81 FR 26853 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 86 (May 4, 2016)

Page Range		26853-26854
FR Document		2016-10366
Federal Register, Volume 81 Issue 86 (Wednesday, May 4, 2016)
[Federal Register Volume 81, Number 86 (Wednesday, May 4, 2016)]
[Notices]
[Pages 26853-26854]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10366]


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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 0-2, SEC File No. 270-572, OMB Control No. 3235-0636.

    Notice is hereby given that pursuant to 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.
    Several sections of the Investment Company Act of 1940 (``Act'' or 
``Investment Company Act'') \1\ give the Commission the authority to 
issue orders granting exemptions from the Act's provisions. The section 
that grants broadest authority is section 6(c), which provides the 
Commission with authority to conditionally or unconditionally exempt 
persons, securities or transactions from any provision of the 
Investment Company Act, or the rules or regulations thereunder, if and 
to the extent that such exemption is necessary or appropriate in the 
public interest and consistent with the protection of investors and the 
purposes fairly intended by the policy and provisions of the Act.\2\
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    \1\ 15 U.S.C. 80a-1 et seq.
    \2\ 15 U.S.C. 80a-6(c).
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    Rule 0-2 under the Investment Company Act,\3\ entitled ``General 
Requirements of Papers and Applications,'' prescribes general 
instructions for filing an application seeking exemptive relief with 
the Commission for which a form is not specifically prescribed. Rule 0-
2 requires that each application filed with the commission have (a) a 
statement of authorization to file and sign the application on behalf 
of the applicant, (b) a verification of application and statements of 
fact, (c) a brief statement of the grounds for application, and (d) the 
name and address of each applicant and of any person to whom questions 
should be directed. The Commission uses the information required by 
rule 0-2 to decide whether the applicant should be deemed to be 
entitled to the action requested by the application.
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    \3\ 17 CFR 270.0-2.
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    Applicants for orders can include registered investment companies, 
affiliated persons of registered investment companies, and issuers 
seeking to avoid investment company status, among other entities. 
Commission staff estimates that it receives approximately 184 
applications per year under the Act. Although each application 
typically is submitted on behalf of multiple entities, the entities in 
the vast majority of cases are related companies and are treated as a 
single respondent for purposes of this analysis.
    The time to prepare an application depends on the complexity and/or 
novelty of the issues covered by the application. We estimate that the 
Commission receives 25 of the most time-consuming applications 
annually, 125 applications of medium difficulty, and 34 of the least 
difficult applications. Based on conversations with applicants, we 
estimate that in-house counsel would spend from ten to fifty hours 
helping to draft and review an application. We estimate a total annual 
hour burden to all respondents of 5,340 hours [(50 hours x 25 
applications) + (30 hours x 125 applications) + (10 hours x 34 
applications)].
    Much of the work of preparing an application is performed by 
outside counsel. The cost outside counsel charges applicants depends on 
the complexity of the issues covered by the application and the time 
required for preparation. Based on conversations with attorneys who 
serve as outside counsel, the cost ranges from approximately $10,000 
for preparing a well-precedented, routine application to approximately 
$150,000 to prepare a complex and/or novel application. This 
distribution gives a total estimated

[[Page 26854]]

annual cost burden to applicants of filing all applications of 
$14,090,000 [(25 x $150,000) + (125 x $80,000) + (34 x $10,000)].
    These estimates of average costs are made solely for the purposes 
of the Paperwork Reduction Act. The estimate is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules.
    This collection of information is necessary to obtain a benefit and 
will not be kept confidential. An agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB 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: April 28, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-10366 Filed 5-3-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Notices 26853

proposed rule change, and noted change would impose any burden on Rule 0–2 under the Investment
interest in seeing the MSRB coordinate competition not necessary or Company Act,3 entitled ‘‘General
with other regulators and market appropriate in furtherance of the Requirements of Papers and
participants to educate investors and purposes of the Act. Applications,’’ prescribes general
other market participants about the For the reasons noted above, the instructions for filing an application
effects of shortening the settlement Commission believes that the proposed seeking exemptive relief with the
cycle to T+2.33 The MSRB stated that it rule change is consistent with the Act. Commission for which a form is not
expects to coordinate implementation of V. Conclusion specifically prescribed. Rule 0–2
a T+2 regular-way settlement cycle for requires that each application filed with
municipal securities transactions with IT IS THEREFORE ORDERED, the commission have (a) a statement of
other regulators.34 pursuant to Section 19(b)(2) of the authorization to file and sign the
Act,37 that the proposed rule change application on behalf of the applicant,
IV. Discussion and Commission (SR–MSRB–2016–04) be, and hereby is, (b) a verification of application and
Findings approved. statements of fact, (c) a brief statement
The Commission has carefully For the Commission, pursuant to delegated of the grounds for application, and (d)
considered the proposed rule change as authority.38 the name and address of each applicant
well as the comments received. The Robert W. Errett, and of any person to whom questions
Commission finds that the proposed Deputy Secretary. should be directed. The Commission
rule change is consistent with the [FR Doc. 2016–10437 Filed 5–3–16; 8:45 am] uses the information required by rule 0–
requirements of the Act and the rules 2 to decide whether the applicant
BILLING CODE 8011–01–P
and regulations thereunder applicable to should be deemed to be entitled to the
the MSRB. action requested by the application.
In particular, the Commission finds SECURITIES AND EXCHANGE Applicants for orders can include
that the proposed rule change is COMMISSION registered investment companies,
consistent with Section 15B(b)(2)(C) of affiliated persons of registered
the Act,35 which requires, among other Proposed Collection; Comment investment companies, and issuers
things, that the rules of the MSRB be Request seeking to avoid investment company
designed to prevent fraudulent and status, among other entities.
manipulative acts and practices, to Upon Written Request, Copies Available Commission staff estimates that it
promote just and equitable principles of From: Securities and Exchange receives approximately 184 applications
trade, to foster cooperation and Commission, Office of FOIA Services, per year under the Act. Although each
coordination with persons engaged in 100 F Street NE., Washington, DC application typically is submitted on
regulating, clearing, settling, processing 20549–2736. behalf of multiple entities, the entities
information with respect to, and Extension: in the vast majority of cases are related
facilitating transactions in municipal Rule 0–2, SEC File No. 270–572, OMB companies and are treated as a single
securities and municipal financial Control No. 3235–0636. respondent for purposes of this analysis.
products, to remove impediments to and Notice is hereby given that pursuant The time to prepare an application
perfect the mechanism of a free and to the Paperwork Reduction Act of 1995 depends on the complexity and/or
open market in municipal securities and (44 U.S.C. 3501–3520), the Securities novelty of the issues covered by the
municipal financial products, and, in and Exchange Commission (the application. We estimate that the
general, to protect investors, municipal ‘‘Commission’’) has submitted to the Commission receives 25 of the most
entities, obligated persons, and the Office of Management and Budget a time-consuming applications annually,
public interest. The Commission request for extension of the previously 125 applications of medium difficulty,
believes that the proposed rule change approved collection of information and 34 of the least difficult applications.
is consistent with Section 15B(b)(2)(C) discussed below. Based on conversations with applicants,
of the Act because the proposed rule Several sections of the Investment we estimate that in-house counsel
change is reasonably designed to Company Act of 1940 (‘‘Act’’ or would spend from ten to fifty hours
remove impediments to, and perfect the ‘‘Investment Company Act’’) 1 give the helping to draft and review an
mechanism of, a free and open market Commission the authority to issue application. We estimate a total annual
in municipal securities by shortening orders granting exemptions from the hour burden to all respondents of 5,340
the time between trade execution and Act’s provisions. The section that grants hours [(50 hours × 25 applications) + (30
settlement by one business day. broadest authority is section 6(c), which hours × 125 applications) + (10 hours ×
According to the MSRB, the benefits of provides the Commission with authority 34 applications)].
the proposed rule change will enhance to conditionally or unconditionally Much of the work of preparing an
the overall efficiency of the securities exempt persons, securities or application is performed by outside
markets, promote financial stability, and transactions from any provision of the counsel. The cost outside counsel
better align U.S. securities markets with Investment Company Act, or the rules or charges applicants depends on the
global markets. regulations thereunder, if and to the complexity of the issues covered by the
In approving the proposed rule extent that such exemption is necessary application and the time required for
change, the Commission has also or appropriate in the public interest and preparation. Based on conversations
with attorneys who serve as outside
asabaliauskas on DSK3SPTVN1PROD with NOTICES

considered the proposed rule change’s consistent with the protection of
impact on efficiency, competition, and investors and the purposes fairly counsel, the cost ranges from
capital formation.36 The Commission intended by the policy and provisions of approximately $10,000 for preparing a
does not believe that the proposed rule the Act.2 well-precedented, routine application to
approximately $150,000 to prepare a
33 See FSI Letter. 37 15 U.S.C. 78s(b)(2). complex and/or novel application. This
34 See supra note 3. 38 17 CFR 200.30–3(a)(12). distribution gives a total estimated
35 15 U.S.C. 78o–4(b)(2)(C). 1 15 U.S.C. 80a–1 et seq.
36 15 U.S.C. 78c(f). 2 15 U.S.C. 80a–6(c). 3 17 CFR 270.0–2.

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26854 Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Notices

annual cost burden to applicants of 7(d)) (the ‘‘Act’’ or ‘‘Investment 77a), and the Securities Exchange Act of 1934
filing all applications of $14,090,000 Company Act’’) requires an investment (15 U.S.C. 78a), as applicable; and
[(25 × $150,000) + (125 × $80,000) + (34 company (‘‘fund’’) organized outside the (5) the fund must file, and periodically
revise, a list of persons affiliated with the
× $10,000)]. United States (‘‘foreign fund’’) to obtain
fund or its adviser or underwriter.
These estimates of average costs are an order from the Commission allowing
made solely for the purposes of the the fund to register under the Act before As noted above, under section 7(d) of
Paperwork Reduction Act. The estimate making a public offering of its securities the Act the Commission may issue an
is not derived from a comprehensive or through the United States mail or any order permitting a foreign fund’s
even a representative survey or study of means of interstate commerce. The registration only if the Commission
the costs of Commission rules. Commission may issue an order only if finds that ‘‘by reason of special
This collection of information is it finds that it is both legally and circumstances or arrangements, it is
necessary to obtain a benefit and will practically feasible effectively to enforce both legally and practically feasible
not be kept confidential. An agency may the provisions of the Act against the effectively to enforce the provisions of
not conduct or sponsor, and a person is foreign fund, and that the registration of the (Act).’’ The information collection
not required to respond to, a collection the fund is consistent with the public requirements are necessary to assure
of information unless it displays a interest and protection of investors. that the substantive provisions of the
currently valid OMB control number. Rule 7d–1 (17 CFR 270.7d–1) under Act may be enforced as a matter of
The public may view the background the Act, which was adopted in 1954, contract right in the United States or
documentation for this information specifies the conditions under which a Canada by the fund’s shareholders or by
collection at the following Web site, Canadian management investment the Commission.
www.reginfo.gov. Comments should be company (‘‘Canadian fund’’) may Rule 7d–1 also contains certain
directed to: (i) Desk Officer for the request an order from the Commission information collection requirements that
Securities and Exchange Commission, permitting it to register under the Act. are associated with other provisions of
Office of Information and Regulatory Although rule 7d–1 by its terms applies the Act. These requirements are
Affairs, Office of Management and only to Canadian funds, other foreign applicable to all registered funds and
Budget, Room 10102, New Executive funds generally have agreed to comply are outside the scope of this request.
Office Building, Washington, DC 20503, with the requirements of rule 7d–1 as a The Commission believes that one
or by sending an email to: Shagufta_ prerequisite to receiving an order foreign fund is registered under rule 7d–
Ahmed@omb.eop.gov; and (ii) Pamela permitting the foreign fund’s 1 and currently active. Apart from
Dyson, Director/Chief Information registration under the Act. requirements under the Act applicable
Officer, Securities and Exchange The rule requires a Canadian fund to all registered funds, rule 7d–1
Commission, c/o Remi Pavlik-Simon, proposing to register under the Act to imposes ongoing burdens to maintain
100 F Street NE., Washington, DC 20549 file an application with the Commission records in the United States, and to
or send an email to: PRA_Mailbox@ that contains various undertakings and update, as necessary, certain fund
sec.gov. Comments must be submitted to agreements of the fund. The agreements, designations of the fund’s
OMB within 30 days of this notice. requirement for the Canadian fund to custodian as service agent, and the
Dated: April 28, 2016.
file an application is a collection of fund’s list of affiliated persons. The
information under the Paperwork Commission staff estimates that each
Robert W. Errett,
Reduction Act. Certain of the year under the rule, the active registrant
Deputy Secretary. undertakings and agreements, in turn, and its directors, officers, and service
[FR Doc. 2016–10366 Filed 5–3–16; 8:45 am] impose the following additional providers engage in the following
BILLING CODE 8011–01–P information collection requirements: collections of information and
(1) The fund must file with the associated burden hours:
SECURITIES AND EXCHANGE
Commission agreements between the fund • For the fund and its investment adviser
and its directors, officers, and service to maintain records in the United States: 1
COMMISSION providers requiring them to comply with the 0 hours: 0 minutes of compliance clerk
fund’s charter and bylaws, the Act, and time.
Submission for OMB Review; certain other obligations relating to the • For the fund to update its list of affiliated
Comment Request undertakings and agreements in the persons:
application; 2 hours: 2 hours of support staff time.
Upon Written Request, Copies Available (2) the fund and each of its directors,
From: Securities and Exchange • For new officers, directors, and service
officers, and investment advisers that is not providers to enter into and file agreements
Commission, Office of FOIA Services, a U.S. resident, must file with the requiring them to comply with the fund’s
100 F Street NE., Washington, DC Commission an irrevocable designation of the charter and bylaws, the Act, and certain other
20549–2736. fund’s custodian in the United States as agent obligations:
Extension: for service of process;
Rule 7d–1, SEC File No. 270–176, OMB (3) the fund’s charter and bylaws must
1 The rule requires an applicant and its
Control No. 3235–0311. provide that (a) the fund will comply with
investment adviser to maintain records in the
certain provisions of the Act applicable to all United States (which, without the requirement,
Notice is hereby given that, pursuant funds, (b) the fund will maintain originals or might be maintained in Canada or another foreign
to the Paperwork Reduction Act of 1995 copies of its books and records in the United jurisdiction), which facilitates routine inspections
(44 U.S.C. 3501–3520), the Securities States, and (c) the fund’s contracts with its
asabaliauskas on DSK3SPTVN1PROD with NOTICES

and any special investigations of the fund by
and Exchange Commission (the custodian, investment adviser, and principal Commission staff. The registrant and its investment
underwriter, will contain certain terms, adviser, however, already maintain the registrant’s
‘‘Commission’’) has submitted to the records in the United States and in no other
including a requirement that the adviser
Office of Management and Budget a jurisdiction. Therefore, maintenance of the
maintain originals or copies of pertinent
request for extension of the previously records in the United States;
registrant’s records in the United States does not
approved collection of information impose an additional burden beyond that imposed
(4) the fund’s contracts with service by other provisions of the Act. Those provisions are
discussed below. providers will require that the provider applicable to all registered funds and the
Section 7(d) of the Investment perform the contract in accordance with the compliance burden of those provisions is outside
Company Act of 1940 (15 U.S.C. 80a– Act, the Securities Act of 1933 (15 U.S.C. the scope of this request.

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Document Created: 2016-05-04 01:22:52
Document Modified: 2016-05-04 01:22:52
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		81 FR 26853