81 FR 28923 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 90 (May 10, 2016)
Federal Register Volume 81, Issue 90 (May 10, 2016)
| Page Range | 28923-28924 | |
| FR Document | 2016-10888 |
[Federal Register Volume 81, Number 90 (Tuesday, May 10, 2016)] [Notices] [Pages 28923-28924] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-10888] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270-389, OMB Control No. 3235-0444] 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 10b-10. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange Commission (``Commission'') has submitted to the Office of Management and Budget (``OMB'') a request for approval of extension of the previously approved collection of information provided for in Rule 10b-10 (17 CFR 240.10b-10) under the Securities and Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 10b-10 requires broker-dealers to convey specified information to customers regarding their securities transactions. This information includes the date and time of the transaction, the identity and number of shares bought or sold, and whether the broker-dealer acts as agent for the customer or as principal for its own account. Depending on whether the broker-dealer acts as agent or principal, Rule 10b-10 requires the disclosure of commissions, as well as mark-up and mark- down information. For transactions in debt securities, Rule 10b-10 requires the disclosure of redemption and yield information. Rule 10b- 10 potentially applies to all of the approximately 4,183 firms registered with the Commission that effect transactions for or with customers. Based on information provided by registered broker-dealers to the Commission in FOCUS Reports, the Commission staff estimates that on average, registered broker-dealers process approximately 1,383,492,184 order tickets per month for transactions for or with customers. Each order ticket representing a transaction effected for or with a customer results in one confirmation. Therefore, the Commission staff estimates that approximately 16,601,906,208 confirmations are sent to customers annually. The confirmations required by Rule 10b-10 are generally processed through automated systems. It takes approximately 30 seconds to generate and send a confirmation. Accordingly, the Commission staff estimates that broker-dealers spend approximately 138,349,218 hours per year complying with Rule 10b-10. The amount of confirmations sent and the cost of sending each confirmation varies from firm to firm. Smaller firms generally send fewer confirmations than larger firms because they effect fewer transactions. The Commission staff estimates the costs of producing and sending a paper confirmation, including postage, to be approximately 57 cents. The Commission staff also estimates that the cost of producing and sending a wholly electronic confirmation is approximately 39 cents. Based on informal discussions with industry participants, as well as representations made in requests for exemptive and no-action letters relating to Rule 10b-10, the staff estimates that broker-dealers used electronic confirmations for approximately 35 percent of transactions. Based on these calculations, Commission staff estimates that 10,791,239, 035 paper confirmations are mailed each year at a cost of $6,151,006,250. Commission staff also estimates that 5,810,667,173 wholly electronic confirmations are sent each year at a cost of $2,266,160,197. Accordingly, Commission staff estimates that the total annual cost associated with generating and [[Page 28924]] delivering to investors the information required under Rule 10b-10 would be $8,417,166,447. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number. The public may view 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 by sending an email to: [email protected]. Comments must be submitted to OMB within 30 days of this notice. Dated: May 4, 2016. Robert W. Errett, Deputy Secretary. [FR Doc. 2016-10888 Filed 5-9-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 90 / Tuesday, May 10, 2016 / Notices 28923
16. In the event an Interfund Loan is (d) allocation of interfund borrowing identity and number of shares bought or
not paid according to its terms and the and lending demand in an equitable sold, and whether the broker-dealer acts
default is not cured within two business manner and in accordance with as agent for the customer or as principal
days from its maturity or from the time procedures established by the Board; for its own account. Depending on
the lending Fund makes a demand for and whether the broker-dealer acts as agent
payment under the provisions of the (e) that the Interfund Loan Rate does or principal, Rule 10b–10 requires the
interfund lending agreement, the not exceed the interest rate on any third disclosure of commissions, as well as
InterFund Program Team will promptly party borrowings of a borrowing Fund at mark-up and mark-down information.
refer the loan for arbitration to an the time of the Interfund Loan. For transactions in debt securities, Rule
independent arbitrator selected by the Additionally, each Fund’s 10b–10 requires the disclosure of
Board of each Fund involved in the loan independent registered public redemption and yield information. Rule
who will serve as arbitrator of disputes accountants, in connection with their 10b–10 potentially applies to all of the
concerning Interfund Loans.3 The audit examination of the Fund, will approximately 4,183 firms registered
arbitrator will resolve any dispute review the operation of the InterFund with the Commission that effect
promptly, and the arbitrator’s decision Program for compliance with the transactions for or with customers.
will be binding on both Funds. The conditions of the application and their Based on information provided by
arbitrator will submit, at least annually, review will form the basis, in part, of registered broker-dealers to the
a written report to the Board setting the auditor’s report on internal Commission in FOCUS Reports, the
forth a description of the nature of any accounting controls in Form N–SAR. Commission staff estimates that on
dispute and the actions taken by the 18. No Fund will participate in the average, registered broker-dealers
Funds to resolve the dispute. InterFund Program, upon receipt of process approximately 1,383,492,184
17. The InterFund Program Team will requisite regulatory approval, unless it order tickets per month for transactions
prepare and submit to the Board for has fully disclosed in its registration for or with customers. Each order ticket
review an initial report describing the statement on Form N–1A (or any representing a transaction effected for or
operations of the InterFund Program successor form adopted by the with a customer results in one
and the procedures to be implemented Commission) all material facts about its confirmation. Therefore, the
to ensure that all Funds are treated intended participation. Commission staff estimates that
fairly. After the commencement of the For the Commission, by the Division of
approximately 16,601,906,208
InterFund Program, the InterFund Investment Management, under delegated confirmations are sent to customers
Program Team will report on the authority. annually. The confirmations required by
operations of the InterFund Program at Robert W. Errett, Rule 10b–10 are generally processed
the Board’s quarterly meetings. Each Deputy Secretary.
through automated systems. It takes
Fund’s chief compliance officer, as approximately 30 seconds to generate
[FR Doc. 2016–10917 Filed 5–9–16; 8:45 am]
defined in rule 38a–1(a)(4) under the and send a confirmation. Accordingly,
BILLING CODE 8011–01–P
Act, shall prepare an annual report for the Commission staff estimates that
the Board each year that the Fund broker-dealers spend approximately
participates in the InterFund Program, 138,349,218 hours per year complying
SECURITIES AND EXCHANGE
that evaluates the Fund’s compliance with Rule 10b–10.
COMMISSION The amount of confirmations sent and
with the terms and conditions of the
[SEC File No. 270–389, OMB Control No. the cost of sending each confirmation
application and the procedures
3235–0444] varies from firm to firm. Smaller firms
established to achieve such compliance.
generally send fewer confirmations than
Each Fund’s chief compliance officer Submission for OMB Review; larger firms because they effect fewer
will also annually file a certification Comment Request transactions. The Commission staff
pursuant to Item 77Q3 of Form N–SAR
Upon Written Request, Copies Available estimates the costs of producing and
as such Form may be revised, amended
From: Securities and Exchange sending a paper confirmation, including
or superseded from time to time, for postage, to be approximately 57 cents.
each year that the Fund participates in Commission, Office of FOIA Services,
100 F Street NE., Washington, DC The Commission staff also estimates
the InterFund Program, that certifies that the cost of producing and sending
that the Fund and the Adviser have 20549–2736.
a wholly electronic confirmation is
implemented procedures reasonably Extension: approximately 39 cents. Based on
designed to achieve compliance with Rule 10b–10. informal discussions with industry
the terms and conditions of the order. In Notice is hereby given that, pursuant participants, as well as representations
particular, such certification will to the Paperwork Reduction Act of 1995 made in requests for exemptive and no-
address procedures designed to achieve (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the action letters relating to Rule 10b–10,
the following objectives: Securities and Exchange Commission the staff estimates that broker-dealers
(a) That the Interfund Loan Rate will (‘‘Commission’’) has submitted to the used electronic confirmations for
be higher than the Repo Rate but lower Office of Management and Budget approximately 35 percent of
than the Bank Loan Rate; (‘‘OMB’’) a request for approval of transactions. Based on these
(b) compliance with the collateral extension of the previously approved calculations, Commission staff estimates
requirements as set forth in the collection of information provided for in that 10,791,239, 035 paper
asabaliauskas on DSK3SPTVN1PROD with NOTICES
application; Rule 10b–10 (17 CFR 240.10b–10) under confirmations are mailed each year at a
(c) compliance with the percentage the Securities and Exchange Act of 1934 cost of $6,151,006,250. Commission
limitations on interfund borrowing and (15 U.S.C. 78a et seq.). staff also estimates that 5,810,667,173
lending; Rule 10b–10 requires broker-dealers wholly electronic confirmations are sent
3 If the dispute involves Funds that do not have
to convey specified information to each year at a cost of $2,266,160,197.
a common Board, the Board of each affected Fund
customers regarding their securities Accordingly, Commission staff
will select an independent arbitrator that is transactions. This information includes estimates that the total annual cost
satisfactory to each Fund. the date and time of the transaction, the associated with generating and
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![28924 Federal Register / Vol. 81, No. 90 / Tuesday, May 10, 2016 / Notices
delivering to investors the information Investment Advisors, LLC (the ‘‘BDC Company seeks to generate both current
required under Rule 10b–10 would be Adviser’’), on behalf of itself and its income and capital appreciation
$8,417,166,447. successors.1 through investments in traditional
An agency may not conduct or FILING DATES: The application was filed mezzanine and senior subordinated
sponsor, and a person is not required to on September 10, 2015 and amended on loans; first-lien, senior secured positions
respond to, a collection of information February 26, 2016 and April 28, 2016. in ‘‘stretch’’ senior secured loans; as
under the PRA unless it displays a HEARING OR NOTIFICATION OF HEARING: well as equity interests, either in the
currently valid OMB control number. An order granting the requested relief form of detachable ‘‘penny’’ warrants or
The public may view background will be issued unless the Commission equity co-investments made pari passu
documentation for this information orders a hearing. Interested persons may with financial sponsors. The board of
collection at the following Web site: request a hearing by writing to the directors (‘‘Board’’) of the Company is
www.reginfo.gov. Comments should be Commission’s Secretary and serving comprised of five directors, three of
directed to: (i) Desk Officer for the applicants with a copy of the request, whom are not ‘‘interested persons’’
Securities and Exchange Commission, personally or by mail. Hearing requests within the meaning of section 2(a)(19) of
Office of Information and Regulatory should be received by the Commission the Act (the ‘‘Non-Interested Directors’’).
Affairs, Office of Management and by 5:30 p.m. on May 31, 2016, and 2. The Private Fund is organized as a
Budget, Room 10102, New Executive should be accompanied by proof of limited partnership under Delaware
Office Building, Washington, DC 20503, service on applicants, in the form of an law, and would be an investment
or by sending an email to: Shagufta_ affidavit or, for lawyers, a certificate of company but for the exclusion from the
Ahmed@omb.eop.gov; and (ii) Pamela service. Pursuant to rule 0–5 under the definition of investment company
Dyson, Director/Chief Information Act, hearing requests should state the provided by section 3(c)(7) of the Act.
Officer, Securities and Exchange nature of the writer’s interest, any facts Applicants state that the Private Fund’s
Commission, c/o Remi Pavlik-Simon, bearing upon the desirability of a investment objectives and policies are
100 F Street NE., Washington, DC hearing on the matter, the reason for the substantially similar to the Objectives
20549, or by sending an email to: PRA_ request, and the issues contested. and Strategies of the Company.3
Mailbox@sec.gov. Comments must be Persons who wish to be notified of a 3. Fund II SBIC and Fund III SBIC (the
submitted to OMB within 30 days of hearing may request notification by ‘‘Existing SBIC Subsidiaries’’) are
this notice. writing to the Commission’s Secretary. Wholly-Owned Investment Subs 4 of the
Dated: May 4, 2016. ADDRESSES: Brent J. Fields, Secretary, Company. Fund II SBIC was organized
Robert W. Errett, U.S. Securities and Exchange as a limited partnership under the laws
Deputy Secretary. Commission, 100 F St. NE., Washington, of the state of North Carolina and Fund
[FR Doc. 2016–10888 Filed 5–9–16; 8:45 am] DC 20549–1090. Applicants: 4201 III SBIC was organized as a limited
BILLING CODE 8011–01–P
Congress St., Suite 360, Charlotte, NC partnership under the laws of the state
28209. of Delaware. Both were organized to
FOR FURTHER INFORMATION CONTACT: Kay- make mezzanine investments, primarily
SECURITIES AND EXCHANGE Mario Vobis, Senior Counsel, at (202) in later-stage, middle-market companies
COMMISSION 551–6728, or Mary Kay Frech, Branch located in the southeastern and middle-
Chief, at (202) 551–6821 (Chief Atlantic regions of the United States,
[Release No. IC–32102; File No. 812–14544]
Counsel’s Office, Division of Investment and have elected to be regulated as a
Capitala Finance Corp., et al.; Notice of Management). BDC within the meaning of section
Application SUPPLEMENTARY INFORMATION: The 2(a)(48) of the Act.
following is a summary of the
May 4, 2016. 3 ‘‘Objectives and Strategies’’ means a Regulated
application. The complete application
AGENCY: Securities and Exchange may be obtained via the Commission’s
Fund’s (defined below) investment objectives and
Commission (‘‘Commission’’). strategies, as described in the Regulated Fund’s
Web site by searching for the file registration statement on Form N–2, other filings
ACTION: Notice of application for an number, or for an applicant using the the Regulated Fund has made with the Commission
order under sections 17(d) and 57(i) of Company name box, at http:// under the Securities Act of 1933 (the ‘‘Securities
the Investment Company Act of 1940 www.sec.gov/search/search.htm or by
Act’’), or under the Securities Exchange Act of
(the ‘‘Act’’) and rule 17d–1 under the 1934, and the Regulated Fund’s reports to
calling (202) 551–8090. shareholders.
Act permitting certain joint transactions 4 The term ‘‘Wholly-Owned Investment Sub’’
otherwise prohibited by sections 17(d) Applicants’ Representations means an entity (i) that is wholly-owned by a
and 57(a)(4) of the Act and under rule 1. The Company, a Maryland Regulated Fund (with the Regulated Fund at all
17d–1 under the Act. times holding, beneficially and of record, 100% of
corporation, is organized as a closed- the voting and economic interests); (ii) whose sole
end management investment company business purpose is to hold one or more
SUMMARY OF APPLICATION: Applicants that has elected to be regulated as a BDC investments on behalf of the Regulated Fund (and,
request an order to permit a business within the meaning of section 2(a)(48) of in the case of an SBIC Subsidiary, maintain a
development company (‘‘BDC’’) and the Act.2 Applicants state that the license under the SBA Act and issue debentures
certain closed end investment guaranteed by the SBA); (iii) with respect to which
the Regulated Fund’s Board has the sole authority
companies to co-invest in portfolio 1 The term ‘‘successor,’’ as applied to each
to make all determinations with respect to the
companies with each other and with Adviser (defined below), means an entity that
asabaliauskas on DSK3SPTVN1PROD with NOTICES
entity’s participation under the conditions of the
affiliated investment funds. results from a reorganization into another application; and (iv) that would be an investment
jurisdiction or change in the type of business company but for section 3(c)(1) or 3(c)(7) of the Act.
APPLICANTS: Capitala Finance Corp. (the organization. An SBIC Subsidiary may be a Wholly-Owned
‘‘Company’’), Capitala Private Credit 2 Section 2(a)(48) defines a BDC to be any closed- Investment Sub if it satisfies the conditions in this
Fund I, L.P. (the ‘‘Private Fund’’), end investment company that operates for the definition. The term ‘‘SBIC Subsidiary’’ means an
CapitalSouth Partners Fund II Limited purpose of making investments in securities entity that is licensed by the Small Business
described in sections 55(a)(1) through 55(a)(3) of the Administration (the ‘‘SBA’’) to operate under the
Partnership (‘‘Fund II SBIC’’), Act and makes available significant managerial Small Business Investment Act of 1958, as
CapitalSouth Partners SBIC Fund III, assistance with respect to the issuers of such amended, (the ‘‘SBA Act’’) as a small business
L.P. (‘‘Fund III SBIC’’), and Capitala securities. investment company.
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Document Created: 2016-05-10 05:18:49
Document Modified: 2016-05-10 05:18:49
| 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 28923 |
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