Submission for OMB Review; Comment Request; Extension: Rule 22e-4, 30808-30809 [2023-10113]

Download as PDF 30808 Federal Register / Vol. 88, No. 92 / Friday, May 12, 2023 / Notices Commission takes such action, the Commission will institute proceedings 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: • 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– CboeEDGX–2023–032 on the subject line. lotter on DSK11XQN23PROD with NOTICES1 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–CboeEDGX–2023–032. 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 offices of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to File Number SR–CboeEDGX–2023– 19:11 May 11, 2023 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–10124 Filed 5–11–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–794, OMB Control No. 3235–0737] Electronic Comments VerDate Sep<11>2014 032, and should be submitted on or before June 2, 2023. Jkt 259001 Submission for OMB Review; Comment Request; Extension: Rule 22e–4 Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Notice is hereby given that, under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. 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. This program includes policies and procedures that incorporate certain 11 17 PO 00000 CFR 200.30–3(a)(12). Frm 00097 Fmt 4703 Sfmt 4703 program elements, including: (i) for funds and In-Kind ETFs, the assessment, management, and periodic review of liquidity risk (with such review occurring no less frequently than annually); (ii) for funds, the classification of the liquidity of a fund’s portfolio investments, as well as atleast-monthly reviews of the fund’s liquidity classifications; (iii) for funds that do not primarily hold assets that are highly liquid investments, the determination of and periodic review of the fund’s highly liquid investment minimum and establishment of policies and procedures for responding to a shortfall of the fund’s highly liquid investment minimum, which includes reporting to the fund’s board of directors; (iv) for funds and In-Kind ETFs, the limitation of the fund’s or InKind ETF’s investment in illiquid investments that are assets to no more than 15% of the fund’s or In-Kind ETF’s net assets; and (iv) for funds and InKind ETFs, the establishment of policies and procedures regarding redemptions in kind, to the extent that the fund engages in or reserves the right to engage in redemptions in kind. 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 an unit investment trust’s (‘‘UIT’’) 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 requirements under rule 22e–4 that a fund and In-Kind ETF, as applicable, adopt a written liquidity risk management program, report to the board, maintain a written record of how the highly liquid investment minimum was determined and written policies and procedures for responding to a shortfall of the fund’s highly liquid investment minimum, which includes reporting to the fund’s board of directors (for funds that do not primarily hold highly liquid investments), establish written policies and procedures regarding how the fund will engage in redemptions in kind, and retain certain other records are all collections of information. In addition, the requirement under rule 22e–4 that the principal underwriter or depositor of a UIT assess the liquidity of the UIT on or before the date of the initial deposit E:\FR\FM\12MYN1.SGM 12MYN1 lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 88, No. 92 / Friday, May 12, 2023 / Notices of portfolio securities into the UIT and retain a record of such determination for the life of the UIT, and for five years thereafter, is also a collection of information. The Commission staff estimates that 11,659 funds, 603 newly-registered funds, and 8 UITs are subject to rule 22e–4. The internal annual burden estimate is 16 hours for a fund, 11 for a newly-registered fund, and 8 hours for an UIT. Based on these estimates, the total annual burden hours associated with the rule is estimated to be 193,241 hours. The estimated burden hours associated with rule 22e–4 have increased by 165,091 hours from the current allocation of 28,150 hours. This increase is due to an increase in the estimated number of affected entities, as well as revisions in the manner of calculation. The external cost associated with this collection of information is approximately $3,124 per fund and $2,000 per newly-registered fund, and the total annual external cost burden is $37,628,716. The estimated external cost has increased by $37,628,716 from the current estimate of $0. This increase is due to the staff’s determination to revise the manner in which it calculates these estimates. The estimate of average burden hours is made solely for purposes of the Paperwork Reduction Act and is not derived from a comprehensive or even a representative survey or study of the cost of Commission rules. The collection of information required by rule 22e–4 is necessary to obtain the benefits of the rule. Information regarding a fund’s monthly positionlevel liquidity classification and its highly liquid investment minimum reported on Form N–PORT will be kept confidential. Other information provided to the Commission in connection with staff examinations or investigations is kept confidential subject to the provisions of applicable law. If information collected pursuant to rule 22e–4 is reviewed by the Commission’s examination staff, it is accorded the same level of confidentiality accorded to other responses provided to the Commission in the context of its examination and oversight program. 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 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 VerDate Sep<11>2014 19:11 May 11, 2023 Jkt 259001 search function. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice by June 12, 2023 to (i) MBX.OMB.OIRA.SEC_desk_officer@ omb.eop.gov 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. Dated: May 8, 2023. Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–10113 Filed 5–11–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–455, OMB Control No. 3235–0514] Submission for OMB Review; Comment Request; Extension: Rule 8c–1 Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 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 8c–1 (17 CFR 240.8c–1), under the Securities Exchange Act of 1934 (‘‘Exchange Act’’) (15 U.S.C. 78a et seq.). Rule 8c–1 generally prohibits a broker-dealer from using its customers’ securities as collateral to finance its own trading, speculating, or underwriting transactions. More specifically, Rule 8c– 1 states three main principles: (1) a broker-dealer is prohibited from commingling the securities of different customers as collateral for a loan without the consent of each customer; (2) a broker-dealer cannot commingle customers’ securities with its own securities under the same pledge; and (3) a broker-dealer can only pledge its customers’ securities to the extent that customers are in debt to the brokerdealer. Additionally, Rule 8c–1 requires broker-dealers to make certain written notifications to pledgees in connection PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 30809 with such use of customer securities as collateral.1 The information required by Rule 8c– 1 is necessary for the execution of the Commission’s mandate under the Exchange Act to prevent broker-dealers from hypothecating or arranging for the hypothecation of any securities carried for the account of any customer under certain circumstances. In addition, the information required by Rule 8c–1 provides important investor protections. There are approximately 43 respondents as of the end of 2022 (i.e., broker-dealers that conducted business with the public, filed Part II of the FOCUS Report, did not claim an exemption from the Reserve Formula computation, and reported that they had a bank loan during at least one quarter of the current year). Each respondent makes an estimated 45 annual responses, for an aggregate total of approximately 1,935 responses per year.2 Each response takes approximately 0.5 hours to complete. Therefore, the total third-party disclosure burden per year is approximately 968 hours.3 The retention period for the recordkeeping requirement under Rule 8c–1 is three years. The recordkeeping requirement under Rule 8c–1 is mandatory to ensure that broker-dealers do not commingle their securities or use them to finance the broker-dealers’ proprietary business. This rule does not involve the collection of confidential or personal identifiable information. 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 by June 12, 2023 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. 1 See Exchange Act Release No. 2690 (November 15, 1940); Exchange Act Release No. 9428 (December 29, 1971). 2 43 respondents × 45 annual responses = 1,935 aggregate total of annual responses. 3 1,935 responses × 0.5 hours = 967.5 hours, rounded up to 968 hours. E:\FR\FM\12MYN1.SGM 12MYN1

Agencies

[Federal Register Volume 88, Number 92 (Friday, May 12, 2023)]
[Notices]
[Pages 30808-30809]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10113]


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

SECURITIES AND EXCHANGE COMMISSION

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


Submission for OMB Review; Comment Request; Extension: Rule 22e-4

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

    Notice is hereby given that, under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520), the Securities and Exchange Commission 
(``Commission'') has submitted to the Office of Management and Budget a 
request for extension of the previously approved collection of 
information discussed below.
    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. This program includes policies and procedures that 
incorporate certain program elements, including: (i) for funds and In-
Kind ETFs, the assessment, management, and periodic review of liquidity 
risk (with such review occurring no less frequently than annually); 
(ii) for funds, the classification of the liquidity of a fund's 
portfolio investments, as well as at-least-monthly reviews of the 
fund's liquidity classifications; (iii) for funds that do not primarily 
hold assets that are highly liquid investments, the determination of 
and periodic review of the fund's highly liquid investment minimum and 
establishment of policies and procedures for responding to a shortfall 
of the fund's highly liquid investment minimum, which includes 
reporting to the fund's board of directors; (iv) for funds and In-Kind 
ETFs, the limitation of the fund's or In-Kind ETF's investment in 
illiquid investments that are assets to no more than 15% of the fund's 
or In-Kind ETF's net assets; and (iv) for funds and In-Kind ETFs, the 
establishment of policies and procedures regarding redemptions in kind, 
to the extent that the fund engages in or reserves the right to engage 
in redemptions in kind. 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 an 
unit investment trust's (``UIT'') 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 requirements under rule 22e-4 that a fund and In-Kind ETF, as 
applicable, adopt a written liquidity risk management program, report 
to the board, maintain a written record of how the highly liquid 
investment minimum was determined and written policies and procedures 
for responding to a shortfall of the fund's highly liquid investment 
minimum, which includes reporting to the fund's board of directors (for 
funds that do not primarily hold highly liquid investments), establish 
written policies and procedures regarding how the fund will engage in 
redemptions in kind, and retain certain other records are all 
collections of information. In addition, the requirement under rule 
22e-4 that the principal underwriter or depositor of a UIT assess the 
liquidity of the UIT on or before the date of the initial deposit

[[Page 30809]]

of portfolio securities into the UIT and retain a record of such 
determination for the life of the UIT, and for five years thereafter, 
is also a collection of information.
    The Commission staff estimates that 11,659 funds, 603 newly-
registered funds, and 8 UITs are subject to rule 22e-4. The internal 
annual burden estimate is 16 hours for a fund, 11 for a newly-
registered fund, and 8 hours for an UIT. Based on these estimates, the 
total annual burden hours associated with the rule is estimated to be 
193,241 hours. The estimated burden hours associated with rule 22e-4 
have increased by 165,091 hours from the current allocation of 28,150 
hours. This increase is due to an increase in the estimated number of 
affected entities, as well as revisions in the manner of calculation. 
The external cost associated with this collection of information is 
approximately $3,124 per fund and $2,000 per newly-registered fund, and 
the total annual external cost burden is $37,628,716. The estimated 
external cost has increased by $37,628,716 from the current estimate of 
$0. This increase is due to the staff's determination to revise the 
manner in which it calculates these estimates.
    The estimate of average burden hours is made solely for purposes of 
the Paperwork Reduction Act and is not derived from a comprehensive or 
even a representative survey or study of the cost of Commission rules. 
The collection of information required by rule 22e-4 is necessary to 
obtain the benefits of the rule. Information regarding a fund's monthly 
position-level liquidity classification and its highly liquid 
investment minimum reported on Form N-PORT will be kept confidential. 
Other information provided to the Commission in connection with staff 
examinations or investigations is kept confidential subject to the 
provisions of applicable law. If information collected pursuant to rule 
22e-4 is reviewed by the Commission's examination staff, it is accorded 
the same level of confidentiality accorded to other responses provided 
to the Commission in the context of its examination and oversight 
program. 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 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 
by June 12, 2023 to (i) [email protected] 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: [email protected].

    Dated: May 8, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-10113 Filed 5-11-23; 8:45 am]
BILLING CODE 8011-01-P
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