82 FR 20408 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 82 (May 1, 2017)

Page Range		20408-20408
FR Document		2017-08763
Federal Register, Volume 82 Issue 82 (Monday, May 1, 2017)
[Federal Register Volume 82, Number 82 (Monday, May 1, 2017)]
[Notices]
[Page 20408]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08763]


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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:
    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'') has submitted 
to the Office of Management and Budget (``OMB'') a request for 
extension of the previously approved collections of information 
discussed below.
    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 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.
    The public may view the background documentation for this 
information collection at the following Web site, www.reginfo.gov. 
Comments should be directed to: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503, or by sending an email to: 
[email protected]; and (ii) 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]. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: April 25, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-08763 Filed 4-28-17; 8:45 am]
 BILLING CODE 8011-01-P
20408 Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices

available for Web site viewing and depository arrangements, and the fund’s provide notice of any material changes
printing in the Commission’s Public contract with its primary custodian to custody risk under the rule. The staff
Reference Room, 100 F Street NE., must state that the custodian will estimates that each response will take
Washington, DC 20549, on official monitor risks and promptly notify the 260 hours, requiring approximately
business days between the hours of fund or its adviser of material changes 1,040 hours annually per global
10:00 a.m. and 3:00 p.m. Copies of the in risks. The primary custodian and custodian.4 Thus the total annual
filing also will be available for other custodians also are required to burden associated with these
inspection and copying at the principal agree to exercise at least reasonable care, requirements is approximately 15,600
office of the Exchange. All comments prudence, and diligence. hours.5 The staff estimates that the total
received will be posted without change; The collection of information
annual hour burden associated with all
the Commission does not edit personal requirements in rule 17f–7 are intended
to provide workable standards that collection of information requirements
identifying information from
submissions. You should submit only protect funds from the risks of using of the rule is therefore 63,216 hours.6
information that you wish to make foreign securities depositories while The estimate of average burden hours
available publicly. All submissions assigning appropriate responsibilities to is made solely for the purposes of the
should refer to File Number SR–ISE– the fund’s primary custodian and Paperwork Reduction Act and is not
2017–33 and should be submitted on or investment adviser based on their derived from a comprehensive or even
before May 22, 2017. capabilities. The requirement that the a representative survey or study of the
For the Commission, by the Division of foreign securities depository meet costs of Commission rules and forms.
Trading and Markets, pursuant to delegated specified minimum standards is Compliance with the collection of
authority.22 intended to ensure that the depository is information requirements of the rule is
Eduardo A. Aleman, subject to basic safeguards deemed necessary to obtain the benefit of relying
Assistant Secretary. appropriate for all depositories. The on the rule’s permission for funds to
[FR Doc. 2017–08702 Filed 4–28–17; 8:45 am]
requirement that the fund or its adviser maintain their assets in foreign
must receive from the primary
BILLING CODE 8011–01–P custodians. The information provided
custodian (or its agent) an initial risk
under rule 17f–7 will not be kept
analysis of the depository arrangements,
and that the fund’s contract with its confidential. An agency may not
SECURITIES AND EXCHANGE conduct or sponsor, and a person is not
COMMISSION primary custodian must state that the
custodian will monitor risks and required to respond to, a collection of
Submission for OMB Review; promptly notify the fund or its adviser information unless it displays a
Comment Request of material changes in risks, is intended currently valid OMB control number.
to provide essential information about The public may view the background
Upon Written Request, Copies Available custody risks to the fund’s investment documentation for this information
From: Securities and Exchange adviser as necessary for it to approve the
Commission, Office of FOIA Services, collection at the following Web site,
continued use of the depository. The www.reginfo.gov. Comments should be
100 F Street NE., Washington, DC
requirement that the primary custodian directed to: (i) Desk Officer for the
20549–2736.
agree to exercise reasonable care is Securities and Exchange Commission,
Extension: intended to provide assurances that its
Rule 17f–7, SEC File No. 270–470, OMB
Office of Information and Regulatory
services and the information it provides Affairs, Office of Management and
Control No. 3235–0529.
will meet an appropriate standard of Budget, Room 10102, New Executive
Notice is hereby given that, pursuant care. Office Building, Washington, DC 20503,
to the Paperwork Reduction Act of 1995 The staff estimates that each of
(44 U.S.C. 3501–3521) (‘‘Paperwork or by sending an email to: Shagufta_
approximately 992 investment advisers 1
Reduction Act’’), the Securities and will make an average of 8 responses Ahmed@omb.eop.gov; and (ii) Pamela
Exchange Commission (the annually under the rule to address Dyson, Director/Chief Information
‘‘Commission’’) has submitted to the depository compliance with minimum Officer, Securities and Exchange
Office of Management and Budget requirements, any indemnification or Commission, c/o Remi Pavlik-Simon,
(‘‘OMB’’) a request for extension of the insurance arrangements, and reviews of 100 F Street NE., Washington, DC 20549
previously approved collections of risk analyses or notifications. The staff or send an email to: PRA_Mailbox@
information discussed below. estimates each response will take 6 sec.gov. Comments must be submitted to
Rule 17f–7 (17 CFR 270.17f–7) hours, requiring a total of approximately OMB within 30 days of this notice.
permits a fund under certain conditions 48 hours for each adviser.2 Thus the Dated: April 25, 2017.
to maintain its foreign assets with an total annual burden associated with
eligible securities depository, which has Eduardo A. Aleman,
these requirements of the rule is
to meet minimum standards for a Assistant Secretary.
approximately 47,616 hours.3 The staff
depository. The fund or its investment further estimates that during each year, [FR Doc. 2017–08763 Filed 4–28–17; 8:45 am]
adviser generally determines whether each of approximately 15 global BILLING CODE 8011–01–P
the depository complies with those custodians will make an average of 4
requirements based on information responses to analyze custody risks and
provided by the fund’s primary
srobinson on DSK5SPTVN1PROD with NOTICES

custodian (a bank that acts as global 1 In October 2016, Commission staff estimated

custodian). The depository custody that, as of June 2016, 992 investment advisers
arrangement also must meet certain managed or sponsored open-end registered funds
conditions. The fund or its adviser must (including exchange-traded funds) and closed-end 4 260 hours per response × 4 responses per global
registered funds.
receive from the primary custodian (or 2 8 responses per adviser × 6 hours per response custodian = 1,040 hours per global custodian.
its agent) an initial risk analysis of the 5 15 global custodians × 1,040 hours per global
= 48 hours per adviser.
3 992 advisers × 48 hours per adviser = 47,616 custodian = 15,600 hours.
22 17 CFR 200.30–3(a)(12). hours. 6 47,616 hours + 15,600 hours = 63,216 hours.

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Document Created: 2017-04-29 03:16:27
Document Modified: 2017-04-29 03:16:27
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 20408