82 FR 40609 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 164 (August 25, 2017)

Page Range		40609-40610
FR Document		2017-18074

Federal Register, Volume 82 Issue 164 (Friday, August 25, 2017)

[Federal Register Volume 82, Number 164 (Friday, August 25, 2017)]
[Notices]
[Pages 40609-40610]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18074]


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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 24F-2; SEC File No. 270-399, OMB Control No. 3235-0456

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501-3520), 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 for extension and approval.
    Rule 24f-2 (17 CFR 270.24f-2) under the Investment Company Act of 
1940 (15 U.S.C. 80a) requires any open-end management companies 
(``mutual funds''), unit investment trusts (``UITs'') or face-amount 
certificate companies

[[Page 40610]]

(collectively, ``funds'') deemed to have registered an indefinite 
amount of securities to file, not later than 90 days after the end of 
any fiscal year in which it has publicly offered such securities, Form 
24F-2 (17 CFR 274.24) with the Commission. Form 24F-2 is the annual 
notice of securities sold by funds that accompanies the payment of 
registration fees with respect to the securities sold during the fiscal 
year.
    The Commission estimates that 7,284 funds file Form 24F-2 on the 
required annual basis. The average annual burden per respondent for 
Form 24F-2 is estimated to be two hours. The total annual burden for 
all respondents to Form 24F-2 is estimated to be 14,568 hours.
    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.
    Compliance with the collection of information required by Form 24F-
2 is mandatory. The Form 24F-2 filing that must be made to the 
Commission is available to the public. 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 control number.
    The Commission requests written comments on: (a) Whether the 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information has 
practical utility; (b) the accuracy of the Commission's estimate of the 
burdens 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: August 22, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-18074 Filed 8-24-17; 8:45 am]
 BILLING CODE P

Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices 40609

statement explaining that the client is 9. Each written disclosure required as under this Order; (b) the integrity and
consenting to principal transactions, a condition to this Order will include a operation of electronic systems
followed by a cross-reference to a conspicuous, plain English statement employed by the Applicant in
specific document provided to the client that the client may revoke the written connection with its reliance on this
containing the disclosure in (a)(i)–(iii) consent referred to in Condition 4 above Order; (c) compliance by the Applicant
above and to the specific page or pages without penalty at any time by written with its recordkeeping obligations under
on which such disclosure is located; notice to the Applicant in accordance this Order; and (d) whether there is any
provided, however, that if the Applicant with reasonable procedures established evidence of the Applicant engaging in
requires time to modify its electronic by the Applicant, but in all cases such ‘‘dumping’’ in connection with its
systems to provide the specific page revocation must be given effect within reliance on this Order.4 The Applicant’s
cross-reference required by clause (b), 5 business days of the Applicant’s chief compliance officer will document
the Applicant may, while updating such receipt thereof. the frequency and results of such
electronic systems, and for no more than 10. The Applicant will maintain monitoring and testing, and the
90 days from the date of the Order, records sufficient to enable verification Applicant will maintain and preserve
instead provide a cross-reference to a of compliance with the conditions of such documentation in an easily
specific document provided to the client this Order. Such records will include, accessible place for a period of not less
containing the disclosure in (a)(i)–(iii) without limitation: (a) Documentation than five years, the first two years in an
above and to the specific section in such sufficient to demonstrate compliance appropriate office of the Applicant, and
document in which such disclosure is with each disclosure and consent be available for inspection by the staff
located. Transition provision: To the requirement under this Order; (b) in of the Commission.
extent that the Applicant obtained fully particular, documentation sufficient to
For the Commission, by the Division of
informed written revocable consent demonstrate that, prior to the execution Investment Management, under delegated
from an advisory client for purposes of of each transaction in reliance on this authority.
rule 206(3)–3T(a)(3) prior to January 1, Order, the Applicant informed the Eduardo A. Aleman,
2017, the Applicant may rely on this advisory client of the capacity in which
Assistant Secretary.
Order with respect to such client it may act with respect to the
transaction and that it received the [FR Doc. 2017–18090 Filed 8–24–17; 8:45 am]
without obtaining additional BILLING CODE 8011–01–P
prospective consent from such client. advisory client’s consent (if the
5. The Applicant, prior to the Applicant informs the client orally of
execution of each transaction in reliance the capacity in which it may act with
respect to such transaction or obtains SECURITIES AND EXCHANGE
on this Order, will: (a) Inform the COMMISSION
advisory client, orally or in writing, of oral consent, such records may, for
the capacity in which it may act with example, include recordings of Proposed Collection; Comment
telephone conversations or Request
respect to such transaction; and (b)
contemporaneous written notations);
obtain consent from the advisory client,
and (c) documentation sufficient to Upon Written Request, Copies Available
orally or in writing, to act as principal
enable assessment of compliance by the From: Securities and Exchange
for its own account with respect to such
Applicant with sections 206(1) and (2) Commission, Office of FOIA Services,
transaction.
of the Advisers Act in connection with 100 F Street NE., Washington, DC
6. The Applicant will send a written its reliance on this Order.3 In each case, 20549–2736.
confirmation at or before completion of such records will be maintained and
each such transaction that includes, in Extension:
preserved in an easily accessible place Form 24F–2; SEC File No. 270–399, OMB
addition to the information required by for a period of not less than five years, Control No. 3235–0456
rule 10b–10 under the Exchange Act, a the first two years in an appropriate
conspicuous, plain English statement Notice is hereby given that pursuant
office of the Applicant, and be available to the Paperwork Reduction Act of 1995
informing the advisory client that the for inspection by the staff of the
Applicant: (a) Disclosed to the client (44 U.S.C. 3501–3520), the Securities
Commission. and Exchange Commission (the
prior to the execution of the transaction 11. The Applicant will adopt written
that the Applicant may be acting in a ‘‘Commission’’) is soliciting comments
compliance policies and procedures
principal capacity in connection with on the collection of information
reasonably designed to ensure, and the
the transaction and the client authorized summarized below. The Commission
Applicant’s chief compliance officer
the transaction; and (b) sold the security plans to submit this existing collection
will monitor, the Applicant’s
to, or bought the security from, the of information to the Office of
compliance with the conditions of this
client for its own account. Management and Budget for extension
Order. The Applicant’s chief
7. The Applicant will send to the and approval.
compliance officer will, on at least a Rule 24f–2 (17 CFR 270.24f–2) under
client, no less frequently than annually, quarterly basis, conduct testing
written disclosure containing a list of all the Investment Company Act of 1940
reasonably sufficient to verify such (15 U.S.C. 80a) requires any open-end
transactions that were executed in the compliance. Such written policies and
client’s account in reliance upon this management companies (‘‘mutual
procedures, monitoring and testing will funds’’), unit investment trusts (‘‘UITs’’)
Order, and the date and price of each address, without limitation: (a)
such transaction. or face-amount certificate companies
Compliance by the Applicant with its
8. The Applicant is a broker-dealer
sradovich on DSK3GMQ082PROD with NOTICES

disclosure and consent requirements 4 See Report of the Securities and Exchange
registered under section 15 of the Commission, Investment Trusts and Investment
Exchange Act and each account for 3 For example, under sections 206(1) and (2), an Companies, H.R. Doc. No. 279, 76th Cong., 2d Sess.,
which the Applicant relies on this Order adviser may not engage in any transaction on a pt. 3, at 2581, 2589 (1939); Hearings on S.3580
is a brokerage account subject to the principal basis with a client that is not consistent Before a Subcommittee of the Commission on
with the best interests of the client or that Banking and Currency, 76th Cong., 3d Sess. 209,
Exchange Act, and the rules thereunder, subrogates the client’s interests to the adviser’s 212–23 (1940); Hearings on S. 3580 Before the
and the rules of the self-regulatory own. Cf. Investment Advisers Act Release No. 2106 Subcomm. of the Comm. on Banking and Currency,
organization(s) of which it is a member. (Jan. 31, 2003) (adopting Rule 206(4)–6). 76th Cong., 3d Sess. 322 (1940).

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40610 Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices

(collectively, ‘‘funds’’) deemed to have SECURITIES AND EXCHANGE in Item IV below. FINRA has prepared
registered an indefinite amount of COMMISSION summaries, set forth in sections A, B,
securities to file, not later than 90 days and C below, of the most significant
[Release No. 34–81448; File No. SR–FINRA–
after the end of any fiscal year in which aspects of such statements.
2017–026]
it has publicly offered such securities, A. Self-Regulatory Organization’s
Form 24F–2 (17 CFR 274.24) with the Self-Regulatory Organizations; Statement of the Purpose of, and the
Commission. Form 24F–2 is the annual Financial Industry Regulatory Statutory Basis for, the Proposed Rule
notice of securities sold by funds that Authority, Inc.; Notice of Filing and Change
accompanies the payment of registration Immediate Effectiveness of a Proposed
fees with respect to the securities sold Rule Change To Clarify Application of 1. Purpose
during the fiscal year. FINRA Rule 11140 (Transactions in Background
The Commission estimates that 7,284 Securities ‘‘Ex-Dividend,’’ ‘‘Ex-rights’’ On March 22, 2017, the SEC adopted
funds file Form 24F–2 on the required or ‘‘Ex-Warrants’’) in Connection With amendments to SEA Rule 15c6–1(a) to
annual basis. The average annual the Implementation of the Shortened shorten the standard settlement cycle
burden per respondent for Form 24F–2 Settlement Cycle (T+2) on September for U.S. secondary market transactions
is estimated to be two hours. The total 5, 2017 in equities, corporate and municipal
annual burden for all respondents to August 21, 2017. bonds, unit investment trusts and
Form 24F–2 is estimated to be 14,568 Pursuant to Section 19(b)(1) of the financial instruments composed of these
hours. Securities Exchange Act of 1934 (‘‘Act’’ products, from three business days after
The estimate of average burden hours or ‘‘SEA’’) 1 and Rule 19b–4 the trade date (‘‘T+3’’) to two business
is made solely for the purposes of the thereunder,2 notice is hereby given that days after the trade date (‘‘T+2’’).4 The
Paperwork Reduction Act, and is not on August 17, 2017, Financial Industry industry-wide initiative is designed to
derived from a comprehensive or even Regulatory Authority, Inc. (‘‘FINRA’’) reduce a number of risks, including
a representative survey or study of the filed with the Securities and Exchange credit risk, market risk, and liquidity
costs of Commission rules. Commission (‘‘SEC’’ or ‘‘Commission’’) risk and, as a result, reduce systemic
the proposed rule change as described risk for U.S. market participants.5 The
Compliance with the collection of compliance date for the rule
information required by Form 24F–2 is in Items I and II below, which Items
have been prepared by FINRA. FINRA amendments is September 5, 2017.
mandatory. The Form 24F–2 filing that In support of this initiative, FINRA
must be made to the Commission is has designated the proposed rule change
proposed changes to its rules pertaining
available to the public. An agency may as constituting a ‘‘non-controversial’’
to securities settlement by, among other
not conduct or sponsor, and a person is rule change under paragraph (f)(6) of
things, amending the definition of
not required to respond to, a collection Rule 19b–4 under the Act,3 which
‘‘regular way’’ settlement as occurring
of information unless it displays a renders the proposal effective upon on T+2.6 On February 9, 2017, the SEC
currently valid control number. receipt of this filing by the Commission. approved FINRA’s amendments to the
The Commission is publishing this applicable rules, including Rule
The Commission requests written notice to solicit comments on the
comments on: (a) Whether the collection 11140(b), that establish or reference T+3
proposed rule change from interested to conform to T+2, and these
of information is necessary for the persons.
proper performance of the functions of amendments will become effective on
the Commission, including whether the I. Self-Regulatory Organization’s September 5, 2017.7
Statement of the Terms of Substance of During the transition period the
information has practical utility; (b) the
the Proposed Rule Change industry and self-regulatory
accuracy of the Commission’s estimate
organizations (‘‘SROs’’), including The
of the burdens of the collection of FINRA is proposing to address the
Depository Trust Company (‘‘DTC’’)
information; (c) ways to enhance the application of FINRA Rule 11140 which processes corporate action
quality, utility, and clarity of the (Transactions in Securities ‘‘Ex- events, have raised concern that the
information collected; and (d) ways to Dividend,’’ ‘‘Ex-Rights’’ or ‘‘Ex-
minimize the burden of the collection of Warrants’’) as it relates to establishing 4 See Securities Exchange Act Release No. 80295
information on respondents, including ex-dividend dates in connection with (March 22, 2017), 82 FR 15564 (March 29, 2017)
through the use of automated collection the implementation of the T+2 (Securities Transaction Settlement Cycle) (File No.
techniques or other forms of information settlement cycle on September 5, 2017. S7–22–16) (stating that, as amended, SEA Rule
15c6–1(a) will prohibit broker-dealers from
technology. Consideration will be given No change to the text of FINRA Rule effecting or entering into a contract for the purchase
to comments and suggestions submitted 11140(b)(1) is required by this proposal. or sale of a security (other than an exempted
in writing within 60 days of this security, government security, municipal security,
II. Self-Regulatory Organization’s commercial paper, bankers’ acceptances or
publication. Statement of the Purpose of, and commercial bills) that provides for payment of
Please direct your written comments Statutory Basis for, the Proposed Rule funds and delivery of securities later than the
second business day after the date of the contract,
to Pamela Dyson, Director/Chief Change unless otherwise expressly agreed to by the parties
Information Officer, Securities and In its filing with the Commission, at the time of the transaction).
Exchange Commission, C/O Remi FINRA included statements concerning 5 See supra note 4.

Pavlik-Simon, 100 F Street NE., the purpose of and basis for the
6 See Securities Exchange Act Release No. 79648

Washington, DC 20549; or send an email (December 21, 2016), 81 FR 95705 (December 28,
sradovich on DSK3GMQ082PROD with NOTICES

proposed rule change and discussed any 2016) (Notice of Filing of File No. SR–FINRA–
to: PRA_Mailbox@sec.gov. comments it received on the proposed 2016–047).
Dated: August 22, 2017. rule change. The text of these statements 7 See Securities Exchange Act Release No. 80004

may be examined at the places specified (February 9, 2017), 82 FR 10835 (February 15, 2017)
Eduardo A. Aleman, (Order Approving File No. SR–FINRA–2016–047)
Assistant Secretary. and Securities Exchange Act Release No. 80004A
1 15 U.S.C. 78s(b)(1). (March 6, 2017), 82 FR 13517 (March 13, 2017)
[FR Doc. 2017–18074 Filed 8–24–17; 8:45 am] 2 17 CFR 240.19b–4. (Correction to Order Approving File No. SR–
BILLING CODE P 3 17 CFR 240.19b–4(f)(6). FINRA–2016–047).

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Document Created: 2018-10-24 12:43:22
Document Modified: 2018-10-24 12:43:22

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 40609