Submission for OMB Review; Comment Request, 4317-4318 [2022-01624]
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Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Notices
lotter on DSK11XQN23PROD with NOTICES1
listing rules specified in the filing will
constitute continued listing
requirements for the Shares. The issuer
will advise the Exchange of any failure
by the Fund to comply with the
continued listing requirements, and,
pursuant to its obligations under
Section 19(g)(1) of the Act, the Exchange
will monitor 30 for compliance with the
continued listing requirements. If the
Fund is not in compliance with the
applicable listing requirements, the
Exchange will commence delisting
procedures under NYSE Arca Rule 5.5–
E(m).
(4) The Exchange has the appropriate
rules to facilitate transactions in the
Shares during all trading sessions;
(5) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Shares; 31
(6) For initial and continued listing,
the Fund will be in compliance with
Rule 10A–3 under the Act; 32 and
(7) A minimum of 100,000 Shares of
the Fund will be outstanding at the
commencement of trading on the
Exchange.
Accordingly, the Commission finds
that the proposed rule change, as
modified by Amendment No. 1, is
consistent with Section 6(b)(5) of the
Act 33 and the rules and regulations
thereunder applicable to a national
securities exchange.
30 Certain proposals for the listing and trading of
exchange-traded products include a representation
that the exchange will ‘‘surveil’’ for compliance
with the continued listing requirements. See, e.g.,
Securities Exchange Act Release No. 77499 (April
1, 2016), 81 FR 20428, 20432 (April 7, 2016) (SR–
BATS–2016–04). In the context of this
representation, it is the Commission’s view that
‘‘monitor’’ and ‘‘surveil’’ both mean ongoing
oversight of compliance with the continued listing
requirements. Therefore, the Commission does not
view ‘‘monitor’’ as a more or less stringent
obligation than ‘‘surveil’’ with respect to the
continued listing requirements.
31 The Exchange states that the Information
Bulletin will discuss the following: (1) The risks
involved in trading the Shares during the Opening
and Late Trading Sessions when an updated IFV
will not be calculated or publicly disseminated; (2)
the procedures for purchases and redemptions of
Shares in Creation Units and Redemption Units
(and that Shares are not individually redeemable);
(3) NYSE Arca Rule 9.2–E(a), which imposes a duty
of due diligence on its ETP Holders to learn the
essential facts relating to every customer prior to
trading the Shares; (4) how information regarding
the IFV is disseminated; (5) how information
regarding portfolio holdings is disseminated; (6) the
requirement that ETP Holders deliver a prospectus
to investors purchasing newly issued Shares prior
to or concurrently with the confirmation of a
transaction; and (7) trading information.
32 17 CFR 240.10A–3.
33 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:53 Jan 26, 2022
Jkt 256001
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,34 that the
proposed rule change (SR–NYSEArca–
2021–29), as modified by Amendment
No. 1, be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–01562 Filed 1–26–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–149, OMB Control No.
3235–0130]
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 17Ad–2(c), (d), and (h).
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
Rule 17Ad–2(c), (d), and (h), (17 CFR
240.17Ad–2(c), (d), and (h)), under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 17Ad–2(c),(d) and (h)
enumerates the requirements with
which transfer agents must comply to
inform the Commission or the
appropriate regulator of a transfer
agent’s failure to meet the minimum
performance standards set by the
Commission rule by filing a notice.
The Commission receives
approximately 3 notices a year pursuant
to Rule 17Ad–2(c), (d), and (h). The
estimated annual time burden of these
filings on respondents is minimal in
view of: (a) The readily available nature
of most of the information required to be
included in the notice (since that
information must be compiled and
retained pursuant to other Commission
rules); and (b) the summary fashion in
which such information must be
presented in the notice (most notices are
one page or less in length). In light of
34 Id.
35 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00127
Fmt 4703
Sfmt 4703
4317
the above, and based on the experience
of the staff regarding the notices, the
Commission staff estimates that, on
average, most notices require
approximately one-half hour to prepare.
Thus, the Commission staff estimates
that the industry-wide total time burden
is approximately 1.5 hours per year.
The retention period for the
recordkeeping requirement under Rule
17Ad–2(c), (d), and (h) is not less than
two years following the date the notice
is submitted. The recordkeeping
requirement under this rule is
mandatory to assist the Commission in
monitoring transfer agents who fail to
meet the minimum performance
standards set by the Commission rule.
This rule does not involve the collection
of confidential information. A transfer
agent is not required to file under the
rule unless it does not meet the
minimum performance standards for
turnaround, processing or forwarding
items received for transfer during a
month.
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. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 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: January 24, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–01614 Filed 1–26–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–224, OMB Control No.
3235–0217]
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
E:\FR\FM\27JAN1.SGM
27JAN1
4318
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Notices
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
lotter on DSK11XQN23PROD with NOTICES1
Extension:
Rule 17e–1
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
all transactions effected under the rule
during the preceding quarter complied
with the established procedures
(‘‘review requirement’’). 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 (‘‘recordkeeping
requirement’’). The review and
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
requirement, Commission inspectors
would have difficulty ascertaining
VerDate Sep<11>2014
17:53 Jan 26, 2022
Jkt 256001
whether funds were complying with
rule 17e–1.
Based upon an analysis of fund filings
on Form N–CEN, approximately 1,640
funds report reliance on rule 17e–1.
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
82,000 hours.1 We further estimate that,
of these:
• 60 percent (49,200 hours) are spent
by senior accountants, at an estimated
hourly wage of $221,2 for a total of
approximately $10,873,200 per year; 3
• 30 percent (24,600 hours) are spent
by in-house attorneys at an estimated
hourly wage of $425, for a total of
approximately $10,455,000 per year; 4
and
• 10 percent (8,200) are spent by the
funds’ board of directors at an hourly
cost of $4,770, for a total of
approximately $39,114,000 per year.5
Based on these estimated wage rates,
the total cost to the industry of the hour
burden for complying with the review
and recordkeeping requirements of rule
17e–1 is approximately $60,442,200.6
The Commission staff estimates that
there is no cost burden associated with
the information collection requirement
of rule 17e–1 other than this cost.
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
funds × 50 hours per fund = 82,000 hours.
Commission’s estimates concerning the
allocation of burden hours and the relevant wage
rates are based on consultations with industry
representatives and on salary information for the
securities industry compiled by the Securities
Industry and Financial Markets Association. The
estimated wage figures are also based on published
rates for senior accountants and in-house attorneys,
modified to account for an 1800-hour work-year
and multiplied by 5.35 to account for bonuses, firm
size, employee benefits, and overhead, yielding
effective hourly rates of $221 and $425,
respectively. See Securities Industry and Financial
Markets Association, Report on Management &
Professional Earnings in the Securities Industry
2013.
3 49,200 hours × $221 per hour = $10,873,200.
4 24,600 hours × $425 per hour = $10,455,000.
5 8,200 hours × $4,770 per hour = $39,114,000.
The estimate for the cost of board time as a whole
is derived from estimates made by the staff
regarding typical board size and compensation that
is based on information received from fund
representatives and publicly available sources.
6 $10,873,200 + $10,455,000 + $39,114,000 =
$60,442,200.
1 1,604
2 The
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
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)
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John R.
Pezzullo, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov. Written comments
and recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
Dated: January 24, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–01624 Filed 1–26–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–247, OMB Control No.
3235–0259]
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 19h–1
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
E:\FR\FM\27JAN1.SGM
27JAN1
]]>Agencies
[Federal Register Volume 87, Number 18 (Thursday, January 27, 2022)]
[Notices]
[Pages 4317-4318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01624]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-224, OMB Control No. 3235-0217]
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
[[Page 4318]]
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 17e-1
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 all transactions effected under the rule during the
preceding quarter complied with the established procedures (``review
requirement''). 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 (``recordkeeping
requirement''). The review and 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 requirement, Commission
inspectors would have difficulty ascertaining whether funds were
complying with rule 17e-1.
Based upon an analysis of fund filings on Form N-CEN, approximately
1,640 funds report reliance on rule 17e-1. 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 82,000
hours.\1\ We further estimate that, of these:
---------------------------------------------------------------------------
\1\ 1,604 funds x 50 hours per fund = 82,000 hours.
---------------------------------------------------------------------------
60 percent (49,200 hours) are spent by senior accountants,
at an estimated hourly wage of $221,\2\ for a total of approximately
$10,873,200 per year; \3\
---------------------------------------------------------------------------
\2\ The Commission's estimates concerning the allocation of
burden hours and the relevant wage rates are based on consultations
with industry representatives and on salary information for the
securities industry compiled by the Securities Industry and
Financial Markets Association. The estimated wage figures are also
based on published rates for senior accountants and in-house
attorneys, modified to account for an 1800-hour work-year and
multiplied by 5.35 to account for bonuses, firm size, employee
benefits, and overhead, yielding effective hourly rates of $221 and
$425, respectively. See Securities Industry and Financial Markets
Association, Report on Management & Professional Earnings in the
Securities Industry 2013.
\3\ 49,200 hours x $221 per hour = $10,873,200.
---------------------------------------------------------------------------
30 percent (24,600 hours) are spent by in-house attorneys
at an estimated hourly wage of $425, for a total of approximately
$10,455,000 per year; \4\ and
---------------------------------------------------------------------------
\4\ 24,600 hours x $425 per hour = $10,455,000.
---------------------------------------------------------------------------
10 percent (8,200) are spent by the funds' board of
directors at an hourly cost of $4,770, for a total of approximately
$39,114,000 per year.\5\
---------------------------------------------------------------------------
\5\ 8,200 hours x $4,770 per hour = $39,114,000. The estimate
for the cost of board time as a whole is derived from estimates made
by the staff regarding typical board size and compensation that is
based on information received from fund representatives and publicly
available sources.
---------------------------------------------------------------------------
Based on these estimated wage rates, the total cost to the industry
of the hour burden for complying with the review and recordkeeping
requirements of rule 17e-1 is approximately $60,442,200.\6\ The
Commission staff estimates that there is no cost burden associated with
the information collection requirement of rule 17e-1 other than this
cost.
---------------------------------------------------------------------------
\6\ $10,873,200 + $10,455,000 + $39,114,000 = $60,442,200.
---------------------------------------------------------------------------
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:
[email protected]; and (ii) David Bottom, Director/Chief
Information Officer, Securities and Exchange Commission, c/o John R.
Pezzullo, 100 F Street NE, Washington, DC 20549 or send an email to:
[email protected]. Written comments and recommendations for the
proposed information collection should be sent within 30 days of
publication of this notice to www.reginfo.gov/public/do/PRAMain. Find
this particular information collection by selecting ``Currently under
30-day Review--Open for Public Comments'' or by using the search
function.
Dated: January 24, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-01624 Filed 1-26-22; 8:45 am]
BILLING CODE 8011-01-P
