80 FR 61535 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 197 (October 13, 2015)

Page Range		61535-61536
FR Document		2015-25871
Federal Register, Volume 80 Issue 197 (Tuesday, October 13, 2015)
[Federal Register Volume 80, Number 197 (Tuesday, October 13, 2015)]
[Notices]
[Pages 61535-61536]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25871]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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 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

[[Page 61536]]

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.
    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 send an email 
to: [email protected]. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: October 6, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-25871 Filed 10-9-15; 8:45 am]
BILLING CODE 8011-01-P
61536 Federal Register / Vol. 80, No. 197 / Tuesday, October 13, 2015 / Notices

the notice required by the rule. Given SECURITIES AND EXCHANGE 17Ad–4(b) again until it remains subject
these estimates, the total annual burden COMMISSION to the minimum performance standards
of the notification requirement of rule for non-exempt transfer agents for six
[SEC File No. 270–264, OMB Control No.
22e–3 for all money market funds and 3235–0341] consecutive months.
conduit funds would be approximately ARAs use the information contained
30 minutes,4 at a cost of $190.5 Submission for OMB Review; in the notices required by Rules 17Ad–
The estimate of average burden hours Comment Request 4(b) and 17Ad–4(c) to determine
is made solely for the purposes of the Upon Written Request, Copies Available whether a registered transfer agent
Paperwork Reduction Act, and is not From: Securities and Exchange qualifies for the exemption, to
derived from a comprehensive or even Commission, Office of FOIA Services, determine when a registered transfer
a representative survey or study of the 100 F Street NE., Washington, DC agent no longer qualifies for the
costs of Commission rules and forms. 20549–2736. exemption, and to determine the extent
Compliance with the collection of Extension: to which that transfer agent is subject to
information requirements of the rule is Rule 17Ad–4(b) & (c). regulation.
necessary to obtain the benefit of relying Notice is hereby given that pursuant The Commission estimates that
on the rule. An agency may not conduct to the Paperwork Reduction Act of 1995 approximately 10 registered transfer
or sponsor, and a person is not required (44 U.S.C. 3501 et seq.), the Securities agents each year prepare or file notices
to respond to, a collection of and Exchange Commission in compliance with Rules 17Ad–4(b)
information unless it displays a (‘‘Commission’’) has submitted to the and 17Ad–4(c). The Commission
currently valid control number. Office of Management and Budget estimates that each such registered
The public may view the background (‘‘OMB’’) a request for approval of transfer agent spends approximately 1.5
documentation for this information extension of the previously approved hours to prepare or file such notices for
collection at the following Web site, collection of information provided for in an aggregate total annual burden of 15
www.reginfo.gov. Comments should be Rule 17Ad–4(b) & (c) under the hours (1.5 hours times 10 transfer
Securities Exchange Act of 1934 (15 agents). The Commission staff estimates
directed to: (i) Desk Officer for the
U.S.C. 78a et seq.) (‘‘Exchange Act’’). that compliance staff work at registered
Securities and Exchange Commission, Rule 17Ad–4(b) & (c) (17 CFR
Office of Information and Regulatory transfer agents results in an internal cost
240.17Ad–4) is used to document when of compliance, at an estimated hourly
Affairs, Office of Management and transfer agents are exempt, or no longer
Budget, Room 10102, New Executive wage of $283, of $424.5 per year per
exempt, from the minimum
Office Building, Washington, DC 20503, transfer agent (1.5 hours × $283 per hour
performance standards and certain
or by sending an email to: Shagufta_ = $424.5 per year). Therefore, the
recordkeeping provisions of the
Ahmed@omb.eop.gov; and (ii) Pamela aggregate annual internal cost of
Commission’s transfer agent rules.
Dyson, Director/Chief Information Pursuant to Rule 17Ad–4(b), if the compliance for the approximate 10
Officer, Securities and Exchange Commission or the Office of the transfer agents annually preparing or
Commission, c/o Remi Pavlik-Simon, Comptroller of the Currency (‘‘OCC’’) is filing notices pursuant to Rules 17Ad–
100 F Street NE., Washington, DC 20549 the appropriate regulatory agency 4(b) and 17Ad–4(c) is approximately
or send an email to: PRA_Mailbox@ (‘‘ARA’’) for an exempt transfer agent, $4,245 ($424.5 × 10 = $4,245).
sec.gov. Comments must be submitted to that transfer agent is required to prepare This rule does not involve the
OMB within 30 days of this notice. and maintain in its possession a notice collection of confidential information.
certifying that it is exempt from certain An agency may not conduct or
Dated: October 6, 2015.
performance standards and
Robert W. Errett, sponsor, and a person is not required to
recordkeeping and record retention
Deputy Secretary. respond to, a collection of information
provisions of the Commission’s transfer
under the PRA unless it displays a
[FR Doc. 2015–25871 Filed 10–9–15; 8:45 am] agent rules. This notice need not be
filed with the Commission or OCC. If currently valid OMB control number.
BILLING CODE 8011–01–P
the Board of Governors of the Federal The public may view background
Reserve System (‘‘Fed’’) or the Federal documentation for this information
Deposit Insurance Corporation (‘‘FDIC’’) collection at the following Web site:
is the transfer agent’s ARA, that transfer www.reginfo.gov. Comments should be
agent must prepare a notice and file it directed to: (i) Desk Officer for the
with the Fed or FDIC. Securities and Exchange Commission,
4 This estimate is based on the following
Rule 17Ad–4(c) sets forth the Office of Information and Regulatory
calculations: (1 hour ÷ 6 years) = 10 minutes per conditions under which a registered
year for each fund and conduit fund that is required Affairs, Office of Management and
transfer agent loses its exempt status. Budget, Room 10102, New Executive
to provide notice under the rule. 10 minutes per
year × 3 (combined number of affected funds and Once the conditions for exemption no Office Building, Washington, DC 20503,
conduit funds) = 30 minutes. longer exist, the transfer agent, to keep or by sending an email to: Shagufta_
5 This estimate is based on the following the appropriate regulatory authority Ahmed@omb.eop.gov; and (ii) Pamela
calculation: $380/hour × 30 minutes = $190. The (‘‘ARA’’) apprised of its current status,
Dyson, Director/Chief Information
mstockstill on DSK4VPTVN1PROD with NOTICES

estimated hourly wages used in this PRA analysis must prepare, and file if the ARA for the
were derived from reports prepared by the Officer, Securities and Exchange
transfer agent is the Board of Governors
Securities Industry and Financial Markets Commission, c/o Remi Pavlik-Simon,
of the Federal Reserve System
Association, modified to account for an 1800-hour
(‘‘BGFRS’’) or the Federal Deposit 100 F Street NE., Washington, DC
work year and multiplied by 5.35 to account for
Insurance Corporation (‘‘FDIC’’), a 20549, or by sending an email to: PRA_
bonuses, firm size, employee benefits and overhead. Mailbox@sec.gov. Comments must be
See Securities Industry and Financial Markets notice of loss of exempt status under
Association, Management & Professional Earnings paragraph (c). The transfer agent then submitted to OMB within 30 days of
in the Securities Industry 2013. cannot claim exempt status under Rule this notice.

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Document Created: 2018-02-27 08:48:20
Document Modified: 2018-02-27 08:48:20
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 61535