Submission for OMB Review; Comment Request; Extension: Rule 2a-5, 88432-88433 [2023-28115]

Download as PDF 88432 Federal Register / Vol. 88, No. 244 / Thursday, December 21, 2023 / Notices a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office 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–BOX–2023–30 and should be submitted on or before January 11, 2024. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–28042 Filed 12–20–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–xxx, OMB Control No. 3235–0779] Submission for OMB Review; Comment Request; Extension: Rule 2a–5 khammond on DSKJM1Z7X2PROD with NOTICES 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 (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 described below. Section 2(a)(41) of the Investment Company Act of 1940 (‘‘Investment Company Act’’) 1 requires funds to value their portfolio investments using the market value of their portfolio securities when market quotations for those securities are ‘‘readily available,’’ and, when a market quotation for a portfolio security is not readily available, by using the fair value of that security, as determined in good faith by the fund’s board.2 The aggregate value of a fund’s investments is the primary determinant of the fund’s net asset value (‘‘NAV’’), which for many funds determines the 18 17 CFR 200.30–3(a)(12), (59). U.S.C. 80a–1 et seq. 2 15 U.S.C. 80a–2(a)(41). See also 17 CFR 270.2a– 1 15 4. VerDate Sep<11>2014 18:15 Dec 20, 2023 Jkt 262001 price at which their shares are offered and redeemed (or repurchased).3 Rule 2a–5 provides requirements for determining in good faith the fair value of the investments of a registered investment company or companies that have elected to be treated as business development companies under the Investment Company Act (‘‘BDCs’’ and, collectively, ‘‘funds’’) for purposes of section 2(a)(41) of the Investment Company Act and rule 2a–4 thereunder.4 Under the rule, fair value as determined in good faith requires assessing and managing material risks associated with fair value determinations; selecting, applying, and testing fair value methodologies; and overseeing and evaluating any pricing services used. The rule also permits a fund’s board to designate a ‘‘valuation designee’’ to perform fair value determinations. The valuation designee can be the adviser of the fund or an officer of an internally managed fund.5 When a board designates the performance of determinations of fair value to a valuation designee for some or all of the fund’s investments under the rule, the rule requires the board to oversee the valuation designee’s performance of fair value determinations. To facilitate the board’s oversight, the rule also includes certain reporting and other requirements in the case of designation to a valuation designee.6 As relevant here, the rule requires, if the board designates performance of fair value determinations to a valuation designee, that the valuation designee report to the board in both periodic and as needed reports on a per-fund basis. Specifically, on a periodic basis, the valuation designee must provide to the board: • Quarterly Reports. At least quarterly, in writing, (1) any reports or materials requested by the board related to the fair value of designated investments or the valuation designee’s process for fair valuing fund investments and (2) a summary or description of material fair value matters that occurred in the prior quarter. This summary or description must include (1) any material changes in the assessment and management of valuation risks, including any material changes in conflicts of interest of the valuation designee (and any other service provider), (2) any material 3 See 15 U.S.C. 80a–22(c) and 23(c). See also 17 CFR 270.22c–1(a). 4 See Good Faith Determinations of Fair Value, Investment Company Act Release No. 34128 (Dec. 7, 2020) (‘‘Adopting Release’’). 5 Rule 2a–5(e)(4). 6 Rule 2a–5(b). PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 changes to, or material deviations from, the fair value methodologies, and (3) any material changes to the valuation designee’s process for selecting and overseeing pricing services, as well as any material events related to the valuation designee’s oversight of pricing services. • Annual Reports. At least annually, in writing, an assessment of the adequacy and effectiveness of the valuation designee’s process for determining the fair value of the designated portfolio of investments. At a minimum, this annual report must include a summary of the results of the testing of fair value methodologies required under the rule and an assessment of the adequacy of resources allocated to the process for determining the fair value of designated investments, including any material changes to the roles or functions of the persons responsible for determining fair value. Further, the rule requires the valuation designee to provide a written notification to the board of the occurrence of matters that materially affect the fair value of the designated portfolio of investments (defined as ‘‘material matters’’) within a time period determined by the board, but in no event later than five business days after the valuation designee becomes aware of the material matter. Material matters in this instance include, as examples, a significant deficiency or material weakness in the design or effectiveness of the valuation designee’s fair value determination process or of material errors in the calculation of net asset value. The valuation designee must also provide such timely follow-on reports as the board may reasonably determine are appropriate.7 The Commission staff estimates that 9,800 funds are subject to rule 2a–5. The internal annual burden estimate is 34 hours for a fund. Based on these estimates, the total annual burden hours associated with the rule is estimated to be 333,200 hours. The estimated burden hours associated with rule 2a–5 have increased by 15,810 hours from the current allocation of 317,390 hours. The external cost associated with this collection of information is approximately $3,674 per fund, and the total annual external cost burden is $36,005,200. The estimated external cost has increased by $6,319,900 from the current estimate of $29,685,300. These increases are due to an increase in the estimated number of affected entities, as well as in the estimated hourly burden and the external cost 7 Rule E:\FR\FM\21DEN1.SGM 2a–5(b). 21DEN1 Federal Register / Vol. 88, No. 244 / Thursday, December 21, 2023 / Notices associated with the information collection requirements. 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 2a–5 is necessary to obtain the benefits of the rule. 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 2a–5 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 January 22, 2024 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: December 18, 2023. Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–28115 Filed 12–20–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION khammond on DSKJM1Z7X2PROD with NOTICES [SEC File No. 270–418, OMB Control No. 3235–0485] Submission for OMB Review; Comment Request; Extension: Rule 15c2–1 Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 VerDate Sep<11>2014 18:15 Dec 20, 2023 Jkt 262001 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 15c2–1, (17 CFR 240.15c2–1), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 15c2–1 prohibits broker-dealers from commingling under the same lien securities of their margin customers with securities of the broker-dealer and those of other customers without their written consent. The rule also prohibits the re-hypothecation of customers’ margin securities for a sum in excess of the customer’s aggregate indebtedness. Respondents must collect information necessary to prevent the rehypothecation of customer securities, issue and retain copies of notices of hypothecation of customer securities, and collect written consents from customers. There are approximately 59 respondents. Each of these respondents makes an estimated 45 responses per year and each response takes approximately 0.5 hours to complete, resulting in an industry-wide annual burden of approximately 1,327 hours. The retention period for the recordkeeping requirement under Rule 15c2–1 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 respondents who fail to collect the information required under the rule. This rule does not involve the collection of confidential 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 January 22, 2024 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. PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 88433 Dated: December 18, 2023. Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–28114 Filed 12–20–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–99189; File No. SR–MRX– 2023–25] Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 7, Section 6 December 15, 2023. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on December 5, 2023, Nasdaq MRX, LLC (‘‘MRX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘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 The Exchange proposes to amend its Rules at Options 7, Section 6, Ports and Other Services.3 The text of the proposed rule change is available on the Exchange’s website at https://listingcenter.nasdaq.com/ rulebook/mrx/rules, at the principal office of the Exchange, 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 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. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 The Exchange initially filed the proposed pricing changes on November 28, 2023 (SR–MRX– 2023–23). On December 5, 2023, the Exchange withdrew that filing and submitted this filing. 2 17 E:\FR\FM\21DEN1.SGM 21DEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 88, Number 244 (Thursday, December 21, 2023)]
[Notices]
[Pages 88432-88433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28115]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-xxx, OMB Control No. 3235-0779]


Submission for OMB Review; Comment Request; Extension: Rule 2a-5

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 (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 described below.
    Section 2(a)(41) of the Investment Company Act of 1940 
(``Investment Company Act'') \1\ requires funds to value their 
portfolio investments using the market value of their portfolio 
securities when market quotations for those securities are ``readily 
available,'' and, when a market quotation for a portfolio security is 
not readily available, by using the fair value of that security, as 
determined in good faith by the fund's board.\2\ The aggregate value of 
a fund's investments is the primary determinant of the fund's net asset 
value (``NAV''), which for many funds determines the price at which 
their shares are offered and redeemed (or repurchased).\3\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 80a-1 et seq.
    \2\ 15 U.S.C. 80a-2(a)(41). See also 17 CFR 270.2a-4.
    \3\ See 15 U.S.C. 80a-22(c) and 23(c). See also 17 CFR 270.22c-
1(a).
---------------------------------------------------------------------------

    Rule 2a-5 provides requirements for determining in good faith the 
fair value of the investments of a registered investment company or 
companies that have elected to be treated as business development 
companies under the Investment Company Act (``BDCs'' and, collectively, 
``funds'') for purposes of section 2(a)(41) of the Investment Company 
Act and rule 2a-4 thereunder.\4\ Under the rule, fair value as 
determined in good faith requires assessing and managing material risks 
associated with fair value determinations; selecting, applying, and 
testing fair value methodologies; and overseeing and evaluating any 
pricing services used. The rule also permits a fund's board to 
designate a ``valuation designee'' to perform fair value 
determinations. The valuation designee can be the adviser of the fund 
or an officer of an internally managed fund.\5\ When a board designates 
the performance of determinations of fair value to a valuation designee 
for some or all of the fund's investments under the rule, the rule 
requires the board to oversee the valuation designee's performance of 
fair value determinations.
---------------------------------------------------------------------------

    \4\ See Good Faith Determinations of Fair Value, Investment 
Company Act Release No. 34128 (Dec. 7, 2020) (``Adopting Release'').
    \5\ Rule 2a-5(e)(4).
---------------------------------------------------------------------------

    To facilitate the board's oversight, the rule also includes certain 
reporting and other requirements in the case of designation to a 
valuation designee.\6\ As relevant here, the rule requires, if the 
board designates performance of fair value determinations to a 
valuation designee, that the valuation designee report to the board in 
both periodic and as needed reports on a per-fund basis.
---------------------------------------------------------------------------

    \6\ Rule 2a-5(b).
---------------------------------------------------------------------------

    Specifically, on a periodic basis, the valuation designee must 
provide to the board:
     Quarterly Reports.
    At least quarterly, in writing, (1) any reports or materials 
requested by the board related to the fair value of designated 
investments or the valuation designee's process for fair valuing fund 
investments and (2) a summary or description of material fair value 
matters that occurred in the prior quarter. This summary or description 
must include (1) any material changes in the assessment and management 
of valuation risks, including any material changes in conflicts of 
interest of the valuation designee (and any other service provider), 
(2) any material changes to, or material deviations from, the fair 
value methodologies, and (3) any material changes to the valuation 
designee's process for selecting and overseeing pricing services, as 
well as any material events related to the valuation designee's 
oversight of pricing services.
     Annual Reports.
    At least annually, in writing, an assessment of the adequacy and 
effectiveness of the valuation designee's process for determining the 
fair value of the designated portfolio of investments. At a minimum, 
this annual report must include a summary of the results of the testing 
of fair value methodologies required under the rule and an assessment 
of the adequacy of resources allocated to the process for determining 
the fair value of designated investments, including any material 
changes to the roles or functions of the persons responsible for 
determining fair value.
    Further, the rule requires the valuation designee to provide a 
written notification to the board of the occurrence of matters that 
materially affect the fair value of the designated portfolio of 
investments (defined as ``material matters'') within a time period 
determined by the board, but in no event later than five business days 
after the valuation designee becomes aware of the material matter. 
Material matters in this instance include, as examples, a significant 
deficiency or material weakness in the design or effectiveness of the 
valuation designee's fair value determination process or of material 
errors in the calculation of net asset value. The valuation designee 
must also provide such timely follow-on reports as the board may 
reasonably determine are appropriate.\7\
---------------------------------------------------------------------------

    \7\ Rule 2a-5(b).
---------------------------------------------------------------------------

    The Commission staff estimates that 9,800 funds are subject to rule 
2a-5. The internal annual burden estimate is 34 hours for a fund. Based 
on these estimates, the total annual burden hours associated with the 
rule is estimated to be 333,200 hours. The estimated burden hours 
associated with rule 2a-5 have increased by 15,810 hours from the 
current allocation of 317,390 hours. The external cost associated with 
this collection of information is approximately $3,674 per fund, and 
the total annual external cost burden is $36,005,200. The estimated 
external cost has increased by $6,319,900 from the current estimate of 
$29,685,300. These increases are due to an increase in the estimated 
number of affected entities, as well as in the estimated hourly burden 
and the external cost

[[Page 88433]]

associated with the information collection requirements.
    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 2a-5 is necessary to 
obtain the benefits of the rule. 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 2a-5 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 January 22, 2024 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: December 18, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-28115 Filed 12-20-23; 8:45 am]
BILLING CODE 8011-01-P

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