83 FR 15658 - Order Regarding Review of FASB Accounting Support Fee for 2018 Under Section 109 of the Sarbanes-Oxley Act of 2002
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 70 (April 11, 2018)
Federal Register Volume 83, Issue 70 (April 11, 2018)
| Page Range | 15658-15659 | |
| FR Document | 2018-07363 |
[Federal Register Volume 83, Number 70 (Wednesday, April 11, 2018)] [Notices] [Pages 15658-15659] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07363] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Securities Act of 1933 Release No. 33-10476/April 5, 2018; Securities Exchange Act of 1934 Release No. 34-82997/April 5, 2018] Order Regarding Review of FASB Accounting Support Fee for 2018 Under Section 109 of the Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 (the ``Act'') provides that the Securities and Exchange Commission (the ``Commission'') may recognize, as generally accepted for purposes of the securities laws, any accounting principles established by a standard setting body that meets certain criteria. Consequently, Section 109 of the Act provides that all of the budget of such a standard setting body shall be payable from an annual accounting support fee assessed and collected against each issuer, as may be necessary or appropriate to pay for the budget and provide for the expenses of the standard setting body, and to provide for an independent, stable source of funding, subject to review by the Commission. Under Section 109(f) of the Act, the amount of fees collected for a fiscal year shall not exceed the ``recoverable budget expenses'' of the standard setting body. Section 109(h) amends Section 13(b)(2) of the Securities Exchange Act of 1934 to require issuers to pay the allocable share of a reasonable annual accounting support fee or fees, determined in accordance with Section 109 of the Act. On April 25, 2003, the Commission issued a policy statement concluding that the Financial Accounting Standards Board (``FASB'') and its parent organization, the Financial Accounting Foundation (``FAF''), satisfied the criteria for an accounting standard-setting body under the Act, and recognizing the FASB's financial accounting and reporting standards as ``generally accepted'' under Section 108 of the Act.\1\ As a consequence of that recognition, the Commission undertook a review of the FASB's accounting [[Page 15659]] support fee for calendar year 2018.\2\ In connection with its review, the Commission also reviewed the budget for the FAF and the FASB for calendar year 2018. --------------------------------------------------------------------------- \1\ Financial Reporting Release No. 70. \2\ The Financial Accounting Foundation's Board of Trustees approved the FASB's budget on November 14, 2017. The FAF submitted the approved budget to the Commission on November 17, 2017. --------------------------------------------------------------------------- Section 109 of the Act also provides that the standard setting body can have additional sources of revenue for its activities, such as earnings from sales of publications, provided that each additional source of revenue shall not jeopardize, in the judgment of the Commission, the actual or perceived independence of the standard setter. In this regard, the Commission also considered the interrelation of the operating budgets of the FAF, the FASB, and the Governmental Accounting Standards Board (``GASB''), the FASB's sister organization, which sets accounting standards used by state and local government entities. The Commission has been advised by the FAF that neither the FAF, the FASB, nor the GASB accept contributions from the accounting profession. The Commission understands that the Office of Management and Budget (``OMB'') has determined the FASB's spending of the 2018 accounting support fee is sequestrable under the Budget Control Act of 2011.\3\ So long as sequestration is applicable, we anticipate that the FAF will work with the Commission and Commission staff as appropriate regarding its implementation of sequestration. --------------------------------------------------------------------------- \3\ See ``OMB Report Pursuant to the Sequestration Transparency Act of 2012'' (P.L. 112-155), page 222 of 224 at: http://www.whitehouse.gov/sites/default/files/omb/assets/legislative_reports/stareport.pdf. --------------------------------------------------------------------------- The Commission requests that the FAF and the FASB continue to provide the Commission with quarterly updates of their activities, including but not limited to their efforts to include a wide-range of views from investors, preparers, auditors, academics, and other constituent groups, and their efforts to improve the selection process for FASB and FAF members. After its review, the Commission determined that the 2018 annual accounting support fee for the FASB is consistent with Section 109 of the Act. Accordingly, It is ordered, pursuant to Section 109 of the Act, that the FASB may act in accordance with this determination of the Commission. By the Commission. Brent J. Fields, Secretary. [FR Doc. 2018-07363 Filed 4-10-18; 8:45 am] BILLING CODE 8011-01-P
![15658 Federal Register / Vol. 83, No. 70 / Wednesday, April 11, 2018 / Notices
B. Self-Regulatory Organization’s Necessary or appropriate in the public Number SR–ISE–2018–27 and should be
Statement on Burden on Competition interest; (ii) for the protection of submitted on or before May 2, 2018.
The Exchange does not believe that investors; or (iii) otherwise in For the Commission, by the Division of
the proposed rule change will impose furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated
any burden on competition not If the Commission takes such action, the authority.29
necessary or appropriate in furtherance Commission shall institute proceedings Eduardo A. Aleman,
of the purposes of the Act. to determine whether the proposed rule Assistant Secretary.
The proposed changes to the should be approved or disapproved. [FR Doc. 2018–07408 Filed 4–10–18; 8:45 am]
Exchange’s rebate programs are IV. Solicitation of Comments BILLING CODE 8011–01–P
intended to attract additional order flow
to ISE. The Exchange believes that the Interested persons are invited to
proposal will enhance the submit written data, views, and
SECURITIES AND EXCHANGE
competiveness of the ISE relative to arguments concerning the foregoing,
COMMISSION
other options exchanges. including whether the proposed rule
The Exchange notes that it operates in change is consistent with the Act. [Securities Act of 1933 Release No. 33–
Comments may be submitted by any of 10476/April 5, 2018; Securities Exchange
a highly competitive market in which Act of 1934 Release No. 34–82997/April 5,
market participants can readily favor the following methods:
2018]
competing venues if they deem fee Electronic Comments
levels at a particular venue to be Order Regarding Review of FASB
• Use the Commission’s internet
excessive, or rebate opportunities Accounting Support Fee for 2018
comment form (http://www.sec.gov/
available at other venues to be more Under Section 109 of the Sarbanes-
rules/sro.shtml); or
favorable. In such an environment, the • Send an email to rule-comments@ Oxley Act of 2002
Exchange must continually adjust its sec.gov. Please include File Number SR–
fees to remain competitive with other The Sarbanes-Oxley Act of 2002 (the
ISE–2018–27 on the subject line. ‘‘Act’’) provides that the Securities and
exchanges and with alternative trading
systems that have been exempted from Paper Comments Exchange Commission (the
‘‘Commission’’) may recognize, as
compliance with the statutory standards • Send paper comments in triplicate generally accepted for purposes of the
applicable to exchanges. Because to Secretary, Securities and Exchange
competitors are free to modify their own securities laws, any accounting
Commission, 100 F Street NE, principles established by a standard
fees in response, and because market Washington, DC 20549–1090.
participants may readily adjust their setting body that meets certain criteria.
All submissions should refer to File Consequently, Section 109 of the Act
order routing practices, the Exchange Number SR–ISE–2018–27. This file
believes that the degree to which fee provides that all of the budget of such
number should be included on the a standard setting body shall be payable
changes in this market may impose any subject line if email is used. To help the
burden on competition is extremely from an annual accounting support fee
Commission process and review your assessed and collected against each
limited. comments more efficiently, please use
In sum, if the changes proposed issuer, as may be necessary or
only one method. The Commission will appropriate to pay for the budget and
herein are unattractive to market post all comments on the Commission’s
participants, it is likely that the provide for the expenses of the standard
internet website (http://www.sec.gov/ setting body, and to provide for an
Exchange will lose market share as a rules/sro.shtml). Copies of the
result. Accordingly, the Exchange does independent, stable source of funding,
submission, all subsequent subject to review by the Commission.
not believe that the proposed changes amendments, all written statements
will impair the ability of Members or Under Section 109(f) of the Act, the
with respect to the proposed rule amount of fees collected for a fiscal year
competing order execution venues to change that are filed with the
maintain their competitive standing in shall not exceed the ‘‘recoverable budget
Commission, and all written expenses’’ of the standard setting body.
the financial markets. communications relating to the Section 109(h) amends Section 13(b)(2)
C. Self-Regulatory Organization’s proposed rule change between the of the Securities Exchange Act of 1934
Statement on Comments on the Commission and any person, other than to require issuers to pay the allocable
Proposed Rule Change Received From those that may be withheld from the share of a reasonable annual accounting
Members, Participants, or Others public in accordance with the support fee or fees, determined in
No written comments were either provisions of 5 U.S.C. 552, will be accordance with Section 109 of the Act.
solicited or received. available for website viewing and On April 25, 2003, the Commission
printing in the Commission’s Public issued a policy statement concluding
III. Date of Effectiveness of the Reference Room, 100 F Street NE, that the Financial Accounting Standards
Proposed Rule Change and Timing for Washington, DC 20549, on official Board (‘‘FASB’’) and its parent
Commission Action business days between the hours of organization, the Financial Accounting
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the Foundation (‘‘FAF’’), satisfied the
effective pursuant to Section filing also will be available for criteria for an accounting standard-
19(b)(3)(A)(ii) of the Act,27 and Rule inspection and copying at the principal setting body under the Act, and
19b-4(f)(2) 28 thereunder. At any time office of the Exchange. All comments recognizing the FASB’s financial
within 60 days of the filing of the received will be posted without change. accounting and reporting standards as
amozie on DSK30RV082PROD with NOTICES
proposed rule change, the Commission Persons submitting comments are ‘‘generally accepted’’ under Section 108
summarily may temporarily suspend cautioned that we do not redact or edit of the Act.1 As a consequence of that
such rule change if it appears to the personal identifying information from recognition, the Commission undertook
Commission that such action is: (i) comment submissions. You should a review of the FASB’s accounting
submit only information that you wish
27 15 U.S.C. 78s(b)(3)(A)(ii). to make available publicly. All 29 17 CFR 200.30–3(a)(12).
28 17 CFR 240.19b-4(f)(2). submissions should refer to File 1 Financial Reporting Release No. 70.
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![Federal Register / Vol. 83, No. 70 / Wednesday, April 11, 2018 / Notices 15659
support fee for calendar year 2018.2 In By the Commission. of those statements may be examined at
connection with its review, the Brent J. Fields, the places specified in Item IV below.
Commission also reviewed the budget Secretary. The Exchange has prepared summaries,
for the FAF and the FASB for calendar [FR Doc. 2018–07363 Filed 4–10–18; 8:45 am] set forth in sections A, B, and C below,
year 2018. BILLING CODE 8011–01–P
of the most significant parts of such
statements.
Section 109 of the Act also provides
that the standard setting body can have A. Self-Regulatory Organization’s
SECURITIES AND EXCHANGE Statement of the Purpose of, and the
additional sources of revenue for its
COMMISSION Statutory Basis for, the Proposed Rule
activities, such as earnings from sales of
publications, provided that each [Release No. 34–83000; File No. SR– Change
additional source of revenue shall not NYSEArca–2018–17]
1. Purpose
jeopardize, in the judgment of the
Self-Regulatory Organizations; NYSE The Commission has approved the
Commission, the actual or perceived Arca, Inc.; Notice of Filing and listing and trading on the Exchange of
independence of the standard setter. In Immediate Effectiveness of Proposed shares (‘‘Shares’’) of the ProShares Short
this regard, the Commission also Rule Change Relating to the ProShares VIX Short-Term Futures ETF (the ‘‘Short
considered the interrelation of the Short VIX Short-Term Futures ETF and Fund’’) and ProShares Ultra VIX Short-
operating budgets of the FAF, the FASB, ProShares Ultra VIX Short-Term Term Futures ETF (the ‘‘Ultra Fund’’
and the Governmental Accounting Futures ETF and, together with the Short Fund, the
Standards Board (‘‘GASB’’), the FASB’s ‘‘Funds’’) under NYSE Arca Rule 8.200–
sister organization, which sets April 5, 2018. E, Commentary .02 (formerly NYSE
accounting standards used by state and Pursuant to Section 19(b)(1) 1 of the Arca Equities Rule 8.200, Commentary
local government entities. The Securities Exchange Act of 1934 .02), which governs the listing and
Commission has been advised by the (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 trading of Trust Issued Receipts.4 Shares
FAF that neither the FAF, the FASB, nor notice is hereby given that on March 23, of the Funds are currently listed and
the GASB accept contributions from the 2018, NYSE Arca, Inc. (‘‘Exchange’’ or traded on the Exchange under NYSE
‘‘NYSE Arca’’) filed with the Securities Arca Rule 8.200–E, Commentary .02.5
accounting profession.
and Exchange Commission Other than Shares of the Short Fund and
The Commission understands that the (‘‘Commission’’) the proposed rule the Ultra Fund, shares of the ProShares
Office of Management and Budget change as described in Items I and II ETFs approved for listing and trading in
(‘‘OMB’’) has determined the FASB’s below, which Items have been prepared the Prior Order are not listed and traded
spending of the 2018 accounting by the self-regulatory organization. The on the Exchange.6
support fee is sequestrable under the Commission is publishing this notice to The Shares are issued by ProShares
Budget Control Act of 2011.3 So long as solicit comments on the proposed rule Trust II (the ‘‘Trust’’). ProShare Capital
sequestration is applicable, we change from interested persons. Management LLC (‘‘Sponsor’’) serves as
anticipate that the FAF will work with I. Self-Regulatory Organization’s the Trust’s Sponsor.
the Commission and Commission staff In this proposed rule change, the
Statement of the Terms of Substance of
as appropriate regarding its Exchange proposes to amend certain
the Proposed Rule Change
implementation of sequestration. representations made in the Prior Notice
The Exchange proposes to make relating to each Fund’s investment
The Commission requests that the changes to certain representations made
FAF and the FASB continue to provide in the proposed rule change previously 4 Commentary .02 to NYSE Arca Rule 8.200–E
the Commission with quarterly updates filed with the Commission pursuant to applies to TIRs that invest in ‘‘Financial
of their activities, including but not Rule 19b–4 relating to ProShares Short Instruments’’. The term ‘‘Financial Instruments’’, as
defined in Commentary .02(b)(4) to NYSE Arca Rule
limited to their efforts to include a VIX Short-Term Futures ETF and 8.200–E, means any combination of investments,
wide-range of views from investors, ProShares Ultra VIX Short-Term Futures including cash; securities; options on securities and
preparers, auditors, academics, and ETF, shares of which currently are listed indices; futures contracts; options on futures
other constituent groups, and their contracts; forward contracts; equity caps, collars
and traded under NYSE Arca Rule and floors; and swap agreements.
efforts to improve the selection process 8.200–E, Commentary .02. The proposed 5 The Commission previously approved the
for FASB and FAF members. rule change is available on the listing and trading of the Shares of the Funds on
After its review, the Commission Exchange’s website at www.nyse.com, at the Exchange. See Securities Exchange Act Release
the principal office of the Exchange, and Nos. 65134 (August 15, 2011), 76 FR 52034 (August
determined that the 2018 annual 19, 2011) (SR–NYSEArca–2011–23) (Order Granting
at the Commission’s Public Reference Approval of Proposed Rule Change To List and
accounting support fee for the FASB is
Room. Trade Shares of ProShares Short VIX Short-Term
consistent with Section 109 of the Act. Futures ETF, ProShares Short VIX Mid-Term
Accordingly, II. Self-Regulatory Organization’s Futures ETF, ProShares Ultra VIX Short-Term
It is ordered, pursuant to Section 109 Statement of the Purpose of, and Futures ETF, ProShares Ultra VIX Mid-Term
Statutory Basis for, the Proposed Rule Futures ETF, ProShares UltraShort VIX Short-Term
of the Act, that the FASB may act in Futures ETF, and ProShares UltraShort VIX Mid-
accordance with this determination of Change Term Futures ETF Under NYSE Arca Equities Rule
the Commission. In its filing with the Commission, the 8.200, Commentary .02) (the ‘‘Prior Order’’); 64470
(May 11, 2011), 76 FR 28493 (May 17, 2011) (SR–
self-regulatory organization included NYSEArca-2011–23) (Notice of Filing of Proposed
2 The Financial Accounting Foundation’s Board statements concerning the purpose of, Rule Change To List and Trade Shares of the Funds
amozie on DSK30RV082PROD with NOTICES
of Trustees approved the FASB’s budget on and basis for, the proposed rule change Under NYSE Arca Equities Rule 8.200, Commentary
November 14, 2017. The FAF submitted the and discussed any comments it received .02.) (the ‘‘Prior Notice’’).
approved budget to the Commission on November 6 On February 28, 2018, the Exchange appended
17, 2017.
on the proposed rule change. The text
a ‘‘.BC’’ (below compliance) indicator to the trading
3 See ‘‘OMB Report Pursuant to the Sequestration symbols for the Funds (SVXY for the Short Fund
1 15 U.S.C. 78s(b)(1).
Transparency Act of 2012’’ (P.L. 112–155), page 222 and UVXY for the Ultra Fund), signifying non-
2 15 U.S.C. 78a.
of 224 at: http://www.whitehouse.gov/sites/default/ compliance with certain representations in the Prior
files/omb/assets/legislative_reports/stareport.pdf. 3 17 CFR 240.19b–4. Notice and Prior Order.
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Document Created: 2018-04-10 23:59:12
Document Modified: 2018-04-10 23:59:12
| 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 15658 |
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