81 FR 5162 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 20 (February 1, 2016)

Page Range		5162-5163
FR Document		2016-01711

Federal Register, Volume 81 Issue 20 (Monday, February 1, 2016)

[Federal Register Volume 81, Number 20 (Monday, February 1, 2016)]
[Notices]
[Pages 5162-5163]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01711]


-----------------------------------------------------------------------

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 17a-8; SEC File No. 270-225, OMB Control No. 3235-0235.

    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'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for extension and approval.
    Rule 17a-8 (17 CFR 270.17a-8) under the Investment Company Act of 
1940 (the ``Act'') (15 U.S.C. 80a) is entitled ``Mergers of affiliated 
companies.'' Rule 17a-8 exempts certain mergers and similar business 
combinations (``mergers'') of affiliated registered investment 
companies (``funds'') from prohibitions under section 17(a) of the Act 
(15 U.S.C. 80a-17(a)) on purchases and sales between a fund and its 
affiliates. The rule requires fund directors to consider certain issues 
and to record their findings in board minutes. The rule requires the 
directors of any fund merging with an unregistered entity to approve 
procedures for the valuation of assets received from that entity. These 
procedures must provide for the preparation of a report by an 
independent evaluator that sets forth the fair value of each such asset 
for which market quotations are not readily available. The rule also 
requires a fund being acquired to obtain approval of the merger 
transaction by a majority of its outstanding voting securities, except 
in certain situations, and requires any surviving fund to preserve 
written records describing the merger and its terms for six years after 
the merger (the first two in an easily accessible place).
    The average annual burden of meeting the requirements of rule 17a-8 
is estimated to be 7 hours for each fund. The Commission staff 
estimates that each year approximately 766 funds rely on the rule. The 
estimated total average annual burden for all respondents therefore is 
5,362 hours.
    The average cost burden of preparing a report by an independent 
evaluator in a merger with an unregistered entity is estimated to be 
$15,000. The average net cost burden of obtaining approval of a merger 
transaction by a majority of a fund's outstanding voting securities is 
estimated to be $100,000. The Commission staff estimates that each year 
approximately 0 mergers with unregistered entities occur and 
approximately 15 funds hold shareholder votes that would not otherwise 
have held a shareholder vote. The total annual cost burden of meeting 
these requirements is estimated to be $1,500,000.
    The estimates of average burden hours and average cost burdens are 
made solely for the purposes of the Paperwork Reduction Act, and are 
not derived from a comprehensive or even a representative survey or 
study. 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.
    Written comments are requested on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information has practical 
utility; (b) the accuracy of the Commission's estimate of the burdens 
of the collection of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of information on respondents, 
including through the use of automated collection techniques or other 
forms of information technology. Consideration will be given to 
comments and suggestions submitted in writing within 60 days of this 
publication.
    Please direct your written comments to 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].


[[Page 5163]]


    Dated: January 25, 2016.
 Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-01711 Filed 1-29-16; 8:45 am]
BILLING CODE 8011-01-P

5162 Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Notices

Commission takes such action, the 2016–09 and should be submitted on or terms for six years after the merger (the
Commission shall institute proceedings before February 22, 2016. first two in an easily accessible place).
under section 19(b)(2)(B) 28 of the Act to For the Commission, by the Division of The average annual burden of meeting
determine whether the proposed rule Trading and Markets, pursuant to delegated the requirements of rule 17a–8 is
change should be approved or authority.29
estimated to be 7 hours for each fund.
disapproved. Robert W. Errett, The Commission staff estimates that
IV. Solicitation of Comments Deputy Secretary. each year approximately 766 funds rely
[FR Doc. 2016–01713 Filed 1–29–16; 8:45 am] on the rule. The estimated total average
Interested persons are invited to
submit written data, views, and
BILLING CODE 8011–01–P annual burden for all respondents
arguments concerning the foregoing, therefore is 5,362 hours.
including whether the proposed rule SECURITIES AND EXCHANGE The average cost burden of preparing
change is consistent with the Act. COMMISSION a report by an independent evaluator in
Comments may be submitted by any of a merger with an unregistered entity is
the following methods: Proposed Collection; Comment estimated to be $15,000. The average net
Request cost burden of obtaining approval of a
Electronic Comments
Upon Written Request, Copies Available merger transaction by a majority of a
• Use the Commission’s Internet fund’s outstanding voting securities is
comment form (http://www.sec.gov/ From: Securities and Exchange
Commission, Office of FOIA Services, estimated to be $100,000. The
rules/sro.shtml); or Commission staff estimates that each
100 F Street NE., Washington, DC
• Send an email to rule-comments@ year approximately 0 mergers with
20549–2736.
sec.gov. Please include File Number SR– unregistered entities occur and
NYSE–2016–09 on the subject line. Extension:
Rule 17a–8; SEC File No. 270–225, OMB approximately 15 funds hold
Paper Comments Control No. 3235–0235. shareholder votes that would not
• Send paper comments in triplicate Notice is hereby given that pursuant otherwise have held a shareholder vote.
to Brent J. Fields, Secretary, Securities to the Paperwork Reduction Act of 1995 The total annual cost burden of meeting
and Exchange Commission, 100 F Street (44 U.S.C. 3501–3520), the Securities these requirements is estimated to be
NE., Washington, DC 20549–1090. and Exchange Commission (the $1,500,000.
All submissions should refer to File ‘‘Commission’’) is soliciting comments The estimates of average burden hours
Number SR–NYSE–2016–09. This file on the collection of information and average cost burdens are made
number should be included on the summarized below. The Commission solely for the purposes of the Paperwork
subject line if email is used. To help the plans to submit this existing collection Reduction Act, and are not derived from
Commission process and review your of information to the Office of a comprehensive or even a
comments more efficiently, please use Management and Budget for extension representative survey or study. An
only one method. The Commission will and approval.
Rule 17a–8 (17 CFR 270.17a–8) under agency may not conduct or sponsor, and
post all comments on the Commission’s a person is not required to respond to,
the Investment Company Act of 1940
Internet Web site (http://www.sec.gov/ a collection of information unless it
(the ‘‘Act’’) (15 U.S.C. 80a) is entitled
rules/sro.shtml). Copies of the displays a currently valid OMB control
‘‘Mergers of affiliated companies.’’ Rule
submission, all subsequent number.
17a–8 exempts certain mergers and
amendments, all written statements
similar business combinations Written comments are requested on:
with respect to the proposed rule (‘‘mergers’’) of affiliated registered
change that are filed with the (a) Whether the collection of
investment companies (‘‘funds’’) from information is necessary for the proper
Commission, and all written prohibitions under section 17(a) of the
communications relating to the performance of the functions of the
Act (15 U.S.C. 80a–17(a)) on purchases Commission, including whether the
proposed rule change between the and sales between a fund and its
Commission and any person, other than information has practical utility; (b) the
affiliates. The rule requires fund accuracy of the Commission’s estimate
those that may be withheld from the directors to consider certain issues and
public in accordance with the of the burdens of the collection of
to record their findings in board
provisions of 5 U.S.C. 552, will be information; (c) ways to enhance the
minutes. The rule requires the directors
available for Web site viewing and of any fund merging with an quality, utility, and clarity of the
printing in the Commission’s Public unregistered entity to approve information collected; and (d) ways to
Reference Room, 100 F Street NE., procedures for the valuation of assets minimize the burden of the collection of
Washington, DC 20549 on official received from that entity. These information on respondents, including
business days between the hours of procedures must provide for the through the use of automated collection
10:00 a.m. and 3:00 p.m. Copies of the preparation of a report by an techniques or other forms of information
filing also will be available for independent evaluator that sets forth the technology. Consideration will be given
inspection and copying at the principal fair value of each such asset for which to comments and suggestions submitted
office of the Exchange. All comments market quotations are not readily in writing within 60 days of this
received will be posted without change; available. The rule also requires a fund publication.
the Commission does not edit personal being acquired to obtain approval of the
rmajette on DSK2TPTVN1PROD with NOTICES

identifying information from Please direct your written comments
merger transaction by a majority of its to Pamela Dyson, Director/Chief
submissions. You should submit only outstanding voting securities, except in
information that you wish to make Information Officer, Securities and
certain situations, and requires any
available publicly. All submissions Exchange Commission, C/O Remi
surviving fund to preserve written
should refer to File Number SR–NYSE– records describing the merger and its Pavlik-Simon, 100 F Street NE.,
Washington, DC 20549; or send an email
28 15 U.S.C. 78s(b)(2)(B). 29 17 CFR 200.30–3(a)(12). to: PRA_Mailbox@sec.gov.

VerDate Sep<11>2014 15:33 Jan 29, 2016 Jkt 238001 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\01FEN1.SGM 01FEN1

Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Notices 5163

Dated: January 25, 2016. margin CDS. The Order also requires reviewing the opinion required by
Robert W. Errett, BD/FCMs that elect to offer a program paragraph IV(b)(2)(iii) of the Order)) ×
Deputy Secretary. to commingle and portfolio margin CDS (11 affiliate credit default swap
[FR Doc. 2016–01711 Filed 1–29–16; 8:45 am] positions in customer accounts customers) + (1,000 hours to seek the
BILLING CODE 8011–01–P maintained in accordance with Section Commission’s approval of margin
4d(f) of the CEA and rules thereunder, methodologies under paragraph IV(b)(3)
to maintain minimum margin levels of the Order) + (8 hours to disclose
SECURITIES AND EXCHANGE using a margin methodology approved information to customers under
COMMISSION by the Commission or the Commission paragraph IV(b)(6) of the Order) = 3,430
staff.
burden hours, or approximately 154,350
Proposed Collection; Comment When it adopted the Order, the
Request Commission discussed the burden hours burden hours in the aggregate,
and costs associated with complying calculated as follows: (3,430 burden
Upon Written Request, Copies Available with certain provisions of the Order that hours per firm) × (45 firms) = 154,350
From: U.S. Securities and Exchange contain ‘‘collection of information burden hours. Amortized over three
Commission, Office of FOIA Services, requirements’’ within the meaning of years, the annualized burden hours
100 F Street NE., Washington, DC the PRA.1 The collection of information would be 1,143 hours per firm, or a total
20549–2736. requirements are designed, among other of 51,450 for all 45 firms.
Extension: things, to provide appropriate The Commission further estimates
Order Granting Conditional Exemptions agreements, disclosures, and opinions to
Under the Securities Exchange Act of
that each respondent will incur a one-
BD/FCM customers to clarify key time cost of $8,000 in outside legal cost
1934 in Connection with Portfolio
aspects of the regulatory framework that expenses per firm, calculated as follows:
Margining of Swaps and Security-Based
Swaps; SEC File No. S7–13–12, OMB will govern their participation in a (200 hours to obtain opinions of counsel
Control No. 3235–0698. program to commingle and portfolio from affiliate cleared credit default swap
margin CDS positions and to ensure that customers under paragraph IV(b)(2)(iii)
Notice is hereby given that pursuant appropriate levels of margin are
to the Paperwork Reduction Act of 1995 of the Order) × ($400 per hour for
collected. Because the Order is still in
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the outside legal counsel) = $8,000, for an
effect, the Commission believes it is
Securities and Exchange Commission aggregate burden of $360,000, calculated
prudent to extend this collection of
(‘‘Commission’’) is soliciting comments information. as follows: ($8,000 in external legal
on the existing collection of information The Commission estimates that 45 costs per firm) × (45 firms) = $360,000.
provided for in the Order Granting firms may seek to avail themselves of Amortized over three years, the
Conditional Exemptions Under the the conditional exemptive relief annualized capital external cost would
Securities Exchange Act of 1934 provided by the Order and therefore be $2,667 per firm, or a total of $120,000
(‘‘Exchange Act’’) in Connection with would be subject to the information for all 45 firms.
Portfolio Margining of Swaps and collection.2 The Commission estimates Written comments are invited on: (a)
Security-Based Swaps, Exchange Act that each of the 45 firms that may seek Whether the proposed collection of
Release No. 68433 (Dec. 14, 2012), 77 to avail themselves of the conditional information is necessary for the proper
FR 75211 (Dec. 19, 2012) (‘‘Order’’). The exemptive relief provided by the Order performance of the functions of the
Commission plans to submit this would spend a total of 3,430 burden Commission, including whether the
existing collection of information to the hours to comply with the existing
Office of Management and Budget information shall have practical utility;
collection of information, calculated as (b) the accuracy of the Commission’s
(‘‘OMB’’) for extension and approval. follows: (20 hours to develop a
On December 14, 2012, the estimates of the burden of the proposed
subordination agreement for each non-
Commission found it necessary or collection of information; (c) ways to
affiliate cleared credit default swap
appropriate in the public interest and enhance the quality, utility, and clarity
customers in accordance with paragraph
consistent with the protection of of the information to be collected; and
IV(b)(1)(ii) of the Order) × (109 non-
investors to grant the conditional affiliate credit default swap customers 3) (d) ways to minimize the burden of the
exemptions discussed in the Order. + ((20 hours to develop a subordination collection of information on
Among other things, the Order requires agreement for each affiliate cleared respondents, including through the use
dually-registered broker-dealer and credit default swap customers in of automated collection techniques or
futures commission merchants (‘‘BD/ accordance with paragraph IV(b)(2)(ii) other forms of information technology.
FCMs’’) that elect to offer a program to of the Order) + (2 hours developing and Consideration will be given to
commingle and portfolio margin comments and suggestions submitted in
customer positions in credit default 1 See Order, 77 FR at 75221–23. writing within 60 days of this
swaps (‘‘CDS’’) in customer accounts 2 The Commission bases this estimate on the total publication.
maintained in accordance with Section number of entities that are dually registered as
An agency may not conduct or
4d(f) of the Commodity Exchange Act broker-dealers and futures commission merchants.
See Financial Data for FCMs as of July 31, 2015, sponsor, and a person is not required to
(‘‘CEA’’) and rules thereunder, to obtain Commodity Futures Trading Commission, available respond to, a collection of information
certain agreements and opinions from at http://www.cftc.gov/MarketReports/
under the PRA unless it displays a
its customers regarding the applicable FinancialDataforFCMs/index.htm.
3 Based on information that the Commission currently valid OMB control number.
regulatory regime, and to make certain
rmajette on DSK2TPTVN1PROD with NOTICES

receives on a monthly basis, as well as current Please direct your written comments
disclosures to its customers before projections regarding the estimated increase in the
receiving any money, securities, or number of customers per respondent, the
to: Pamela Dyson, Director/Chief
property of a customer to margin, Commission anticipates an average number of Information Officer, Securities and
guarantee, or secure positions consisting credit default swap customers to be 120 per Exchange Commission, c/o Remi Pavlik-
respondent, 109 of which would be non-affiliates Simon, 100 F Street NE., Washington,
of cleared CDS, which include both and 11 of which would be affiliates. The
swaps and security-based swaps, under Commission notes that these estimates are based on DC 20549, or send an email to: PRA_
a program to commingle and portfolio current data and the current regulatory framework. Mailbox@sec.gov.

VerDate Sep<11>2014 15:33 Jan 29, 2016 Jkt 238001 PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 E:\FR\FM\01FEN1.SGM 01FEN1

Document Created: 2016-01-30 01:17:16
Document Modified: 2016-01-30 01:17:16

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 5162