83 FR 22305 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 93 (May 14, 2018)
Federal Register Volume 83, Issue 93 (May 14, 2018)
| Page Range | 22305-22307 | |
| FR Document | 2018-10146 |
[Federal Register Volume 83, Number 93 (Monday, May 14, 2018)] [Notices] [Pages 22305-22307] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-10146] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270-541, OMB Control No. 3235-0620] 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 22c-2. 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 22c-2 (17 CFR 270.22c-2) under the Investment Company Act of 1940 (15 U.S.C. 80a) (the ``Investment Company Act'' or ``Act'') requires the board of directors (including a majority of independent directors) of most registered open-end investment companies (``funds'') to either approve a redemption fee of up to two percent or determine that imposition of a redemption fee is not necessary or appropriate for the fund. Rule 22c-2 also requires a fund to enter into written agreements with their financial intermediaries (such as broker-dealers and retirement plan administrators) under which the fund, upon request, can obtain certain shareholder identity and trading information from the intermediaries. The written agreement must also allow the fund to direct the intermediary to prohibit further purchases or exchanges by specific shareholders that the fund has identified as being engaged in transactions that violate the fund's market timing policies. These requirements enable funds to obtain the information that they need to monitor the frequency of short-term trading in omnibus accounts and enforce their market timing policies. The rule includes three ``collections of information'' within the meaning of the Paperwork Reduction Act of 1995 (``PRA'').\1\ First, the rule requires boards to either approve a redemption fee of up to two percent or determine that imposition of a redemption fee is not necessary or appropriate for the fund. Second, funds must enter into information sharing agreements with all of their ``financial intermediaries'' \2\ and maintain a copy of the written information sharing agreement with each intermediary in an easily accessible place for six years. Third, pursuant to the information sharing agreements, funds must have systems that enable them to request frequent trading information upon demand from their intermediaries, and to enforce any restrictions on trading required by funds under the rule. --------------------------------------------------------------------------- \1\ 44 U.S.C. 3501-3520. \2\ The rule defines a Financial Intermediary as: (i) Any broker, dealer, bank, or other person that holds securities issued by the fund in nominee name; (ii) a unit investment trust or fund that invests in the fund in reliance on section 12(d)(i)(E) of the Act; and (iii) in the case of a participant directed employee benefit plan that owns the securities issued by the fund, a retirement plan's administrator under section 316(A) of the Employee Retirement Security Act of 1974 (29 U.S.C. 1002(16)(A) or any person that maintains the plans' participant records. Financial Intermediary does not include any person that the fund treats as an individual investor with respect to the fund's policies established for the purpose of eliminating or reducing any dilution of the value of the outstanding securities issued by the fund. Rule 22c-2(c)(1). --------------------------------------------------------------------------- The collections of information created by rule 22c-2 are necessary for funds to effectively assess redemption fees, enforce their policies in frequent trading, and monitor short-term trading, including market timing, in omnibus accounts. These collections of information are mandatory for funds that redeem shares within seven days of purchase. The collections of information [[Page 22306]] also are necessary to allow Commission staff to fulfill its examination and oversight responsibilities. Rule 22c-2(a)(1) requires the board of directors of all registered open-end management investment companies and series thereof (except for money market funds, ETFs, or funds that affirmatively permit short-term trading of its securities) to approve a redemption fee for the fund, or instead make a determination that a redemption fee is either not necessary or appropriate for the fund. Commission staff understands that the boards of all funds currently in operation have undertaken this process for the funds they currently oversee, and the rule does not require boards to review this determination periodically once it has been made. Accordingly, we expect that only boards of newly registered funds or newly created series thereof would undertake this determination. Commission staff estimates that 42 funds (excluding money market funds and ETFs) are newly formed each year and would need to make this determination.\3\ --------------------------------------------------------------------------- \3\ This estimate is based on the number of registrants filing initial Form N-1A or N-3. This estimate does not carve out money market funds, ETFs, or funds that affirmatively permit short-term trading of their securities, so this estimate corresponds to the outer limit of the number of registrants that would have to make this determination. --------------------------------------------------------------------------- Based on conversations with fund representatives,\4\ Commission staff estimates that it takes 2 hours of the board's time as a whole (at a rate of $4465 per hour) \5\ to approve a redemption fee or make the required determination on behalf of all series of the fund. In addition, Commission staff estimates that it takes compliance personnel of the fund 8 hours (at a rate of $66 per hour) \6\ to prepare trading, compliance, and other information regarding the fund's operations to enable the board to make its determination, and takes internal compliance counsel of the fund 3 hours (at a rate of $345 per hour) \7\ to review this information and present its recommendations to the board. Therefore, for each fund board that undertakes this determination process, Commission staff estimates it expends 13 hours \8\ at a cost of $10,493.\9\ As a result, Commission staff estimates that the total time spent for all funds on this process is 546 hours at a cost of $440,706.\10\ --------------------------------------------------------------------------- \4\ Unless otherwise stated, estimates throughout this analysis are derived from a survey of funds and conversations with fund representatives. \5\ The estimate of $4465 per hour for the board's time as a whole is based on conversations with representatives of funds and their legal counsel. \6\ The $66 per hour figure for a compliance clerk is from SIFMA's Office Salaries in the Securities Industry 2013, modified by Commission staff to account for an 1800-hour work-year and inflation, and multiplied by 2.93 to account for bonuses, firm size, employee benefits and overhead. \7\ The $345 per hour figure for internal compliance counsel is from SIFMA's Management & Professional Earnings in the Securities Industry 2013, modified by Commission staff to account for an 1800- hour work-year and inflation, and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead. \8\ This calculation is based on the following estimates: (2 hours of board time + 3 hours of internal compliance counsel time + 8 hours of compliance clerk time = 13 hours). \9\ This calculation is based on the following estimates: ($8930 ($4465 board time x 2 hours = $8930) + $528 ($66 compliance time x 8 hours = $528) + $1035 ($345 attorney time x 3 hours = $1035) = $10,493). \10\ This calculation is based on the following estimates: (13 hours x 42 funds = 546 hours); ($10,493 x 42 funds = $440,706). --------------------------------------------------------------------------- Rule 22c-2(a)(2) also requires a fund to enter into information- sharing agreements with each of its financial intermediaries. Commission staff understands that all currently registered funds have already entered into such agreements with their intermediaries. Funds enter into new relationships with intermediaries from time to time, however, which requires them to enter into new information sharing agreements. Commission staff understands that, in general, funds enter into information-sharing agreement when they initially establish a relationship with an intermediary, which is typically executed as an addendum to the distribution agreement. The Commission staff understands that most shareholder information agreements are entered into by the fund group (a group of funds with a common investment adviser), and estimates that there are currently 850 currently active fund groups.\11\ Commission staff estimates that, on average, each active fund group enters into relationships with 3 new intermediaries each year. Commission staff understands that funds generally use a standard information sharing agreement, drafted by the fund or an outside entity, and modifies that agreement according to the requirements of each intermediary. Commission staff estimates that negotiating the terms and entering into an information sharing agreement takes a total of 4 hours of attorney time (at a rate of $392 per hour) \12\ per intermediary (representing 2.5 hours of fund attorney time and 1.5 hours of intermediary attorney time). Accordingly, Commission staff estimates that it takes 12 hours at a cost of $4704 each year \13\ to enter into new information sharing agreements, and all existing market participants incur a total of 10,200 hours at a cost of $3,998,400.\14\ --------------------------------------------------------------------------- \11\ ICI, 2017 Investment Company Fact Book at Fig 1.8 (2017) (https://www.ici.org/research/stats/factbook). \12\ The $392 per hour figure for attorneys is from SIFMA's Management & Professional Earnings in the Securities Industry 2013, modified by Commission staff to account for an 1800-hour work-year and inflation, and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead. \13\ This estimate is based on the following calculations: (4 hours x 3 new intermediaries = 12 hours); (12 hours x $392 = $4704). \14\ This estimate is based on the following calculations: (12 hours x 850 fund groups = 10,200 hours); (10,200 hours x $392 = $3,998,400). --------------------------------------------------------------------------- In addition, newly created funds advised by new entrants (effectively new fund groups) must enter into information sharing agreements with all of their financial intermediaries. Commission staff estimates that there are 47 new fund groups that form each year that will have to enter into information sharing agreements with each of their intermediaries.\15\ Commission staff estimates that fund groups formed by new advisers typically have relationships with significantly fewer intermediaries than existing fund groups, and estimates that new fund groups will typically enter into 100 information sharing agreements with their intermediaries when they begin operations.\16\ As discussed previously, Commission staff estimates that it takes 4 hours of attorney time (at a rate of $392 per hour) \17\ per intermediary to enter into information sharing agreements. Therefore, Commission staff estimates that each newly formed fund group will incur 400 hours of attorney time at a cost of $156,800 \18\ and that all newly formed fund groups will incur a total of 18,800 hours at a cost of $7,369,600 to enter into information sharing agreements with their intermediaries.\19\ --------------------------------------------------------------------------- \15\ ICI, 2017 Investment Company Fact Book at Fig 1.8 (2017) (https://www.ici.org/research/stats/factbook). \16\ Commission staff understands that funds generally use a standard information sharing agreement, drafted by the fund or an outside entity, and then modifies that agreement according to the requirements of each intermediary. \17\ The $392 per hour figure for an attorney is from SIFMA's Management & Professional Earnings in the Securities Industry 2013, modified by Commission staff to account for an 1800-hour work-year and inflation, and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead. \18\ This estimate is based on the following calculations: (4 hours x 100 intermediaries = 400 hours); (400 hours x $392 = $156,800). \19\ This estimate is based on the following calculations: (47 fund groups x 400 hours = 18,800 hours) ($392 x 18,800 = 7,369,600). --------------------------------------------------------------------------- Rule 22c-2(a)(3) requires funds to maintain records of all information-sharing agreements for 6 years in an easily accessible place. Commission staff understands that most shareholder [[Page 22307]] information agreements are stored at the fund group level and estimates that there are currently approximately 850 fund groups.\20\ Commission staff understands that information-sharing agreements are generally included as addendums to distribution agreements between funds and their intermediaries, and that these agreements would be stored as required by the rule as a matter of ordinary business practice. Therefore, Commission staff estimates that maintaining records of information-sharing agreements requires 10 minutes of time spent by a general clerk (at a rate of $59 per hour) \21\ per fund, each year. Accordingly, Commission staff estimates that all funds will incur 141.67 hours at a cost of $8358.53 \22\ in complying with the recordkeeping requirement of rule 22c-2(a)(3). --------------------------------------------------------------------------- \20\ ICI, 2017 Investment Company Fact Book at Fig 1.8 (2017) (https://www.ici.org/research/stats/factbook). \21\ The $59 per hour figure for a general clerk is derived from SIFMA's Office Salaries in the Securities Industry 2013 modified to account for an 1800-hour work-year and inflation, and multiplied by 2.93 to account for bonuses, firm size, employee benefits, and overhead. \22\ This estimate is based on the following calculations: (10 minutes x 850 fund groups = 8500 minutes); (8500 minutes/60 = 141.67 hours); (141.67 hours x $59 = $8358.53). --------------------------------------------------------------------------- Therefore, Commission staff estimates that to comply with the information sharing agreement requirements of rule 22c-2(a)(2) and (3), it requires a total of 29,141.67 hours at a cost of $11,403,358.53.\23\ --------------------------------------------------------------------------- \23\ This estimate is based on the following calculations: (10,200 hours + 18,800 hours + 141.67 hours = 29,141.67 hours); ($3,998,400 + $7,369,600 + $8358.53 = $11,403,358.53). --------------------------------------------------------------------------- The Commission staff estimates that on average, each fund group requests shareholder information once a week, and gives instructions regarding the restriction of shareholder trades every day, for a total of 417 responses related to information sharing systems per fund group each year, and a total 354,450 responses for all fund groups annually.\24\ In addition, as described above, the staff estimates that funds make 42 responses related to board determinations, 2550 responses related to new intermediaries of existing fund groups, 4700 responses related to new fund group information sharing agreements, and 850 responses related to recordkeeping, for a total of 8142 responses related to the other requirements of rule 22c-2. Therefore, the Commission staff estimates that the total number of responses is 362,592 (354,450 + 8142 = 362,592). --------------------------------------------------------------------------- \24\ This estimate is based on the following calculations: (52 + 365 = 417); (417 x 850 fund groups = 354,450). --------------------------------------------------------------------------- The Commission staff estimates that the total hour burden for rule 22c-2 is 29,687.67 hours at a cost of $11,817,056.50.\25\ Responses provided to the Commission will be accorded the same level of confidentiality accorded to other responses provided to the Commission in the context of its examination and oversight program. Responses provided in the context of the Commission's examination and oversight program are generally kept confidential. Complying with the information collections of rule 22c-2 is mandatory for funds that redeem their shares within 7 days of purchase. 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. --------------------------------------------------------------------------- \25\ This estimate is based on the following calculations: (546 hours (board determination) + 29,141.67 hours (information sharing agreements) = 29,687.67 total hours); ($440,706 (board determination) + $11,376,350.53 (information sharing agreements) = $11,817,056.50). --------------------------------------------------------------------------- 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: May 8, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-10146 Filed 5-11-18; 8:45 am] BILLING CODE 8011-01-P
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Commission believes that waiver of the public in accordance with the also requires a fund to enter into written
30-day operative delay is consistent provisions of 5 U.S.C. 552, will be agreements with their financial
with the protection of investors and the available for website viewing and intermediaries (such as broker-dealers
public interest. Accordingly, the printing in the Commission’s Public and retirement plan administrators)
Commission hereby waives the 30-day Reference Room, 100 F Street, NE, under which the fund, upon request,
operative delay and designates the Washington, DC 20549, on official can obtain certain shareholder identity
proposed rule change operative upon business days between the hours of and trading information from the
filing.15 10:00 a.m. and 3:00 p.m. Copies of the intermediaries. The written agreement
At any time within 60 days of the filing also will be available for must also allow the fund to direct the
filing of the proposed rule change, the inspection and copying at the principal intermediary to prohibit further
Commission summarily may office of the Exchange. All comments purchases or exchanges by specific
temporarily suspend such rule change if received will be posted without change. shareholders that the fund has
it appears to the Commission that such Persons submitting comments are identified as being engaged in
action is necessary or appropriate in the cautioned that we do not redact or edit transactions that violate the fund’s
public interest, for the protection of personal identifying information from market timing policies. These
investors, or otherwise in furtherance of comment submissions. You should requirements enable funds to obtain the
the purposes of the Act. If the submit only information that you wish information that they need to monitor
Commission takes such action, the to make available publicly. All the frequency of short-term trading in
Commission shall institute proceedings submissions should refer to File omnibus accounts and enforce their
to determine whether the proposed rule Number CboeBZX–2018–032 and should market timing policies.
change should be approved or be submitted on or before June 4, 2018. The rule includes three ‘‘collections
disapproved. of information’’ within the meaning of
For the Commission, by the Division of
IV. Solicitation of Comments Trading and Markets, pursuant to delegated the Paperwork Reduction Act of 1995
authority.16 (‘‘PRA’’).1 First, the rule requires boards
Interested persons are invited to to either approve a redemption fee of up
submit written data, views, and Eduardo A. Aleman,
Assistant Secretary. to two percent or determine that
arguments concerning the foregoing, imposition of a redemption fee is not
including whether the proposed rule [FR Doc. 2018–10140 Filed 5–11–18; 8:45 am]
necessary or appropriate for the fund.
change is consistent with the Act. BILLING CODE 8011–01–P
Second, funds must enter into
Comments may be submitted by any of information sharing agreements with all
the following methods: of their ‘‘financial intermediaries’’ 2 and
SECURITIES AND EXCHANGE
Electronic Comments COMMISSION maintain a copy of the written
• Use the Commission’s internet information sharing agreement with
[SEC File No. 270–541, OMB Control No. each intermediary in an easily
comment form (http://www.sec.gov/ 3235–0620]
rules/sro.shtml); or accessible place for six years. Third,
• Send an email to rule-comments@ pursuant to the information sharing
Submission for OMB Review;
sec.gov. Please include File Number agreements, funds must have systems
Comment Request
CboeBZX–2018–032 on the subject line. that enable them to request frequent
Upon Written Request, Copies Available trading information upon demand from
Paper Comments From: Securities and Exchange their intermediaries, and to enforce any
• Send paper comments in triplicate Commission, Office of FOIA Services, restrictions on trading required by funds
to Secretary, Securities and Exchange 100 F Street NE, Washington, DC under the rule.
Commission, 100 F Street, NE, 20549–2736. The collections of information created
Washington, DC 20549–1090. Extension: by rule 22c–2 are necessary for funds to
All submissions should refer to File Rule 22c–2. effectively assess redemption fees,
Number CboeBZX–2018–032. This file enforce their policies in frequent
Notice is hereby given that pursuant trading, and monitor short-term trading,
number should be included on the to the Paperwork Reduction Act of 1995
subject line if email is used. To help the including market timing, in omnibus
(44 U.S.C. 3501 et seq.) the Securities accounts. These collections of
Commission process and review your and Exchange Commission (the
comments more efficiently, please use information are mandatory for funds
‘‘Commission’’) has submitted to the that redeem shares within seven days of
only one method. The Commission will Office of Management and Budget a
post all comments on the Commission’s purchase. The collections of information
request for extension of the previously
internet website (http://www.sec.gov/ approved collection of information 1 44 U.S.C. 3501–3520.
rules/sro.shtml). Copies of the discussed below. 2 The rule defines a Financial Intermediary as: (i)
submission, all subsequent Rule 22c–2 (17 CFR 270.22c–2) under Any broker, dealer, bank, or other person that holds
amendments, all written statements the Investment Company Act of 1940 securities issued by the fund in nominee name; (ii)
with respect to the proposed rule (15 U.S.C. 80a) (the ‘‘Investment a unit investment trust or fund that invests in the
change that are filed with the fund in reliance on section 12(d)(i)(E) of the Act;
Company Act’’ or ‘‘Act’’) requires the and (iii) in the case of a participant directed
Commission, and all written board of directors (including a majority employee benefit plan that owns the securities
communications relating to the of independent directors) of most issued by the fund, a retirement plan’s
proposed rule change between the registered open-end investment administrator under section 316(A) of the Employee
amozie on DSK3GDR082PROD with NOTICES
Commission and any person, other than Retirement Security Act of 1974 (29 U.S.C.
companies (‘‘funds’’) to either approve a 1002(16)(A) or any person that maintains the plans’
those that may be withheld from the redemption fee of up to two percent or participant records. Financial Intermediary does not
determine that imposition of a include any person that the fund treats as an
15 For purposes only of waiving the 30-day individual investor with respect to the fund’s
redemption fee is not necessary or
operative delay, the Commission has also policies established for the purpose of eliminating
considered the proposed rule’s impact on appropriate for the fund. Rule 22c–2 or reducing any dilution of the value of the
efficiency, competition, and capital formation. See outstanding securities issued by the fund. Rule 22c–
15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 2(c)(1).
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![Federal Register / Vol. 83, No. 93 / Monday, May 14, 2018 / Notices 22307
information agreements are stored at the The Commission staff estimates that Notice is hereby given that pursuant
fund group level and estimates that the total hour burden for rule 22c–2 is to the Paperwork Reduction Act of 1995
there are currently approximately 850 29,687.67 hours at a cost of (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
fund groups.20 Commission staff $11,817,056.50.25 Responses provided Securities and Exchange Commission
understands that information-sharing to the Commission will be accorded the (‘‘Commission’’) has submitted to the
agreements are generally included as same level of confidentiality accorded to Office of Management and Budget
addendums to distribution agreements other responses provided to the (‘‘OMB’’) a request for approval of
between funds and their intermediaries, Commission in the context of its extension of the previously approved
and that these agreements would be examination and oversight program. collection of information provided for in
stored as required by the rule as a matter Responses provided in the context of Rule 12f–3 (17 CFR 240.12f–3), under
of ordinary business practice. Therefore, the Commission’s examination and the Securities Exchange Act of 1934
Commission staff estimates that oversight program are generally kept (‘‘Act’’) (15 U.S.C. 78a et seq.).
maintaining records of information- confidential. Complying with the Rule 12f–3 (‘‘Rule’’), which was
sharing agreements requires 10 minutes information collections of rule 22c–2 is originally adopted in 1955 pursuant to
of time spent by a general clerk (at a rate mandatory for funds that redeem their Sections 12(f) and 23(a) of the Act, and
of $59 per hour) 21 per fund, each year. shares within 7 days of purchase. An as further modified in 1995, sets forth
Accordingly, Commission staff agency may not conduct or sponsor, and the requirements to submit an
estimates that all funds will incur a person is not required to respond to application to the Commission for
141.67 hours at a cost of $8358.53 22 in a collection of information unless it termination or suspension of unlisted
complying with the recordkeeping displays a currently valid control trading privileges in a security, as
requirement of rule 22c–2(a)(3). number. contemplated under Section 12(f)(4) of
The public may view the background the Act. In addition to requiring that one
Therefore, Commission staff estimates
documentation for this information copy of the application be filed with the
that to comply with the information
collection at the following website, Commission, the Rule requires that the
sharing agreement requirements of rule application contain specified
22c–2(a)(2) and (3), it requires a total of www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the information. Under the Rule, an
29,141.67 hours at a cost of application to suspend or terminate
$11,403,358.53.23 Securities and Exchange Commission,
Office of Information and Regulatory unlisted trading privileges must
The Commission staff estimates that Affairs, Office of Management and provide, among other things, the name
on average, each fund group requests Budget, Room 10102, New Executive of the applicant; a brief statement of the
shareholder information once a week, Office Building, Washington, DC 20503, applicant’s interest in the question of
and gives instructions regarding the or by sending an email to: Shagufta_ termination or suspension of such
restriction of shareholder trades every Ahmed@omb.eop.gov; and (ii) Pamela unlisted trading privileges; the title of
day, for a total of 417 responses related Dyson, Director/Chief Information the security; the name of the issuer;
to information sharing systems per fund Officer, Securities and Exchange certain information regarding the size of
group each year, and a total 354,450 Commission, c/o Remi Pavlik-Simon, the class of security, the public trading
responses for all fund groups 100 F Street NE, Washington, DC 20549 volume and price history in the security
annually.24 In addition, as described or send an email to: PRA_Mailbox@ for specified time periods on the subject
above, the staff estimates that funds sec.gov. Comments must be submitted to exchange and a statement indicating
make 42 responses related to board OMB within 30 days of this notice. that the applicant has provided a copy
determinations, 2550 responses related of such application to the exchange
to new intermediaries of existing fund Dated: May 8, 2018. from which the suspension or
groups, 4700 responses related to new Eduardo A. Aleman, termination of unlisted trading
fund group information sharing Assistant Secretary. privileges are sought, and to any other
agreements, and 850 responses related [FR Doc. 2018–10146 Filed 5–11–18; 8:45 am] exchange on which the security is listed
to recordkeeping, for a total of 8142 BILLING CODE 8011–01–P or admitted to unlisted trading
responses related to the other privileges.
requirements of rule 22c–2. Therefore, The information required to be
the Commission staff estimates that the SECURITIES AND EXCHANGE included in applications submitted
total number of responses is 362,592 COMMISSION pursuant to Rule 12f–3, is intended to
(354,450 + 8142 = 362,592). provide the Commission with sufficient
[SEC File No. 270–141, OMB Control No.
3235–0249] information to make the necessary
20 ICI, 2017 Investment Company Fact Book at Fig findings under the Act to terminate or
1.8 (2017) (https://www.ici.org/research/stats/ Submission for OMB Review; suspend by order the unlisted trading
factbook). Comment Request privileges granted a security on a
21 The $59 per hour figure for a general clerk is
national securities exchange. Without
derived from SIFMA’s Office Salaries in the Upon Written Request, Copies Available
Securities Industry 2013 modified to account for an
the Rule, the Commission would be
1800-hour work-year and inflation, and multiplied
from: Securities and Exchange unable to fulfill these statutory
by 2.93 to account for bonuses, firm size, employee Commission, Office of FOIA Services, responsibilities.
benefits, and overhead. 100 F Street NE, Washington, DC The burden of complying with Rule
22 This estimate is based on the following
20549–2736. 12f–3 arises when a potential
calculations: (10 minutes × 850 fund groups = 8500
minutes); (8500 minutes/60 = 141.67 hours); Extension: respondent, having a demonstrable bona
amozie on DSK3GDR082PROD with NOTICES
(141.67 hours × $59 = $8358.53). Rule 12f–3 fide interest in the question of
23 This estimate is based on the following termination or suspension of the
calculations: (10,200 hours + 18,800 hours + 141.67 25 This estimate is based on the following unlisted trading privileges of a security,
hours = 29,141.67 hours); ($3,998,400 + $7,369,600 calculations: (546 hours (board determination) + determines to seek such termination or
+ $8358.53 = $11,403,358.53). 29,141.67 hours (information sharing agreements) =
24 This estimate is based on the following 29,687.67 total hours); ($440,706 (board
suspension. The staff estimates that
calculations: (52 + 365 = 417); (417 × 850 fund determination) + $11,376,350.53 (information each such application to terminate or
groups = 354,450). sharing agreements) = $11,817,056.50). suspend unlisted trading privileges
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Document Created: 2018-05-12 01:11:47
Document Modified: 2018-05-12 01:11:47
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 22305 |
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