80_FR_31545 80 FR 31440 - Submission for OMB Review; Comment Request

80 FR 31440 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 105 (June 2, 2015)

Page Range31440-31441
FR Document2015-13382

Federal Register, Volume 80 Issue 105 (Tuesday, June 2, 2015)
[Federal Register Volume 80, Number 105 (Tuesday, June 2, 2015)]
[Notices]
[Pages 31440-31441]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-13382]


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

SECURITIES AND EXCHANGE COMMISSION

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


Submission for OMB Review; Comment Request

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

    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'') has submitted to the Office of 
Management and Budget a request for extension of the previously 
approved collection of information discussed below.
    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

[[Page 31441]]

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.
---------------------------------------------------------------------------

    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.
    The public may view the background documentation for this 
information collection at the following Web site: 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) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549. Or, commenters 
may send an email to: [email protected]. Comments must be submitted 
to OMB within 30 days of this notice.

    Dated: May 28, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-13382 Filed 6-1-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                    31440                           Federal Register / Vol. 80, No. 105 / Tuesday, June 2, 2015 / Notices

                                                    to determine whether the proposed rule                    For the Commission, by the Division of                  Officer, Securities and Exchange
                                                    change should be disapproved.                           Trading and Markets, pursuant to delegated                Commission, c/o Remi Pavlik-Simon,
                                                                                                            authority.5                                               100 F Street NE., Washington, DC 20549
                                                    IV. Solicitation of Comments                            Robert W. Errett,                                         or send an email to: PRA_Mailbox@
                                                                                                            Deputy Secretary.                                         sec.gov. Comments must be submitted to
                                                      Interested persons are invited to
                                                    submit written data, views, and                         [FR Doc. 2015–13175 Filed 6–1–15; 8:45 am]                OMB within 30 days of this notice.
                                                                                                            BILLING CODE 8011–01–P                                      Dated: May 28, 2015.
                                                    arguments concerning the foregoing,
                                                    including whether the proposed rule                                                                               Robert W. Errett,
                                                    change is consistent with the Act.                      SECURITIES AND EXCHANGE                                   Deputy Secretary.
                                                    Comments may be submitted by any of                     COMMISSION                                                [FR Doc. 2015–13379 Filed 6–1–15; 8:45 am]
                                                    the following methods:                                                                                            BILLING CODE 8011–01–P
                                                                                                            Submission for OMB Review Comment
                                                    Electronic Comments
                                                                                                            Request
                                                      • Use the Commission’s Internet                                                                                 SECURITIES AND EXCHANGE
                                                                                                            Upon Written Request Copies Available                     COMMISSION
                                                    comment form (http://www.sec.gov/                        From: Securities and Exchange
                                                    rules/sro.shtml); or                                     Commission, Office of FOIA Services,                     [Extension: Rule 17g–1; OMB Control No.
                                                      • Send an email to rule-                               100 F Street NE., Washington, DC                         3235–0213, SEC File No. 270–208]
                                                    comments@sec.gov. Please include File                    20549–2736.
                                                                                                                                                                      Submission for OMB Review;
                                                    Number SR–Phlx–2015–46 on the                           Extension:                                                Comment Request
                                                    subject line.                                             Form SE. OMB Control No. 3235–0327,
                                                                                                                SEC File No. 270–289.                                 Upon Written Request, Copies Available
                                                    Paper Comments                                                                                                       From: Securities and Exchange
                                                                                                               Notice is hereby given that, pursuant
                                                      • Send paper comments in triplicate                   to the Paperwork Reduction Act of 1995                       Commission, Office of FOIA Services,
                                                    to Brent J. Fields, Secretary, Securities               (44 U.S.C. 3501 et seq.), the Securities                     100F Street NE., Washington, DC
                                                    and Exchange Commission, 100 F Street                   and Exchange Commission                                      20549–2736.
                                                    NE., Washington, DC 20549–1090.                         (‘‘Commission’’) has submitted to the                        Notice is hereby given that, pursuant
                                                                                                            Office of Management and Budget a                         to the Paperwork Reduction Act of 1995
                                                    All submissions should refer to File                    request for extension of the previously                   (44 U.S.C. 350l–3520), the Securities
                                                    Number SR–Phlx–2015–46. This file                       approved collections of information                       and Exchange Commission (the
                                                    number should be included on the                        discussed below.                                          ‘‘Commission’’) has submitted to the
                                                    subject line if email is used. To help the                 Form SE (17 CFR 239.64) is used by                     Office of Management and Budget a
                                                    Commission process and review your                      registrants to file paper copies of                       request for extension of the previously
                                                    comments more efficiently, please use                   exhibits, reports or other documents                      approved collection of information
                                                    only one method. The Commission will                    that would be difficult or impossible to                  discussed below.
                                                    post all comments on the Commission’s                   submit electronically, as provided in                        Rule 17g–1 (17 CFR 270.17g–1) under
                                                    Internet Web site (http://www.sec.gov/                  Rule 311 of Regulation S–T (17 CFR                        the Investment Company Act of 1940
                                                    rules/sro.shtml). Copies of the                         232.311). The information contained in                    (the ‘‘Act’’) (15 U.S.C. 80a–17(g))
                                                    submission, all subsequent                              Form SE is used by the Commission to                      governs the fidelity bonding of officers
                                                    amendments, all written statements                      identify paper copies of exhibits. Form                   and employees of registered
                                                    with respect to the proposed rule                       SE is a public document and is filed on                   management investment companies
                                                    change that are filed with the                          occasion. Form SE is filed by                             (‘‘funds’’) and their advisers. Rule 17g–
                                                    Commission, and all written                             individuals, companies or other entities                  1 requires, in part, the following:
                                                    communications relating to the                          that are required to file documents
                                                                                                                                                                      Independent Directors’ Approval
                                                    proposed rule change between the                        electronically. Approximately 31
                                                    Commission and any person, other than                   registrants file Form SE and it takes an                    The form and amount of the fidelity
                                                    those that may be withheld from the                     estimated 0.10 hours per response for a                   bond must be approved by a majority of
                                                    public in accordance with the                           total annual burden of 3 hours.                           the fund’s independent directors at least
                                                    provisions of 5 U.S.C. 552, will be                        An agency may not conduct or                           once annually, and the amount of any
                                                    available for Web site viewing and                      sponsor, and a person is not required to                  premium paid by the fund for any ‘‘joint
                                                    printing in the Commission’s Public                     respond to, a collection of information                   insured bond,’’ covering multiple funds
                                                    Reference Room, 100 F Street NE.,                       unless it displays a currently valid                      or certain affiliates, must be approved
                                                    Washington, DC 20549, on official                       control number.                                           by a majority of the fund’s independent
                                                                                                               The public may view the background                     directors.
                                                    business days between the hours of
                                                                                                            documentation for this information
                                                    10:00 a.m. and 3:00 p.m. Copies of the                                                                            Terms and Provisions of the Bond
                                                                                                            collection at the following Web site,
                                                    filing also will be available for                                                                                   The amount of the bond may not be
                                                                                                            www.reginfo.gov . Comments should be
                                                    inspection and copying at the principal                                                                           less than the minimum amounts of
                                                                                                            directed to: (i) Desk Officer for the
                                                    office of the Exchange. All comments                    Securities and Exchange Commission,                       coverage set forth in a schedule based
                                                    received will be posted without change;                 Office of Information and Regulatory                      on the fund’s gross assets. The bond
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    the Commission does not edit personal                   Affairs, Office of Management and                         must provide that it shall not be
                                                    identifying information from                            Budget, Room 10102, New Executive                         cancelled, terminated, or modified
                                                    submissions. You should submit only                     Office Building, Washington, DC 20503,                    except upon 60-days written notice to
                                                    information that you wish to make                       or by sending an email to: Shagufta_                      the affected party and to the
                                                    available publicly. All submissions                     Ahmed@omb.eop.gov; and (ii) Pamela                        Commission. In the case of a joint
                                                    should refer to File Number SR–Phlx–                    Dyson, Director/Chief Information                         insured bond, 60-days written notice
                                                    2015–46 and should be submitted on or                                                                             must also be given to each fund covered
                                                    before June 22, 2015.                                     5 17   CFR 200.30–3(a)(12).                             by the bond. A joint insured bond must


                                               VerDate Sep<11>2014   17:26 Jun 01, 2015   Jkt 235001   PO 00000   Frm 00092   Fmt 4703      Sfmt 4703   E:\FR\FM\02JNN1.SGM   02JNN1


                                                                                    Federal Register / Vol. 80, No. 105 / Tuesday, June 2, 2015 / Notices                                                 31441

                                                    provide that the fidelity insurance                     paperwork burden associated with rule                  SECURITIES AND EXCHANGE
                                                    company will provide all funds covered                  17g–1’s requirements is two hours, one                 COMMISSION
                                                    by the bond with a copy of the                          hour each for a compliance attorney and
                                                    agreement, a copy of any claim on the                   the board of directors as a whole. The                 Sunshine Act Meeting
                                                    bond, and notification of the terms of                  time spent by a compliance attorney                       Notice is hereby given, pursuant to
                                                    the settlement of any claim prior to                    includes time spent filing reports with                the provisions of the Government in the
                                                    execution of that settlement. Finally, a                the Commission for fidelity losses (if                 Sunshine Act, Public Law 94–409, that
                                                    fund that is insured by a joint bond                    any) as well as paperwork associated                   the Securities and Exchange
                                                    must enter into an agreement with all                   with any notices to directors, and                     Commission will hold a Closed Meeting
                                                    other parties insured by the joint bond                 managing any updates to the bond and                   on Thursday, June 4, 2015 at 2 p.m.
                                                    regarding recovery under the bond.                      the joint agreement (if one exists). The                  Commissioners, Counsel to the
                                                    Filings With the Commission                             time spent by the board of directors as                Commissioners, the Secretary to the
                                                       Upon the execution of a fidelity bond                a whole includes any time spent                        Commission, and recording secretaries
                                                    or any amendment thereto, a fund must                   initially establishing the bond, as well               will attend the Closed Meeting. Certain
                                                    file with the Commission within 10                      as time spent on annual updates and                    staff members who have an interest in
                                                    days: (i) A copy of the executed bond or                approvals. The Commission staff                        the matters also may be present.
                                                    any amendment to the bond, (ii) the                     therefore estimates the total ongoing                     The General Counsel of the
                                                    independent directors’ resolution                       paperwork burden hours per year for all                Commission, or her designee, has
                                                    approving the bond, and (iii) a                         funds required by rule 17g–1 to be 6,638               certified that, in her opinion, one or
                                                    statement as to the period for which                    hours (3,319 funds x 2 hours = 6,638                   more of the exemptions set forth in 5
                                                    premiums have been paid on the bond.                    hours).                                                U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
                                                    In the case of a joint insured bond, a                                                                         and 17 CFR 200.402(a)(3), (a)(5), (a)(7),
                                                                                                              These estimates of average burden                    (a)(9)(ii) and (a)(10), permit
                                                    fund must also file: (i) A statement                    hours are made solely for the purposes
                                                    showing the amount the fund would                                                                              consideration of the scheduled matter at
                                                                                                            of the Paperwork Reduction Act. These                  the closed meeting.
                                                    have been required to maintain under                    estimates are not derived from a
                                                    the rule if it were insured under a single                                                                        Commissioner Gallagher, as duty
                                                                                                            comprehensive or even a representative                 officer, voted to consider the items
                                                    insured bond; and (ii) the agreement
                                                                                                            survey or study of Commission rules.                   listed for the Closed Meeting in closed
                                                    between the fund and all other insured
                                                                                                            The collection of information required                 session.
                                                    parties regarding recovery under the
                                                                                                            by Rule 17g–1 is mandatory and will not                   The subject matter of the Closed
                                                    bond. A fund must also notify the
                                                    Commission in writing within five days                  be kept confidential. An agency may not                Meeting will be:
                                                    of any claim or settlement on a claim                   conduct or sponsor, and a person is not                   Institution and settlement of
                                                    under the fidelity bond.                                required to respond to, a collection of                injunctive actions;
                                                                                                            information unless it displays a                          Institution and settlement of
                                                    Notices to Directors                                    currently valid control number.                        administrative proceedings;
                                                       A fund must notify by registered mail                  The public may view the background                      Litigation matter; and
                                                    each member of its board of directors of:                                                                         Other matters relating to enforcement
                                                                                                            documentation for this information
                                                    (i) Any cancellation, termination, or                                                                          proceedings.
                                                                                                            collection at the following Web site:
                                                    modification of the fidelity bond at least                                                                        At times, changes in Commission
                                                                                                            www.reginfo.gov. Comments should be
                                                    45 days prior to the effective date; and                                                                       priorities require alterations in the
                                                                                                            directed to: (i) Desk Officer for the                  scheduling of meeting items.
                                                    (ii) the filing or settlement of any claim              Securities and Exchange Commission,
                                                    under the fidelity bond when                                                                                      For further information and to
                                                                                                            Office of Information and Regulatory                   ascertain what, if any, matters have been
                                                    notification is filed with the
                                                                                                            Affairs, Office of Management and                      added, deleted or postponed, please
                                                    Commission.
                                                                                                            Budget, Room 10102, New Executive                      contact the Office of the Secretary at
                                                       Rule 17g–1’s independent directors’
                                                    annual review requirements, fidelity                    Office Building, Washington, DC 20503,                 (202) 551–5400.
                                                    bond content requirements, joint bond                   or by sending an email to: Shagufta_
                                                                                                                                                                     Dated: May 28, 2015.
                                                    agreement requirement, and the                          Ahmed@omb.eop.gov; and (ii) Pamela
                                                                                                                                                                   Brent J. Fields,
                                                    required notices to directors are                       Dyson, Director/Chief Information
                                                                                                                                                                   Secretary.
                                                    designed to ensure the safety of fund                   Officer, Securities and Exchange
                                                                                                                                                                   [FR Doc. 2015–13453 Filed 5–29–15; 11:15 am]
                                                    assets against losses due to the conduct                Commission, c/o Remi Pavlik-Simon,
                                                                                                                                                                   BILLING CODE 8011–01–P
                                                    of persons who may obtain access to                     100 F Street NE., Washington, DC
                                                    those assets. These requirements also                   20549. Or, commenters may send an
                                                    seek to facilitate oversight of a fund’s                email to: PRA_Mailbox@sec.gov.
                                                    fidelity bond. The rule’s required filings              Comments must be submitted to OMB                      SMALL BUSINESS ADMINISTRATION
                                                    with the Commission are designed to                     within 30 days of this notice.                         [Disaster Declaration # 14299 and # 14300]
                                                    assist the Commission in monitoring                       Dated: May 28, 2015.
                                                    funds’ compliance with the fidelity                                                                            Kentucky Disaster Number KY–00052
                                                                                                            Robert W. Errett,
                                                    bond requirements.
                                                                                                                                                                           U.S. Small Business
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                            Deputy Secretary.                                      AGENCY:
                                                       Based on conversations with
                                                    representatives in the fund industry, the               [FR Doc. 2015–13382 Filed 6–1–15; 8:45 am]             Administration.
                                                    Commission staff estimates that for each                BILLING CODE 8011–01–P                                 ACTION: Amendment 1.
                                                    of the estimated 3,319 active funds
                                                                                                                                                                   SUMMARY:   This is an amendment of the
                                                    (respondents),1 the average annual
                                                                                                                                                                   Presidential declaration of a major
                                                      1 Based on statistics compiled by Commission                                                                 disaster for Public Assistance Only for
                                                    staff, we estimate that there are approximately 3,319   information under rule 17g–1 and have made a           the Commonwealth of Kentucky
                                                    funds that must comply with the collections of          filing within the last 12 months.                      (FEMA–4217–DR), dated 05/01/2015.


                                               VerDate Sep<11>2014   17:26 Jun 01, 2015   Jkt 235001   PO 00000   Frm 00093   Fmt 4703   Sfmt 4703   E:\FR\FM\02JNN1.SGM   02JNN1



Document Created: 2015-12-15 15:12:13
Document Modified: 2015-12-15 15:12:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 31440 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR