a fund complex based upon whether the fund is 
an In-Kind ETF or does not primarily hold assets that are highly liquid 
investments. The

[[Page 8086]]

Commission estimates that a fund complex will incur a one time average 
burden of 40 hours associated with documenting the liquidity risk 
management programs adopted by each fund within a fund complex, in 
addition to a one time burden of 10 hours per fund complex associated 
with fund boards' review and approval of the funds' liquidity risk 
management programs and preparation of board materials. We estimate 
that the total burden for initial documentation and review of funds' 
written liquidity risk management program will be 42,300 hours.
    Rule 22e-4 requires any fund that does not primarily hold assets 
that are highly liquid investments to determine a highly liquid 
investment minimum for the fund, which must be reviewed at least 
annually, and may not be changed during any period of time that a 
fund's assets that are highly liquid investments are below the 
determined minimum without approval from the fund's board of directors. 
We estimate that fund complexes will have at least one fund that will 
be subject to the highly liquid investment minimum requirement. Thus, 
we estimate that 846 fund complexes will be subject to this requirement 
under rule 22e-4 and that the total burden for preparation of the board 
report associated will be 11,844 hours.
    Rule 22e-4 requires a fund or In-Kind ETF to maintain a written 
copy of the policies and procedures adopted pursuant to its liquidity 
risk management program for five years in an easily accessible place. 
The rule also requires a fund to maintain copies of materials provided 
to the board in connection with its initial approval of the liquidity 
risk management program and any written reports provided to the board, 
for at least five years, the first two years in an easily accessible 
place. If applicable, a fund must also maintain a written record of how 
its highly liquid investment minimum and any adjustments to the minimum 
were determined, as well as any reports to the board regarding a 
shortfall in the fund's highly liquid investment minimum, for five 
years, the first two years in an easily accessible place. We estimate 
that the total burden for recordkeeping related to the liquidity risk 
management program requirement of rule 22e-4 will be 3,384 hours.
    We estimate that the hour burdens and time costs associated with 
rule 22e-4 for open-end funds, including the burden associated with (1) 
funds' initial documentation and review of the required written 
liquidity risk management program, (2) reporting to a fund's board 
regarding the fund's highly liquid investment minimum, and (3) 
recordkeeping requirements will result in an average aggregate annual 
burden of 25,380 hours,
    UITs may in some circumstances be subject to liquidity risk 
(particularly where the UIT is not a pass-through vehicle and the 
sponsor does not maintain an active secondary market for UIT shares). 
On or before the date of initial deposit of portfolio securities into a 
registered UIT, the UIT's principal underwriter or depositor is 
required to determine that the portion of the illiquid investments that 
the UIT holds or will hold at the date of deposit that are assets is 
consistent with the redeemable nature of the securities it issues, and 
maintain a record of that determination for the life of the UIT and for 
five years thereafter. We estimate that 1,385 newly registered UITs 
will be subject to the UIT liquidity determination requirement under 
rule 22e-4 each year. We estimate that the total burden for the initial 
documentation and review of UIT funds' written liquidity risk 
management program would be 13,850 hours. We estimate that the total 
burden for recordkeeping related to UIT liquidity risk management 
programs will be 2,770 hours.
    Compliance with the collection of information requirements of the 
rule is necessary to obtain the benefit of relying on the rule. ``An 
agency'' may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a currently 
valid control number.
    The public may view the background documentation for this 
information collection at the following 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: 
[email protected]; and (ii) David Bottom, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Cynthia 
Roscoe, 100 F Street NE, Washington, DC 20549 or send an email to: 
[email protected]. Comments must be submitted to OMB within 30 days 
of this notice.

    Dated: February 6, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-02733 Filed 2-11-20; 8:45 am]
 BILLING CODE 8011-01-P
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