82 FR 10613 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 29 (February 14, 2017)
Federal Register Volume 82, Issue 29 (February 14, 2017)
| Page Range | 10613-10615 | |
| FR Document | 2017-02933 |
[Federal Register Volume 82, Number 29 (Tuesday, February 14, 2017)] [Notices] [Pages 10613-10615] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-02933] ----------------------------------------------------------------------- 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: Rules 15Ba1-1 through 15Ba1-8 SEC File No. 270-619, OMB Control No. 3235-0681 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 (``Commission'') is soliciting comments on the collection of information provided for in Rules 15Ba1-1 to 15Ba1-8 (17 CFR 240.15Ba1- 1 to 17 CFR 240.15Ba1-8)--Registration of Municipal Advisors, under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (the ``Act''). The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. On September 20, 2013 (see 78 FR 67468, November 12, 2013), the Commission adopted Rules 15Ba1-1 through 15Ba1-8 and Rule 15Bc4-1 under the Act to establish the rules by which a municipal advisor must obtain, maintain, and terminate its registration with the Commission. In addition, the rules interpret the definition of the term ``municipal advisor,'' interpret the statutory exclusions from that definition, and provide certain additional regulatory exemptions. The rules became effective on January 13, 2014; however, on January 13, 2014, the Commission temporarily stayed such rules until July 1, 2014 (see 79 FR 2777, January 16, 2014). Section 15B(a)(1) of the Act makes it unlawful for a municipal advisor to provide advice to or on behalf of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, or to undertake a solicitation of a municipal entity or obligated person, unless the municipal advisor is registered with the Commission. The rules, among other things (i) require municipal advisors to file certain forms (i.e., Form MA, Form MA-A, Form MA/A, Form MA-I, Form MA- I/A, Form MA-NR, and Form MA-W) with the Commission to, as appropriate, obtain, maintain, or terminate their registration with the Commission and maintain certain books and records in accordance with the Act, and (ii) set forth how certain entities may meet the requirements of the statutory exclusions or regulatory exemptions from the definition of ``municipal advisor.'' Form MA The Commission estimates that approximately 75 respondents will submit new Form MA applications annually in each of the next three years. The Commission further estimates that each submission will take [[Page 10614]] approximately 3.5 hours. Thus, the total annual burden borne by respondents for submitting an initial Form MA application will be approximately 263 hours.\1\ The Commission estimates that respondents submitting new Form MA applications would, on average, consult with outside counsel for one hour, at a rate of $400/hour. Thus, the Commission estimates that the average total annual cost that may by incurred by all respondents filing new Form MA applications will be $30,000.\2\ In addition to filing initial Form MA applications, the rules require municipal advisors to amend Form MA once annually (Form MA-A) and after the occurrence of any material event (Form MA/A). The requirement to amend Form MA applies to all registered municipal advisors. There are currently approximately 668 municipal advisors registered with the Commission and, as noted above, the Commission anticipates receiving 225 new Form MA submissions over the next three years. Therefore, the Commission expects that the rules' requirement to amend Form MA will apply to approximately 743 municipal advisors in year one, approximately 818 municipal advisors in year two, and approximately 893 municipal advisors in year three. The Commission estimates that completing an annual amendment would take a municipal advisor approximately 1.5 hours and completing a material event amendment would take 0.5 hours. The Commission further estimates that each municipal advisor will submit two amendments per year (one Form MA-A and one Form MA/A). Thus, the Commission estimates that the average annual burden borne by respondents for amending Form MA during the three-year period will be approximately 1,636 hours.\3\ --------------------------------------------------------------------------- \1\ 75 respondents x 3.5 hours. \2\ 75 respondents x ($400/hour x 1 hour). \3\ 818 respondents x 2 hours. --------------------------------------------------------------------------- Form MA-I The Commission estimates that it will receive approximately 950 new Form MA-I submissions annually. The Commission further estimates that each Form MA-I submission will take approximately three hours to complete. Thus, the total annual burden borne by respondents submitting Form MA-I will be approximately 2,850 hours.\4\ The Commission also estimates that a Form MA-I respondent will submit 1.7 updating amendments per year (Form MA-I/A), and that each such amendment will take approximately 0.5 hours to complete. There are currently approximately 5,685 Form MA-Is on file with the Commission and, as noted above, the Commission expects to receive 2,850 Form MA-I submissions over the next three years. Therefore, the Commission expects the rules' requirement to amend Form MA-I to apply to approximately 6,635 Form MA-Is in year one, approximately 7,585 Form MA-Is in year two, and approximately 8,535 Form MA-Is in year three. Thus, the Commission estimates that the average annual burden borne by respondents submitting Form MA-I amendments during the three-year period will be approximately 6,447 hours.\5\ --------------------------------------------------------------------------- \4\ 950 submissions x 3 hours. \5\ 7,585 Form MA-I/As x (1.7 amendments x 0.5 hours). --------------------------------------------------------------------------- Form MA-W The Commission estimates that it will receive 40 new Form MA-W submissions annually. The Commission further estimates that each Form MA-W submission will take approximately 0.5 hours to complete. Thus, the total annual burden borne by respondents submitting Form MA-W will be approximately 20 hours.\6\ --------------------------------------------------------------------------- \6\ 40 respondents x 0.5 hours. --------------------------------------------------------------------------- Form MA-NR The Commission estimates that three municipal advisors will have a non-resident general partner, non-resident managing agent, or non- resident associated person and such advisors will submit a total of approximately nine Form MA-NRs annually. The Commission further estimates that each Form MA-NR submission will take approximately 1.5 hours to complete. Thus, the total annual burden borne by respondents submitting Form MA-NR will be approximately 13.5 hours.\7\ In addition, each respondent that submits a Form MA-NR must also provide an opinion of counsel. The Commission estimates that such an opinion of counsel would take three hours to complete, at a rate of $400/hour. Thus, the Commission estimates that the total annual burden borne by respondents providing an opinion of counsel will be approximately nine hours.\8\ The estimated average total cost that may be incurred by all respondents providing an opinion of counsel will be $3,600.\9\ --------------------------------------------------------------------------- \7\ 3 respondents x (3 Form MA-NR submissions x 1.5 hours). \8\ 3 respondents x 3 hours. \9\ 3 respondents x (3.0 hours x $400/hour). --------------------------------------------------------------------------- Consent to Service of Process The Commission estimates that 75 new municipal advisors will have to develop a template document to use in obtaining written consents to service of process from their associated persons annually. The Commission further estimates that each template document will take approximately one hour to draft. Thus, the Commission estimates that the total annual burden borne by respondents developing a template document will be approximately 75 hours.\10\ In addition, the Commission estimates that municipal advisors will need to obtain 950 new consents to service of process from associated persons annually. The Commission further estimates that, after the written consents are drafted, it will take municipal advisors approximately 0.10 hours to obtain each consent. Thus, the Commission estimates that the total annual burden borne by respondents obtaining consents to service of process will be 170 hours.\11\ --------------------------------------------------------------------------- \10\ 75 respondents x 1 hour. \11\ 75 hours + (950 x 0.1 hours). --------------------------------------------------------------------------- Books and Records To Be Maintained by Municipal Advisors The Commission estimates 743, 818, and 893 municipal advisors will be subject to the books and records rules during each of the next three years, respectively. The Commission further estimates that the average annual burden for a municipal advisor to comply with the books and records requirement is approximately 182 hours. Thus, the Commission estimates that the average annual burden borne by respondents to comply with the books and records requirements during the three-year period will be approximately 148,876 hours.\12\ --------------------------------------------------------------------------- \12\ 818 respondents x 182 hours. --------------------------------------------------------------------------- Independent Registered Municipal Advisor Exemption The Commission estimates that approximately 150 persons will seek to rely on the independent registered municipal advisor exemption annually. The Commission further estimates that the one-time burden of developing a written template disclosure document will be approximately one hour. Thus, the Commission estimates that the total one-time burden borne by respondents developing a template disclosure document will be approximately 150 hours.\13\ The Commission also recognizes that respondents will be subject to a recurring burden each time they seek to rely on the exemption. The Commission estimates that respondents may seek the exemption on approximately 7,400 transactions annually. The Commission further estimates that the burden of obtaining the written representations needed from [[Page 10615]] the municipal entity or obligated person client will be approximately 0.25 hours. Thus, the Commission estimates that the total annual burden borne by respondents seeking to rely on the independent registered municipal advisor exemption will be approximately 1,850 hours.\14\ --------------------------------------------------------------------------- \13\ 150 respondents x 1 hour. \14\ 7,400 transactions x 0.25 hours. --------------------------------------------------------------------------- Definition of Municipal Escrow Investments Exemption The Commission estimates that approximately 700 respondents will seek to rely on the municipal escrow investments exemption. The Commission further estimates that the one-time burden of creating a template document to use in obtaining the written representations necessary to rely on the exemption will be approximately one hour. Thus, the Commission estimates that the total one-time burden borne by respondents developing a template document will be approximately 700 hours.\15\ The Commission also recognizes that respondents will be subject to a recurring burden each time they seek to rely on the exemption. The Commission estimates the respondents will seek to rely on the exemption with approximately 8,620 municipal entity clients. The Commission further estimates that the burden of obtaining the required written representations from the respondent's client will be approximately 0.25 hours. Thus, the Commission estimates that the total annual burden borne by respondents seeking to rely on the municipal escrow investments exemption will be approximately 2,155 hours.\16\ --------------------------------------------------------------------------- \15\ 700 respondents x 1 hour. \16\ 8,620 clients x 0.25 hours. --------------------------------------------------------------------------- Definition of Proceeds of Municipal Securities Exemption The Commission estimates that approximately 880 respondents will seek to rely on the proceeds of municipal securities exemption. The Commission further estimates that the one-time burden of creating a template document to use in obtaining the written representations necessary to rely on the exemption will be approximately one hour. Thus, the Commission estimates that the total one-time burden borne by respondents developing a template document will be approximately 880 hours.\17\ The Commission also recognizes that respondents will be subject to a recurring burden each time they seek to rely on the exemption. The Commission estimates that respondents will seek to rely on the exemption in connection with services provided to approximately 25,420 clients. The Commission further estimates that the burden of obtaining the required written consents from the respondent's client will be approximately 0.25 hours. Thus, the Commission estimates that the total annual burden borne by respondents seeking to rely on proceeds of municipal securities exemption will be approximately 6,355 hours.\18\ --------------------------------------------------------------------------- \17\ 880 respondents x 1 hour. \18\ 25,420 clients x 0.25 hours. --------------------------------------------------------------------------- Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission's estimates of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be 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 30 days of this publication. 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. Please direct your written comments to: Pamela C. 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: February 8, 2017. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-02933 Filed 2-13-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 29 / Tuesday, February 14, 2017 / Notices 10613
products applies consistently across all All submissions should refer to File Rules 15Ba1–1 through 15Ba1–8 SEC File
market participants and the Number SR–ICC–2017–002. This file No. 270–619, OMB Control No. 3235–
implementation of the proposed number should be included on the 0681
liquidity thresholds for Euro subject line if email is used. To help the Notice is hereby given that pursuant
denominated products does not Commission process and review your to the Paperwork Reduction Act of 1995
preclude the implementation of similar comments more efficiently, please use (44 U.S.C. 3501 et seq.), the Securities
changes by other market participants. only one method. The Commission will and Exchange Commission
Therefore, ICC does not believe the post all comments on the Commission’s (‘‘Commission’’) is soliciting comments
update to its liquidity thresholds for Internet Web site (http://www.sec.gov/ on the collection of information
Euro denominated products imposes rules/sro.shtml). Copies of the provided for in Rules 15Ba1–1 to
any burden on competition that is submission, all subsequent 15Ba1–8 (17 CFR 240.15Ba1–1 to 17
inappropriate in furtherance of the amendments, all written statements CFR 240.15Ba1–8)—Registration of
purposes of the Act. with respect to the proposed rule Municipal Advisors, under the
change, security-based swap Securities Exchange Act of 1934 (15
C. Clearing Agency’s Statement on U.S.C. 78a et seq.) (the ‘‘Act’’). The
submission, or advance notice that are
Comments on the Proposed Rule Commission plans to submit this
filed with the Commission, and all
Change, Security-Based Swap existing collection of information to the
written communications relating to the
Submission, or Advance Notice Office of Management and Budget for
proposed rule change, security-based
Received From Members, Participants or extension and approval.
swap submission, or advance notice
Others On September 20, 2013 (see 78 FR
between the Commission and any
Written comments relating to the person, other than those that may be 67468, November 12, 2013), the
proposed rule change have not been withheld from the public in accordance Commission adopted Rules 15Ba1–1
solicited or received. ICC will notify the with the provisions of 5 U.S.C. 552, will through 15Ba1–8 and Rule 15Bc4–1
Commission of any written comments be available for Web site viewing and under the Act to establish the rules by
received by ICC. printing in the Commission’s Public which a municipal advisor must obtain,
Reference Room, 100 F Street NE., maintain, and terminate its registration
III. Date of Effectiveness of the with the Commission. In addition, the
Proposed Rule Change, Security-Based Washington, DC 20549, on official
business days between the hours of rules interpret the definition of the term
Swap Submission, or Advance Notice ‘‘municipal advisor,’’ interpret the
and Timing for Commission Action 10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for statutory exclusions from that
Within 45 days of the date of inspection and copying at the principal definition, and provide certain
publication of this notice in the Federal office of ICE Clear Credit and on ICE additional regulatory exemptions. The
Register or within such longer period Clear Credit’s Web site at https:// rules became effective on January 13,
up to 90 days (i) as the Commission may www.theice.com/clear-credit/regulation. 2014; however, on January 13, 2014, the
designate if it finds such longer period Commission temporarily stayed such
to be appropriate and publishes its All comments received will be posted rules until July 1, 2014 (see 79 FR 2777,
reasons for so finding or (ii) as to which without change; the Commission does January 16, 2014). Section 15B(a)(1) of
the self-regulatory organization not edit personal identifying the Act makes it unlawful for a
consents, the Commission will: information from submissions. You municipal advisor to provide advice to
(A) By order approve or disapprove should submit only information that or on behalf of a municipal entity or
such proposed rule change, or you wish to make available publicly. All obligated person with respect to
(B) institute proceedings to determine submissions should refer to File municipal financial products or the
whether the proposed rule change Number SR–ICC–2017–002 and should issuance of municipal securities, or to
should be disapproved. be submitted on or before March 7, undertake a solicitation of a municipal
2017. entity or obligated person, unless the
IV. Solicitation of Comments municipal advisor is registered with the
For the Commission, by the Division of
Interested persons are invited to Trading and Markets, pursuant to delegated Commission. The rules, among other
submit written data, views, and authority.11 things (i) require municipal advisors to
arguments concerning the foregoing, Eduardo A. Aleman, file certain forms (i.e., Form MA, Form
including whether the proposed rule Assistant Secretary.
MA–A, Form MA/A, Form MA–I, Form
change, security-based swap MA–I/A, Form MA–NR, and Form MA–
[FR Doc. 2017–02909 Filed 2–13–17; 8:45 am]
submission, or advance notice is W) with the Commission to, as
BILLING CODE 8011–01–P appropriate, obtain, maintain, or
consistent with the Act. Comments may
be submitted by any of the following terminate their registration with the
methods: Commission and maintain certain books
SECURITIES AND EXCHANGE and records in accordance with the Act,
Electronic Comments COMMISSION and (ii) set forth how certain entities
• Use the Commission’s Internet may meet the requirements of the
Submission for OMB Review;
comment form (http://www.sec.gov/ statutory exclusions or regulatory
Comment Request
rules/sro.shtml); or exemptions from the definition of
• Send an email to rule-comments@ Upon Written Request, Copies Available ‘‘municipal advisor.’’
sradovich on DSK3GMQ082PROD with NOTICES
sec.gov. Please include File Number SR– From: Securities and Exchange
ICC–2017–002 on the subject line. Form MA
Commission, Office of FOIA Services, The Commission estimates that
Paper Comments 100 F Street NE., Washington, DC approximately 75 respondents will
Send paper comments in triplicate to 20549–2736 submit new Form MA applications
Secretary, Securities and Exchange Extension: annually in each of the next three years.
Commission, 100 F Street NE., The Commission further estimates that
Washington, DC 20549–1090. 11 17 CFR 200.30–3(a)(12). each submission will take
VerDate Sep<11>2014 16:48 Feb 13, 2017 Jkt 241001 PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 E:\FR\FM\14FEN1.SGM 14FEN1](https://thefederalregister.org/doc/82_FR_10642/page/1.svg)
![Federal Register / Vol. 82, No. 29 / Tuesday, February 14, 2017 / Notices 10615
the municipal entity or obligated person rely on the exemption in connection SECURITIES AND EXCHANGE
client will be approximately 0.25 hours. with services provided to approximately COMMISSION
Thus, the Commission estimates that the 25,420 clients. The Commission further
total annual burden borne by estimates that the burden of obtaining [Release No. 34–79989; File No. SR–
respondents seeking to rely on the the required written consents from the BatsBZX–2017–07]
independent registered municipal respondent’s client will be
advisor exemption will be approximately 0.25 hours. Thus, the Self-Regulatory Organizations; Bats
approximately 1,850 hours.14 Commission estimates that the total BZX Exchange, Inc.; Notice of Filing of
Definition of Municipal Escrow annual burden borne by respondents a Proposed Rule Change To List and
Investments Exemption seeking to rely on proceeds of municipal Trade Under BZX Rule 14.11(c)(4) the
The Commission estimates that securities exemption will be Shares of the VanEck Vectors AMT-
approximately 700 respondents will approximately 6,355 hours.18 Free National Municipal Index ETF of
seek to rely on the municipal escrow Written comments are invited on: (a) VanEck Vectors ETF Trust
investments exemption. The Whether the proposed collection of February 8, 2017.
Commission further estimates that the information is necessary for the proper
one-time burden of creating a template performance of the functions of the Pursuant to Section 19(b)(1) of the
document to use in obtaining the Commission, including whether the Securities Exchange Act of 1934
written representations necessary to rely information shall have practical utility; (‘‘Act’’),1 and Rule 19b–4 thereunder,2
on the exemption will be approximately (b) the accuracy of the Commission’s notice is hereby given that on January
one hour. Thus, the Commission estimates of the burden of the proposed 27, 2017, Bats BZX Exchange, Inc.
estimates that the total one-time burden collection of information; (c) ways to (‘‘Exchange’’ or ‘‘BZX’’) filed with the
borne by respondents developing a enhance the quality, utility, and clarity Securities and Exchange Commission
template document will be of the information to be collected; and (‘‘Commission’’) the proposed rule
approximately 700 hours.15 The change as described in Items I and II
(d) ways to minimize the burden of the
Commission also recognizes that below, which Items have been prepared
collection of information on
respondents will be subject to a by the Exchange. The Commission is
respondents, including through the use
recurring burden each time they seek to publishing this notice to solicit
rely on the exemption. The Commission of automated collection techniques or
other forms of information technology. comments on the proposed rule change
estimates the respondents will seek to from interested persons.
rely on the exemption with Consideration will be given to
approximately 8,620 municipal entity comments and suggestions submitted in I. Self-Regulatory Organization’s
clients. The Commission further writing within 30 days of this Statement of the Terms of Substance of
estimates that the burden of obtaining publication. the Proposed Rule Change
the required written representations An agency may not conduct or
from the respondent’s client will be sponsor, and a person is not required to The Exchange filed a proposal to list
approximately 0.25 hours. Thus, the respond to, a collection of information and trade under BZX Rule 14.11(c)(4)
Commission estimates that the total under the PRA unless it displays a the shares of the VanEck Vectors AMT-
annual burden borne by respondents currently valid OMB control number. Free National Municipal Index ETF (the
seeking to rely on the municipal escrow Please direct your written comments to: ‘‘Fund’’) of VanEck Vectors ETF Trust
investments exemption will be Pamela C. Dyson, Director/Chief (the ‘‘Trust’’).
approximately 2,155 hours.16 Information Officer, Securities and The text of the proposed rule change
Definition of Proceeds of Municipal Exchange Commission, c/o Remi Pavlik- is available at the Exchange’s Web site
Securities Exemption Simon, 100 F Street NE., Washington, at www.bats.com, at the principal office
The Commission estimates that DC 20549 or send an email to: PRA_ of the Exchange, and at the
approximately 880 respondents will Mailbox@sec.gov. Commission’s Public Reference Room.
seek to rely on the proceeds of Dated: February 8, 2017. II. Self-Regulatory Organization’s
municipal securities exemption. The Eduardo A. Aleman, Statement of the Purpose of, and
Commission further estimates that the Statutory Basis for, the Proposed Rule
Assistant Secretary.
one-time burden of creating a template Change
[FR Doc. 2017–02933 Filed 2–13–17; 8:45 am]
document to use in obtaining the
written representations necessary to rely BILLING CODE 8011–01–P In its filing with the Commission, the
on the exemption will be approximately Exchange included statements
one hour. Thus, the Commission concerning the purpose of and basis for
estimates that the total one-time burden the proposed rule change and discussed
borne by respondents developing a any comments it received on the
template document will be proposed rule change. The text of these
approximately 880 hours.17 The statements may be examined at the
Commission also recognizes that places specified in Item IV below. The
respondents will be subject to a Exchange has prepared summaries, set
sradovich on DSK3GMQ082PROD with NOTICES
recurring burden each time they seek to forth in Sections A, B, and C below, of
rely on the exemption. The Commission the most significant parts of such
estimates that respondents will seek to
statements.
14 7,400 transactions × 0.25 hours.
15 700 respondents × 1 hour.
16 8,620 clients × 0.25 hours. 1 15 U.S.C. 78s(b)(1).
17 880 respondents × 1 hour. 18 25,420 clients × 0.25 hours. 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 16:48 Feb 13, 2017 Jkt 241001 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 E:\FR\FM\14FEN1.SGM 14FEN1](https://thefederalregister.org/doc/82_FR_10642/page/3.svg)
Document Created: 2017-02-13 23:40:31
Document Modified: 2017-02-13 23:40:31
| 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 | 82 FR 10613 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR