82 FR 11392 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

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

Page Range		11392-11393
FR Document		2017-03422
Federal Register, Volume 82 Issue 34 (Wednesday, February 22, 2017)
[Federal Register Volume 82, Number 34 (Wednesday, February 22, 2017)]
[Notices]
[Pages 11392-11393]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03422]


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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:
    Rule 17f-7, SEC File No. 270-470, OMB Control No. 3235-0529.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3521) (``Paperwork Reduction Act''), 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.
    Rule 17f-7 (17 CFR 270.17f-7) permits a fund under certain 
conditions to maintain its foreign assets with an eligible securities 
depository, which has to meet minimum standards for a

[[Page 11393]]

depository. The fund or its investment adviser generally determines 
whether the depository complies with those requirements based on 
information provided by the fund's primary custodian (a bank that acts 
as global custodian). The depository custody arrangement also must meet 
certain conditions. The fund or its adviser must receive from the 
primary custodian (or its agent) an initial risk analysis of the 
depository arrangements, and the fund's contract with its primary 
custodian must state that the custodian will monitor risks and promptly 
notify the fund or its adviser of material changes in risks. The 
primary custodian and other custodians also are required to agree to 
exercise at least reasonable care, prudence, and diligence.
    The collection of information requirements in rule 17f-7 are 
intended to provide workable standards that protect funds from the 
risks of using foreign securities depositories while assigning 
appropriate responsibilities to the fund's primary custodian and 
investment adviser based on their capabilities. The requirement that 
the foreign securities depository meet specified minimum standards is 
intended to ensure that the depository is subject to basic safeguards 
deemed appropriate for all depositories. The requirement that the fund 
or its adviser must receive from the primary custodian (or its agent) 
an initial risk analysis of the depository arrangements, and that the 
fund's contract with its primary custodian must state that the 
custodian will monitor risks and promptly notify the fund or its 
adviser of material changes in risks, is intended to provide essential 
information about custody risks to the fund's investment adviser as 
necessary for it to approve the continued use of the depository. The 
requirement that the primary custodian agree to exercise reasonable 
care is intended to provide assurances that its services and the 
information it provides will meet an appropriate standard of care.
    The staff estimates that each of approximately 992 investment 
advisers \1\ will make an average of 8 responses annually under the 
rule to address depository compliance with minimum requirements, any 
indemnification or insurance arrangements, and reviews of risk analyses 
or notifications. The staff estimates each response will take 6 hours, 
requiring a total of approximately 48 hours for each adviser.\2\ Thus 
the total annual burden associated with these requirements of the rule 
is approximately 47,616 hours.\3\ The staff further estimates that 
during each year, each of approximately 15 global custodians will make 
an average of 4 responses to analyze custody risks and provide notice 
of any material changes to custody risk under the rule. The staff 
estimates that each response will take 260 hours, requiring 
approximately 1,040 hours annually per global custodian.\4\ Thus the 
total annual burden associated with these requirements is approximately 
15,600 hours.\5\ The staff estimates that the total annual hour burden 
associated with all collection of information requirements of the rule 
is therefore 63,216 hours.\6\
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    \1\ In October 2016, Commission staff estimated that, as of June 
2016, 992 investment advisers managed or sponsored open-end 
registered funds (including exchange-traded funds) and closed-end 
registered funds.
    \2\ 8 responses per adviser x 6 hours per response = 48 hours 
per adviser.
    \3\ 992 advisers x 48 hours per adviser = 47,616 hours.
    \4\ 260 hours per response x 4 responses per global custodian = 
1,040 hours per global custodian.
    \5\ 15 global custodians x 1,040 hours per global custodian = 
15,600 hours.
    \6\ 47,616 hours + 15,600 hours = 63,216 hours.
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    The estimate of average burden hours is made solely for the 
purposes of the Paperwork Reduction Act and is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms. Compliance with the collection of 
information requirements of the rule is necessary to obtain the benefit 
of relying on the rule's permission for funds to maintain their assets 
in foreign custodians. The information provided under rule 17f-7 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 has 
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: February 15, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03422 Filed 2-21-17; 8:45 am]
 BILLING CODE 8011-01-P
11392 Federal Register / Vol. 82, No. 34 / Wednesday, February 22, 2017 / Notices

Dated: February 15, 2017. opportunity to learn about transactions person is not required to respond to, a
Eduardo A. Aleman, of the SBIC that have the potential for collection of information unless it
Assistant Secretary. self-dealing and other forms of displays a currently valid OMB control
[FR Doc. 2017–03392 Filed 2–21–17; 8:45 am] overreaching by affiliated persons at the number.
BILLING CODE 8011–01–P expense of shareholders. Written comments are invited on: (a)
Form N–17D–1 requires SBICs and Whether the collection of information is
their affiliated banks to report necessary for the proper performance of
SECURITIES AND EXCHANGE identifying information about the small the functions of the Commission,
COMMISSION business concern and the affiliated including whether the information has
bank. The report must include, among practical utility; (b) the accuracy of the
Proposed Collection; Comment other things, the SBIC’s and affiliated Commission’s estimate of the burden of
Request bank’s outstanding investments in the the collection of information; (c) ways to
small business concern, the use of the enhance the quality, utility, and clarity
Upon Written Request, Copies Available
proceeds of the investments made of the information collected; and (d)
From: Securities and Exchange
during the reporting period, any ways to minimize the burden of the
Commission, Office of FOIA Services,
changes in the nature and amount of the collection of information on
100 F Street NE., Washington, DC
affiliated bank’s investment, the name of respondents, including through the use
20549–2736.
any affiliated person of the SBIC or the of automated collection techniques or
Extension: affiliated bank (or any affiliated person other forms of information technology.
Form N–17D–1; SEC File No. 270–231; of the affiliated person of the SBIC or
OMB Control No. 3235–0229. Consideration will be given to
the affiliated bank) who has any interest comments and suggestions submitted in
Notice is hereby given that, pursuant in the transactions, the basis of the writing within 60 days of this
to the Paperwork Reduction Act of 1995 affiliation, the nature of the interest, and publication.
(44 U.S.C. 3501–3520), the Securities the consideration the affiliated person Please direct your written comments
and Exchange Commission has received or will receive. to Pamela Dyson, Director/Chief
(‘‘Commission’’) is soliciting comments Up to two SBICs may file the form in Information Officer, Securities and
on the collections of information any year.1 The Commission estimates Exchange Commission, C/O Remi
summarized below. The Commission the burden of filling out the form is Pavlik-Simon, 100 F Street NE.,
plans to submit these existing approximately one hour per response Washington, DC 20549; or send an email
collections of information to the Office and would likely be completed by an to: PRA_Mailbox@sec.gov.
of Management and Budget (‘‘OMB’’) for accountant or other professional. Based
extension and approval. Dated: February 15, 2017.
on past filings, the Commission
Section 17(d) (15 U.S.C. 80a–17(d)) of Eduardo A. Aleman,
estimates that no more than one SBIC is
the Investment Company Act of 1940 likely to use the form each year. Most Assistant Secretary.
(‘‘Act’’) authorizes the Commission to of the information requested on the form [FR Doc. 2017–03394 Filed 2–21–17; 8:45 am]
adopt rules that protect funds and their should be readily available to the SBIC BILLING CODE 8011–01–P
security holders from overreaching by or the affiliated bank in records kept in
affiliated persons when the fund and the the ordinary course of business, or with
affiliated person participate in any joint respect to the SBIC, pursuant to the SECURITIES AND EXCHANGE
enterprise or other joint arrangement or recordkeeping requirements under the COMMISSION
profit-sharing plan. Rule 17d–1 under Act. Commission staff estimates that it
the Act (17 CFR 270.17d–1) prohibits Proposed Collection; Comment
should take approximately one hour for
funds and their affiliated persons from Request
an accountant or other professional to
participating in a joint enterprise, unless complete the form.2 The estimated total Upon Written Request, Copies Available
an application regarding the transaction annual burden of filling out the form is From: Securities and Exchange
has been filed with and approved by the 1 hour, at an estimated total annual cost Commission, Office of FOIA Services,
Commission. Paragraph (d)(3) of the rule of $201.3 The Commission will not keep 100 F Street NE., Washington, DC
provides an exemption from this responses on Form N–17D–1 20549–2736.
requirement for any loan or advance of confidential.
credit to, or acquisition of securities or Extension:
The estimate of average burden hours Rule 17f–7, SEC File No. 270–470, OMB
other property of, a small business is made solely for the purposes of the
concern, or any agreement to do any of Control No. 3235–0529.
Paperwork Reduction Act, and is not
the foregoing (‘‘investments’’) made by a derived from a comprehensive or even Notice is hereby given that, pursuant
small business investment company a representative survey or study of the to the Paperwork Reduction Act of 1995
(‘‘SBIC’’) and an affiliated bank, costs of Commission rules. An agency (44 U.S.C. 3501–3521) (‘‘Paperwork
provided that reports about the may not conduct or sponsor, and a Reduction Act’’), the Securities and
investments are made on forms the Exchange Commission (the
Commission may prescribe. Rule 17d–2 1 As of December 31, 2016, two SBICs were ‘‘Commission’’) is soliciting comments
(17 CFR 270.17d–2) designates Form registered with the Commission. on the collections of information
N–17D–1 (17 CFR 274.00) (‘‘form’’) as 2 This estimate of hours is based on past summarized below. The Commission
the form for reports required by rule conversations with representatives of SBICs and plans to submit these existing
accountants that have filed the form.
sradovich on DSK3GMQ082PROD with NOTICES

17d–1. 3 Commission staff estimates that the annual
collections of information to the Office
SBICs and their affiliated banks use burden would be incurred by a senior accountant
of Management and Budget (‘‘OMB’’) for
form N–17D–1 to report any with an average hourly wage rate of $201 per hour. extension and approval.
contemporaneous investments in a This wage is from SIFMA’s Management & Rule 17f–7 (17 CFR 270.17f–7)
small business concern. The form Professional Earnings in the Securities Industry permits a fund under certain conditions
2013, modified to account for an 1800-hour work-
provides shareholders and persons year and inflation, and multiplied by 5.35 to
to maintain its foreign assets with an
seeking to make an informed decision account for bonuses, firm size, employee benefits, eligible securities depository, which has
about investing in an SBIC an and overhead. to meet minimum standards for a

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Federal Register / Vol. 82, No. 34 / Wednesday, February 22, 2017 / Notices 11393

depository. The fund or its investment 48 hours for each adviser.2 Thus the Exchange Commission, C/O Remi
adviser generally determines whether total annual burden associated with Pavlik-Simon, 100 F Street NE.,
the depository complies with those these requirements of the rule is Washington, DC 20549; or send an email
requirements based on information approximately 47,616 hours.3 The staff to: PRA_Mailbox@sec.gov.
provided by the fund’s primary further estimates that during each year, Dated: February 15, 2017.
custodian (a bank that acts as global each of approximately 15 global Eduardo A. Aleman,
custodian). The depository custody custodians will make an average of 4
Assistant Secretary.
arrangement also must meet certain responses to analyze custody risks and
provide notice of any material changes [FR Doc. 2017–03422 Filed 2–21–17; 8:45 am]
conditions. The fund or its adviser must
receive from the primary custodian (or to custody risk under the rule. The staff BILLING CODE 8011–01–P

its agent) an initial risk analysis of the estimates that each response will take
depository arrangements, and the fund’s 260 hours, requiring approximately
1,040 hours annually per global SECURITIES AND EXCHANGE
contract with its primary custodian
custodian.4 Thus the total annual COMMISSION
must state that the custodian will
monitor risks and promptly notify the burden associated with these
Proposed Collection; Comment
fund or its adviser of material changes requirements is approximately 15,600
Request
in risks. The primary custodian and hours.5 The staff estimates that the total
other custodians also are required to annual hour burden associated with all Upon Written Request, Copies Available
agree to exercise at least reasonable care, collection of information requirements From: Securities and Exchange
prudence, and diligence. of the rule is therefore 63,216 hours.6 Commission, Office of FOIA Services,
The collection of information The estimate of average burden hours 100 F Street NE., Washington, DC
requirements in rule 17f–7 are intended is made solely for the purposes of the 20549–2736.
to provide workable standards that Paperwork Reduction Act and is not
Extension:
protect funds from the risks of using derived from a comprehensive or even Rule 101; SEC File No. 270–408, OMB
foreign securities depositories while a representative survey or study of the Control No. 3235–0464.
assigning appropriate responsibilities to costs of Commission rules and forms.
Compliance with the collection of Notice is hereby given that pursuant
the fund’s primary custodian and to the Paperwork Reduction Act of 1995
investment adviser based on their information requirements of the rule is
necessary to obtain the benefit of relying (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
capabilities. The requirement that the Securities and Exchange Commission
foreign securities depository meet on the rule’s permission for funds to
maintain their assets in foreign (‘‘Commission’’) is soliciting comments
specified minimum standards is on the exisiting collection of
intended to ensure that the depository is custodians. The information provided
under rule 17f–7 will not be kept information provided for in Rule 101 of
subject to basic safeguards deemed Regulation M (17 CFR 242.101), under
appropriate for all depositories. The confidential. An agency may not
conduct or sponsor, and a person is not the Securities Exchange Act of 1934 (15
requirement that the fund or its adviser U.S.C. 78a et seq.). The Commission
must receive from the primary required to respond to, a collection of
information unless it displays a plans to submit this existing collection
custodian (or its agent) an initial risk of information to the Office of
analysis of the depository arrangements, currently valid OMB control number.
Written comments are invited on: (a) Management and Budget (‘‘OMB’’) for
and that the fund’s contract with its extension and approval.
Whether the proposed collection of
primary custodian must state that the Rule 101—Activities by Distribution
information is necessary for the proper
custodian will monitor risks and Participants—prohibits distribution
performance of the functions of the
promptly notify the fund or its adviser participants from purchasing activities
agency, including whether the
of material changes in risks, is intended at specified times during a distribution
information has practical utility; (b) the
to provide essential information about of securities. Persons otherwise covered
accuracy of the agency’s estimate of the
custody risks to the fund’s investment by this rule may seek to use several
burden of the collection of information;
adviser as necessary for it to approve the applicable exceptions such as a
(c) ways to enhance the quality, utility,
continued use of the depository. The calculation of the average daily trading
and clarity of the information collected;
requirement that the primary custodian volume of the securities in distribution,
and (d) ways to minimize the burden of
agree to exercise reasonable care is the maintenance of policies regarding
the collection of information on
intended to provide assurances that its information barriers between their
respondents, including through the use
services and the information it provides affiliates, and the maintenance of a
of automated collection techniques or
will meet an appropriate standard of written policy regarding general
other forms of information technology.
care. compliance with Regulation M for de
Consideration will be given to
The staff estimates that each of minimus transactions.
comments and suggestions submitted in
approximately 992 investment advisers 1 There are approximately 1550
writing within 60 days of this
will make an average of 8 responses respondents per year that require an
publication.
annually under the rule to address Please direct your written comments aggregate total of 30,218 hours to
depository compliance with minimum to Pamela Dyson, Director/Chief comply with this rule. Each respondent
requirements, any indemnification or Information Officer, Securities and makes an estimated 1 annual response.
insurance arrangements, and reviews of Each response takes on average
risk analyses or notifications. The staff approximately 19.495 hours to
sradovich on DSK3GMQ082PROD with NOTICES

2 8 responses per adviser × 6 hours per response
estimates each response will take 6 = 48 hours per adviser. complete. Thus, the total compliance
hours, requiring a total of approximately 3 992 advisers × 48 hours per adviser = 47,616
burden per year is 30,218 burden hours.
hours. The total estimated internal labor
1 In October 2016, Commission staff estimated 4 260 hours per response × 4 responses per global

custodian = 1,040 hours per global custodian.
compliance cost for the respondents is
that, as of June 2016, 992 investment advisers
managed or sponsored open-end registered funds 5 15 global custodians × 1,040 hours per global approximately $1,964,170.00, resulting
(including exchange-traded funds) and closed-end custodian = 15,600 hours. in an estimated internal labor cost of
registered funds. 6 47,616 hours + 15,600 hours = 63,216 hours. compliance for each respondent per

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Document Created: 2017-02-22 00:08:46
Document Modified: 2017-02-22 00:08:46
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 11392