81 FR 56717 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change Adopting Maximum Fees Member Organizations may Charge in Connection With the Distribution of Investment Company Shareholder Reports Pursuant to Any Electronic Delivery Rules Adopted by the Securities and Exchange Commission

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 162 (August 22, 2016)

Page Range		56717-56720
FR Document		2016-19897
Federal Register, Volume 81 Issue 162 (Monday, August 22, 2016)
[Federal Register Volume 81, Number 162 (Monday, August 22, 2016)]
[Notices]
[Pages 56717-56720]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19897]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78589: File No. SR-NYSE-2016-55]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change Adopting Maximum Fees Member 
Organizations may Charge in Connection With the Distribution of 
Investment Company Shareholder Reports Pursuant to Any Electronic 
Delivery Rules Adopted by the Securities and Exchange Commission

August 16, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on August 15, 2016, New York Stock Exchange LLC (``NYSE'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'' or the ``SEC'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the self-regulatory organization. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt maximum fees member organizations 
may charge in connection with the distribution of investment company 
shareholder reports pursuant to any electronic delivery rules adopted 
by the Securities and Exchange Commission. The proposed rule change is 
available on the Exchange's Web site at www.nyse.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

[[Page 56718]]

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On May 20, 2015, the SEC proposed new rules that would expand the 
information that registered investment companies are required to report 
(the ``Investment Company Proposal'').\4\ In addition to the expanded 
reporting requirements, the Investment Company Proposal includes 
proposed new Rule 30(e)-3, which would permit, but not require, 
investment companies to satisfy their annual and semiannual shareholder 
report delivery obligations under the Investment Company Act by making 
shareholder reports available on the investment company's Web site. 
Investment companies relying on this provision would be required to 
meet conditions relating to, among other things, prior shareholder 
consent to electronic access rather than paper delivery of reports and 
notice to shareholders of the availability of shareholder reports.
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    \4\ 80 FR 33590 (June 12, 2015); Investment Company Reporting 
Modernization, Securities Act Release No. 33-9776, Exchange Act 
Release No. 34-75002, Investment Company Act Release No. IC-31610 
(May 20, 2015).
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    Specifically, proposed Rule 30e-3 would require an investment 
company intending to rely on electronic access to reports to: (i) 
Transmit a statement to the shareholder at least 60 days prior to its 
reliance on proposed Rule 30e-3, notifying the shareholder of the 
issuer's intent to make future shareholder reports available on the 
issuer's Web site until the shareholder revokes consent; and (ii) send 
a notice within 60 days of the close of the fiscal period to 
shareholders who have consented to electronic transmission informing 
them that the report is available online. Proposed Rule 30e-3 would 
also require investment companies to send, at no cost to the requestor, 
a paper copy of any shareholder reports to any shareholder requesting 
such a copy.
    NYSE Rule 451 requires NYSE member organizations to distribute 
proxy and other materials on behalf of issuers to the beneficial owners 
of the issuers' securities on whose behalf member organizations hold 
securities in ``street name'' accounts. This obligation is conditioned 
on the member organization's receipt from the issuer of reimbursement 
of all out-of-pocket expenses, including reasonable clerical expenses, 
incurred by such member organization in connection with such 
distribution. Rule 451 establishes maximum fees which member 
organizations may charge for handling distributions required under the 
rule.
    Rule 451 also establishes maximum fees paid by issuers using the 
SEC's Notice and Access provisions pursuant to Rule 14a-16 under the 
proxy rules.\5\ When an issuer elects to utilize Notice and Access for 
a proxy distribution, there is an incremental fee based on all nominee 
accounts through which the issuer's securities are beneficially owned 
as follows:
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    \5\ 17 CFR 240.14a-16.
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     25 cents for each account up to 10,000 accounts;
     20 cents for each account over 10,000 accounts, up to 
100,000 accounts;
     15 cents for each account over 100,000 accounts, up to 
200,000 accounts;
     10 cents for each account over 200,000 accounts, up to 
500,000 accounts
     5 cents for each account over 500,000 accounts.\6\
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    \6\ To clarify, under this schedule, every issuer pays the tier 
one rate for the first 10,000 accounts, or portion thereof, with 
decreasing rates applicable only on additional accounts in the 
additional tiers.
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    While mutual funds are not listed on the NYSE, the fees set forth 
in Rule 451 are applied by NYSE members in relation to distributions to 
``street name'' holders of mutual fund and operating company shares. 
Mutual funds typically do not have to elect directors every year, and 
for this reason tend not to have shareholder meetings every year. 
However, every mutual fund is required by SEC rules to distribute each 
year both an annual and a semi-annual report to its shareholders, and 
so mutual funds pay the interim report fee set forth in Rule 451 of 15 
cents per account each time they distribute materials to shareholders 
who hold mutual fund shares in ``street name.'' In addition, mutual 
funds pay a Preference Management Fee of 10 cents for every account 
with respect to which a member organization has eliminated the need to 
send paper materials. Under the current rule, the Preference Management 
Fee is in addition to, and not in lieu of, the interim report fee.
    Under the rule as currently in effect, the Notice and Access fees 
in Rule 451 were intended to apply specifically to Notice and Access 
distributions under the SEC's proxy rules and they would not apply to 
electronic distributions under proposed Rule 30e-3 without a rule 
amendment. There have been a number of comment letters filed in 
relation to the Investment Company Proposal addressing the question of 
how the fees set forth in Rule 451 would apply to electronic 
distributions under proposed Rule 30e-3. The Investment Company 
Institute (``ICI'') submitted a comment letter on the Investment 
Company Proposal in which it noted that the NYSE ``appears to have 
little regulatory interest in fees brokers charge for delivery of fund 
materials'' and recommends that responsibility for the fees in relation 
to mutual fund distributions should be given instead to FINRA. As noted 
above, the Exchange has no involvement in the mutual fund industry and 
we therefore agree with the ICI that we may not be best positioned to 
take on the regulatory role in setting fees for mutual funds. To that 
end, we welcome the idea of considering whether FINRA should assume 
this role in the near future.\7\ However, we also understand that the 
success of the electronic delivery system in proposed Rule 30e-3 is 
significantly dependent on the establishment of reasonable and 
transparent levels of reimbursement to brokers for their role in the 
process. Given the potential immediacy of this need, the Exchange has 
agreed to a request from the SEC that we adopt fees specific to 
electronic distributions of investment company materials.\8\ We are 
doing so because the NYSE's historical role as the fee setter enables 
it to meet this need more efficiently in the short term than would be 
possible if that role were assumed by FINRA at this time.
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    \7\ The Exchange believes that consideration should be given to 
the question of whether it would be more appropriate for FINRA to 
become the primary regulator of all fees charged by brokers in 
connection with distributions (i.e., including operating company 
distributions and not just those of investment companies).
    \8\ These proposed fees would be effective only if the SEC 
adopts Rule 30e-3.
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    The electronic delivery process under proposed Rule 30e-3 would 
require additional work on the part of the member organizations and 
their agents. As the proposed process is very similar to the existing 
Notice and Access process for which the Exchange has

[[Page 56719]]

already adopted a fee schedule in Rule 451, the Exchange believes that 
it is appropriate to apply the existing Notice and Access fees to 
distributions under the SEC's proposed new rule. As such, the Exchange 
proposes to amend Section 5 of Rule 451.90 to specify that the Notice 
and Access fees set forth therein would also be charged with respect to 
the distribution of investment company shareholder reports pursuant to 
any ``notice and access'' rules adopted by the SEC in relation to such 
distributions.
    In applying the Notice and Access fees to deliveries under proposed 
Rule 30e-3, the Exchange proposes to modify their application in one 
significant respect. Specifically, the Notice and Access fee will not 
be charged for any account with respect to which the investment company 
pays a Preference Management Fee. A Preference Management Fee is paid 
whenever a broker or its agent is able to suppress the need to send a 
physical mailing to an account, for example through ``householding'' of 
accounts (i.e., the elimination of duplicative mailings to multiple 
accounts at the same address) or by getting account holders to agree to 
access materials through the broker's own enhanced broker's internet 
platform (or ``EBIP''). Under the current rule, an issuer utilizing 
Notice and Access pays Notice and Access fees with respect to all 
accounts, including those with respect to which it is paying a 
Preference Management Fee (and to which it is therefore not sending a 
notice). The Exchange proposes to amend Rule 451 to provide that 
investment companies utilizing any notice and access process 
established by the SEC will not be charged a Notice and Access fee for 
any account with respect to which they are being charged a Preference 
Management Fee. As such, funds will only pay Notice and Access fees 
with respect to accounts that actually receive Notice and Access 
mailings.\9\
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    \9\ The Exchange is not proposing any modifications to the 
amount or application of the Preference Management Fee at this time.
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    Mutual funds often issue multiple classes of shares, so it is 
necessary to be clear how the pricing tiers in the Notice and Access 
fees would be applied to investment company shareholder report 
distributions. Therefore, the Exchange proposes to amend the rule to 
clarify that, in calculating the rates at which the issuer will be 
charged Notice and Access fees for investment company shareholder 
report distributions, all accounts holding shares of any class of share 
of the applicable issuer eligible to receive an identical distribution 
will be aggregated in determining the appropriate pricing tier.

2. Statutory Basis

    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (the ``Act'') 
generally.\10\ Section 6(b)(4) \11\ requires that exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its members and issuers and other persons using the 
facilities of an exchange. Section 6(b)(5) \12\ requires, among other 
things, that exchange rules promote just and equitable principles of 
trade and that they are not designed to permit unfair discrimination 
between issuers, brokers or dealers. Section 6(b)(8) \13\ prohibits any 
exchange rule from imposing any burden on competition that is not 
necessary or appropriate in furtherance of the purposes of the Act.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ 15 U.S.C. 78f(b)(8).
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    The Exchange believes that the proposed amendment represents a 
reasonable allocation of fees among issuers as required by Section 
6(b)(4) and is not designed to permit unfair discrimination within the 
meaning of Section 6(b)(5), as all issuers are subject to the same fee 
schedule.\14\
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    \14\ The Exchange notes that the rules in this proposal do not 
involve dues, fees or other charges paid to the Exchange. 
Nonetheless, to the extent a Section 6(b)(4) analysis is 
appropriate, the Exchange has included one herein.
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    The Exchange believes that the proposed amendment does not impose 
any unnecessary burden on competition within the meaning of Section 
6(b)(8). Issuers are unable to make distributions themselves to 
``street name'' account holders, but must instead rely on the brokers 
that are record holders to make those distributions. In the Exchange's 
view, the proposed amendment does not create either any barriers to 
brokers being able to make their own distributions without an 
intermediary or any impediments to other intermediaries being able 
enter the market. For some time now a single intermediary has come to 
have a predominant role in the distribution of proxy material. The 
Exchange does not believe that the predominance of this existing single 
intermediary results from the level of the existing fees or that the 
proposed amended fees will change its competitive position or create 
any additional barriers to entry for potential new intermediaries. 
Moreover, brokers have the ultimate choice to use an intermediary of 
their choice, or perform the work themselves. Competitors are also free 
to establish relationships with brokers, and the proposed fees would 
not operate as a barrier to entry. For the foregoing reasons, the 
Exchange believes that its proposed fee schedule does not place any 
unnecessary burden on competition.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange believes that 
Rule 451 as amended by the proposed amendments does not impose any 
burdens on competition. Under Rule 451, a member organization is 
required to forward proxy and other material to beneficial owners of an 
issuer's securities only if the issuer reimburses it for its reasonable 
expenses incurred in connection with these distributions. Consequently, 
in amending Rule 451 to establish fees to be charged in connection with 
the SEC's proposed rule permitting the electronic distribution of 
investment company shareholder reports, the Exchange intended to 
establish fees which represented a reasonable level of reimbursement. 
As the Exchange's purpose was to establish fees that reflected a 
reasonable expense reimbursement level, the Exchange does not believe 
that the proposed amended fees will have the effect of providing a 
competitive advantage to any particular broker or existing intermediary 
or creating any barriers to entry for potential new intermediaries. For 
some time now a single intermediary has come to have a predominant role 
in the distribution of proxy material. The Exchange does not believe 
that the predominance of this existing single intermediary results from 
the level of the existing fees or that the proposed amended fees will 
change its competitive position or create any additional barriers to 
entry for potential new intermediaries. Moreover, brokers have the 
ultimate choice to use an intermediary of their choice, or perform the 
work themselves. Competitors are also free to establish relationships 
with brokers, and the proposed fees would not operate as a barrier to 
entry.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange received one written comment relevant to the proposal 
prior

[[Page 56720]]

to its filing. This letter was from the ICI, in which it argued that 
the Exchange should interpret its existing rules as providing for the 
following:
     Investment companies should only have to pay interim 
report fees once per year rather than each time a report is delivered 
to shareholders;
     the Preference Management Fee should be charged only on a 
one-time basis in relation to any specific account;
     brokers should not be permitted to collect any fees 
whatsoever from investment companies in relation to fund shares held in 
managed accounts;
     brokers should not be allowed to receive any portion of 
the regulated fees collected by intermediaries conducting distributions 
on their behalf;
     the current rule should be interpreted as applying the 
Notice and Access fees to electronic deliveries under proposed Rule 
30e-3; and
     the Notice and Access Fees should not be payable in 
relation to any account that does not actually receive a Notice and 
Access delivery under proposed Rule 30e-3.
    The Exchange does not agree that there is any justification in the 
text of Rule 451 for regarding any of these positions as accurate 
interpretations of Rule 451 in its current form. The purpose of the 
current proposal is solely to amend Rule 451 to facilitate the SEC's 
potential finalization of proposed Rule 30e-3. Accordingly, and 
consistent with certain of ICI's recommendations, the Exchange is 
proposing changes to its rules to apply the Notice and Access fees with 
respect to the distribution of investment company shareholder reports 
pursuant to any ``notice and access'' rules adopted by the SEC in 
relation to such distributions. In addition, and also as recommended by 
the ICI in its letter, the Exchange's proposal would provide that the 
Notice and Access fee would only apply to accounts that actually 
receive Notice and Access deliveries under proposed Rule 30e-3 and not 
to accounts with respect to which investment companies are charged a 
Preference Management fee. The Exchange does not believe that the 
other, more substantial changes to the application of Rule 451 
suggested by the ICI are necessary to implementation of Rule 30e-3 if 
the SEC were to finalize its proposal and, thus the Exchange believes 
those proposals should be given separate consideration.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or up to 90 days (i) as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or (ii) as to which the self-regulatory 
organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSE-2016-55 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2016-55. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSE-2016-55 and should be 
submitted on or before September 12, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19897 Filed 8-19-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices 56717

Commission’s consideration concerning U.S.C. 3642, 39 CFR part 3010, and 39 16, 2016; Filing Authority: 39 U.S.C.
negotiated service agreements. This CFR part 3020, subpart B. For request(s) 3642 and 39 CFR 3020.30 et seq.; Public
notice informs the public of the filing, that the Postal Service states concern Representative: Katalin K. Clendenin;
invites public comment, and takes other competitive product(s), applicable Comments Due: August 24, 2016
administrative steps. statutory and regulatory requirements This notice will be published in the
DATES: Comments are due: August 24, include 39 U.S.C. 3632, 39 U.S.C. 3633, Federal Register.
2016 (Comment due date applies to all 39 U.S.C. 3642, 39 CFR part 3015, and
Docket Nos. listed above) 39 CFR part 3020, subpart B. Comment Stacy L. Ruble,
ADDRESSES: Submit comments deadline(s) for each request appear in Secretary.
electronically via the Commission’s section II. [FR Doc. 2016–20003 Filed 8–19–16; 8:45 am]
Filing Online system at http:// II. Docketed Proceeding(s) BILLING CODE 7710–FW–P
www.prc.gov. Those who cannot submit 1. Docket No(s).: CP2016–166; Filing
comments electronically should contact Title: Notice of the United States Postal
the person identified in the FOR FURTHER Service of Filing Modification One to a
INFORMATION CONTACT section by SECURITIES AND EXCHANGE
Global Reseller Expedited Package
telephone for advice on filing Contracts 2 Negotiated Service COMMISSION
alternatives. Agreement; Filing Acceptance Date:
FOR FURTHER INFORMATION CONTACT: August 16, 2016; Filing Authority: 39 [Release No. 34–78589: File No. SR–NYSE–
David A. Trissell, General Counsel, at CFR 3015.5; Public Representative: 2016–55]
202–789–6820. Katalin K. Clendenin; Comments Due:
SUPPLEMENTARY INFORMATION: August 24, 2016. Self-Regulatory Organizations; New
2. Docket No(s).: CP2016–261; Filing York Stock Exchange LLC; Notice of
Table of Contents Title: Notice of United States Postal Filing of Proposed Rule Change
I. Introduction Service of Filing a Functionally Adopting Maximum Fees Member
II. Docketed Proceeding(s) Equivalent Global Expedited Package Organizations may Charge in
Services 6 Negotiated Service Connection With the Distribution of
I. Introduction Agreement and Application for Non- Investment Company Shareholder
The Commission gives notice that the Public Treatment of Materials Filed Reports Pursuant to Any Electronic
Postal Service filed request(s) for the Under Seal; Filing Acceptance Date: Delivery Rules Adopted by the
Commission to consider matters related August 16, 2016; Filing Authority: 39 Securities and Exchange Commission
to negotiated service agreement(s). The CFR 3015.5; Public Representative:
request(s) may propose the addition or Natalie R. Ward; Comments Due: August August 16, 2016.
removal of a negotiated service 24, 2016. Pursuant to Section 19(b)(1) 1 of the
agreement from the market dominant or 3. Docket No(s).: MC2016–182 and Securities Exchange Act of 1934 (the
the competitive product list, or the CP2016–262; Filing Title: Request of the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
modification of an existing product United States Postal Service to Add notice is hereby given that, on August
currently appearing on the market Priority Mail Express & Priority Mail 15, 2016, New York Stock Exchange
dominant or the competitive product Contract 31 to Competitive Product List LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
list. and Notice of Filing (Under Seal) of with the Securities and Exchange
Section II identifies the docket Unredacted Governors’ Decision, Commission (the ‘‘Commission’’ or the
number(s) associated with each Postal Contract, and Supporting Data; Filing
‘‘SEC’’) the proposed rule change as
Service request, the title of each Postal Acceptance Date: August 16, 2016;
described in Items I, II, and III below,
Service request, the request’s acceptance Filing Authority: 39 U.S.C. 3642 and 39
which Items have been prepared by the
date, and the authority cited by the CFR 3020.30 et seq.; Public
self-regulatory organization. The
Postal Service for each request. For each Representative: Jennaca D. Upperman;
Commission is publishing this notice to
request, the Commission appoints an Comments Due: August 24, 2016.
4. Docket No(s).: MC2016–183 and solicit comments on the proposed rule
officer of the Commission to represent
CP2016–263; Filing Title: Request of the change from interested persons.
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505 United States Postal Service to Add I. Self-Regulatory Organization’s
(Public Representative). Section II also Priority Mail & First-Class Package Statement of the Terms of Substance of
establishes comment deadline(s) Service Contact 27 to Competitive the Proposed Rule Change
pertaining to each request. Product List and Notice of Filing (Under
The public portions of the Postal Seal) of Unredacted Governors’ The Exchange proposes to adopt
Service’s request(s) can be accessed via Decision, Contract, and Supporting maximum fees member organizations
the Commission’s Web site (http:// Data; Filing Acceptance Date: August may charge in connection with the
www.prc.gov). Non-public portions of 16, 2016; Filing Authority: 39 U.S.C. distribution of investment company
the Postal Service’s request(s), if any, 3642 and 39 CFR 3020.30 et seq.; Public shareholder reports pursuant to any
can be accessed through compliance Representative: Jennaca D. Upperman; electronic delivery rules adopted by the
with the requirements of 39 CFR Comments Due: August 24, 2016. Securities and Exchange Commission.
3007.40. 5. Docket No(s).: MC2016–184 and The proposed rule change is available
asabaliauskas on DSK3SPTVN1PROD with NOTICES

The Commission invites comments on CP2016–264; Filing Title: Request of the on the Exchange’s Web site at
whether the Postal Service’s request(s) United States Postal Service to Add www.nyse.com, at the principal office of
in the captioned docket(s) are consistent Priority Mail & First-Class Package the Exchange, and at the Commission’s
with the policies of title 39. For Service Contact 28 to Competitive Public Reference Room.
request(s) that the Postal Service states Product List and Notice of Filing (Under
concern market dominant product(s), Seal) of Unredacted Governors’ 1 15 U.S.C.78s(b)(1).
applicable statutory and regulatory Decision, Contract, and Supporting 2 15 U.S.C. 78a.
requirements include 39 U.S.C. 3622, 39 Data; Filing Acceptance Date: August 3 17 CFR 240.19b–4.

VerDate Sep<11>2014 17:13 Aug 19, 2016 Jkt 238001 PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 E:\FR\FM\22AUN1.SGM 22AUN1
56720 Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices

to its filing. This letter was from the ICI, Commission may designate if it finds available publicly. All submissions
in which it argued that the Exchange such longer period to be appropriate should refer to File Number SR–NYSE–
should interpret its existing rules as and publishes its reasons for so finding 2016–55 and should be submitted on or
providing for the following: or (ii) as to which the self-regulatory before September 12, 2016.
• Investment companies should only organization consents, the Commission For the Commission, by the Division of
have to pay interim report fees once per will: Trading and Markets, pursuant to delegated
year rather than each time a report is (A) By order approve or disapprove authority.15
delivered to shareholders; the proposed rule change, or Robert W. Errett,
• the Preference Management Fee (B) institute proceedings to determine Deputy Secretary.
should be charged only on a one-time whether the proposed rule change
[FR Doc. 2016–19897 Filed 8–19–16; 8:45 am]
basis in relation to any specific account; should be disapproved.
• brokers should not be permitted to BILLING CODE 8011–01–P
IV. Solicitation of Comments
collect any fees whatsoever from
investment companies in relation to Interested persons are invited to
submit written data, views, and SECURITIES AND EXCHANGE
fund shares held in managed accounts;
• brokers should not be allowed to arguments concerning the foregoing, COMMISSION
receive any portion of the regulated fees including whether the proposed rule [Release No. 34–78586; File No. SR–
collected by intermediaries conducting change is consistent with the Act. NYSEMKT–2016–62]
distributions on their behalf; Comments may be submitted by any of
• the current rule should be the following methods: Self-Regulatory Organizations; NYSE
interpreted as applying the Notice and MKT LLC; Notice of Filing of Proposed
Electronic Comments Rule Change Amending Section 146 of
Access fees to electronic deliveries
under proposed Rule 30e–3; and • Use the Commission’s Internet the NYSE MKT Company Guide To
• the Notice and Access Fees should comment form (http://www.sec.gov/ Adjust the Entitlement to Services of
not be payable in relation to any rules/sro.shtml); or Special Purpose Acquisition
account that does not actually receive a • Send an email to rule-comments@ Companies
Notice and Access delivery under sec.gov. Please include File Number SR–
NYSE–2016–55 on the subject line. August 16, 2016.
proposed Rule 30e–3.
Pursuant to Section 19(b)(1) 1 of the
The Exchange does not agree that Paper Comments Securities Exchange Act of 1934 (the
there is any justification in the text of
Rule 451 for regarding any of these • Send paper comments in triplicate ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
to Brent J. Fields, Secretary, Securities notice is hereby given that, on August
positions as accurate interpretations of
and Exchange Commission, 100 F Street 2, 2016, NYSE MKT LLC (the
Rule 451 in its current form. The
NE., Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
purpose of the current proposal is solely
All submissions should refer to File the Securities and Exchange
to amend Rule 451 to facilitate the SEC’s
Number SR–NYSE–2016–55. This file Commission (the ‘‘Commission’’) the
potential finalization of proposed Rule
number should be included on the proposed rule change as described in
30e–3. Accordingly, and consistent with
subject line if email is used. To help the Items I, II, and III below, which Items
certain of ICI’s recommendations, the
Commission process and review your have been prepared by the self-
Exchange is proposing changes to its
comments more efficiently, please use regulatory organization. The
rules to apply the Notice and Access
only one method. The Commission will Commission is publishing this notice to
fees with respect to the distribution of
post all comments on the Commission’s solicit comments on the proposed rule
investment company shareholder
Internet Web site (http://www.sec.gov/ change from interested persons.
reports pursuant to any ‘‘notice and
access’’ rules adopted by the SEC in rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s
relation to such distributions. In submission, all subsequent Statement of the Terms of Substance of
addition, and also as recommended by amendments, all written statements the Proposed Rule Change
the ICI in its letter, the Exchange’s with respect to the proposed rule
The Exchange proposes to amend
proposal would provide that the Notice change that are filed with the
Section 146 of the NYSE MKT Company
and Access fee would only apply to Commission, and all written
Guide (the ‘‘Company Guide’’) to adjust
accounts that actually receive Notice communications relating to the
the entitlement to services of special
and Access deliveries under proposed proposed rule change between the
purpose acquisition companies. The
Rule 30e–3 and not to accounts with Commission and any person, other than
proposed rule change is available on the
respect to which investment companies those that may be withheld from the
Exchange’s Web site at www.nyse.com,
are charged a Preference Management public in accordance with the
at the principal office of the Exchange,
fee. The Exchange does not believe that provisions of 5 U.S.C. 552, will be
and at the Commission’s Public
the other, more substantial changes to available for Web site viewing and
Reference Room.
the application of Rule 451 suggested by printing in the Commission’s Public
the ICI are necessary to implementation Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s
of Rule 30e–3 if the SEC were to finalize Washington, DC 20549 on official Statement of the Purpose of, and
its proposal and, thus the Exchange business days between the hours of Statutory Basis for, the Proposed Rule
10:00 a.m. and 3:00 p.m. Copies of the Change
asabaliauskas on DSK3SPTVN1PROD with NOTICES

believes those proposals should be
given separate consideration. filing also will be available for In its filing with the Commission, the
inspection and copying at the principal self-regulatory organization included
III. Date of Effectiveness of the office of the Exchange. All comments
Proposed Rule Change and Timing for statements concerning the purpose of,
received will be posted without change;
Commission Action the Commission does not edit personal 15 17 CFR 200.30–3(a)(12).
Within 45 days of the date of identifying information from 1 15 U.S.C.78s(b)(1).
publication of this notice in the Federal submissions. You should submit only 2 15 U.S.C. 78a.

Register or up to 90 days (i) as the information that you wish to make 3 17 CFR 240.19b–4.

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Document Created: 2018-02-09 11:38:23
Document Modified: 2018-02-09 11:38:23
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 56717