80 FR 17533 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 62 (April 1, 2015)

Page Range		17533-17533
FR Document		2015-07465
Federal Register, Volume 80 Issue 62 (Wednesday, April 1, 2015)
[Federal Register Volume 80, Number 62 (Wednesday, April 1, 2015)]
[Notices]
[Page 17533]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07465]



[[Page 17533]]

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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, Washington, DC 20549-0213.

Extension:
    Rule 17g-1, SEC File No. 270-208, OMB Control No. 3235-0213.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 350l-3520), the Securities and Exchange 
Commission (the ``Commission'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this existing collection of information to the Office of 
Management and Budget for extension and approval.
    Rule 17g-1 (17 CFR 270.17g-1) under the Investment Company Act of 
1940 (the ``Act'') (15 U.S.C. 80a-17(g)) governs the fidelity bonding 
of officers and employees of registered management investment companies 
(``funds'') and their advisers. Rule 17g-1 requires, in part, the 
following:

Independent Directors' Approval

    The form and amount of the fidelity bond must be approved by a 
majority of the fund's independent directors at least once annually, 
and the amount of any premium paid by the fund for any ``joint insured 
bond,'' covering multiple funds or certain affiliates, must be approved 
by a majority of the fund's independent directors.

Terms and Provisions of the Bond

    The amount of the bond may not be less than the minimum amounts of 
coverage set forth in a schedule based on the fund's gross assets. The 
bond must provide that it shall not be cancelled, terminated, or 
modified except upon 60-days written notice to the affected party and 
to the Commission. In the case of a joint insured bond, 60-days written 
notice must also be given to each fund covered by the bond. A joint 
insured bond must provide that the fidelity insurance company will 
provide all funds covered by the bond with a copy of the agreement, a 
copy of any claim on the bond, and notification of the terms of the 
settlement of any claim prior to execution of that settlement. Finally, 
a fund that is insured by a joint bond must enter into an agreement 
with all other parties insured by the joint bond regarding recovery 
under the bond.

Filings With the Commission

    Upon the execution of a fidelity bond or any amendment thereto, a 
fund must file with the Commission within 10 days: (i) A copy of the 
executed bond or any amendment to the bond, (ii) the independent 
directors' resolution approving the bond, and (iii) a statement as to 
the period for which premiums have been paid on the bond. In the case 
of a joint insured bond, a fund must also file: (i) A statement showing 
the amount the fund would have been required to maintain under the rule 
if it were insured under a single insured bond; and (ii) the agreement 
between the fund and all other insured parties regarding recovery under 
the bond. A fund must also notify the Commission in writing within five 
days of any claim or settlement on a claim under the fidelity bond.

Notices to Directors

    A fund must notify by registered mail each member of its board of 
directors of: (i) Any cancellation, termination, or modification of the 
fidelity bond at least 45 days prior to the effective date; and (ii) 
the filing or settlement of any claim under the fidelity bond when 
notification is filed with the Commission.
    Rule 17g-1's independent directors' annual review requirements, 
fidelity bond content requirements, joint bond agreement requirement, 
and the required notices to directors are designed to ensure the safety 
of fund assets against losses due to the conduct of persons who may 
obtain access to those assets. These requirements also seek to 
facilitate oversight of a fund's fidelity bond. The rule's required 
filings with the Commission are designed to assist the Commission in 
monitoring funds' compliance with the fidelity bond requirements.
    Based on conversations with representatives in the fund industry, 
the Commission staff estimates that for each of the estimated 3,319 
active funds (respondents),\1\ the average annual paperwork burden 
associated with rule 17g-1's requirements is two hours, one hour each 
for a compliance attorney and the board of directors as a whole. The 
time spent by a compliance attorney includes time spent filing reports 
with the Commission for fidelity losses (if any) as well as paperwork 
associated with any notices to directors, and managing any updates to 
the bond and the joint agreement (if one exists). The time spent by the 
board of directors as a whole includes any time spent initially 
establishing the bond, as well as time spent on annual updates and 
approvals. The Commission staff therefore estimates the total ongoing 
paperwork burden hours per year for all funds required by rule 17g-1 to 
be 6,638 hours (3,319 funds x 2 hours = 6,638 hours).
---------------------------------------------------------------------------

    \1\ Based on statistics compiled by Commission staff, we 
estimate that there are approximately 3,319 funds that must comply 
with the collections of information under rule 17g-1 and have made a 
filing within the last 12 months.
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    These estimates of average burden hours are made solely for the 
purposes of the Paperwork Reduction Act. These estimates are not 
derived from a comprehensive or even a representative survey or study 
of Commission rules. The collection of information required by rule 
17g-1 is mandatory and 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 control 
number.
    Written comments are requested on: (i) Whether the collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information has practical 
utility; (ii) the accuracy of the Commission's estimate of the burden 
of the collection of information; (iii) ways to enhance the quality, 
utility and clarity of the information collected; and (iv) 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 Pamela Dyson, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email 
to: [email protected].

    Dated: March 27, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-07465 Filed 3-31-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices 17533

SECURITIES AND EXCHANGE Filings With the Commission the joint agreement (if one exists). The
COMMISSION Upon the execution of a fidelity bond time spent by the board of directors as
or any amendment thereto, a fund must a whole includes any time spent
Proposed Collection; Comment file with the Commission within 10 initially establishing the bond, as well
Request days: (i) A copy of the executed bond or as time spent on annual updates and
Upon Written Request, Copies Available any amendment to the bond, (ii) the approvals. The Commission staff
From: Securities and Exchange independent directors’ resolution therefore estimates the total ongoing
Commission, Office of FOIA Services, approving the bond, and (iii) a paperwork burden hours per year for all
Washington, DC 20549–0213. statement as to the period for which funds required by rule 17g–1 to be 6,638
premiums have been paid on the bond. hours (3,319 funds × 2 hours = 6,638
Extension:
In the case of a joint insured bond, a hours).
Rule 17g–1, SEC File No. 270–208, OMB
Control No. 3235–0213. fund must also file: (i) A statement These estimates of average burden
showing the amount the fund would hours are made solely for the purposes
Notice is hereby given that, pursuant have been required to maintain under
to the Paperwork Reduction Act of 1995 of the Paperwork Reduction Act. These
the rule if it were insured under a single
(44 U.S.C. 350l-3520), the Securities and estimates are not derived from a
insured bond; and (ii) the agreement
Exchange Commission (the between the fund and all other insured comprehensive or even a representative
‘‘Commission’’) is soliciting comments parties regarding recovery under the survey or study of Commission rules.
on the collection of information bond. A fund must also notify the The collection of information required
summarized below. The Commission Commission in writing within five days by rule 17g–1 is mandatory and will not
plans to submit this existing collection of any claim or settlement on a claim be kept confidential. An agency may not
of information to the Office of under the fidelity bond. conduct or sponsor, and a person is not
Management and Budget for extension required to respond to, a collection of
and approval. Notices to Directors information unless it displays a
Rule 17g–1 (17 CFR 270.17g–1) under A fund must notify by registered mail currently valid control number.
the Investment Company Act of 1940 each member of its board of directors of: Written comments are requested on:
(the ‘‘Act’’) (15 U.S.C. 80a–17(g)) (i) Any cancellation, termination, or (i) Whether the collection of information
governs the fidelity bonding of officers modification of the fidelity bond at least is necessary for the proper performance
and employees of registered 45 days prior to the effective date; and
of the functions of the Commission,
management investment companies (ii) the filing or settlement of any claim
including whether the information has
(‘‘funds’’) and their advisers. Rule 17g– under the fidelity bond when
notification is filed with the practical utility; (ii) the accuracy of the
1 requires, in part, the following:
Commission. Commission’s estimate of the burden of
Independent Directors’ Approval Rule 17g–1’s independent directors’ the collection of information; (iii) ways
The form and amount of the fidelity annual review requirements, fidelity to enhance the quality, utility and
bond must be approved by a majority of bond content requirements, joint bond clarity of the information collected; and
the fund’s independent directors at least agreement requirement, and the (iv) ways to minimize the burden of the
once annually, and the amount of any required notices to directors are collection of information on
premium paid by the fund for any ‘‘joint designed to ensure the safety of fund respondents, including through the use
insured bond,’’ covering multiple funds assets against losses due to the conduct of automated collection techniques or
or certain affiliates, must be approved of persons who may obtain access to other forms of information technology.
by a majority of the fund’s independent those assets. These requirements also Consideration will be given to
directors. seek to facilitate oversight of a fund’s comments and suggestions submitted in
fidelity bond. The rule’s required filings writing within 60 days of this
Terms and Provisions of the Bond with the Commission are designed to publication.
The amount of the bond may not be assist the Commission in monitoring
Please direct your written comments
less than the minimum amounts of funds’ compliance with the fidelity
to Pamela Dyson, Chief Information
coverage set forth in a schedule based bond requirements.
Based on conversations with Officer, Securities and Exchange
on the fund’s gross assets. The bond
representatives in the fund industry, the Commission, c/o Remi Pavlik-Simon,
must provide that it shall not be
Commission staff estimates that for each 100 F Street NE., Washington, DC
cancelled, terminated, or modified
except upon 60-days written notice to of the estimated 3,319 active funds 20549; or send an email to: PRA_
the affected party and to the (respondents),1 the average annual Mailbox@sec.gov.
Commission. In the case of a joint paperwork burden associated with rule Dated: March 27, 2015.
insured bond, 60-days written notice 17g–1’s requirements is two hours, one Brent J. Fields,
must also be given to each fund covered hour each for a compliance attorney and
Secretary.
by the bond. A joint insured bond must the board of directors as a whole. The
[FR Doc. 2015–07465 Filed 3–31–15; 8:45 am]
provide that the fidelity insurance time spent by a compliance attorney
company will provide all funds covered includes time spent filing reports with BILLING CODE 8011–01–P

by the bond with a copy of the the Commission for fidelity losses (if
any) as well as paperwork associated
mstockstill on DSK4VPTVN1PROD with NOTICES

agreement, a copy of any claim on the
bond, and notification of the terms of with any notices to directors, and
the settlement of any claim prior to managing any updates to the bond and
execution of that settlement. Finally, a
1 Based on statistics compiled by Commission
fund that is insured by a joint bond
staff, we estimate that there are approximately 3,319
must enter into an agreement with all funds that must comply with the collections of
other parties insured by the joint bond information under rule 17g–1 and have made a
regarding recovery under the bond. filing within the last 12 months.

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Document Created: 2015-12-18 11:04:47
Document Modified: 2015-12-18 11:04:47
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 17533