81_FR_26940 81 FR 26854 - Submission for OMB Review; Comment Request

81 FR 26854 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

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

Page Range26854-26856
FR Document2016-10367

Federal Register, Volume 81 Issue 86 (Wednesday, May 4, 2016)
[Federal Register Volume 81, Number 86 (Wednesday, May 4, 2016)]
[Notices]
[Pages 26854-26856]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10367]


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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 7d-1, SEC File No. 270-176, OMB Control No. 3235-0311.

    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.
    Section 7(d) of the Investment Company Act of 1940 (15 U.S.C. 80a-
7(d)) (the ``Act'' or ``Investment Company Act'') requires an 
investment company (``fund'') organized outside the United States 
(``foreign fund'') to obtain an order from the Commission allowing the 
fund to register under the Act before making a public offering of its 
securities through the United States mail or any means of interstate 
commerce. The Commission may issue an order only if it finds that it is 
both legally and practically feasible effectively to enforce the 
provisions of the Act against the foreign fund, and that the 
registration of the fund is consistent with the public interest and 
protection of investors.
    Rule 7d-1 (17 CFR 270.7d-1) under the Act, which was adopted in 
1954, specifies the conditions under which a Canadian management 
investment company (``Canadian fund'') may request an order from the 
Commission permitting it to register under the Act. Although rule 7d-1 
by its terms applies only to Canadian funds, other foreign funds 
generally have agreed to comply with the requirements of rule 7d-1 as a 
prerequisite to receiving an order permitting the foreign fund's 
registration under the Act.
    The rule requires a Canadian fund proposing to register under the 
Act to file an application with the Commission that contains various 
undertakings and agreements of the fund. The requirement for the 
Canadian fund to file an application is a collection of information 
under the Paperwork Reduction Act. Certain of the undertakings and 
agreements, in turn, impose the following additional information 
collection requirements:

    (1) The fund must file with the Commission agreements between 
the fund and its directors, officers, and service providers 
requiring them to comply with the fund's charter and bylaws, the 
Act, and certain other obligations relating to the undertakings and 
agreements in the application;
    (2) the fund and each of its directors, officers, and investment 
advisers that is not a U.S. resident, must file with the Commission 
an irrevocable designation of the fund's custodian in the United 
States as agent for service of process;
    (3) the fund's charter and bylaws must provide that (a) the fund 
will comply with certain provisions of the Act applicable to all 
funds, (b) the fund will maintain originals or copies of its books 
and records in the United States, and (c) the fund's contracts with 
its custodian, investment adviser, and principal underwriter, will 
contain certain terms, including a requirement that the adviser 
maintain originals or copies of pertinent records in the United 
States;
    (4) the fund's contracts with service providers will require 
that the provider perform the contract in accordance with the Act, 
the Securities Act of 1933 (15 U.S.C. 77a), and the Securities 
Exchange Act of 1934 (15 U.S.C. 78a), as applicable; and
    (5) the fund must file, and periodically revise, a list of 
persons affiliated with the fund or its adviser or underwriter.

    As noted above, under section 7(d) of the Act the Commission may 
issue an order permitting a foreign fund's registration only if the 
Commission finds that ``by reason of special circumstances or 
arrangements, it is both legally and practically feasible effectively 
to enforce the provisions of the (Act).'' The information collection 
requirements are necessary to assure that the substantive provisions of 
the Act may be enforced as a matter of contract right in the United 
States or Canada by the fund's shareholders or by the Commission.
    Rule 7d-1 also contains certain information collection requirements 
that are associated with other provisions of the Act. These 
requirements are applicable to all registered funds and are outside the 
scope of this request.
    The Commission believes that one foreign fund is registered under 
rule 7d-1 and currently active. Apart from requirements under the Act 
applicable to all registered funds, rule 7d-1 imposes ongoing burdens 
to maintain records in the United States, and to update, as necessary, 
certain fund agreements, designations of the fund's custodian as 
service agent, and the fund's list of affiliated persons. The 
Commission staff estimates that each year under the rule, the active 
registrant and its directors, officers, and service providers engage in 
the following collections of information and associated burden hours:

     For the fund and its investment adviser to maintain 
records in the United States: \1\
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    \1\ The rule requires an applicant and its investment adviser to 
maintain records in the United States (which, without the 
requirement, might be maintained in Canada or another foreign 
jurisdiction), which facilitates routine inspections and any special 
investigations of the fund by Commission staff. The registrant and 
its investment adviser, however, already maintain the registrant's 
records in the United States and in no other jurisdiction. 
Therefore, maintenance of the registrant's records in the United 
States does not impose an additional burden beyond that imposed by 
other provisions of the Act. Those provisions are applicable to all 
registered funds and the compliance burden of those provisions is 
outside the scope of this request.
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    0 hours: 0 minutes of compliance clerk time.
     For the fund to update its list of affiliated persons:
    2 hours: 2 hours of support staff time.
     For new officers, directors, and service providers to 
enter into and file agreements requiring them to comply with the 
fund's charter and bylaws, the Act, and certain other obligations:

[[Page 26855]]

    0.5 hours: 7.5 minutes of director time; 2.5 minutes of officer 
time; 20 minutes of support staff time.
     For new officers, directors, and investment advisers 
who are not residents of the United States to file irrevocable 
designation of the fund's custodian as agent for process of service:
    0.25 hours: 5 minutes of director time; 10 minutes of support 
staff time.

    Based on the estimates above, the Commission estimates that the 
total annual burden of the rule's paperwork requirements is 2.75 
hours.\2\ We estimate that directors perform 0.21 hours of these burden 
hours at a total cost of $924,\3\ officers perform 0.04 of these burden 
hours at a total cost of $19.40,\4\ and support staff perform 2.5 of 
these burden hours at a total cost of $142.50.\5\ Thus, the Commission 
estimates the aggregate annual cost of these burden hours associated 
with rule 7d-1 is $1,085.90.\6\
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    \2\ This estimate is based on the following calculation: (0 + 2 
+ 0.5 + 0.25) = 2.75 hours.
    \3\ The director estimates are based on the following 
calculations: (7.5 minutes + 5 minutes)/60 minutes per hour = 0.21 
hours; and 0.21 hours x $4400 per hour = $924. The per hour cost 
estimate is based on estimated hourly compensation for each board 
member of $550 and an average board size of 8 members.
    \4\ The officer estimates are based on the following 
calculations: 2.5 minutes/60 minutes per hour = 0.04 hours; 0.04 
hours x $485 per hour = $19.40. This per hour cost estimate, as well 
as other internal cost estimates for management and professional 
earnings, is based on the figure for chief compliance officers found 
in SIFMA's Management & Professional Earnings in the Securities 
Industry 2013, modified by Commission staff to account for an 1800-
hour work-year and multiplied by 5.35 to account for bonuses, firm 
size, employee benefits and overhead.
    \5\ The support staff estimates are based on the following 
calculations: 2 hours + 20 minutes + 10 minutes = 2.5 hours; and 2.5 
hours x $60 per hour = $150. The per hour cost estimate, as well as 
other internal cost estimates for office salaries, is based on the 
figure for compliance clerks found in SIFMA's Management & 
Professional Earnings in the Securities Industry 2011, modified by 
Commission staff to account for an 1800-hour work-year and 
multiplied by 2.93 to account for bonuses, firm size, employee 
benefits and overhead.
    \6\ This estimate is based on the following calculation: 
$1085.90 = $924 + $19.40 + $142.50.
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    If a fund were to file an application under rule 7d-1 to register 
under the Act, the Commission estimates that the rule would impose 
initial information collection burdens (for filing an application, 
preparing the specified charter, bylaw, and contract provisions, 
designations of agents for service of process, and an initial list of 
affiliated persons, and establishing a means of keeping records in the 
United States) of approximately 90 hours for the fund and its 
associated persons. The Commission is not including these hours in its 
calculation of the annual burden because no fund has applied to 
register under the Act pursuant to rule 7d-1 in the last three years.
    After registration, a Canadian fund may file a supplemental 
application seeking special relief designed for the fund's particular 
circumstances. Rule 7d-1 does not mandate these applications. The 
active registrant last filed a substantive supplemental application in 
2013. The Commission staff estimates that the rule would impose an 
additional information collection burden of 5 hours on a fund to comply 
with the Commission's application process at a cost of $5,928.\7\ The 
staff understands that funds also obtain assistance from outside 
counsel to comply with the Commission's application process and the 
cost burden of using outside counsel is set forth below.
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    \7\ The staff estimates that, on average, the fund's investment 
adviser spends approximately 4 hours to review an application, 
including 3.5 hours by an assistant general counsel at a cost of 
$426 per hour, 0.5 hours by an administrative assistant, at a cost 
of $74 per hour, and the fund's board of directors spends an 
additional 1 hour at a cost of $4400 per hour for a total of 5 
hours, for a total cost of $5928. This estimate is based on the 
following calculation: (3.5 hours x $426 per hour) + (0.5 hours x 
$74 per hour) + (1 hour x $4400 per hour) = $5928.
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    Therefore, the Commission estimates the aggregate annual burden 
hours of the collection of information associated with rule 7d-1 is 
7.75 hours, at a cost of $7,013.90.\8\ These estimates of average 
burden hours 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 Commission rules.
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    \8\ These estimates are based on the following calculations: 
2.75 hours + 5 hours = 7.75 hours; $1085.90 + $5928 = $7013.90.
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    If a Canadian or other foreign fund in the future applied to 
register under the Act under rule 7d-1, the fund initially might have 
capital and start-up costs (not including hourly burdens) of an 
estimated $20,000 to comply with the rule's initial information 
collection requirements. These costs include legal and processing-
related fees for preparing the required documentation (such as the 
application, charter, bylaw, and contract provisions, designations for 
service of process, and the list of affiliated persons). Other related 
costs would include fees for establishing arrangements with a custodian 
or other agent for maintaining records in the United States, copying 
and transportation costs for records, and the costs of purchasing or 
leasing computer equipment, software, or other record storage equipment 
for records maintained in electronic or photographic form.
    The Commission expects that a foreign fund and its sponsors would 
incur these costs immediately, and that the annualized cost of the 
expenditures would be $20,000 in the first year. Some expenditures 
might involve capital improvements, such as computer equipment, having 
expected useful lives for which annualized figures beyond the first 
year would be meaningful. These annualized figures are not provided, 
however, because, in most cases, the expenses would be incurred 
immediately rather than on an annual basis. The Commission is not 
including these costs in its calculation of the annualized capital/
start-up costs because no fund has applied under rule 7d-1 to register 
under the Act pursuant to rule 7d-1 in the last three years.
    As indicated above, a Canadian fund may file a supplemental 
application seeking special relief designed for the fund's particular 
circumstances. Rule 7d-1 does not mandate these applications. The 
active registrant filed a substantive application in the past three 
years. The staff understands that funds generally use outside counsel 
to prepare the application. The staff estimates that outside counsel 
spends 10 hours preparing the application, including 8 hours by an 
associate and 2 hours by a partner. Outside counsel billing 
arrangements vary based on numerous factors, but the staff has 
estimated the average cost of outside counsel at $400 per hour, based 
on information received from funds, intermediaries and their counsel. 
The Commission therefore estimates that the fund would obtain 
assistance from outside counsel at a cost of $4000.\9\
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    \9\ This estimate is based on the following calculation: 10 
hours x $400 per hour = $4000.
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    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.
    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

[[Page 26856]]

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. 2016-10367 Filed 5-3-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                    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.



                                               VerDate Sep<11>2014   18:44 May 03, 2016   Jkt 238001   PO 00000   Frm 00082   Fmt 4703   Sfmt 4703   E:\FR\FM\04MYN1.SGM   04MYN1


                                                                                   Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Notices                                                        26855

                                                      0.5 hours: 7.5 minutes of director time; 2.5          under the Act pursuant to rule 7d–1 in                       The Commission expects that a
                                                    minutes of officer time; 20 minutes of                  the last three years.                                     foreign fund and its sponsors would
                                                    support staff time.                                        After registration, a Canadian fund                    incur these costs immediately, and that
                                                      • For new officers, directors, and                    may file a supplemental application                       the annualized cost of the expenditures
                                                    investment advisers who are not residents of
                                                                                                            seeking special relief designed for the                   would be $20,000 in the first year. Some
                                                    the United States to file irrevocable
                                                    designation of the fund’s custodian as agent            fund’s particular circumstances. Rule                     expenditures might involve capital
                                                    for process of service:                                 7d-1 does not mandate these                               improvements, such as computer
                                                      0.25 hours: 5 minutes of director time; 10            applications. The active registrant last                  equipment, having expected useful lives
                                                    minutes of support staff time.                          filed a substantive supplemental                          for which annualized figures beyond the
                                                                                                            application in 2013. The Commission                       first year would be meaningful. These
                                                       Based on the estimates above, the
                                                                                                            staff estimates that the rule would                       annualized figures are not provided,
                                                    Commission estimates that the total
                                                                                                            impose an additional information                          however, because, in most cases, the
                                                    annual burden of the rule’s paperwork
                                                                                                            collection burden of 5 hours on a fund                    expenses would be incurred
                                                    requirements is 2.75 hours.2 We
                                                                                                            to comply with the Commission’s                           immediately rather than on an annual
                                                    estimate that directors perform 0.21
                                                                                                            application process at a cost of $5,928.7                 basis. The Commission is not including
                                                    hours of these burden hours at a total                                                                            these costs in its calculation of the
                                                                                                            The staff understands that funds also
                                                    cost of $924,3 officers perform 0.04 of                                                                           annualized capital/start-up costs
                                                                                                            obtain assistance from outside counsel
                                                    these burden hours at a total cost of                                                                             because no fund has applied under rule
                                                                                                            to comply with the Commission’s
                                                    $19.40,4 and support staff perform 2.5 of                                                                         7d–1 to register under the Act pursuant
                                                                                                            application process and the cost burden
                                                    these burden hours at a total cost of                                                                             to rule 7d–1 in the last three years.
                                                                                                            of using outside counsel is set forth
                                                    $142.50.5 Thus, the Commission                                                                                       As indicated above, a Canadian fund
                                                                                                            below.
                                                    estimates the aggregate annual cost of                     Therefore, the Commission estimates                    may file a supplemental application
                                                    these burden hours associated with rule                 the aggregate annual burden hours of                      seeking special relief designed for the
                                                    7d–1 is $1,085.90.6                                     the collection of information associated                  fund’s particular circumstances. Rule
                                                       If a fund were to file an application                with rule 7d–1 is 7.75 hours, at a cost                   7d–1 does not mandate these
                                                    under rule 7d–1 to register under the                   of $7,013.90.8 These estimates of                         applications. The active registrant filed
                                                    Act, the Commission estimates that the                  average burden hours are made solely                      a substantive application in the past
                                                    rule would impose initial information                   for the purposes of the Paperwork                         three years. The staff understands that
                                                    collection burdens (for filing an                       Reduction Act. The estimate is not                        funds generally use outside counsel to
                                                    application, preparing the specified                    derived from a comprehensive or even                      prepare the application. The staff
                                                    charter, bylaw, and contract provisions,                a representative survey or study of                       estimates that outside counsel spends
                                                    designations of agents for service of                   Commission rules.                                         10 hours preparing the application,
                                                    process, and an initial list of affiliated                 If a Canadian or other foreign fund in                 including 8 hours by an associate and 2
                                                    persons, and establishing a means of                    the future applied to register under the                  hours by a partner. Outside counsel
                                                    keeping records in the United States) of                Act under rule 7d–1, the fund initially                   billing arrangements vary based on
                                                    approximately 90 hours for the fund and                 might have capital and start-up costs                     numerous factors, but the staff has
                                                    its associated persons. The Commission                  (not including hourly burdens) of an                      estimated the average cost of outside
                                                    is not including these hours in its                     estimated $20,000 to comply with the                      counsel at $400 per hour, based on
                                                    calculation of the annual burden                        rule’s initial information collection                     information received from funds,
                                                    because no fund has applied to register                 requirements. These costs include legal                   intermediaries and their counsel. The
                                                                                                            and processing-related fees for                           Commission therefore estimates that the
                                                       2 This estimate is based on the following
                                                                                                            preparing the required documentation                      fund would obtain assistance from
                                                    calculation: (0 + 2 + 0.5 + 0.25) = 2.75 hours.
                                                       3 The director estimates are based on the            (such as the application, charter, bylaw,                 outside counsel at a cost of $4000.9
                                                    following calculations: (7.5 minutes + 5 minutes)/      and contract provisions, designations                        These estimates of average costs are
                                                    60 minutes per hour = 0.21 hours; and 0.21 hours        for service of process, and the list of                   made solely for the purposes of the
                                                    × $4400 per hour = $924. The per hour cost estimate     affiliated persons). Other related costs                  Paperwork Reduction Act. The estimate
                                                    is based on estimated hourly compensation for each                                                                is not derived from a comprehensive or
                                                    board member of $550 and an average board size          would include fees for establishing
                                                    of 8 members.                                           arrangements with a custodian or other                    even a representative survey or study of
                                                       4 The officer estimates are based on the following   agent for maintaining records in the                      the costs of Commission rules.
                                                    calculations: 2.5 minutes/60 minutes per hour =         United States, copying and                                   An agency may not conduct or
                                                    0.04 hours; 0.04 hours × $485 per hour = $19.40.                                                                  sponsor, and a person is not required to
                                                    This per hour cost estimate, as well as other
                                                                                                            transportation costs for records, and the
                                                                                                            costs of purchasing or leasing computer                   respond to, a collection of information
                                                    internal cost estimates for management and
                                                    professional earnings, is based on the figure for       equipment, software, or other record                      unless it displays a currently valid OMB
                                                    chief compliance officers found in SIFMA’s              storage equipment for records                             control number.
                                                    Management & Professional Earnings in the
                                                                                                            maintained in electronic or                                  The public may view the background
                                                    Securities Industry 2013, modified by Commission                                                                  documentation for this information
                                                    staff to account for an 1800-hour work-year and         photographic form.
                                                    multiplied by 5.35 to account for bonuses, firm size,                                                             collection at the following Web site,
                                                    employee benefits and overhead.                           7 The staff estimates that, on average, the fund’s      www.reginfo.gov. Comments should be
                                                       5 The support staff estimates are based on the       investment adviser spends approximately 4 hours           directed to: (i) Desk Officer for the
                                                    following calculations: 2 hours + 20 minutes + 10       to review an application, including 3.5 hours by an       Securities and Exchange Commission,
                                                    minutes = 2.5 hours; and 2.5 hours × $60 per hour       assistant general counsel at a cost of $426 per hour,
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    = $150. The per hour cost estimate, as well as other    0.5 hours by an administrative assistant, at a cost
                                                                                                                                                                      Office of Information and Regulatory
                                                    internal cost estimates for office salaries, is based   of $74 per hour, and the fund’s board of directors        Affairs, Office of Management and
                                                    on the figure for compliance clerks found in            spends an additional 1 hour at a cost of $4400 per        Budget, Room 10102, New Executive
                                                    SIFMA’s Management & Professional Earnings in           hour for a total of 5 hours, for a total cost of $5928.   Office Building, Washington, DC 20503,
                                                    the Securities Industry 2011, modified by               This estimate is based on the following calculation:
                                                    Commission staff to account for an 1800-hour work-      (3.5 hours × $426 per hour) + (0.5 hours × $74 per
                                                                                                                                                                      or by sending an email to: Shagufta_
                                                    year and multiplied by 2.93 to account for bonuses,     hour) + (1 hour × $4400 per hour) = $5928.                Ahmed@omb.eop.gov; and (ii) Pamela
                                                    firm size, employee benefits and overhead.                8 These estimates are based on the following
                                                       6 This estimate is based on the following            calculations: 2.75 hours + 5 hours = 7.75 hours;            9 This estimate is based on the following

                                                    calculation: $1085.90 = $924 + $19.40 + $142.50.        $1085.90 + $5928 = $7013.90.                              calculation: 10 hours × $400 per hour = $4000.



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                                                    26856                         Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Notices

                                                    Dyson, Director/Chief Information                       compliance with rule 204–3 imposes a                  and Exchange Commission
                                                    Officer, Securities and Exchange                        burden of approximately 39 hours                      (‘‘Commission’’) has submitted to the
                                                    Commission, c/o Remi Pavlik-Simon,                      annually based on an average adviser                  Office of Management and Budget this
                                                    100 F Street NE., Washington, DC 20549                  having 1,494 clients. Our latest data                 request for extension of the previously
                                                    or send an email to: PRA_Mailbox@                       indicate that there were 11,956 advisers              approved collection of information
                                                    sec.gov. Comments must be submitted to                  registered with the Commission as of                  discussed below.
                                                    OMB within 30 days of this notice.                      January 4, 2016. Based on this figure,
                                                                                                                                                                     Form F–8 (17 CFR 239.38) may be
                                                      Dated: April 28, 2016.                                the Commission estimates a total annual
                                                                                                            burden of 466,145 for this collection of              used to register securities of certain
                                                    Robert W. Errett,                                                                                             Canadian issuers under the Securities
                                                                                                            information.
                                                    Deputy Secretary.                                                                                             Act of 1933 (15 U.S.C. 77a et seq.) that
                                                                                                              Rule 204–3 does not require
                                                    [FR Doc. 2016–10367 Filed 5–3–16; 8:45 am]
                                                                                                            recordkeeping or record retention. The                will be used in an exchange offer or
                                                    BILLING CODE 8011–01–P                                  collection of information requirements                business combination. The information
                                                                                                            under the rule are mandatory. The                     collected is intended to ensure that the
                                                                                                            information collected pursuant to the                 information required to be filed by the
                                                    SECURITIES AND EXCHANGE                                 rule is not filed with the Commission,                Commission permits verification of
                                                    COMMISSION                                              but rather takes the form of disclosures              compliance with securities law
                                                    Submission for OMB Review;                              to clients and prospective clients.                   requirements and assures the public
                                                    Comment Request                                         Accordingly, these disclosures are not                availability of such information. The
                                                                                                            kept confidential. An agency may not                  information provided is mandatory and
                                                    Upon Written Request, Copies Available                  conduct or sponsor, and a person is not               all information is made available to the
                                                     From: Securities and Exchange                          required to respond to, a collection of               public upon request. We estimate that
                                                     Commission, Office of FOIA Services,                   information unless it displays a                      Form F–8 takes approximately one hour
                                                     100 F Street NE., Washington, DC                       currently valid control number.                       per response to prepare and is filed by
                                                     20549–2736.                                              The public may view the background                  approximately 5 respondents. We
                                                       Extension: Rule 204–3, SEC File No. 270–             documentation for this information                    estimate that 25% of one hour per
                                                         42, OMB Control No. 3235–0047.                     collection at the following Web site,                 response (15 minutes) is prepared by the
                                                                                                            www.reginfo.gov. Comments should be                   company for a total annual reporting
                                                       Notice is hereby given that pursuant
                                                                                                            directed to: (i) Desk Officer for the                 burden of one hour (15 minutes/60
                                                    to the Paperwork Reduction Act of 1995
                                                                                                            Securities and Exchange Commission,
                                                    (44 U.S.C. 3501 et seq.) the Securities                                                                       minutes per response × 5 responses =
                                                                                                            Office of Information and Regulatory
                                                    and Exchange Commission                                                                                       1.25 hours rounded to nearest whole
                                                                                                            Affairs, Office of Management and
                                                    (‘‘Commission’’) has submitted to the                                                                         number).
                                                                                                            Budget, Room 10102, New Executive
                                                    Office of Management and Budget a                                                                                An agency may not conduct or
                                                                                                            Office Building, Washington, DC 20503,
                                                    request for extension of the previously
                                                                                                            or by sending an email to: Shagufta_                  sponsor, and a person is not required to
                                                    approved collection of information
                                                                                                            Ahmed@omb.eop.gov; and (ii) Pamela                    respond to, a collection of information
                                                    discussed below.
                                                       The title for the collection of                      Dyson, Director/Chief Information                     unless it displays a currently valid
                                                    information is ‘‘Rule 204–3 (17 CFR                     Officer, Securities and Exchange                      control number.
                                                    275.204–3) under the Investment                         Commission, c/o Remi Pavlik-Simon,                       The public may view the background
                                                    Advisers Act of 1940.’’ (15 U.S.C. 80b).                100 F Street NE., Washington, DC 20549                documentation for this information
                                                    Rule 204–3, the ‘‘brochure rule,’’                      or send an email to: PRA_Mailbox@
                                                                                                                                                                  collection at the following Web site,
                                                    requires advisers to deliver their                      sec.gov. Comments must be submitted to
                                                                                                                                                                  www.reginfo.gov. Comments should be
                                                    brochures and brochure supplements at                   OMB within 30 days of this notice.
                                                                                                                                                                  directed to: (i) Desk Officer for the
                                                    the start of an advisory relationship and                 Dated: April 28, 2016.                              Securities and Exchange Commission,
                                                    to deliver annually thereafter the full                 Robert W. Errett,                                     Office of Information and Regulatory
                                                    updated brochures or a summary of                       Deputy Secretary.                                     Affairs, Office of Management and
                                                    material changes to their brochures. The                [FR Doc. 2016–10369 Filed 5–3–16; 8:45 am]            Budget, Room 10102, New Executive
                                                    rule also requires that advisers deliver                BILLING CODE 8011–01–P                                Office Building, Washington, DC 20503,
                                                    amended brochures or brochure                                                                                 or by sending an email to:
                                                    supplements (or just a statement                                                                              Shagufta_Ahmed@omb.eop.gov; and (ii)
                                                    describing the amendments) to clients                   SECURITIES AND EXCHANGE                               Pamela Dyson, Director/Chief
                                                    only when disciplinary information in                   COMMISSION                                            Information Officer, Securities and
                                                    the brochures or supplements becomes
                                                                                                            Submission for OMB Review;                            Exchange Commission, c/o Remi Pavlik-
                                                    materially inaccurate.
                                                       The brochure assists the client in                   Comment Request                                       Simon, 100 F Street NE., Washington,
                                                    determining whether to retain, or                                                                             DC 20549 or send an email to:
                                                    continue employing, the adviser. The                    Upon Written Request Copies Available                 PRA_Mailbox@sec.gov. Comments must
                                                    information that Rule 204–3 requires to                  From: Securities and Exchange                        be submitted to OMB within 30 days of
                                                    be contained in the brochure is also                     Commission, Office of FOIA Services,                 this notice.
                                                    used by the Commission and staff in its                  100 F Street NE., Washington, DC
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                                                                                                                                                                    Dated: April 29, 2016.
                                                    enforcement, regulatory, and                             20549–2736.
                                                                                                                                                                  Robert W. Errett,
                                                    examination programs. This collection                   Extension:
                                                                                                              Form F–8.                                           Deputy Secretary.
                                                    of information is found at 17 CFR
                                                    275.204–3 and is mandatory.                               SEC File No. 270–332, OMB Control No.               [FR Doc. 2016–10395 Filed 5–3–16; 8:45 am]
                                                       The respondents to this information                      3235–0378.                                        BILLING CODE 8011–01–P
                                                    collection are investment advisers                        Notice is hereby given that, pursuant
                                                    registered with the Commission. The                     to the Paperwork Reduction Act of 1995
                                                    Commission has estimated that                           (44 U.S.C. 3501 et seq.), the Securities


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Document Created: 2016-05-04 01:22:54
Document Modified: 2016-05-04 01:22:54
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 Citation81 FR 26854 

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