80_FR_46520 80 FR 46371 - Proposed Collection; Comment Request

80 FR 46371 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

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

Page Range46371-46372
FR Document2015-18884

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

    \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.
---------------------------------------------------------------------------

    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: [email protected].

    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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                                              46372                            Federal Register / Vol. 80, No. 149 / Tuesday, August 4, 2015 / Notices

                                              redemption rights of shareholders for                      years.2 In addition, Commission staff                  of the information collected; and (d)
                                              improper purposes, such as the                             estimates that there are an average of                 ways to minimize the burden of the
                                              preservation of management fees.                           two conduit funds that may be invested                 collection of information on
                                              Although section 22(e) permits funds to                    in a money market fund that breaks the                 respondents, including through the use
                                              postpone the date of payment or                            buck.3 Commission staff further                        of automated collection techniques or
                                              satisfaction upon redemption for up to                     estimates that a money market fund or                  other forms of information technology.
                                              seven days, it does not permit funds to                    conduit fund would spend                               Consideration will be given to
                                              suspend the right of redemption for any                    approximately one hour of an in-house                  comments and suggestions submitted in
                                              amount of time, absent certain specified                   attorney’s time to prepare and submit                  writing within 60 days after this
                                              circumstances or a Commission order.                       the notice required by the rule. Given                 publication.
                                                 Rule 22e–3 under the Act [17 CFR                        these estimates, the total annual burden                 Please direct your written comments
                                              270.22e–3] exempts money market                            of the notification requirement of rule                to Pamela Dyson, Director/Chief
                                              funds from section 22(e) to permit them                    22e–3 for all money market funds and                   Information Officer, Securities and
                                              to suspend redemptions in order to                         conduit funds would be approximately                   Exchange Commission, C/O Remi
                                              facilitate an orderly liquidation of the                   30 minutes, 4 at a cost of $190.5                      Pavlik-Simon, 100 F Street NE.,
                                              fund. Specifically, rule 22e–3 permits a                      The estimate of average burden hours                Washington, DC 20549; or send an email
                                              money market fund to suspend                               is made solely for the purposes of the                 to: PRA_Mailbox@sec.gov.
                                              redemptions and postpone the payment                       Paperwork Reduction Act, and is not                      Dated: July 28, 2015.
                                              of proceeds pending board-approved                         derived from a comprehensive or even                   Robert W. Errett,
                                              liquidation proceedings if: (i) The fund’s                 a representative survey or study of the
                                                                                                                                                                Deputy Secretary.
                                              board of directors, including a majority                   costs of Commission rules and forms.
                                                                                                                                                                [FR Doc. 2015–18884 Filed 8–3–15; 8:45 am]
                                              of disinterested directors, determines                        Compliance with the collection of
                                                                                                         information requirements of the rule is                BILLING CODE 8011–01–P
                                              pursuant to § 270.2a–7(c)(8)(ii)(C) that
                                              the extent of the deviation between the                    necessary to obtain the benefit of relying
                                              fund’s amortized cost price per share                      on the rule. An agency may not conduct
                                                                                                                                                                SECURITIES AND EXCHANGE
                                              and its current net asset value per share                  or sponsor, and a person is not required
                                                                                                                                                                COMMISSION
                                              calculated using available market                          to respond to, a collection of
                                              quotations (or an appropriate substitute                   information unless it displays a                       [Investment Company Act Release No.
                                              that reflects current market conditions)                   currently valid control number.                        31726; File No. 812–14395]
                                              may result in material dilution or other                      Written comments are invited on: (a)
                                              unfair results to investors or existing                    Whether the collection of information is               Little Harbor MultiStrategy Composite
                                              shareholders; (ii) the fund’s board of                     necessary for the proper performance of                Fund and Little Harbor Advisors, LLC;
                                              directors, including a majority of                         the functions of the Commission,                       Notice of Application
                                              disinterested directors, irrevocably                       including whether the information has                  July 28, 2015.
                                              approves the liquidation of the fund;                      practical utility; (b) the accuracy of the
                                                                                                                                                                AGENCY:  Securities and Exchange
                                              and (iii) the fund, prior to suspending                    Commission’s estimate of the burden of
                                                                                                                                                                Commission (‘‘Commission’’).
                                              redemptions, notifies the Commission of                    the collection of information; (c) ways to
                                                                                                         enhance the quality, utility, and clarity              ACTION: Notice of an application under
                                              its decision to liquidate and suspend
                                              redemptions. Rule 22e–3 also provides                                                                             section 6(c) of the Investment Company
                                              an exemption from section 22(e) for                           2 This estimate is based upon the Commission’s      Act of 1940 (the ‘‘Act’’) for an
                                              registered investment companies that                       experience with the frequency with which money         exemption from sections 18(c) and 18(i)
                                                                                                         market funds have historically required sponsor        of the Act, under sections 6(c) and
                                              own shares of a money market fund                          support. Although the vast majority of money
                                              pursuant to section 12(d)(1)(E) of the                     market fund sponsors have supported their money
                                                                                                                                                                23(c)(3) of the Act for an exemption
                                              Act (‘‘conduit funds’’), if the underlying                 market funds in times of market distress, for          from rule 23c–3 under the Act, and for
                                              money market fund has suspended                            purposes of this estimate Commission staff             an order pursuant to section 17(d) of the
                                                                                                         conservatively estimates that one or more sponsors     Act and rule 17d–1 under the Act.
                                              redemptions pursuant to the rule. A                        may not provide support.
                                              conduit fund that suspends redemptions                        3 Based on a review of filings with the

                                              in reliance on the exemption provided                      Commission, Commission staff estimates that 2.3
                                                                                                                                                                SUMMARY OF APPLICATION:    Applicants
                                              by rule 22e–3 is required to provide                       conduit funds are invested in each master fund.        request an order to permit certain
                                              prompt notice of the suspension of
                                                                                                         However, master funds account for only 11.3% of        registered closed-end management
                                                                                                         all money market funds. Solely for the purposes of     investment companies to issue multiple
                                              redemptions to the Commission. Notices                     this information collection, and to avoid
                                              required by the rule must be provided                      underestimating possible burdens, the Commission
                                                                                                                                                                classes of shares (‘‘Shares’’) and to
                                              by electronic mail, directed to the                        conservatively assumes that any money market that      impose asset-based distribution and
                                              attention of the Director of the Division
                                                                                                         breaks the buck and liquidates would be a master       service fees and deferred sales charges
                                                                                                         fund.                                                  (‘‘Deferred Sales Charges’’).
                                              of Investment Management or the                               4 This estimate is based on the following

                                              Director’s designee.1 Compliance with                      calculations: (1 hour ÷ 6 years) = 10 minutes per      APPLICANTS: Little Harbor MultiStrategy
                                              the notification requirement is                            year for each fund and conduit fund that is required   Composite Fund (‘‘MSC Fund’’) and
                                              mandatory for money market funds and                       to provide notice under the rule. 10 minutes per       Little Harbor Advisors, LLC
                                                                                                         year × 3 (combined number of affected funds and        (‘‘Investment Manager’’).
                                              conduit funds that rely on rule 22e–3 to                   conduit funds) = 30 minutes.
                                              suspend redemptions and postpone                              5 This estimate is based on the following           FILING DATES: The application was filed
                                              payment of proceeds pending a                              calculation: $380/hour × 30 minutes = $190. The        on December 2, 2014, and amended on
                                                                                                         estimated hourly wages used in this PRA analysis       April 10, 2015 and June 17, 2015.
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                                              liquidation, and are not kept
                                                                                                         were derived from reports prepared by the
                                              confidential.                                              Securities Industry and Financial Markets              HEARING OR NOTIFICATION OF HEARING:
                                                 Commission staff estimates that, on                     Association, modified to account for an 1800-hour      An order granting the requested relief
                                              average, one money market fund would                       work year and multiplied by 5.35 to account for        will be issued unless the Commission
                                              break the buck and liquidate every six                     bonuses, firm size, employee benefits and overhead.
                                                                                                         See Securities Industry and Financial Markets
                                                                                                                                                                orders a hearing. Interested persons may
                                                                                                         Association, Management & Professional Earnings        request a hearing by writing to the
                                                1 See   rule 22e–3(a)(3).                                in the Securities Industry 2013.                       Commission’s Secretary and serving


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

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