83 FR 17694 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 78 (April 23, 2018)

Page Range		17694-17695
FR Document		2018-08400
Federal Register, Volume 83 Issue 78 (Monday, April 23, 2018)
[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)]
[Notices]
[Pages 17694-17695]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08400]


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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 17f-6; SEC File No. 270-392, OMB Control No. 3235-0447

    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 17f-6 (17 CFR 270.17f-6) under the Investment Company Act of 
1940 (15 U.S.C. 80a) permits registered investment companies 
(``funds'') to maintain assets (i.e., margin) with futures commission 
merchants (``FCMs'') in connection with commodity transactions effected 
on both domestic and foreign exchanges. Prior to the rule's adoption, 
funds generally were required to maintain these assets in special 
accounts with a custodian bank.
    The rule requires a written contract that contains certain 
provisions designed to ensure important safeguards and other benefits 
relating to the custody of fund assets by FCMs. To protect fund assets, 
the contract must require that FCMs comply with the segregation or 
secured amount requirements of the Commodity Exchange Act (``CEA'') and 
the rules under that statute. The contract also must contain a 
requirement that FCMs obtain an acknowledgment from any clearing 
organization that the fund's assets are held on behalf of the FCM's 
customers according to CEA provisions.
    Because rule 17f-6 does not impose any ongoing obligations on funds 
or FCMs, Commission staff estimates there are no costs related to 
existing contracts between funds and FCMs. This estimate does not 
include the time required by an FCM to comply with the rule's contract 
requirements because, to the extent that complying with the contract 
provisions could be considered ``collections of information,'' the 
burden hours for compliance are already included in other PRA 
submissions.\1\
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    \1\ The rule requires a contract with the FCM to contain two 
provisions requiring the FCM to comply with existing requirements 
under the CEA and rules adopted thereunder. Thus, to the extent 
these provisions could be considered collections of information, the 
hours required for compliance would be included in the collection of 
information burden hours submitted by the CFTC for its rules.
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    Thus, Commission staff estimates that any burden of the rule would 
be borne by funds and FCMs entering into new contracts pursuant to the 
rule. Commission staff estimates that approximately 214 fund complexes 
and 2,825 funds currently effect commodities transactions and could 
deposit margin with FCMs in connection with those transactions pursuant 
to rule 17f-6.\2\ Staff further

[[Page 17695]]

estimates that of this number, 21 fund complexes and 283 funds enter 
into new contracts with FCMs each year.\3\
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    \2\ This estimate is based on the number of funds that reported 
on Form N-SAR from June 1, 2017-November 30, 2017, in response to 
sub-items E through I of item 70, that they engaged in futures and 
commodity options transactions.
    \3\ These estimates are based on the assumption that 10% of fund 
complexes and funds enter into new FCM contracts each year. This 
assumption encompasses fund complexes and funds that enter into FCM 
contracts for the first time, as well as fund complexes and fund 
that change the FCM with whom they maintain margin accounts for 
commodities transactions.
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    Based on conversations with fund representatives, Commission staff 
understands that fund complexes typically enter into contracts with 
FCMs on behalf of all funds in the fund complex that engage in 
commodities transactions. Funds covered by the contract are typically 
listed in an attachment, which may be amended to encompass new funds. 
Commission staff estimates that the burden for a fund complex to enter 
into a contract with an FCM that contains the contract requirements of 
rule 17f-6 is one hour, and further estimates that the burden to add a 
fund to an existing contract between a fund complex and an FCM is 6 
minutes.
    Accordingly, Commission staff estimates that funds and FCMs spend 
49 burden hours annually complying with the information collection 
requirements of rule 17f-6.\4\ These estimates 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.
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    \4\ This estimate is based upon the following calculation: (21 
fund complexes x 1 hour) + (283 funds x 0.1 hours) = 49 hours.
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    Compliance with the collection of information requirements of the 
rule is necessary to obtain the benefit of relying on the rule. 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.
    Written comments are invited 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 burden 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 after 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: PRA_Mailbox@sec.gov.

    Dated: April 18, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08400 Filed 4-20-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Notices 17695

estimates that of this number, 21 fund writing within 60 days after this of the burden of the collection of
complexes and 283 funds enter into new publication. information; (c) ways to enhance the
contracts with FCMs each year.3 Please direct your written comments quality, utility, and clarity of the
Based on conversations with fund to Pamela Dyson, Director/Chief information collected; and (d) ways to
representatives, Commission staff Information Officer, Securities and minimize the burden of the collection of
understands that fund complexes Exchange Commission, C/O Remi information on respondents, including
typically enter into contracts with FCMs Pavlik-Simon, 100 F Street NE, through the use of automated collection
on behalf of all funds in the fund Washington, DC 20549; or send an email techniques or other forms of information
complex that engage in commodities to: PRA_Mailbox@sec.gov. technology. Consideration will be given
transactions. Funds covered by the Dated: April 18, 2018. to comments and suggestions submitted
contract are typically listed in an Eduardo A. Aleman, in writing within 60 days of this
attachment, which may be amended to publication.
Assistant Secretary.
encompass new funds. Commission staff An agency may not conduct or
[FR Doc. 2018–08400 Filed 4–20–18; 8:45 am]
estimates that the burden for a fund sponsor, and a person is not required to
BILLING CODE 8011–01–P respond to, a collection of information
complex to enter into a contract with an
FCM that contains the contract under the PRA unless it displays a
requirements of rule 17f–6 is one hour, currently valid OMB control number.
SECURITIES AND EXCHANGE Please direct your written comments
and further estimates that the burden to COMMISSION
add a fund to an existing contract to: Pamela Dyson, Director/Chief
between a fund complex and an FCM is Proposed Collection; Comment Information Officer, Securities and
6 minutes. Request Exchange Commission, c/o Remi Pavlik-
Accordingly, Commission staff Simon, 100 F Street NE, Washington,
estimates that funds and FCMs spend 49 Upon Written Request, Copies Available DC 20549 or send an email to PRA_
burden hours annually complying with From: Securities and Exchange Mailbox@sec.gov.
the information collection requirements Commission, Office of FOIA Services, Dated: April 17, 2018.
of rule 17f–6.4 These estimates are made 100 F Street NE, Washington, DC
Eduardo A. Aleman,
solely for the purposes of the Paperwork 20549–2736
Assistant Secretary.
Reduction Act, and are not derived from Extension: [FR Doc. 2018–08401 Filed 4–20–18; 8:45 am]
a comprehensive or even a Rule 15g–5, SEC File No. 270–348, OMB
BILLING CODE 8011–01–P
representative survey or study of the Control No. 3235–0394
costs of Commission rules and forms. Notice is hereby given that pursuant
Compliance with the collection of to the Paperwork Reduction Act of 1995 SECURITIES AND EXCHANGE
information requirements of the rule is (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the COMMISSION
necessary to obtain the benefit of relying Securities and Exchange Commission
on the rule. An agency may not conduct (‘‘Commission’’) is soliciting comments Proposed Collection; Comment
or sponsor, and a person is not required on the existing collection of information Request
to respond to, a collection of provided for in Rule 15g–5—Disclosure
information unless it displays a Upon Written Request, Copies Available
of Compensation to Associated Persons
currently valid control number. From: Securities and Exchange
in Connection with Penny Stock
Commission, Office of FOIA Services,
Written comments are invited on: (a) Transactions—(17 CFR 240.15g–5)
100 F Street NE, Washington, DC
Whether the collection of information is under the Securities Exchange Act of
20549–2736
necessary for the proper performance of 1934 (15 U.S.C. 78a et seq.). The
the functions of the Commission, Commission plans to submit this Extension:
including whether the information has existing collection of information to the Rule 15g–6, SEC File No. 270–349, OMB
Control No. 3235–0395
practical utility; (b) the accuracy of the Office of Management and Budget
Commission’s estimate of the burden of (‘‘OMB’’) for extension and approval. Notice is hereby given that pursuant
the collection of information; (c) ways to Rule 15g–5 requires brokers and to the Paperwork Reduction Act of 1995
enhance the quality, utility, and clarity dealers to disclose to customers the (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
of the information collected; and (d) amount of compensation to be received Securities and Exchange Commission
ways to minimize the burden of the by their sales agents in connection with (‘‘Commission’’) is soliciting comments
collection of information on penny stock transactions. The purpose on the existing collection of information
respondents, including through the use of the rule is to increase the level of provided for in Rule 15g–6—Account
of automated collection techniques or disclosure to investors concerning Statements for Penny Stock
other forms of information technology. penny stocks generally and specific Customers—(17 CFR 240.15g–6) under
Consideration will be given to penny stock transactions. the Securities Exchange Act of 1934 (15
comments and suggestions submitted in The Commission estimates that U.S.C. 78a et seq.). The Commission
approximately 195 broker-dealers will plans to submit this existing collection
through I of item 70, that they engaged in futures spend an average of 87 hours annually of information to the Office of
and commodity options transactions. to comply with the rule. Thus, the total Management and Budget (‘‘OMB’’) for
3 These estimates are based on the assumption
compliance burden is approximately extension and approval.
that 10% of fund complexes and funds enter into 16,965 burden-hours per year. Rule 15g–6 requires brokers and
new FCM contracts each year. This assumption
amozie on DSK30RV082PROD with NOTICES

encompasses fund complexes and funds that enter Written comments are invited on: (a) dealers that sell penny stocks to provide
into FCM contracts for the first time, as well as fund Whether the proposed collection of their customers monthly account
complexes and fund that change the FCM with information is necessary for the proper statements containing information with
whom they maintain margin accounts for performance of the functions of the regard to the penny stocks held in
commodities transactions.
4 This estimate is based upon the following agency, including whether the customer accounts. The purpose of the
calculation: (21 fund complexes × 1 hour) + (283 information will have practical utility; rule is to increase the level of disclosure
funds × 0.1 hours) = 49 hours. (b) the accuracy of the agency’s estimate to investors concerning penny stocks

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Document Created: 2018-04-21 00:33:07
Document Modified: 2018-04-21 00:33:07
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 17694