80 FR 67450 - Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide Additional Details Regarding the Requirement That Members Participate in Annual Testing of Business Continuity and Disaster Recovery Plans
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 211 (November 2, 2015)
Federal Register Volume 80, Issue 211 (November 2, 2015)
| Page Range | 67450-67452 | |
| FR Document | 2015-27797 |
[Federal Register Volume 80, Number 211 (Monday, November 2, 2015)] [Notices] [Pages 67450-67452] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-27797] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76278; File No. SR-FICC-2015-004] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide Additional Details Regarding the Requirement That Members Participate in Annual Testing of Business Continuity and Disaster Recovery Plans October 27, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given that on October 26, 2015, Fixed Income Clearing Corporation (``FICC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by FICC. FICC filed the proposed rule change pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(6) \4\ thereunder. The proposed rule change was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of a change to Rule 3 of the Clearing Rules of the Mortgage-Backed Securities Division (``MBSD,'' and its Clearing Rules, ``MBSD Rules'') of FICC and Rule 3 of the Rulebook of the Government Securities Division (``GSD,'' and its Rulebook, ``GSD Rules'') of FICC to provide additional details regarding the requirement that MBSD and GSD Members participate in annual testing of FICC's business continuity and disaster recovery plans (``BCP Testing'').\5\ --------------------------------------------------------------------------- \5\ Terms not otherwise defined herein have the meaning set forth in the MBSD Rules and GSD Rules available at http://www.dtcc.com/legal/rules-and-procedures.aspx. --------------------------------------------------------------------------- II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FICC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. FICC has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. (A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The proposed rule change would amend Rule 3 (Ongoing Membership Requirements) of the MBSD Rules and Rule 3 (Ongoing Membership Requirements) of the GSD Rules to provide additional details regarding the requirement that MBSD and GSD Members participate in FICC's annual BCP Testing. Currently, pursuant to Rule 2A (Initial Membership Requirements) of the MBSD Rules and Rule 2A (Initial Membership Requirements) of the GSD Rules, each applicant for membership of either MBSD or GSD must fulfill operational testing requirements, as established by FICC, that may be imposed to ensure the operational capability of the applicant.'' \6\ Once a firm becomes a Member of GSD or MBSD, MBSD Rule 3 and GSD Rule 3 each of their respective [sic] provides that Members may be required to fulfill certain operational testing requirements that may be imposed by FICC to test and monitor the continuing operational capability of the Members.\7\ --------------------------------------------------------------------------- \6\ Rule 2A, Section 2 of MBSD Rules and Rule 2A, Section 5 of GSD Rules, supra, note 5. \7\ Rule 3, Section 6 of MBSD Rules and Rule 3 Section 5 of GSD Rules, supra, note 5. --------------------------------------------------------------------------- Recently, the Commission promulgated Regulation Systems Compliance and Integrity (``Reg. SCI''), which requires FICC to establish standards to designate members \8\ and requires participation by such designated members in scheduled BCP Testing with FICC on an annual basis.\9\ Although FICC already conducts annual BCP Testing with certain MBSD and GSD Members,\10\ FICC is proposing to amend Rule 3 of the MBSD Rules and Rule 3 of the GSD Rules to further [[Page 67451]] describe the requirement with respect to BCP Testing. --------------------------------------------------------------------------- \8\ 17 CFR 242.1004(a). In adopting Reg. SCI, the Commission determined not to require covered entities to notify the Commission of its designations or the standards that will be used in designating members, recognizing instead that each entity's standards, designations, and updates, if applicable, would be part of its records and, therefore, available to the Commission and its staff upon request. See Securities and Exchange Act Release No. 73639 (November 19, 2014), 79 FR 72252 (December 5, 2014) (File No. S7-01-13). \9\ 17 CFR 242.1004(a) and (b). \10\ Rule 3, Section 6 of MBSD Rules and Rule 3 Section 5 of GSD Rules, supra, note 5. --------------------------------------------------------------------------- The proposed amendments to Rule 3 of the MBSD Rules and Rule 3 of the GSD Rules would increase transparency regarding BCP Testing, and ensure FICC's practice with respect to such testing is consistent with Reg. SCI by setting forth FICC's rights to: (i) Designate MBSD and GSD Members required to participate in BCP Testing using established standards; (ii) determine the scope and reporting of such BCP Testing; and (iii) require MBSD and GSD Members to comply with such BCP Testing within specified timeframes. In connection with these proposed amendments, FICC would refine the factors that it currently uses to designate MBSD and GSD Members for BCP Testing. For example, while FICC would continue to rely on activity-based thresholds to mandate participation with annual BCP Testing, FICC would also take into account additional factors when designating firms for BCP Testing, including, but not limited to: (i) Significant operational issues of the MBSD or GSD Member during the past twelve months; and (ii) past performance of the MBSD or GSD Member with respect to BCP Testing. MBSD and GSD Members would be informed of the specific standards that would be used by FICC, along with any updates or changes to these standards, which would be applied on a prospective basis, through established methods of communication between FICC and the Members of MBSD and GSD. Likewise, MBSD and GSD Members would be notified in advance that they have been designated to participate in BCP Testing for the upcoming year, and would be provided details concerning the nature of such testing as the particular test plans are determined. FICC believes the proposed rule change would have no impact on MBSD and GSD Members relative to what those Members are currently required to do. As described above, FICC already requires certain MBSD and GSD Members to participate in BCP Testing on an annual basis. The proposed rule change provides further clarity with respect to these requirements for consistency with Reg. SCI. 2. Statutory Basis Section 17A(b)(3)(F) of the Act requires, in part, that the MBSD Rules and GSD Rules be designed to promote the prompt and accurate clearance and settlement of securities transactions and to protect investors and the public interest.\11\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- Rule 17Ad-22(d)(2), promulgated under the Act, requires FICC to require that MBSD and GSD Members have robust operational capacity to meet obligations arising from participation in the clearing agency, to monitory that its participation requirements are met on an ongoing basis, and to have participation requirements that are objective and publicly disclosed.\12\ Rule 17-22(d)(4), promulgated under the Act, requires FICC to identify sources of operational risk and minimize them through the development of appropriate systems, controls, and procedures, and have business continuity plans that allow for timely recovery of operations and fulfillment of the clearing agency's obligations.\13\ --------------------------------------------------------------------------- \12\ 17 CFR 240.17Ad-22(d)(2). \13\ 17 CFR 240.17Ad-22(d)(4). --------------------------------------------------------------------------- Rule 1004(a) and (b) of Reg. SCI requires FICC to establish standards for the designation of those MBSD and GSD Members that FICC reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of its business continuity and disaster recovery plans, and to designate MBSD and GSD Members pursuant to those standards and require participation by such designated firms in scheduled BCP Testing annually.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 242.1004(a) and (b). --------------------------------------------------------------------------- By facilitating the testing of how business continuity and disaster recovery plans function between FICC and the MBSD and GSD Members during an emergency, the proposed rule change would facilitate the prompt and accurate clearance and settlement of securities transactions and protect investors and the public interest consistent with of the Act. The proposed rule change would provide additional details to the MBSD Rules and GSD Rules regarding the requirement for MBSD and GSD Members to take part in its BCP Testing annually, strengthening its compliance with Rule 17Ad-22(d)(2) and (4).\15\ Further, the proposed rule change would foster the objectives of the Commission under Reg. SCI by helping to ensure resilient and available markets.\16\ --------------------------------------------------------------------------- \15\ 17 CFR 240.17Ad-22(d)(2) and (4). \16\ 17 CFR 242.1004(a) and (b). --------------------------------------------------------------------------- As such, FICC believes that the proposed rule change is consistent with Section 17A(b)(3)(F) of the Act, Rule 17Ad-22(d)(2) and (d)(4), promulgated under the Act, and Rule 1004(a) and (b) of Reg. SCI, cited above. (B) Clearing Agency's Statement on Burden on Competition FICC does not believe that the proposed rule change would impose any burden on competition because the proposed rule change would apply to all MBSD and GSD Members and only provides additional details regarding an existing requirement. (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were not and are not intended to be solicited with respect to the proposed rule change, and none have been received. III. Date of Effectiveness of the Proposed Rule Change, and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) \17\ of the Act and Rule 19b-4(f)(6) thereunder.\18\ --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the FICC to give the Commission written notice of the its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Commission deems this requirement to have been met. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b-4(f)(6)(iii) \20\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \19\ 17 CFR 240.19b-4(f)(6). \20\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- FICC has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. According to FICC, the proposed rule change does not present any novel or controversial issues. Rather, FICC is merely providing additional details regarding BCP Testing requirements or adding provisions that are consistent with or required by Reg. SCI. Accordingly, the Commission believes that waiving the 30-day operative delay is consistent with the [[Page 67452]] protection of investors and the public interest as it will allow FICC to incorporate changes required under Reg. SCI prior to the November 3, 2015 compliance date. Therefore, the Commission designates the proposed rule change to be operative upon filing.\21\ --------------------------------------------------------------------------- \21\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-FICC-2015-004 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-FICC-2015-004. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of FICC and on DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.aspx). All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-FICC-2015-004 and should be submitted on or before November 23, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). Robert W. Errett, Deputy Secretary. [FR Doc. 2015-27797 Filed 10-30-15; 8:45 am] BILLING CODE 8011-01-P
![67450 Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Notices
arguments concerning the foregoing, SECURITIES AND EXCHANGE may be examined at the places specified
including whether the proposed rule COMMISSION in Item IV below. FICC has prepared
change is consistent with the Act. summaries, set forth in sections A, B
[Release No. 34–76278; File No. SR–FICC–
Comments may be submitted by any of 2015–004] and C below, of the most significant
the following methods: aspects of such statements.
Electronic Comments Self-Regulatory Organizations; Fixed
(A) Clearing Agency’s Statement of the
Income Clearing Corporation; Notice of
• Use the Commission’s Internet Purpose of, and Statutory Basis for, the
Filing and Immediate Effectiveness of
comment form (http://www.sec.gov/ Proposed Rule Change To Provide Proposed Rule Change
rules/sro.shtml); or Additional Details Regarding the 1. Purpose
• Send an email to rule-comments@ Requirement That Members Participate
sec.gov. Please include File Number SR– in Annual Testing of Business The proposed rule change would
C2–2015–025 on the subject line. Continuity and Disaster Recovery amend Rule 3 (Ongoing Membership
Plans Requirements) of the MBSD Rules and
Paper Comments Rule 3 (Ongoing Membership
October 27, 2015.
• Send paper comments in triplicate Requirements) of the GSD Rules to
Pursuant to Section 19(b)(1) 1 of the provide additional details regarding the
to Secretary, Securities and Exchange
Securities Exchange Act of 1934 (‘‘Act’’) requirement that MBSD and GSD
Commission, 100 F Street NE., and Rule 19b–4 2 thereunder, notice is
Washington, DC 20549–1090. Members participate in FICC’s annual
hereby given that on October 26, 2015,
All submissions should refer to File BCP Testing. Currently, pursuant to
Fixed Income Clearing Corporation
Number SR–C2–2015–025. This file Rule 2A (Initial Membership
(‘‘FICC’’) filed with the Securities and
number should be included on the Exchange Commission (‘‘Commission’’) Requirements) of the MBSD Rules and
subject line if email is used. To help the the proposed rule change as described Rule 2A (Initial Membership
Commission process and review your in Items I and II below, which Items Requirements) of the GSD Rules, each
comments more efficiently, please use have been prepared by FICC. FICC filed applicant for membership of either
only one method. The Commission will the proposed rule change pursuant to MBSD or GSD must fulfill operational
post all comments on the Commission’s Section 19(b)(3)(A) 3 of the Act and Rule testing requirements, as established by
Internet Web site (http://www.sec.gov/ 19b–4(f)(6) 4 thereunder. The proposed FICC, that may be imposed to ensure the
rules/sro.shtml). Copies of the rule change was effective upon filing operational capability of the
submission, all subsequent with the Commission. The Commission applicant.’’ 6 Once a firm becomes a
amendments, all written statements is publishing this notice to solicit Member of GSD or MBSD, MBSD Rule
with respect to the proposed rule comments on the proposed rule change 3 and GSD Rule 3 each of their
change that are filed with the from interested persons. respective [sic] provides that Members
Commission, and all written may be required to fulfill certain
I. Clearing Agency’s Statement of the operational testing requirements that
communications relating to the
Terms of Substance of the Proposed may be imposed by FICC to test and
proposed rule change between the
Rule Change monitor the continuing operational
Commission and any person, other than
those that may be withheld from the The proposed rule change consists of capability of the Members.7
public in accordance with the a change to Rule 3 of the Clearing Rules Recently, the Commission
provisions of 5 U.S.C. 552, will be of the Mortgage-Backed Securities promulgated Regulation Systems
available for Web site viewing and Division (‘‘MBSD,’’ and its Clearing
Compliance and Integrity (‘‘Reg. SCI’’),
printing in the Commission’s Public Rules, ‘‘MBSD Rules’’) of FICC and Rule
which requires FICC to establish
Reference Room, 100 F Street NE., 3 of the Rulebook of the Government
standards to designate members 8 and
Washington, DC 20549 on official Securities Division (‘‘GSD,’’ and its
requires participation by such
business days between the hours of Rulebook, ‘‘GSD Rules’’) of FICC to
designated members in scheduled BCP
10:00 a.m. and 3:00 p.m. Copies of the provide additional details regarding the
requirement that MBSD and GSD Testing with FICC on an annual basis.9
filing also will be available for Although FICC already conducts annual
inspection and copying at the principal Members participate in annual testing of
FICC’s business continuity and disaster BCP Testing with certain MBSD and
office of the Exchange. All comments
recovery plans (‘‘BCP Testing’’).5 GSD Members,10 FICC is proposing to
received will be posted without change;
amend Rule 3 of the MBSD Rules and
the Commission does not edit personal II. Clearing Agency’s Statement of the Rule 3 of the GSD Rules to further
identifying information from Purpose of, and Statutory Basis for, the
submissions. You should submit only Proposed Rule Change 6 Rule 2A, Section 2 of MBSD Rules and Rule 2A,
information that you wish to make Section 5 of GSD Rules, supra, note 5.
available publicly. All submissions In its filing with the Commission,
7 Rule 3, Section 6 of MBSD Rules and Rule 3
should refer to File Number SR–C2– FICC included statements concerning Section 5 of GSD Rules, supra, note 5.
2015–025 and should be submitted on the purpose of and basis for the 8 17 CFR 242.1004(a). In adopting Reg. SCI, the
or before November 23, 2015. proposed rule change and discussed any Commission determined not to require covered
comments it received on the proposed entities to notify the Commission of its designations
For the Commission, by the Division of rule change. The text of these statements or the standards that will be used in designating
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Trading and Markets, pursuant to delegated members, recognizing instead that each entity’s
authority.27 standards, designations, and updates, if applicable,
1 15 U.S.C. 78s(b)(1). would be part of its records and, therefore, available
Robert W. Errett, 2 17 CFR 240.19b–4. to the Commission and its staff upon request. See
Deputy Secretary. 3 15 U.S.C. 78s(b)(3)(A). Securities and Exchange Act Release No. 73639
[FR Doc. 2015–27794 Filed 10–30–15; 8:45 am] 4 17 CFR 240.19b–4(f)(6). (November 19, 2014), 79 FR 72252 (December 5,
5 Terms not otherwise defined herein have the 2014) (File No. S7–01–13).
BILLING CODE 8011–01–P 9 17 CFR 242.1004(a) and (b).
meaning set forth in the MBSD Rules and GSD
Rules available at http://www.dtcc.com/legal/rules- 10 Rule 3, Section 6 of MBSD Rules and Rule 3
27 17 CFR 200.30–3(a)(12). and-procedures.aspx. Section 5 of GSD Rules, supra, note 5.
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![67452 Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Notices
protection of investors and the public Washington, DC 20549 on official Investment Company Act of 1940 (the
interest as it will allow FICC to business days between the hours of ‘‘Investment Company Act’’) (15 U.S.C.
incorporate changes required under Reg. 10:00 a.m. and 3:00 p.m. Copies of the 80a–17(j)) in 1970 and the adoption by
SCI prior to the November 3, 2015 filing also will be available for the Commission of rule 17j–1 (17 CFR
compliance date. Therefore, the inspection and copying at the principal 270.17j–1) in 1980.1 The Commission
Commission designates the proposed office of FICC and on DTCC’s Web site proposed amendments to rule 17j–1 in
rule change to be operative upon (http://dtcc.com/legal/sec-rule- 1995 in response to recommendations
filing.21 filings.aspx). All comments received made in the first detailed study of fund
At any time within 60 days of the will be posted without change; the policies concerning personal investment
filing of the proposed rule change, the Commission does not edit personal activities by the Commission’s Division
Commission summarily may identifying information from of Investment Management since rule
temporarily suspend such rule change if submissions. You should submit only 17j–1 was adopted. Amendments to rule
it appears to the Commission that such information that you wish to make 17j–1, which were adopted in 1999,
action is necessary or appropriate in the available publicly. enhanced fund oversight of personal
public interest, for the protection of All submissions should refer to File investment activities and the board’s
investors, or otherwise in furtherance of Number SR–FICC–2015–004 and should role in carrying out that oversight.2
the purposes of the Act. be submitted on or before November 23, Additional amendments to rule 17j–1
IV. Solicitation of Comments 2015. were made in 2004, conforming rule
For the Commission, by the Division 17j–1 to rule 204A–1 under the
Interested persons are invited to of Trading and Markets, pursuant to Investment Advisers Act of 1940 (15
submit written data, views and delegated authority.22 U.S.C. 80b), avoiding duplicative
arguments concerning the foregoing, reporting, and modifying certain
including whether the proposed rule Robert W. Errett,
definitions and time restrictions.3
change is consistent with the Act. Deputy Secretary. Section 17(j) makes it unlawful for
Comments may be submitted by any of [FR Doc. 2015–27797 Filed 10–30–15; 8:45 am] persons affiliated with a registered
the following methods: BILLING CODE 8011–01–P investment company (‘‘fund’’) or with
Electronic Comments the fund’s investment adviser or
principal underwriter (each a ‘‘17j–1
• Use the Commission’s Internet SECURITIES AND EXCHANGE organization’’), in connection with the
comment form (http://www.sec.gov/ COMMISSION purchase or sale of securities held or to
rules/sro.shtml); or be acquired by the investment company,
• Send an email to rule-comments@ [SEC File No. 270–239, OMB Control No.
to engage in any fraudulent, deceptive,
sec.gov. Please include File Number SR– 3235–0224; Extension: Rule 17j 1]
or manipulative act or practice in
FICC–2015–004 on the subject line. Submission for OMB Review; contravention of the Commission’s rules
Paper Comments Comment Request and regulations. Section 17(j) also
• Send paper comments in triplicate authorizes the Commission to
Upon Written Request, Copies Available promulgate rules requiring 17j–1
to Secretary, Securities and Exchange From: Securities and Exchange
Commission, 100 F Street NE., organizations to adopt codes of ethics.
Commission, Office of Investor In order to implement section 17(j),
Washington, DC 20549–1090. Education and Advocacy, rule 17j–1 imposes certain requirements
All submissions should refer to File Washington, DC 20549–0213 on 17j–1 organizations and ‘‘Access
Number SR–FICC–2015–004. This file Notice is hereby given that, pursuant Persons’’ 4 of those organizations. The
number should be included on the to the Paperwork Reduction Act of 1995
subject line if email is used. To help the (44 U.S.C. 3501–3520), the Securities 1 Prevention of Certain Unlawful Activities with
Commission process and review your and Exchange Commission (the Respect to Registered Investment Companies,
comments more efficiently, please use ‘‘Commission’’) has submitted to the Investment Company Act Release No. 11421 (Oct.
only one method. The Commission will 31, 1980) (45 FR 73915 (Nov. 7, 1980)).
Office of Management and Budget a 2 Personal Investment Activities of Investment
post all comments on the Commission’s request for extension of the previously Company Personnel, Investment Company Act
Internet Web site (http://www.sec.gov/ approved collection of information Release No. 23958 (Aug. 20, 1999) (64 FR 46821
rules/sro.shtml). Copies of the discussed below. (Aug. 27, 1999)).
submission, all subsequent Conflicts of interest between
3 Investment Adviser Codes of Ethics, Investment
amendments, all written statements Advisers Act Release No. 2256 (Jul. 2, 2004) (69 FR
investment company personnel (such as 41696 (Jul. 9, 2004)).
with respect to the proposed rule portfolio managers) and their funds can 4 Rule 17j–1(a)(1) defines an ‘‘access person’’ as
change that are filed with the arise when these persons buy and sell ‘‘Any Advisory Person of a Fund or of a Fund’s
Commission, and all written securities for their own accounts investment adviser. If an investment adviser’s
communications relating to the primary business is advising Funds or other
(‘‘personal investment activities’’). advisory clients, all of the investment adviser’s
proposed rule change between the These conflicts arise because fund directors, officers, and general partners are
Commission and any person, other than personnel have the opportunity to profit presumed to be Access Persons of any Fund advised
those that may be withheld from the from information about fund by the investment adviser. All of a Fund’s directors,
public in accordance with the officers, and general partners are presumed to be
transactions, often to the detriment of Access Persons of the Fund.’’ The definition of
provisions of 5 U.S.C. 552, will be fund investors. Beginning in the early
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Access Person also includes ‘‘Any director, officer
available for Web site viewing and 1960s, Congress and the Securities and or general partner of a principal underwriter who,
printing in the Commission’s Public in the ordinary course of business, makes,
Exchange Commission (‘‘Commission’’) participates in or obtains information regarding, the
Reference Room, 100 F Street NE., sought to devise a regulatory scheme to purchase or sale of Covered Securities by the Fund
effectively address these potential for which the principal underwriter acts, or whose
21 For purposes only of waiving the 30-day functions or duties in the ordinary course of
conflicts. These efforts culminated in
operative delay, the Commission has also business relate to the making of any
considered the proposed rule’s impact on the addition of section 17(j) to the recommendation to the Fund regarding the
efficiency, competition, and capital formation. See purchase or sale of Covered Securities.’’ Rule 17j–
15 U.S.C. 78c(f). 22 17 CFR 200.30–3(a)(12). 1(a)(1).
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Document Created: 2018-03-01 11:30:27
Document Modified: 2018-03-01 11:30:27
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 67450 |
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