82 FR 11383 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 34 (February 22, 2017)

Page Range		11383-11384
FR Document		2017-03393
Federal Register, Volume 82 Issue 34 (Wednesday, February 22, 2017)
[Federal Register Volume 82, Number 34 (Wednesday, February 22, 2017)]
[Notices]
[Pages 11383-11384]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03393]


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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:
    Form N-8B-4; SEC File No. 270-180, OMB Control No. 3235-0247.

    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 summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Form N-8B-4 (17 CFR 274.14) is the form used by face-amount 
certificate companies to comply with the filing and disclosure 
requirements imposed by Section 8(b) of the Investment Company Act of 
1940 (15 U.S.C. 80a-8(b)). Among other items, Form N-8B-4 requires 
disclosure of the following information about the face-amount 
certificate company: Date and form of organization; controlling 
persons; current business and contemplated changes to the company's 
business; investment, borrowing, and lending policies, as well as other 
fundamental policies; securities issued by the company; investment 
adviser; depositaries; management personnel; compensation paid to 
directors, officers, and certain employees; and financial statements. 
The Commission uses the information provided in the collection of 
information to determine compliance with Section 8(b) of the Investment 
Company Act of 1940.
    Form N-8B-4 and the burden of compliance have not changed since the 
last approval. Each registrant files Form N-8B-4 for its initial filing 
and does not file post-effective amendments to Form N-8B-4.\1\ 
Commission staff estimates that no respondents will file Form N-8B-4 
each year. There are currently only four existing face-amount 
certificate companies, and none have filed a Form N-8B-4 in many years. 
No new face-amount certificate companies have been established since 
the last OMB information collection approval for this form, which 
occurred in 2014. Accordingly, the staff estimates that, each year, no 
face-amount certificate companies will file Form N-8B-4, and that the 
total burden for the information collection is zero hours. Although 
Commission staff estimates that there is no hour burden associated with 
Form N-8B-4, the staff is requesting a burden of one hour for 
administrative purposes. Estimates of the burden hours are made solely 
for the purposes of the PRA and are not derived from a comprehensive or 
even a representative survey or study of the costs of SEC rules and 
forms.
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    \1\ Pursuant to Section 30(b)(1) of the Act, each respondent 
keeps its registration statement current through the filing of 
periodic reports as required by Section 13 of the Securities 
Exchange Act of 1934 and the rules thereunder. Post-effective 
amendments are filed with the Commission on the face-amount 
certificate company's Form S-1. Hence, respondents only file Form N-
8B-4 for their initial registration statement and not for post-
effective amendments.
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    The information provided on Form N-8B-4 is mandatory. The 
information provided on Form N-8B-4 will not be kept confidential. 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 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;

[[Page 11384]]

(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: February 15, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03393 Filed 2-21-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 34 / Wednesday, February 22, 2017 / Notices 11383

competitive standing in the financial Commission, and all written about the face-amount certificate
markets. communications relating to the company: Date and form of
proposed rule change between the organization; controlling persons;
C. Self-Regulatory Organization’s
Commission and any person, other than current business and contemplated
Statement on Comments on the
those that may be withheld from the changes to the company’s business;
Proposed Rule Change Received From public in accordance with the investment, borrowing, and lending
Members, Participants, or Others provisions of 5 U.S.C. 552, will be policies, as well as other fundamental
No written comments were either available for Web site viewing and policies; securities issued by the
solicited or received. printing in the Commission’s Public company; investment adviser;
III. Date of Effectiveness of the Reference Room, 100 F Street NE., depositaries; management personnel;
Proposed Rule Change and Timing for Washington, DC 20549 on official compensation paid to directors, officers,
business days between the hours of and certain employees; and financial
Commission Action
10:00 a.m. and 3:00 p.m. Copies of the statements. The Commission uses the
The foregoing rule change has become filing also will be available for information provided in the collection
effective pursuant to Section inspection and copying at the principal of information to determine compliance
19(b)(3)(A)(ii) of the Act.18 office of the Exchange. All comments with Section 8(b) of the Investment
At any time within 60 days of the received will be posted without change; Company Act of 1940.
filing of the proposed rule change, the the Commission does not edit personal Form N–8B–4 and the burden of
Commission summarily may identifying information from compliance have not changed since the
temporarily suspend such rule change if submissions. You should submit only last approval. Each registrant files Form
it appears to the Commission that such information that you wish to make N–8B–4 for its initial filing and does not
action is: (i) Necessary or appropriate in available publicly. All submissions file post-effective amendments to Form
the public interest; (ii) for the protection should refer to File Number SR–BX– N–8B–4.1 Commission staff estimates
of investors; or (iii) otherwise in 2017–009, and should be submitted on that no respondents will file Form N–
furtherance of the purposes of the Act. or before March 15, 2017. 8B–4 each year. There are currently only
If the Commission takes such action, the For the Commission, by the Division of four existing face-amount certificate
Commission shall institute proceedings Trading and Markets, pursuant to delegated companies, and none have filed a Form
to determine whether the proposed rule authority.19 N–8B–4 in many years. No new face-
should be approved or disapproved. Eduardo A. Aleman, amount certificate companies have been
Assistant Secretary. established since the last OMB
IV. Solicitation of Comments
[FR Doc. 2017–03461 Filed 2–21–17; 8:45 am]
information collection approval for this
Interested persons are invited to form, which occurred in 2014.
BILLING CODE 8011–01–P
submit written data, views, and Accordingly, the staff estimates that,
arguments concerning the foregoing, each year, no face-amount certificate
including whether the proposed rule companies will file Form N–8B–4, and
SECURITIES AND EXCHANGE
change is consistent with the Act. that the total burden for the information
COMMISSION
Comments may be submitted by any of collection is zero hours. Although
the following methods: Proposed Collection; Comment Commission staff estimates that there is
Electronic Comments Request no hour burden associated with Form
N–8B–4, the staff is requesting a burden
• Use the Commission’s Internet Upon Written Request, Copies Available of one hour for administrative purposes.
comment form (http://www.sec.gov/ From: Securities and Exchange Estimates of the burden hours are made
rules/sro.shtml); or Commission, Office of FOIA Services, solely for the purposes of the PRA and
• Send an email to rule- 100 F Street NE., Washington, DC are not derived from a comprehensive or
comments@sec.gov. Please include File 20549–2736. even a representative survey or study of
Number SR–BX–2017–009 on the Extension: the costs of SEC rules and forms.
subject line. Form N–8B–4; SEC File No. 270–180, OMB The information provided on Form
Control No. 3235–0247. N–8B–4 is mandatory. The information
Paper Comments
Notice is hereby given that, pursuant provided on Form N–8B–4 will not be
• Send paper comments in triplicate to the Paperwork Reduction Act of 1995 kept confidential. An agency may not
to Secretary, Securities and Exchange (44 U.S.C. 3501 et seq.), the Securities conduct or sponsor, and a person is not
Commission, 100 F Street NE., and Exchange Commission required to respond to, a collection of
Washington, DC 20549–1090. (‘‘Commission’’) is soliciting comments information unless it displays a
All submissions should refer to File on the collection of information currently valid OMB control number.
Number SR–BX–2017–009. This file summarized below. The Commission Written comments are invited on: (a)
number should be included on the plans to submit this existing collection Whether the proposed collection of
subject line if email is used. To help the of information to the Office of information is necessary for the proper
Commission process and review your Management and Budget (‘‘OMB’’) for performance of the functions of the
comments more efficiently, please use extension and approval. agency, including whether the
only one method. The Commission will Form N–8B–4 (17 CFR 274.14) is the information will have practical utility;
post all comments on the Commission’s form used by face-amount certificate
sradovich on DSK3GMQ082PROD with NOTICES

Internet Web site (http://www.sec.gov/ companies to comply with the filing and 1 Pursuant to Section 30(b)(1) of the Act, each

rules/sro.shtml). Copies of the respondent keeps its registration statement current
disclosure requirements imposed by through the filing of periodic reports as required by
submission, all subsequent Section 8(b) of the Investment Company Section 13 of the Securities Exchange Act of 1934
amendments, all written statements Act of 1940 (15 U.S.C. 80a–8(b)). Among and the rules thereunder. Post-effective
with respect to the proposed rule other items, Form N–8B–4 requires amendments are filed with the Commission on the
face-amount certificate company’s Form S–1.
change that are filed with the disclosure of the following information Hence, respondents only file Form N–8B–4 for their
initial registration statement and not for post-
18 15 U.S.C. 78s(b)(3)(A)(ii). 19 17 CFR 200.30–3(a)(12). effective amendments.

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11384 Federal Register / Vol. 82, No. 34 / Wednesday, February 22, 2017 / Notices

(b) the accuracy of the agency’s estimate reasonable to rely on each delegate the requirement that the foreign custody
of the burden of the collection of board selects to act as the fund’s foreign manager establish a monitoring system
information; (c) ways to enhance the custody manager. The delegate must is intended to ensure that the manager
quality, utility, and clarity of the agree to provide written reports that periodically reviews each custody
information collected; and (d) ways to notify the board when the fund’s assets arrangement and takes appropriate
minimize the burden of the collection of are placed with a foreign custodian and action if developing custody risks may
information on respondents, including when any material change occurs in the threaten fund assets.2
through the use of automated collection fund’s custody arrangements. The
techniques or other forms of information delegate must agree to exercise Commission staff estimates that each
technology. Consideration will be given reasonable care, prudence, and year, approximately 97 registrants 3
to comments and suggestions submitted diligence, or to adhere to a higher could be required to make an average of
in writing within 60 days of this standard of care. When the foreign one response per registrant under rule
publication. custody manager selects an eligible 17f–5, requiring approximately 2.5
Please direct your written comments foreign custodian, it must determine hours of board of director time per
to Pamela Dyson, Director/Chief that the fund’s assets will be subject to response, to make the necessary
Information Officer, Securities and reasonable care if maintained with that findings concerning foreign custody
Exchange Commission, C/O Remi custodian, and that the written contract managers. The total annual burden
Pavlik-Simon, 100 F Street NE., that governs each custody arrangement associated with these requirements of
Washington, DC 20549; or send an email will provide reasonable care for fund the rule is up to approximately 243
to: PRA_Mailbox@sec.gov. assets. The contract must contain hours (97 registrants × 2.5 hours per
Dated: February 15, 2017. certain specified provisions or others registrant). The staff further estimates
Eduardo A. Aleman, that provide at least equivalent care. that during each year, approximately 15
Assistant Secretary.
The foreign custody manager must global custodians 4 are required to make
establish a system to monitor the an average of 4 responses per custodian
[FR Doc. 2017–03393 Filed 2–21–17; 8:45 am]
performance of the contract and the concerning the use of foreign custodians
BILLING CODE 8011–01–P
appropriateness of continuing to other than depositories. The staff
maintain assets with the eligible foreign estimates that each response will take
custodian. approximately 270 hours, requiring
SECURITIES AND EXCHANGE
The collection of information approximately 1080 total hours
COMMISSION
requirements in rule 17f–5 are intended annually per custodian (270 hours × 4
[SEC File No. 270–259, OMB Control No. to provide protection for fund assets
3235–0269]
responses per custodian). The total
maintained with a foreign bank
annual burden associated with these
custodian whose use is not authorized
Proposed Collection; Comment requirements of the rule is
by statutory provisions that govern fund
Request approximately 16,200 hours (15 global
custody arrangements,1 and that is not
subject to regulation and examination custodians × 1080 hours per custodian).
Upon Written Request, Copies Available Therefore, the total annual burden of all
From: Securities and Exchange by U.S. regulators. The requirement that
the fund board determine that it is collection of information requirements
Commission, Office of FOIA Services, of rule 17f–5 is estimated to be up to
100 F Street NE., Washington, DC reasonable to rely on each delegate is
intended to ensure that the board 16,443 hours (243 + 16,200). The total
20549–2736.
carefully considers each delegate’s annual cost of burden hours is estimated
Extension:
qualifications to perform its to be $4,522,392 ((243 hours × $4,144/
Rule 17f–5. hour for board of director’s time) +
responsibilities. The requirement that
Notice is hereby given that, pursuant the delegate provide written reports to (16,200 hours × $217/hour for a trust
to the Paperwork Reduction Act of 1995 the board is intended to ensure that the administrator’s time)).5 Compliance
(44 U.S.C. 3501–3520), the Securities delegate notifies the board of important with the collection of information
and Exchange Commission developments concerning custody requirements of the rule is necessary to
(‘‘Commission’’) is soliciting comments arrangements so that the board may obtain the benefit of relying on the
on the collection of information exercise effective oversight. The
summarized below. The Commission requirement that the delegate agree to 2 The staff believes that subcustodian monitoring

plans to submit the existing collection exercise reasonable care is intended to does not involve ‘‘collection of information’’ within
of information to the Office of provide assurances to the fund that the the meaning of the Paperwork Reduction Act of
1995 (44 U.S.C. 3501–3520) (‘‘Paperwork Reduction
Management and Budget for extension delegate will properly perform its Act’’).
and approval. duties. 3 This figure is an estimate of the number of new
Rule 17f–5 (17 CFR 270.17f–5) under The requirements that the foreign funds each year, based on data reported by funds
the Investment Company Act of 1940 custody manager determine that fund for 2014, 2015, and 2016. In practice, not all funds
[15 U.S.C. 80a] (the ‘‘Act’’) governs the assets will be subject to reasonable care will use foreign custody managers. The actual figure
therefore may be smaller.
custody of the assets of registered with the eligible foreign custodian and 4 This estimate is based on staff research.
management investment companies under the custody contract, and that 5 Based on fund industry representations, the staff
(‘‘funds’’) with custodians outside the each contract contain specified estimated in 2014 that the average cost of board of
United States. Under rule 17f–5, a fund provisions or equivalent provisions, are director time, for the board as a whole, was $4,000
or its foreign custody manager (as per hour. Adjusting for inflation, the staff estimates
sradovich on DSK3GMQ082PROD with NOTICES

intended to ensure that the delegate has
that the current average cost of board of director
delegated by the fund’s board) may evaluated the level of care provided by time is approximately $4,144 per hour. The $217/
maintain the fund’s foreign assets in the the custodian, that it weighs the hour figure for a trust administrator is from
care of an eligible fund custodian under adequacy of contractual provisions, and SIFMA’s Management & Professional Earnings in
certain conditions. If the fund’s board that fund assets are protected by the Securities Industry 2013, modified by
Commission staff to account for an 1800-hour work-
delegates to a foreign custody manager minimal contractual safeguards. The year and inflation, and multiplied by 5.35 to
authority to place foreign assets, the account for bonuses, firm size, employee benefits,
fund’s board must find that it is 1 See section 17(f) of the Act. 15 U.S.C. 80a–17(f). and overhead.

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Document Created: 2017-02-22 00:08:30
Document Modified: 2017-02-22 00:08:30
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 11383