83 FR 11262 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 50 (March 14, 2018)

Page Range		11262-11262
FR Document		2018-05170
Federal Register, Volume 83 Issue 50 (Wednesday, March 14, 2018)
[Federal Register Volume 83, Number 50 (Wednesday, March 14, 2018)]
[Notices]
[Page 11262]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05170]



[[Page 11262]]

-----------------------------------------------------------------------

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-1, SEC File No. 270-236, OMB Control No. 3235-0222

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (the ``Commission'') has submitted to the Office of 
Management and Budget a request for extension of the previously 
approved collection of information discussed below.
    Rule 17f-1 (17 CFR 270.17f-1) under the Investment Company Act of 
1940 (the ``Act'') (15 U.S.C. 80a) is entitled: ``Custody of Securities 
with Members of National Securities Exchanges.'' Rule 17f-1 provides 
that any registered management investment company (``fund'') that 
wishes to place its assets in the custody of a national securities 
exchange member may do so only under a written contract that must be 
ratified initially and approved annually by a majority of the fund's 
board of directors. The written contract also must contain certain 
specified provisions. In addition, the rule requires an independent 
public accountant to examine the fund's assets in the custody of the 
exchange member at least three times during the fund's fiscal year. The 
rule requires the written contract and the certificate of each 
examination to be transmitted to the Commission. The purpose of the 
rule is to ensure the safekeeping of fund assets.
    Commission staff estimates that each fund makes 1 response and 
spends an average of 3.5 hours annually in complying with the rule's 
requirements. Commission staff estimates that on an annual basis it 
takes: (i) 0.5 hours for the board of directors \1\ to review and 
ratify the custodial contracts; and (ii) 3 hours for the fund's 
controller to assist the fund's independent public auditors in 
verifying the fund's assets. Approximately 6 funds rely on the rule 
annually, with a total of 6 responses.\2\ Thus, the total annual hour 
burden for rule 17f-1 is approximately 21 hours.\3\
---------------------------------------------------------------------------

    \1\ Estimates of the number of hours are based on conversations 
with representatives of mutual funds that comply with the rule. The 
actual number of hours may vary significantly depending on 
individual fund assets. The hour burden for rule 17f-1 does not 
include preparing the custody contract because that would be part of 
customary and usual business practice.
    \2\ Based on a review of Form N-17f-1 filings over the last 
three years the Commission staff estimates that an average of 4 
funds rely on rule 17f-1 each year.
    \3\ This estimate is based on the following calculation: (6 
respondents x 3.5 hours = 21 hours). The annual burden for rule 17f-
1 does not include time spent preparing Form N-17f-1. The burden for 
Form N-17f-1 is included in a separate collection of information.
---------------------------------------------------------------------------

    Funds that rely on rule 17f-1 generally use outside counsel to 
prepare the custodial contract for the board's review and to transmit 
the contract to the Commission. Commission staff estimates the cost of 
outside counsel to perform these tasks for a fund each year is $800.\4\ 
Funds also must have an independent public accountant verify the fund's 
assets three times each year and prepare the certificate of 
examination. Commission staff estimates the annual cost for an 
independent public accountant to perform this service is $8,500.\5\ 
Therefore, the total annual cost burden for a fund that relies on rule 
17f-1 would be approximately $9,300.\6\ As noted above, the staff 
estimates that 4 funds rely on rule 17f-1 each year, for an estimated 
total annualized cost burden of $55,800.\7\
---------------------------------------------------------------------------

    \4\ This estimate is based on the following calculation: (2 
hours of outside counsel time x $400 = $800). The staff has 
estimated the average cost of outside counsel at $400 per hour, 
based on information received from funds, fund intermediaries, and 
their counsel.
    \5\ This estimate is based on information received from fund 
representatives estimating the aggregate annual cost of an 
independent public accountant's periodic verification of assets and 
preparation of the certificate of examination.
    \6\ This estimate is based on the following calculation: ($800 + 
$8,500 = $9,300).
    \7\ This estimate is based on the following calculation: (6 
funds x $9,300 = $55,800).
---------------------------------------------------------------------------

    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 collections of information 
required by rule 17f-1 is mandatory for funds that place their assets 
in the custody of a national securities exchange member. Responses 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 control number.
    The public may view the background documentation for this 
information collection at the following website, 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: March 9, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-05170 Filed 3-13-18; 8:45 am]
 BILLING CODE 8011-01-P
11262 Federal Register / Vol. 83, No. 50 / Wednesday, March 14, 2018 / Notices

SECURITIES AND EXCHANGE Thus, the total annual hour burden for Office Building, Washington, DC 20503,
COMMISSION rule 17f–1 is approximately 21 hours.3 or by sending an email to: Shagufta_
Funds that rely on rule 17f–1 Ahmed@omb.eop.gov; and (ii) Pamela
Submission for OMB Review; generally use outside counsel to prepare Dyson, Director/Chief Information
Comment Request the custodial contract for the board’s Officer, Securities and Exchange
review and to transmit the contract to Commission, c/o Remi Pavlik-Simon,
Upon Written Request, Copies Available
the Commission. Commission staff 100 F Street NE, Washington, DC 20549
From Securities and Exchange
estimates the cost of outside counsel to or send an email to: PRA_Mailbox@
Commission, Office of FOIA Services,
perform these tasks for a fund each year sec.gov. Comments must be submitted to
100 F Street NE, Washington, DC
is $800.4 Funds also must have an OMB within 30 days of this notice.
20549–2736
independent public accountant verify
Extension: Dated: March 9, 2018.
the fund’s assets three times each year
Rule 17f–1, SEC File No. 270–236, OMB and prepare the certificate of Eduardo A. Aleman,
Control No. 3235–0222 Assistant Secretary.
examination. Commission staff
Notice is hereby given that pursuant estimates the annual cost for an [FR Doc. 2018–05170 Filed 3–13–18; 8:45 am]
to the Paperwork Reduction Act of 1995 independent public accountant to BILLING CODE 8011–01–P
(44 U.S.C. 3501 et seq.), the Securities perform this service is $8,500.5
and Exchange Commission (the Therefore, the total annual cost burden
‘‘Commission’’) has submitted to the for a fund that relies on rule 17f–1 SECURITIES AND EXCHANGE
Office of Management and Budget a would be approximately $9,300.6 As COMMISSION
request for extension of the previously noted above, the staff estimates that 4
approved collection of information funds rely on rule 17f–1 each year, for [Release No. 34–82833; File No. SR–
discussed below. an estimated total annualized cost CboeBYX–2018–002]
Rule 17f–1 (17 CFR 270.17f–1) under burden of $55,800.7
the Investment Company Act of 1940 The estimate of average burden hours Self-Regulatory Organizations; Cboe
(the ‘‘Act’’) (15 U.S.C. 80a) is entitled: is made solely for the purposes of the BYX Exchange, Inc.; Notice of Filing
‘‘Custody of Securities with Members of Paperwork Reduction Act, and is not and Immediate Effectiveness of a
National Securities Exchanges.’’ Rule derived from a comprehensive or even Proposed Rule Change Related to
17f–1 provides that any registered a representative survey or study of the Transaction Fees
management investment company costs of Commission rules. Compliance
(‘‘fund’’) that wishes to place its assets with the collections of information March 8, 2018.
in the custody of a national securities required by rule 17f–1 is mandatory for Pursuant to Section 19(b)(1) of the
exchange member may do so only under funds that place their assets in the Securities Exchange Act of 1934 (the
a written contract that must be ratified custody of a national securities ‘‘Act’’),1 and Rule 19b–4 thereunder,2
initially and approved annually by a exchange member. Responses will not notice is hereby given that on March 1,
majority of the fund’s board of directors. be kept confidential. An agency may not 2018, Cboe BYX Exchange, Inc. (the
The written contract also must contain conduct or sponsor, and a person is not ‘‘Exchange’’ or ‘‘BYX’’) filed with the
certain specified provisions. In addition, required to respond to a collection of Securities and Exchange Commission
the rule requires an independent public information unless it displays a (‘‘Commission’’) the proposed rule
accountant to examine the fund’s assets currently valid control number. change as described in Items I, II and III
in the custody of the exchange member The public may view the background below, which Items have been prepared
at least three times during the fund’s documentation for this information
by the Exchange. The Exchange has
fiscal year. The rule requires the written collection at the following website,
designated the proposed rule change as
contract and the certificate of each www.reginfo.gov. Comments should be
one establishing or changing a member
examination to be transmitted to the directed to: (i) Desk Officer for the
due, fee, or other charge imposed by the
Commission. The purpose of the rule is Securities and Exchange Commission,
Exchange under Section 19(b)(3)(A)(ii)
to ensure the safekeeping of fund assets. Office of Information and Regulatory
Commission staff estimates that each of the Act 3 and Rule 19b–4(f)(2)
Affairs, Office of Management and
fund makes 1 response and spends an thereunder,4 which renders the
Budget, Room 10102, New Executive
average of 3.5 hours annually in proposed rule change effective upon
complying with the rule’s requirements. that an average of 4 funds rely on rule 17f–1 each
filing with the Commission. The
Commission staff estimates that on an year. Commission is publishing this notice to
annual basis it takes: (i) 0.5 hours for the 3 This estimate is based on the following solicit comments on the proposed rule
calculation: (6 respondents × 3.5 hours = 21 hours). change from interested persons.
board of directors 1 to review and ratify The annual burden for rule 17f–1 does not include
the custodial contracts; and (ii) 3 hours time spent preparing Form N–17f–1. The burden for I. Self-Regulatory Organization’s
for the fund’s controller to assist the Form N–17f–1 is included in a separate collection Statement of the Terms of Substance of
fund’s independent public auditors in of information.
4 This estimate is based on the following the Proposed Rule Change
verifying the fund’s assets. calculation: (2 hours of outside counsel time × $400
Approximately 6 funds rely on the rule = $800). The staff has estimated the average cost of The Exchange filed a proposal to
annually, with a total of 6 responses.2 outside counsel at $400 per hour, based on amend the fee schedule applicable to
information received from funds, fund Members 5 and non-Members of the
1 Estimates of the number of hours are based on intermediaries, and their counsel.
daltland on DSKBBV9HB2PROD with NOTICES

5 This estimate is based on information received
conversations with representatives of mutual funds 1 15
from fund representatives estimating the aggregate U.S.C. 78s(b)(1).
that comply with the rule. The actual number of 2 17
hours may vary significantly depending on annual cost of an independent public accountant’s CFR 240.19b–4.
individual fund assets. The hour burden for rule periodic verification of assets and preparation of the 3 15 U.S.C. 78s(b)(3)(A)(ii).

17f–1 does not include preparing the custody certificate of examination. 4 17 CFR 240.19b–4(f)(2).

contract because that would be part of customary 6 This estimate is based on the following 5 The term ‘‘Member’’ is defined as ‘‘any
and usual business practice. calculation: ($800 + $8,500 = $9,300). registered broker or dealer that has been admitted
2 Based on a review of Form N–17f–1 filings over 7 This estimate is based on the following to membership in the Exchange.’’ See Exchange
the last three years the Commission staff estimates calculation: (6 funds × $9,300 = $55,800). Rule 1.5(n).

VerDate Sep<11>2014 18:17 Mar 13, 2018 Jkt 244001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 E:\FR\FM\14MRN1.SGM 14MRN1
Document Created: 2018-03-14 01:06:30
Document Modified: 2018-03-14 01:06:30
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		83 FR 11262