80 FR 46371 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 149 (August 4, 2015)

Page Range		46371-46372
FR Document		2015-18884
Federal Register, Volume 80 Issue 149 (Tuesday, August 4, 2015)
[Federal Register Volume 80, Number 149 (Tuesday, August 4, 2015)]
[Notices]
[Pages 46371-46372]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18884]


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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, 100 F Street NE., Washington, DC 
20549-2736.

Extension:
    Rule 22e-3. SEC File No. 270-603, OMB Control No. 3235-0658.

    Notice is hereby given that, under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520), 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.
    Section 22(e) of the Investment Company Act [15 U.S.C. 80a-22(e)] 
(``Act'') generally prohibits funds, including money market funds, from 
suspending the right of redemption, and from postponing the payment or 
satisfaction upon redemption of any redeemable security for more than 
seven days. The provision was designed to prevent funds and their 
investment advisers from interfering with the

[[Page 46372]]

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-3 under the Act [17 CFR 270.22e-3] exempts money market 
funds from section 22(e) to permit them to suspend redemptions in order 
to facilitate an orderly liquidation of the fund. Specifically, rule 
22e-3 permits a money market fund to suspend redemptions and postpone 
the payment of proceeds pending board-approved liquidation proceedings 
if: (i) The fund's board of directors, including a majority of 
disinterested directors, determines pursuant to Sec.  270.2a-
7(c)(8)(ii)(C) that the extent of the deviation between the fund's 
amortized cost price per share and its current net asset value per 
share calculated using available market quotations (or an appropriate 
substitute that reflects current market conditions) may result in 
material dilution or other unfair results to investors or existing 
shareholders; (ii) the fund's board of directors, including a majority 
of disinterested directors, irrevocably approves the liquidation of the 
fund; and (iii) the fund, prior to suspending redemptions, notifies the 
Commission of its decision to liquidate and suspend redemptions. Rule 
22e-3 also provides an exemption from section 22(e) for registered 
investment companies that own shares of a money market fund pursuant to 
section 12(d)(1)(E) of the Act (``conduit funds''), if the underlying 
money market fund has suspended redemptions pursuant to the rule. A 
conduit fund that suspends redemptions in reliance on the exemption 
provided by rule 22e-3 is required to provide prompt notice of the 
suspension of redemptions to the Commission. Notices required by the 
rule must be provided by electronic mail, directed to the attention of 
the Director of the Division of Investment Management or the Director's 
designee.\1\ Compliance with the notification requirement is mandatory 
for money market funds and conduit funds that rely on rule 22e-3 to 
suspend redemptions and postpone payment of proceeds pending a 
liquidation, and are not kept confidential.
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    \1\ See rule 22e-3(a)(3).
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    Commission staff estimates that, on average, one money market fund 
would break the buck and liquidate every six years.\2\ In addition, 
Commission staff estimates that there are an average of two conduit 
funds that may be invested in a money market fund that breaks the 
buck.\3\ Commission staff further estimates that a money market fund or 
conduit fund would spend approximately one hour of an in-house 
attorney's time to prepare and submit the notice required by the rule. 
Given these estimates, the total annual burden of the notification 
requirement of rule 22e-3 for all money market funds and conduit funds 
would be approximately 30 minutes, \4\ at a cost of $190.\5\
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    \2\ This estimate is based upon the Commission's experience with 
the frequency with which money market funds have historically 
required sponsor support. Although the vast majority of money market 
fund sponsors have supported their money market funds in times of 
market distress, for purposes of this estimate Commission staff 
conservatively estimates that one or more sponsors may not provide 
support.
    \3\ Based on a review of filings with the Commission, Commission 
staff estimates that 2.3 conduit funds are invested in each master 
fund. However, master funds account for only 11.3% of all money 
market funds. Solely for the purposes of this information 
collection, and to avoid underestimating possible burdens, the 
Commission conservatively assumes that any money market that breaks 
the buck and liquidates would be a master fund.
    \4\ This estimate is based on the following calculations: (1 
hour / 6 years) = 10 minutes per year for each fund and conduit fund 
that is required to provide notice under the rule. 10 minutes per 
year x 3 (combined number of affected funds and conduit funds) = 30 
minutes.
    \5\ This estimate is based on the following calculation: $380/
hour x 30 minutes = $190. The estimated hourly wages used in this 
PRA analysis were derived from reports prepared by the Securities 
Industry and Financial Markets Association, modified to account for 
an 1800-hour work year and multiplied by 5.35 to account for 
bonuses, firm size, employee benefits and overhead. See Securities 
Industry and Financial Markets Association, Management & 
Professional Earnings in the Securities Industry 2013.
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    The estimate of average burden hours is made solely for the 
purposes of the Paperwork Reduction Act, and is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.
    Compliance with the collection of information requirements of the 
rule is necessary to obtain the benefit of relying on the rule. 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 invited on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information has practical 
utility; (b) the accuracy of the Commission's estimate of the burden of 
the collection of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) 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 after this 
publication.
    Please direct your written comments to Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, C/O Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: July 28, 2015.
 Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18884 Filed 8-3-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 149 / Tuesday, August 4, 2015 / Notices 46371

general, protecting investors and the to accurately describe how orders communications relating to the
public interest. utilizing those routing options function proposed rule change between the
in light of the recent proposed rule Commission and any person, other than
(B) Self-Regulatory Organization’s
change by EDGX, thereby avoiding those that may be withheld from the
Statement on Burden on Competition
potential investor confusion during the public in accordance with the
The Exchange does not believe that operative delay period. Based on the provisions of 5 U.S.C. 552, will be
the proposal will impose any burden on foregoing, the Commission believes the available for Web site viewing and
competition not necessary or waiver of the operative delay is printing in the Commission’s Public
appropriate in furtherance of the consistent with the protection of Reference Room, 100 F Street NE.,
purposes of the Act. The proposed rule investors and the public interest.22 The Washington, DC 20549, on official
change is not designed to address any Commission hereby grants the waiver business days between the hours of
competitive issues but rather avoid and designates the proposal operative 10:00 a.m. and 3:00 p.m. Copies of the
investor confusion by eliminating the upon filing. filing will also be available for
ROOC routing option that is to be At any time within 60 days of the inspection and copying at the principal
discontinued by the Exchange as well as filing of the proposed rule change, the office of the Exchange. All comments
update the IOCM and ICMT routing Commission summarily may received will be posted without change;
options in response to a recent proposed temporarily suspend such rule change if the Commission does not edit personal
rule change by EDGX.20 it appears to the Commission that such identifying information from
(C) Self-Regulatory Organization’s action is necessary or appropriate in the submissions. You should submit only
Statement on Comments on the public interest, for the protection of information that you wish to make
Proposed Rule Change Received From investors, or otherwise in furtherance of available publicly. All submissions
Members, Participants or Others the purposes of the Act. If the should refer to File Number SR–BYX–
Commission takes such action, the 2015–33 and should be submitted on or
The Exchange has neither solicited Commission shall institute proceedings before August 25, 2015.
nor received written comments on the to determine whether the proposed rule
proposed rule change. For the Commission, by the Division of
should be approved or disapproved. Trading and Markets, pursuant to delegated
III. Date of Effectiveness of the IV. Solicitation of Comments authority.23
Proposed Rule Change and Timing for Robert W. Errett,
Commission Action Interested persons are invited to
Deputy Secretary.
submit written data, views, and
Because the proposed rule change arguments concerning the foregoing, [FR Doc. 2015–19017 Filed 8–3–15; 8:45 am]
does not (i) significantly affect the including whether the proposed rule BILLING CODE 8011–01–P
protection of investors or the public change is consistent with the Act.
interest; (ii) impose any significant Comments may be submitted by any of
burden on competition; and (iii) become SECURITIES AND EXCHANGE
the following methods:
operative for 30 days from the date on COMMISSION
which it was filed, or such shorter time Electronic Comments
Proposed Collection; Comment
as the Commission may designate, the • Use the Commission’s Internet
proposed rule change has become Request
comment form (http://www.sec.gov/
effective pursuant to Section 19(b)(3)(A) rules/sro.shtml); or Upon Written Request, Copies Available
of the Act and Rule 19b–4(f)(6) • Send an email to rule-comments@ From: Securities and Exchange
thereunder.21 sec.gov. Please include File Number SR– Commission, Office of FOIA Services,
A proposed rule change filed BYX–2015–33 on the subject line. 100 F Street NE., Washington, DC
pursuant to Rule 19b–4(f)(6) under the 20549–2736.
Act normally does not become operative Paper Comments
Extension:
for 30 days after the date of its filing. • Send paper comments in triplicate Rule 22e–3. SEC File No. 270–603, OMB
However, Rule 19b–4(f)(6)(iii) permits to Brent J. Fields, Secretary, Securities Control No. 3235–0658.
the Commission to designate a shorter and Exchange Commission, 100 F Street
time if such action is consistent with the NE., Washington, DC 20549–1090. Notice is hereby given that, under the
protection of investors and the public Paperwork Reduction Act of 1995 (44
All submissions should refer to File
interest. The Exchange has asked the U.S.C. 3501–3520), the Securities and
Number SR–BYX–2015–33. This file
Commission to waive the 30-day Exchange Commission (the
number should be included on the
operative delay so that the proposal may ‘‘Commission’’) has submitted to the
subject line if email is used. To help the
become operative immediately upon Office of Management and Budget a
Commission process and review your
filing. Waiver of the 30-day operative request for extension of the previously
comments more efficiently, please use approved collection of information
delay would allow the Exchange to only one method. The Commission will discussed below.
modify its rules in a timely manner by: post all comments on the Commission’s Section 22(e) of the Investment
(i) Eliminating a rule that accounts for Internet Web site (http://www.sec.gov/ Company Act [15 U.S.C. 80a–22(e)]
a service the Exchange intends to rules/sro.shtml). Copies of the (‘‘Act’’) generally prohibits funds,
discontinue; and (ii) updating its rules submission, all subsequent including money market funds, from
amendments, all written statements suspending the right of redemption, and
20 Id.
with respect to the proposed rule from postponing the payment or
21 In addition, Rule 19b–4(f)(6)(iii) requires the
tkelley on DSK3SPTVN1PROD with NOTICES

change that are filed with the satisfaction upon redemption of any
Exchange to give the Commission written notice of
the Exchange’s intent to file the proposed rule Commission, and all written redeemable security for more than seven
change, along with a brief description and text of days. The provision was designed to
the proposed rule change, at least five business days 22 For purposes only of waiving the 30-day
prevent funds and their investment
prior to the date of filing of the proposed rule operative delay, the Commission has also
change, or such shorter time as designated by the considered the proposed rule’s impact on advisers from interfering with the
Commission. The Exchange has satisfied this efficiency, competition, and capital formation. See
requirement. 15 U.S.C. 78c(f). 23 17 CFR 200.30–3(a)(12).

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Document Created: 2015-12-18 14:51:34
Document Modified: 2015-12-18 14:51:34
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 46371