82 FR 11393 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

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

Page Range		11393-11394
FR Document		2017-03395

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

[Federal Register Volume 82, Number 34 (Wednesday, February 22, 2017)]
[Notices]
[Pages 11393-11394]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03395]


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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 101; SEC File No. 270-408, OMB Control No. 3235-0464.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the exisiting 
collection of information provided for in Rule 101 of Regulation M (17 
CFR 242.101), under the Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.). The Commission plans to submit this existing collection of 
information to the Office of Management and Budget (``OMB'') for 
extension and approval.
    Rule 101--Activities by Distribution Participants--prohibits 
distribution participants from purchasing activities at specified times 
during a distribution of securities. Persons otherwise covered by this 
rule may seek to use several applicable exceptions such as a 
calculation of the average daily trading volume of the securities in 
distribution, the maintenance of policies regarding information 
barriers between their affiliates, and the maintenance of a written 
policy regarding general compliance with Regulation M for de minimus 
transactions.
    There are approximately 1550 respondents per year that require an 
aggregate total of 30,218 hours to comply with this rule. Each 
respondent makes an estimated 1 annual response. Each response takes on 
average approximately 19.495 hours to complete. Thus, the total 
compliance burden per year is 30,218 burden hours. The total estimated 
internal labor compliance cost for the respondents is approximately 
$1,964,170.00, resulting in an estimated internal labor cost of 
compliance for each respondent per

[[Page 11394]]

response of approximately $1267.21 (i.e., $1,964,170.00/1550 
responses).
    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 
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.
    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 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. 2017-03395 Filed 2-21-17; 8:45 am]
 BILLING CODE 8011-01-P

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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11394 Federal Register / Vol. 82, No. 34 / Wednesday, February 22, 2017 / Notices

response of approximately $1267.21 Multi-State Investment Advisers (Rule determine an adviser’s eligibility for
(i.e., $1,964,170.00/1550 responses). 203A–2(d)).’’ Its currently approved registration with the Commission under
Written comments are invited on: (a) OMB control number is 3235–0689. An this exemptive rule and is also
Whether the proposed collection of agency may not conduct or sponsor, and necessary for the Commission staff to
information is necessary for the proper a person is not required to respond to, use in its examination and oversight
performance of the functions of the a collection of information unless it program. This collection of information
Commission, including whether the displays a currently valid OMB control is codified at 17 CFR 275.203a–2(d) and
information shall have practical utility; number. is mandatory to qualify for and maintain
(b) the accuracy of the Commission’s Pursuant to section 203A of the Commission registration eligibility
estimates of the burden of the proposed Investment Advisers Act of 1940 (the under rule 203A–2(d). Responses to the
collection of information; (c) ways to ‘‘Act’’) (15 U.S.C. 80b–3a), an recordkeeping requirements under rule
enhance the quality, utility, and clarity investment adviser that is regulated or 203A–2(d) in the context of the
of the information collected; and (d) required to be regulated as an Commission’s examination and
ways to minimize the burden of the investment adviser in the state in which oversight program are generally kept
collection of information on it maintains its principal office and confidential.
respondents, including through the use place of business is prohibited from The estimated number of investment
of automated collection techniques or registering with the Commission unless advisers subject to the collection of
other forms of information technology. that adviser has at least $25 million in information requirements under the rule
Consideration will be given to assets under management or advises a is 142. These advisers will incur an
comments and suggestions submitted in Commission-registered investment average one-time initial burden of
writing within 60 days of this company. Section 203A also prohibits approximately 8 hours, and an average
publication. from Commission registration an adviser ongoing burden of approximately 8
An agency may not conduct or that: (i) Has assets under management hours per year, to keep records
sponsor, and a person is not required to between $25 million and $100 million; sufficient to demonstrate that they meet
respond to, a collection of information (ii) is required to be registered as an the 15-state threshold. These estimates
under the PRA unless it displays a investment adviser with the state in are based on an estimate that each year
currently valid OMB control number. which it maintains its principal office an investment adviser will spend
Please direct your written comments and place of business; and (iii) if approximately 0.5 hours creating a
to: Pamela Dyson, Director/Chief registered, would be subject to record of its determination whether it
Information Officer, Securities and examination as an adviser by that state must register as an investment adviser
Exchange Commission, c/o Remi Pavlik- (a ‘‘mid-sized adviser’’). A mid-sized with each of the 15 states required to
Simon, 100 F Street NE., Washington, adviser that otherwise would be rely on the exemption, and
DC 20549 or send an email to: PRA_ prohibited may register with the
approximately 0.5 hours to maintain
Mailbox@sec.gov. Commission if it would be required to
these records. Accordingly, we estimate
register with 15 or more states.
Dated: February 15, 2017. that rule 203A–2(d) results in an annual
Similarly, Rule 203A–2(d) under the Act
Eduardo A. Aleman, aggregate burden of collection for SEC-
(17 CFR 275.203a–2(d)) provides that
Assistant Secretary. registered investment advisers of a total
the prohibition on registration with the
of 1,136 hours. Estimates of average
[FR Doc. 2017–03395 Filed 2–21–17; 8:45 am] Commission does not apply to an
burden hours are made solely for the
BILLING CODE 8011–01–P investment adviser that is required to
purposes of the Paperwork Reduction
register in 15 or more states. An
Act, and are not derived from a
investment adviser relying on this
SECURITIES AND EXCHANGE exemption also must: (i) Include a comprehensive or even a representative
COMMISSION representation on Schedule D of Form survey or study of the costs of
ADV that the investment adviser has Commission rules and forms.
Proposed Collection; Comment concluded that it must register as an Written comments are invited on: (a)
Request investment adviser with the required Whether the proposed collection of
number of states; (ii) undertake to information is necessary for the proper
Upon Written Request, Copies Available performance of the functions of the
From: Securities and Exchange withdraw from registration with the
Commission if the adviser indicates on agency, including whether the
Commission, Office of FOIA Services, information will have practical utility;
100 F Street NE., Washington, DC an annual updating amendment to Form
ADV that it would be required by the (b) the accuracy of the agency’s estimate
20549–2736. of the burden of the collection of
laws of fewer than 15 states to register
Extension: as an investment adviser with the state; information; (c) ways to enhance the
Rule 203A–2(d), SEC File No. 270–630, quality, utility, and clarity of the
and (iii) maintain in an easily accessible
OMB Control No. 3235–0689. information collected; and (d) ways to
place a record of the states in which the
Notice is hereby given that pursuant investment adviser has determined it minimize the burden of the collection of
to the Paperwork Reduction Act of 1995 would, but for the exemption, be information on respondents, including
(44 U.S.C. 3501 et seq.) the Securities required to register for a period of not through the use of automated collection
and Exchange Commission (the less than five years from the filing of a techniques or other forms of information
‘‘Commission’’) is soliciting comments Form ADV relying on the rule. technology. Consideration will be given
to comments and suggestions submitted
sradovich on DSK3GMQ082PROD with NOTICES

on the collections of information Respondents to this collection of
summarized below. The Commission information are investment advisers in writing within 60 days of this
plans to submit this existing collection required to register in 15 or more states publication.
of information to the Office of absent the exemption that rely on rule Please direct your written comments
Management and Budget (‘‘OMB’’) for 203A–2(d) to register with the to Pamela Dyson, Director/Chief
extension and approval. Commission. The information collected Information Officer, Securities and
The title of the collection of under rule 203A–2(d) permits the Exchange Commission, C/O Remi
information is: ‘‘Exemption for Certain Commission’s examination staff to Pavlik-Simon, 100 F Street NE.,

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Document Created: 2017-02-22 00:08:51
Document Modified: 2017-02-22 00:08:51

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 11393