82 FR 47276 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 195 (October 11, 2017)

Page Range		47276-47277
FR Document		2017-21911
Federal Register, Volume 82 Issue 195 (Wednesday, October 11, 2017)
[Federal Register Volume 82, Number 195 (Wednesday, October 11, 2017)]
[Notices]
[Pages 47276-47277]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-21911]


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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 18f-3, SEC File No. 270-385, OMB Control No. 3235-0441

    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.
    Rule 18f-3 (17 CFR 270.18f-3) under the Investment Company Act of 
1940 (15 U.S.C. 80a-1 et seq.) exempts from section 18(f)(1) a fund 
that issues multiple classes of shares representing interests in the 
same portfolio of securities (a ``multiple class fund'') if the fund 
satisfies the conditions of the rule. In general, each class must 
differ in its arrangement for shareholder services or distribution or 
both, and must pay the related expenses of that different arrangement. 
The rule includes one requirement for the collection of information. A 
multiple class fund must prepare, and fund directors must approve, a 
written plan setting forth the separate arrangement and expense 
allocation of each class, and any related conversion features or 
exchange privileges (``rule 18f-3 plan''). Approval of the plan must 
occur before the fund issues any shares of multiple classes and 
whenever the fund materially amends the plan. In approving the plan, 
the fund board, including a majority of the independent directors, must 
determine that the plan is in the best interests of each class and the 
fund as a whole.
    The requirement that the fund prepare and directors approve a 
written rule 18f-3 plan is intended to ensure that the fund compiles 
information relevant to the fairness of the separate arrangement and 
expense allocation for each class, and that directors review and 
approve the information. Without a blueprint that highlights material 
differences among classes, directors might not perceive potential 
conflicts of interests when they determine whether the plan is in the 
best interests of each class and

[[Page 47277]]

the fund. In addition, the plan may be useful to Commission staff in 
reviewing the fund's compliance with the rule.
    Based on an analysis of fund filings, the Commission estimates that 
there are approximately 7,743 multiple class funds offered by 1,045 
registrants. The Commission estimates that each of the 1,045 
registrants will make an average of 0.5 responses annually to prepare 
and approve a written 18f-3 plan.\1\ The Commission estimates each 
response will take 6 hours, requiring a total of 3 hours per registrant 
per year.\2\ Thus the total annual hour burden associated with these 
requirements of the rule is approximately 3,135 hours.\3\
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    \1\ The Commission estimates that each registrant prepares and 
approves a rule 18f-3 plan every two years when issuing a new fund 
or new class or amending a plan (or that 522.5 of all 1,045 
registrants prepare and approve a plan each year).
    \2\ 0.5 responses per registrant x 6 hours per response = 3 
hours per registrant.
    \3\ 3 hours per registrant per year x 1,045 registrants = 3,135 
hours per year.
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    Estimates of average burden hours are made solely for the purposes 
of the Paperwork Reduction Act and are not derived from a comprehensive 
or even a representative survey or study of the costs of Commission 
rules and forms. The collection of information under rule 18f-3 is 
mandatory. The information provided under rule 18f-3 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 collections of 
information are 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 collections of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burdens of the collections 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: October 4, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-21911 Filed 10-10-17; 8:45 am]
 BILLING CODE 8011-01-P
47276 Federal Register / Vol. 82, No. 195 / Wednesday, October 11, 2017 / Notices

that file or submit communications to Electronic Comments SECURITIES AND EXCHANGE
the Department for review. COMMISSION
• Use the Commission’s Internet
B. Self-Regulatory Organization’s comment form (http://www.sec.gov/ Proposed Collection; Comment
Statement on Burden on Competition rules/sro.shtml); or Request
FINRA does not believe that the • Send an email to rule-comments@ Upon Written Request, Copies Available
proposed rule change will result in any sec.gov. Please include File Number SR– From: Securities and Exchange
burden on competition that is not FINRA–2017–030 on the subject line. Commission, Office of FOIA Services,
necessary or appropriate in furtherance 100 F Street NE., Washington, DC
of the purposes of the Act. The Paper Comments
20549–2736
proposed rule change would not impose • Send paper comments in triplicate Extension:
any additional reporting requirements to Secretary, Securities and Exchange Rule 18f–3, SEC File No. 270–385, OMB
or costs on firms. Members will not be Commission, 100 F Street NE., Control No. 3235–0441
obligated to submit communications in Washington, DC 20549–1090. Notice is hereby given that, pursuant
native format and therefore may choose
to the Paperwork Reduction Act of 1995
to continue to file or submit All submissions should refer to File
(44 U.S.C. 3501 et seq.) (‘‘Paperwork
communications as they do today, with Number SR–FINRA–2017–030. This file
Reduction Act’’), the Securities and
the same attendant charges. number should be included on the Exchange Commission (the
To the extent that the conversion of subject line if email is used. To help the ‘‘Commission’’) is soliciting comments
Web site or Web page communications Commission process and review your on the collection of information
from native format to another format comments more efficiently, please use summarized below. The Commission
were viewed as burdensome among only one method. The Commission will plans to submit this existing collection
market participants, those participants post all comments on the Commission’s of information to the Office of
will have the option to submit such Internet Web site (http://www.sec.gov/ Management and Budget (‘‘OMB’’) for
communications in native format, rules/sro.shtml). Copies of the extension and approval.
which would permit members to submission, all subsequent Rule 18f–3 (17 CFR 270.18f–3) under
mitigate any direct or indirect costs amendments, all written statements the Investment Company Act of 1940
associated with such conversion. with respect to the proposed rule (15 U.S.C. 80a–1 et seq.) exempts from
change that are filed with the section 18(f)(1) a fund that issues
C. Self-Regulatory Organization’s multiple classes of shares representing
Statement on Comments on the Commission, and all written
communications relating to the interests in the same portfolio of
Proposed Rule Change Received From securities (a ‘‘multiple class fund’’) if
Members, Participants, or Others proposed rule change between the
Commission and any person, other than the fund satisfies the conditions of the
Written comments were neither those that may be withheld from the rule. In general, each class must differ
solicited nor received. in its arrangement for shareholder
public in accordance with the
services or distribution or both, and
III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be
must pay the related expenses of that
Proposed Rule Change and Timing for available for Web site viewing and different arrangement. The rule includes
Commission Action printing in the Commission’s Public one requirement for the collection of
Reference Room, 100 F Street NE., information. A multiple class fund must
The foregoing rule change has become Washington, DC 20549 on official prepare, and fund directors must
effective pursuant to Section 19(b)(3)(A) business days between the hours of approve, a written plan setting forth the
of the Act 11 and paragraph (f)(2) of Rule 10:00 a.m. and 3:00 p.m. Copies of the separate arrangement and expense
19b–4 thereunder.12 At any time within filing also will be available for allocation of each class, and any related
60 days of the filing of the proposed rule inspection and copying at the principal conversion features or exchange
change, the Commission summarily may office of FINRA. All comments received privileges (‘‘rule 18f–3 plan’’). Approval
temporarily suspend such rule change if will be posted without change; the of the plan must occur before the fund
it appears to the Commission that such Commission does not edit personal issues any shares of multiple classes
action is necessary or appropriate in the and whenever the fund materially
identifying information from
public interest, for the protection of amends the plan. In approving the plan,
submissions. You should submit only
investors, or otherwise in furtherance of the fund board, including a majority of
information that you wish to make
the purposes of the Act. If the the independent directors, must
Commission takes such action, the available publicly. All submissions
should refer to File Number SR–FINRA– determine that the plan is in the best
Commission shall institute proceedings interests of each class and the fund as
to determine whether the proposed rule 2017–030, and should be submitted on
or before November 1, 2017. a whole.
should be approved or disapproved. The requirement that the fund prepare
For the Commission, by the Division of and directors approve a written rule
IV. Solicitation of Comments
Trading and Markets, pursuant to delegated 18f–3 plan is intended to ensure that the
Interested persons are invited to authority.13 fund compiles information relevant to
asabaliauskas on DSKBBXCHB2PROD with NOTICES

submit written data, views, and Robert W. Errett, the fairness of the separate arrangement
arguments concerning the foregoing, Deputy Secretary. and expense allocation for each class,
including whether the proposed rule [FR Doc. 2017–21846 Filed 10–10–17; 8:45 am] and that directors review and approve
change is consistent with the Act. BILLING CODE 8011–01–P
the information. Without a blueprint
Comments may be submitted by any of that highlights material differences
the following methods: among classes, directors might not
perceive potential conflicts of interests
11 15 U.S.C. 78s(b)(3)(A). when they determine whether the plan
12 17 CFR 240.19b–4(f)(2). 13 17 CFR 200.30–3(a)(12). is in the best interests of each class and

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Federal Register / Vol. 82, No. 195 / Wednesday, October 11, 2017 / Notices 47277

the fund. In addition, the plan may be Dated: October 4, 2017. CDS Margin Framework and CDSClear
useful to Commission staff in reviewing Eduardo A. Aleman, Default Fund Methodology in order to
the fund’s compliance with the rule. Assistant Secretary. permit it to clear options on index credit
Based on an analysis of fund filings, [FR Doc. 2017–21911 Filed 10–10–17; 8:45 am] default swaps. The Commission finds
the Commission estimates that there are BILLING CODE 8011–01–P
that it is appropriate to designate a
approximately 7,743 multiple class longer period within which to take
action on the proposed rule change so
funds offered by 1,045 registrants. The
SECURITIES AND EXCHANGE that it has sufficient time to consider
Commission estimates that each of the
COMMISSION LCH SA’s proposed rule change and the
1,045 registrants will make an average of
risks associated therewith.
0.5 responses annually to prepare and [Release No. 34–81818; File No. SR–LCH Accordingly, the Commission,
approve a written 18f–3 plan.1 The SA–2017–007]
pursuant to Section 19(b)(2) of the Act,
Commission estimates each response extends the period by which the
will take 6 hours, requiring a total of 3 Self-Regulatory Organizations; LCH
SA; Notice of Designation of Longer Commission shall either approve or
hours per registrant per year.2 Thus the disapprove, or institute proceedings to
total annual hour burden associated Period for Commission Action on
Proposed Rule Change Relating to determine whether to disapprove, the
with these requirements of the rule is proposed rule change (File No. SR–LCH
Options on Index Credit Default Swaps
approximately 3,135 hours.3 SA–2017–007) to no later than
Estimates of average burden hours are October 4, 2017. November 19, 2017.
made solely for the purposes of the On August 1, 2017, Banque Central de For the Commission by the Division of
Paperwork Reduction Act and are not Compensation, which conducts Trading and Markets, pursuant to delegated
derived from a comprehensive or even business under the name LCH SA (‘‘LCH authority.5
a representative survey or study of the SA’’), filed with the Securities and Eduardo A. Aleman,
costs of Commission rules and forms. Exchange Commission (‘‘Commission’’), Assistant Secretary.
The collection of information under rule pursuant to Section 19(b)(1) of the [FR Doc. 2017–21815 Filed 10–10–17; 8:45 am]
18f–3 is mandatory. The information Securities Exchange Act of 1934
BILLING CODE 8011–01–P
provided under rule 18f–3 will not be (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
kept confidential. An agency may not proposed rule change (SR–LCH SA–
conduct or sponsor, and a person is not 2017–007) to amend LCH SA’s CDS
Margin Framework and CDSClear SMALL BUSINESS ADMINISTRATION
required to respond to, a collection of
information unless it displays a Default Fund Methodology to Women-Owned Small Business
currently valid OMB control number. incorporate terms and conforming Federal Contract Program NAICS Code
changes, and to provide for risk Updates
Written comments are invited on: (a) management policies related to options
Whether the collections of information on index credit default swaps in order AGENCY: U.S. Small Business
are necessary for the proper to permit LCH SA to clear such options. Administration.
performance of the functions of the The proposed rule change was ACTION: Notice of Updated NAICS Codes
Commission, including whether the published for comment in the Federal for Use in the Women-Owned Small
information has practical utility; (b) the Register on August 21, 2017.3 The Business Federal Contract Program.
accuracy of the Commission’s estimate Commission received no comments
of the burdens of the collections of regarding the proposed changes. SUMMARY: The U.S. Small Business
information; (c) ways to enhance the Section 19(b)(2) of the Act provides Administration (SBA) is updating the
quality, utility, and clarity of the that within 45 days of the publication of North American Industry Classification
information collected; and (d) ways to the notice of the filing or a proposed System (NAICS) codes authorized for
minimize the burdens of the collections rule change, or within such longer use in the Women-Owned Small
of information on respondents, period up to 90 days as the Commission Business (WOSB) Federal Contract
including through the use of automated may designate if it finds such longer Program (WOSB Program). The update
collection techniques or other forms of period to be appropriate and publishes is being made to reflect the U.S. Office
information technology. Consideration its reasons for so finding, or as to which of Management and Budget’s (OMB)
will be given to comments and the self-regulatory organization NAICS revision for 2017, identified as
suggestions submitted in writing within consents, the Commission shall either NAICS 2017. NAICS 2017 created 21
60 days of this publication. approve the proposed rule change, new industries by reclassifying,
disapprove the proposed rule change, or combining, or splitting 29 NAICS 2012
Please direct your written comments industry codes. These changes would
to Pamela Dyson, Director/Chief institute proceedings to determine
whether the proposed rule change impact eight (8) of the 2012 NAICS
Information Officer, Securities and codes designated for use under the
should be disapproved.4 The 45th day
Exchange Commission, C/O Remi WOSB Program.
from the publication of the Notice is
Pavlik-Simon, 100 F Street NE.,
October 5, 2017. DATES: The designations of industries
Washington, DC 20549; or send an email
The Commission is extending the 45- contained in this notice apply to all
to: PRA_Mailbox@sec.gov. solicitations issued on or after October
day time period for Commission action
asabaliauskas on DSKBBXCHB2PROD with NOTICES

on the proposed rule change. As noted 1, 2017.
1 The Commission estimates that each registrant

prepares and approves a rule 18f–3 plan every two
above, LCH SA proposed to amend its FOR FURTHER INFORMATION CONTACT:
years when issuing a new fund or new class or Amy Kim, Office of Government
1 15 U.S.C. 78s(b)(1).
amending a plan (or that 522.5 of all 1,045 Contracting, 409 3rd Street SW.,
registrants prepare and approve a plan each year). 2 17 CFR 240.19b–4. Washington, DC 20416, wosb@sba.gov.
2 0.5 responses per registrant × 6 hours per 3 Securities Exchange Act Release No. 34–81399

response = 3 hours per registrant. (Aug. 15, 2017), 82 FR 39622 (Aug. 21, 2017) (SR– SUPPLEMENTARY INFORMATION:
3 3 hours per registrant per year × 1,045 LCH SA–2017–007) (‘‘Notice’’).
registrants = 3,135 hours per year. 4 15 U.S.C. 78s(b)(2). 5 17 CFR 200.30–3(a)(12).

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Document Created: 2018-10-25 09:59:43
Document Modified: 2018-10-25 09:59:43
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 47276