82 FR 14774 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 54 (March 22, 2017)

Page Range		14774-14775
FR Document		2017-05712
Federal Register, Volume 82 Issue 54 (Wednesday, March 22, 2017)
[Federal Register Volume 82, Number 54 (Wednesday, March 22, 2017)]
[Notices]
[Pages 14774-14775]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-05712]


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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 482; SEC File No. 270-508, OMB Control No. 3235-0565

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``Paperwork Reduction Act''), the 
Securities and Exchange Commission (the ``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.
    Like most issuers of securities, when an investment company 
(``fund'') \1\ offers its shares to the public, its promotional efforts 
become subject to the advertising

[[Page 14775]]

restrictions of the Securities Act of 1933 (15 U.S.C. 77) (the 
``Securities Act''). In recognition of the particular problems faced by 
funds that continually offer securities and wish to advertise their 
securities, the Commission has previously adopted advertising safe 
harbor rules. The most important of these is rule 482 (17 CFR 230.482) 
under the Securities Act, which, under certain circumstances, permits 
funds to advertise investment performance data, as well as other 
information. Rule 482 advertisements are deemed to be ``prospectuses'' 
under Section 10(b) of the Securities Act.\2\
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    \1\ ``Investment company'' refers to both investment companies 
registered under the Investment Company Act of 1940 (``Investment 
Company Act'') (15 U.S.C. 80a-1 et seq.) and business development 
companies.
    \2\ 15 U.S.C. 77j(b).
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    Rule 482 contains certain requirements regarding the disclosure 
that funds are required to provide in qualifying advertisements. These 
requirements are intended to encourage the provision to investors of 
information that is balanced and informative, particularly in the area 
of investment performance. For example, a fund is required to include 
disclosure advising investors to consider the fund's investment 
objectives, risks, charges and expenses, and other information 
described in the fund's prospectus, and highlighting the availability 
of the fund's prospectus and, if applicable, its summary prospectus. In 
addition, rule 482 advertisements that include performance data of 
open-end funds or insurance company separate accounts offering variable 
annuity contracts are required to include certain standardized 
performance information, information about any sales loads or other 
nonrecurring fees, and a legend warning that past performance does not 
guarantee future results. Such funds including performance information 
in rule 482 advertisements are also required to make available to 
investors month-end performance figures via Web site disclosure or by a 
toll-free telephone number, and to disclose the availability of the 
month-end performance data in the advertisement. The rule also sets 
forth requirements regarding the prominence of certain disclosures, 
requirements regarding advertisements that make tax representations, 
requirements regarding advertisements used prior to the effectiveness 
of the fund's registration statement, requirements regarding the 
timeliness of performance data, and certain required disclosures by 
money market funds.
    Rule 482 advertisements must be filed with the Commission or, in 
the alternative, with the Financial Industry Regulatory Authority 
(``FINRA'').\3\ This information collection differs from many other 
federal information collections that are primarily for the use and 
benefit of the collecting agency.
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    \3\ See rule 24b-3 under the Investment Company Act (17 CFR 
270.24b-3), which provides that any sales material, including rule 
482 advertisements, shall be deemed filed with the Commission for 
purposes of Section 24(b) of the Investment Company Act upon filing 
with FINRA.
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    Rule 482 contains requirements that are intended to encourage the 
provision to investors of information that is balanced and informative, 
particularly in the area of investment performance. The Commission is 
concerned that in the absence of such provisions fund investors may be 
misled by deceptive rule 482 advertisements and may rely on less-than-
adequate information when determining in which funds they should invest 
money. As a result, the Commission believes it is beneficial for funds 
to provide investors with balanced information in fund advertisements 
in order to allow investors to make better-informed decisions.
    The Commission estimates that 53,907 \4\ responses to rule 482 are 
filed annually by 3,278 investment companies offering approximately 
15,494 portfolios, or approximately 3.5 responses per portfolio 
annually.\5\ The burden associated with rule 482 is presently estimated 
to be 5.16 hours per response. The annual hourly burden is therefore 
approximately 278,161 hours.\6\
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    \4\ This estimated number of responses to rule 482 is composed 
of 53,746 responses filed with FINRA and 161 responses filed with 
the Commission in 2016.
    \5\ 53,907 responses / 15,494 portfolios = 3.5 responses per 
portfolio.
    \6\ 53,907 responses x 5.16 hours per response = 278,161 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. The provision of information under rule 482 
is necessary to obtain the benefits of the safe harbor offered by the 
rule. The information provided under rule 482 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; (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: March 16, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05712 Filed 3-21-17; 8:45 am]
 BILLING CODE 8011-01-P
14774 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Notices

consistent with the Act to initiate a burden on competition; and (iii) become proposed rule change between the
COA-eligible order, even if the rule text operative for 30 days from the date on Commission and any person, other than
indicates that a COA will be initiated which it was filed, or such shorter time those that may be withheld from the
upon receipt of a COA-eligible order as the Commission may designate, it has public in accordance with the
with two or more legs. become effective pursuant to Section provisions of 5 U.S.C. 552, will be
B. Self-Regulatory Organization’s 19(b)(3)(A) of the Act 30 and Rule 19b– available for Web site viewing and
Statement on Burden on Competition 4(f)(6) thereunder.31 printing in the Commission’s Public
At any time within 60 days of the Reference Room, 100 F Street NE.,
CBOE does not believe that the filing of the proposed rule change, the Washington, DC 20549 on official
proposed rule change will impose any Commission summarily may business days between the hours of
burden on intramarket or intermarket temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the
competition that is not necessary or it appears to the Commission that such filing also will be available for
appropriate in furtherance of the action is: (i) Necessary or appropriate in inspection and copying at the principal
purposes of the Act. The Exchange does the public interest; (ii) for the protection office of the Exchange. All comments
not believe the proposed rule change of investors; or (iii) otherwise in received will be posted without change;
will impose any burden on intramarket furtherance of the purposes of the Act. the Commission does not edit personal
competition because all IOC orders will If the Commission takes such action, the identifying information from
be treated equally by the Exchange. The Commission shall institute proceedings submissions. You should submit only
proposed rule change is intended to to determine whether the proposed rule information that you wish to make
reduce risk to Market-Makers that are change should be approved or available publicly. All submissions
quoting in the regular market. CBOE disapproved. should refer to File Number SR–CBOE–
believes that the proposed rule change 2017–021 and should be submitted on
will promote competition by IV. Solicitation of Comments
or before April 12, 2017.
encouraging Market-Makers to increase Interested persons are invited to
the size of and to more aggressively For the Commission, by the Division of
submit written data, views, and Trading and Markets, pursuant to delegated
price their quotes, which will increase arguments concerning the foregoing, authority.32
liquidity on the Exchange. To the extent including whether the proposed rule
that the rule change makes CBOE a more Eduardo A. Aleman,
change is consistent with the Act.
attractive marketplace, market Assistant Secretary.
Comments may be submitted by any of
participants are free to become Trading [FR Doc. 2017–05608 Filed 3–21–17; 8:45 am]
the following methods:
Permit Holders on CBOE and other BILLING CODE 8011–01–P
exchanges are free to amend their rules Electronic Comments
in a similar manner. Furthermore, the • Use the Commission’s Internet
Exchange does not believe the proposed comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE
rule change will impose any burden on rules/sro.shtml); or COMMISSION
intermarket competition because the • Send an email to rule-comments@ Proposed Collection; Comment
rule change does not materially affect sec.gov. Please include File Number SR– Request
the outcome or purpose of SR–CBOE– CBOE–2017–021 on the subject line.
2014–017, SR–CBOE–2015–081, or SR– Upon Written Request, Copies Available
CBOE–2016–014, which was to alleviate Paper Comments
From: Securities and Exchange
potential risk to Market-Makers using • Send paper comments in triplicate Commission, Office of Investor
QRM. The Exchange also does not to Secretary, Securities and Exchange Education and Advocacy,
believe that the hardcoding of the price Commission, 100 F Street NE., Washington, DC 20549–0213
at which a complex order may initiate Washington, DC 20549–1090. Extension:
a COA, as described in SR–CBOE–2016– All submissions should refer to File Rule 482; SEC File No. 270–508, OMB
014, will impose a burden on Number SR–CBOE–2017–021. This file Control No. 3235–0565
competition. Finally, the Exchange does number should be included on the
not believe initiating a COA for a COA- Notice is hereby given that, pursuant
subject line if email is used. To help the to the Paperwork Reduction Act of 1995
eligible order pursuant to Rule Commission process and review your
6.53C(d)(ii)(A)(1) will impose any (44 U.S.C. 3501 et seq.) (‘‘Paperwork
comments more efficiently, please use Reduction Act’’), the Securities and
burden on competition as the Exchange only one method. The Commission will
has initiated a COA for such orders Exchange Commission (the
post all comments on the Commission’s ‘‘Commission’’) is soliciting comments
since the inception of COA in 2005. Internet Web site (http://www.sec.gov/ on the collection of information
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the summarized below. The Commission
Statement on Comments on the submission, all subsequent plans to submit this existing collection
Proposed Rule Change Received From amendments, all written statements of information to the Office of
Members, Participants, or Others with respect to the proposed rule Management and Budget (‘‘OMB’’) for
change that are filed with the extension and approval.
The Exchange neither solicited nor Commission, and all written
received comments on the proposed Like most issuers of securities, when
communications relating to the an investment company (‘‘fund’’) 1 offers
asabaliauskas on DSK3SPTVN1PROD with NOTICES

rule change.
30 15
its shares to the public, its promotional
III. Date of Effectiveness of the U.S.C. 78s(b)(3)(A).
31 17 CFR 240.19b–4(f)(6). As required under Rule
efforts become subject to the advertising
Proposed Rule Change and Timing for
19b–4(f)(6)(iii), the Exchange provided the
Commission Action Commission with written notice of its intent to file 32 17CFR 200.30–3(a)(12).
Because the foregoing proposed rule the proposed rule change, along with a brief 1 ‘‘Investment
company’’ refers to both
description and the text of the proposed rule investment companies registered under the
change does not: (i) Significantly affect change, at least five business days prior to the date Investment Company Act of 1940 (‘‘Investment
the protection of investors or the public of filing of the proposed rule change, or such Company Act’’) (15 U.S.C. 80a–1 et seq.) and
interest; (ii) impose any significant shorter time as designated by the Commission. business development companies.

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Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Notices 14775

restrictions of the Securities Act of 1933 Regulatory Authority (‘‘FINRA’’).3 This of the burden of the collection of
(15 U.S.C. 77) (the ‘‘Securities Act’’). In information collection differs from information; (c) ways to enhance the
recognition of the particular problems many other federal information quality, utility, and clarity of the
faced by funds that continually offer collections that are primarily for the use information collected; and (d) ways to
securities and wish to advertise their and benefit of the collecting agency. minimize the burden of the collection of
securities, the Commission has Rule 482 contains requirements that information on respondents, including
previously adopted advertising safe are intended to encourage the provision through the use of automated collection
harbor rules. The most important of to investors of information that is techniques or other forms of information
these is rule 482 (17 CFR 230.482) under balanced and informative, particularly technology. Consideration will be given
the Securities Act, which, under certain in the area of investment performance. to comments and suggestions submitted
circumstances, permits funds to The Commission is concerned that in in writing within 60 days of this
advertise investment performance data, the absence of such provisions fund publication.
as well as other information. Rule 482 investors may be misled by deceptive Please direct your written comments
advertisements are deemed to be rule 482 advertisements and may rely to Pamela Dyson, Director/Chief
‘‘prospectuses’’ under Section 10(b) of on less-than-adequate information when Information Officer, Securities and
the Securities Act.2 determining in which funds they should Exchange Commission, C/O Remi
invest money. As a result, the Pavlik-Simon, 100 F Street NE.,
Rule 482 contains certain Commission believes it is beneficial for Washington, DC 20549; or send an email
requirements regarding the disclosure funds to provide investors with to: PRA_Mailbox@sec.gov.
that funds are required to provide in balanced information in fund Dated: March 16, 2017.
qualifying advertisements. These advertisements in order to allow
requirements are intended to encourage Eduardo A. Aleman,
investors to make better-informed Assistant Secretary.
the provision to investors of information decisions.
that is balanced and informative, [FR Doc. 2017–05712 Filed 3–21–17; 8:45 am]
The Commission estimates that
particularly in the area of investment 53,907 4 responses to rule 482 are filed BILLING CODE 8011–01–P
performance. For example, a fund is annually by 3,278 investment
required to include disclosure advising companies offering approximately
investors to consider the fund’s SECURITIES AND EXCHANGE
15,494 portfolios, or approximately 3.5
investment objectives, risks, charges and COMMISSION
responses per portfolio annually.5 The
expenses, and other information burden associated with rule 482 is [Release No. 34–80258; File No. SR–
described in the fund’s prospectus, and presently estimated to be 5.16 hours per NYSEArca–2017–28]
highlighting the availability of the response. The annual hourly burden is
fund’s prospectus and, if applicable, its therefore approximately 278,161 hours.6 Self-Regulatory Organizations; NYSE
summary prospectus. In addition, rule The estimate of average burden hours Arca, Inc.; Notice of Filing and
482 advertisements that include is made solely for the purposes of the Immediate Effectiveness of a Proposed
performance data of open-end funds or Paperwork Reduction Act and is not Rule Change To Amend the NYSE Arca
insurance company separate accounts derived from a comprehensive or even Equities Schedule of Fees and
offering variable annuity contracts are a representative survey or study of the Charges for Exchange Services
required to include certain standardized costs of Commission rules and forms. March 16, 2017.
performance information, information The provision of information under rule Pursuant to Section 19(b)(1) 1 of the
about any sales loads or other 482 is necessary to obtain the benefits Securities Exchange Act of 1934 (the
nonrecurring fees, and a legend warning of the safe harbor offered by the rule. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
that past performance does not The information provided under rule notice is hereby given that, on March
guarantee future results. Such funds 482 will not be kept confidential. An 13, 2017, NYSE Arca, Inc. (the
including performance information in agency may not conduct or sponsor, and ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
rule 482 advertisements are also a person is not required to respond to, the Securities and Exchange
required to make available to investors a collection of information unless it Commission (the ‘‘Commission’’) the
month-end performance figures via Web displays a currently valid OMB control proposed rule change as described in
site disclosure or by a toll-free number. Items I and II below, which Items have
telephone number, and to disclose the Written comments are invited on: (a) been prepared by the self-regulatory
availability of the month-end Whether the proposed collection of organization. The Commission is
performance data in the advertisement. information is necessary for the proper publishing this notice to solicit
The rule also sets forth requirements performance of the functions of the comments on the proposed rule change
regarding the prominence of certain agency, including whether the from interested persons.
disclosures, requirements regarding information will have practical utility;
(b) the accuracy of the agency’s estimate I. Self-Regulatory Organization’s
advertisements that make tax Statement of the Terms of Substance of
representations, requirements regarding the Proposed Rule Change
3 See rule 24b–3 under the Investment Company
advertisements used prior to the
Act (17 CFR 270.24b–3), which provides that any The Exchange proposes to amend the
effectiveness of the fund’s registration sales material, including rule 482 advertisements,
statement, requirements regarding the shall be deemed filed with the Commission for
NYSE Arca Equities Schedule of Fees
asabaliauskas on DSK3SPTVN1PROD with NOTICES

timeliness of performance data, and purposes of Section 24(b) of the Investment and Charges for Exchange Services
certain required disclosures by money Company Act upon filing with FINRA. (‘‘Fee Schedule’’). The proposed rule
market funds.
4 This estimated number of responses to rule 482
change is available on the Exchange’s
is composed of 53,746 responses filed with FINRA Web site at www.nyse.com, at the
Rule 482 advertisements must be filed and 161 responses filed with the Commission in
principal office of the Exchange, and at
with the Commission or, in the 2016.
5 53,907 responses ÷ 15,494 portfolios = 3.5
alternative, with the Financial Industry responses per portfolio. 1 15 U.S.C. 78s(b)(1).
6 53,907 responses × 5.16 hours per response = 2 15 U.S.C. 78a.
2 15 U.S.C. 77j(b). 278,161 hours. 3 17 CFR 240.19b–4.

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Document Created: 2017-03-22 03:58:35
Document Modified: 2017-03-22 03:58:35
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 14774