81 FR 81825 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 223 (November 18, 2016)

Page Range		81825-81825
FR Document		2016-27749
Federal Register, Volume 81 Issue 223 (Friday, November 18, 2016)
[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Notices]
[Page 81825]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27749]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension:
    Rule 12d3-1, SEC File No. 270-504, OMB Control No. 3235-0561

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (the ``Commission'') is soliciting comments on the 
collections of information summarized below. The Commission plans to 
submit these existing collections of information to the Office of 
Management and Budget (``OMB'') for extension and approval.
    Section 12(d)(3) of the Investment Company Act of 1940 (15 U.S.C. 
80a) generally prohibits registered investment companies (``funds''), 
and companies controlled by funds, from purchasing securities issued by 
a registered investment adviser, broker, dealer, or underwriter 
(``securities-related businesses''). Rule 12d3-1 (``Exemption of 
acquisitions of securities issued by persons engaged in securities 
related businesses'' (17 CFR 270.12d3-1)) permits a fund to invest up 
to five percent of its assets in securities of an issuer deriving more 
than fifteen percent of its gross revenues from securities-related 
businesses, but a fund may not rely on rule 12d3-1 to acquire 
securities of its own investment adviser or any affiliated person of 
its own investment adviser.
    A fund may, however, rely on an exemption in rule 12d3-1 to acquire 
securities issued by its subadvisers in circumstances in which the 
subadviser would have little ability to take advantage of the fund, 
because it is not in a position to direct the fund's securities 
purchases. The exemption in rule 12d3-1(c)(3) is available if (i) the 
subadviser is not, and is not an affiliated person of, an investment 
adviser that provides advice with respect to the portion of the fund 
that is acquiring the securities, and (ii) the advisory contracts of 
the subadviser, and any subadviser that is advising the purchasing 
portion of the fund, prohibit them from consulting with each other 
concerning securities transactions of the fund, and limit their 
responsibility in providing advice to providing advice with respect to 
discrete portions of the fund's portfolio.
    Based on an analysis of third-party information, the staff 
estimates that approximately 319 fund portfolios enter into subadvisory 
agreements each year.\1\ Based on discussions with industry 
representatives, the staff estimates that it will require approximately 
3 attorney hours to draft and execute additional clauses in new 
subadvisory contracts in order for funds and subadvisers to be able to 
rely on the exemptions in rule 12d3-1. Because these additional clauses 
are identical to the clauses that a fund would need to insert in their 
subadvisory contracts to rely on rules 10f-3, 17a-10, and 17e-1 and 
because we believe that funds that use one such rule generally use all 
of these rules, we apportion this 3 hour time burden equally to all 
four rules. Therefore, we estimate that the burden allocated to rule 
12d3-1 for this contract change would be 0.75 hours.\2\ Assuming that 
all 319 funds that enter into new subadvisory contracts each year make 
the modification to their contract required by the rule, we estimate 
that the rule's contract modification requirement will result in 239.25 
burden hours annually.\3\
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    \1\ Based on information available from Morningstar and the ICI 
Fact Book, we estimate that 37 percent of funds are advised by 
subadvisers.
    \2\ This estimate is based on the following calculation (3 hours 
/ 4 rules = .75 hours).
    \3\ This estimate is based on the following calculation: (0.75 
hours x 319 portfolios = 239.25 burden hours).
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    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 control number.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden 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].

    Dated: November 14, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-27749 Filed 11-17-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices 81825

10:00 a.m. and 3:00 p.m. Copies of such adviser or any affiliated person of its Written comments are invited on: (a)
filing also will be available for own investment adviser. Whether the proposed collection of
inspection and copying at the principal A fund may, however, rely on an information is necessary for the proper
office of the Exchange. All comments exemption in rule 12d3–1 to acquire performance of the functions of the
received will be posted without change; securities issued by its subadvisers in agency, including whether the
the Commission does not edit personal circumstances in which the subadviser information will have practical utility;
identifying information from would have little ability to take (b) the accuracy of the agency’s estimate
submissions. You should submit only advantage of the fund, because it is not of the burden of the collection of
information that you wish to make in a position to direct the fund’s information; (c) ways to enhance the
available publicly. All submissions securities purchases. The exemption in quality, utility, and clarity of the
should refer to File Number SR– rule 12d3–1(c)(3) is available if (i) the information collected; and (d) ways to
NYSEArca–2016–142, and should be subadviser is not, and is not an affiliated minimize the burden of the collection of
submitted on or before December 9, person of, an investment adviser that information on respondents, including
2016. provides advice with respect to the through the use of automated collection
For the Commission, by the Division of portion of the fund that is acquiring the techniques or other forms of information
Trading and Markets, pursuant to delegated securities, and (ii) the advisory contracts technology. Consideration will be given
authority.26 of the subadviser, and any subadviser to comments and suggestions submitted
Brent J. Fields, that is advising the purchasing portion in writing within 60 days of this
Secretary. of the fund, prohibit them from publication.
[FR Doc. 2016–27748 Filed 11–17–16; 8:45 am] consulting with each other concerning Please direct your written comments
securities transactions of the fund, and to Pamela Dyson, Director/Chief
BILLING CODE 8011–01–P
limit their responsibility in providing Information Officer, Securities and
advice to providing advice with respect Exchange Commission, C/O Remi
SECURITIES AND EXCHANGE to discrete portions of the fund’s Pavlik-Simon, 100 F Street NE.,
COMMISSION portfolio. Washington, DC 20549; or send an email
to: PRA_Mailbox@sec.gov.
Based on an analysis of third-party
Proposed Collection; Comment information, the staff estimates that Dated: November 14, 2016.
Request approximately 319 fund portfolios enter Brent J. Fields,
Upon Written Request, Copies Available into subadvisory agreements each year.1 Secretary.
From: Securities and Exchange Based on discussions with industry [FR Doc. 2016–27749 Filed 11–17–16; 8:45 am]
Commission, Office of Investor representatives, the staff estimates that BILLING CODE 8011–01–P
Education and Advocacy, it will require approximately 3 attorney
Washington, DC 20549–0213. hours to draft and execute additional
clauses in new subadvisory contracts in SECURITIES AND EXCHANGE
Extension:
Rule 12d3–1, SEC File No. 270–504, OMB order for funds and subadvisers to be COMMISSION
Control No. 3235–0561 able to rely on the exemptions in rule [Release No. 34–79304; File No. SR–DTC–
12d3–1. Because these additional 2016–013]
Notice is hereby given that, pursuant
clauses are identical to the clauses that
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities a fund would need to insert in their Self-Regulatory Organizations; The
and Exchange Commission (the subadvisory contracts to rely on rules Depository Trust Company; Notice of
‘‘Commission’’) is soliciting comments 10f–3, 17a–10, and 17e–1 and because Filing and Immediate Effectiveness of
on the collections of information we believe that funds that use one such a Proposed Rule Change To Modify the
summarized below. The Commission rule generally use all of these rules, we DTC Settlement Service Guide and
plans to submit these existing apportion this 3 hour time burden Distributions Guide Relating to the
collections of information to the Office equally to all four rules. Therefore, we Anticipated U.S. Market Transition to a
of Management and Budget (‘‘OMB’’) for estimate that the burden allocated to Shortened Settlement Cycle
extension and approval. rule 12d3–1 for this contract change
November 14, 2016.
Section 12(d)(3) of the Investment would be 0.75 hours.2 Assuming that all
Pursuant to Section 19(b)(1) of the
Company Act of 1940 (15 U.S.C. 80a) 319 funds that enter into new
Securities Exchange Act of 1934
generally prohibits registered subadvisory contracts each year make
(‘‘Act’’) 1 and Rule 19b–4, thereunder 2
investment companies (‘‘funds’’), and the modification to their contract
notice is hereby given that on November
companies controlled by funds, from required by the rule, we estimate that
7, 2016, The Depository Trust Company
purchasing securities issued by a the rule’s contract modification
(‘‘DTC’’) filed with the Securities and
registered investment adviser, broker, requirement will result in 239.25
Exchange Commission (‘‘Commission’’)
dealer, or underwriter (‘‘securities- burden hours annually.3
the proposed rule change as described
related businesses’’). Rule 12d3–1 An agency may not conduct or in Items I, II and III below, which Items
(‘‘Exemption of acquisitions of sponsor, and a person is not required to have been prepared by the clearing
securities issued by persons engaged in respond to, a collection of information agency. DTC filed the proposed rule
securities related businesses’’ (17 CFR unless it displays a currently valid change pursuant to Section 19(b)(3)(A) 3
270.12d3–1)) permits a fund to invest control number. of the Act and Rule 19b–4(f)(4) 4
mstockstill on DSK3G9T082PROD with NOTICES

up to five percent of its assets in thereunder. The proposed rule change
securities of an issuer deriving more 1 Based on information available from
was effective upon filing with the
than fifteen percent of its gross revenues Morningstar and the ICI Fact Book, we estimate that
Commission. The Commission is
from securities-related businesses, but a 37 percent of funds are advised by subadvisers.
2 This estimate is based on the following
fund may not rely on rule 12d3–1 to calculation (3 hours ÷ 4 rules = .75 hours).
1 15 U.S.C. 78s(b)(1).
acquire securities of its own investment 3 This estimate is based on the following 2 17 CFR 240.19b–4.
calculation: (0.75 hours × 319 portfolios = 239.25 3 15 U.S.C. 78s(b)(3)(A).
26 17 CFR 200.30–3(a)(12). burden hours). 4 17 CFR 240.19b–4(f)(4).

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Document Created: 2018-02-14 08:31:43
Document Modified: 2018-02-14 08:31:43
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 81825