83 FR 24376 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 102 (May 25, 2018)

Page Range		24376-24377
FR Document		2018-11218
Federal Register, Volume 83 Issue 102 (Friday, May 25, 2018)
[Federal Register Volume 83, Number 102 (Friday, May 25, 2018)]
[Notices]
[Pages 24376-24377]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11218]


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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 17g-1, SEC File No. 270-208, OMB Control No. 3235-0213

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 350l-3520), 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 17g-1 (17 CFR 270.17g-1) under the Investment Company Act of 
1940 (the ``Act'') (15 U.S.C. 80a-17(g)) governs the fidelity bonding 
of officers and employees of registered management investment companies 
(``funds'') and their advisers. Rule 17g-1 requires, in part, the 
following:

Independent Directors' Approval

    The form and amount of the fidelity bond must be approved by a 
majority of the fund's independent directors at least once annually, 
and the amount of any premium paid by the fund for any ``joint insured 
bond,'' covering multiple funds or certain affiliates, must be approved 
by a majority of the fund's independent directors.

Terms and Provisions of the Bond

    The amount of the bond may not be less than the minimum amounts of 
coverage set forth in a schedule based on the fund's gross assets. The 
bond must provide that it shall not be cancelled, terminated, or 
modified except upon 60-days written notice to the affected party and 
to the Commission. In the case of a joint insured bond, 60-days written 
notice must also be given to each fund covered by the bond. A joint 
insured bond must provide that the fidelity insurance company will 
provide all funds covered by the bond with a copy of the agreement, a 
copy of any claim on the bond, and notification of the terms of the 
settlement of any claim prior to execution of that settlement. Finally, 
a fund that is insured by a joint bond must enter into an agreement 
with all other parties insured by the joint bond regarding recovery 
under the bond.

Filings with the Commission

    Upon the execution of a fidelity bond or any amendment thereto, a 
fund must file with the Commission within 10 days: (i) A copy of the 
executed bond or any amendment to the bond, (ii) the independent 
directors' resolution approving the bond, and (iii) a statement as to 
the period for which premiums have been paid on the bond. In the case 
of a joint insured bond, a fund must also file: (i) A statement showing 
the amount the fund would have been required to maintain under the rule 
if it were insured under a single insured bond; and (ii) the agreement 
between the fund and all other insured parties regarding recovery under 
the bond. A fund must also notify the Commission in writing within five 
days of any claim or settlement on a claim under the fidelity bond.

Notices to Directors

    A fund must notify by registered mail each member of its board of 
directors of: (i) Any cancellation, termination, or modification of the 
fidelity bond at least 45 days prior to the effective date; and (ii) 
the filing or settlement of any claim under the fidelity bond when 
notification is filed with the Commission.
    Rule 17g-1's independent directors' annual review requirements, 
fidelity bond content requirements, joint bond agreement requirement, 
and the required notices to directors are designed to ensure the safety 
of fund assets against losses due to the conduct of persons who may 
obtain access to those assets. These requirements also seek to 
facilitate oversight of a fund's fidelity bond. The rule's required 
filings with the Commission are designed to assist the Commission in 
monitoring funds' compliance with the fidelity bond requirements.
    Based on conversations with representatives in the fund industry, 
the Commission staff estimates that for each of the estimated 3,173 
active funds (respondents),\1\ the average annual paperwork burden 
associated with rule

[[Page 24377]]

17g-1's requirements is two hours, one hour each for a compliance 
attorney and the board of directors as a whole. The time spent by a 
compliance attorney includes time spent filing reports with the 
Commission for fidelity losses (if any) as well as paperwork associated 
with any notices to directors, and managing any updates to the bond and 
the joint agreement (if one exists). The time spent by the board of 
directors as a whole includes any time spent initially establishing the 
bond, as well as time spent on annual updates and approvals. The 
Commission staff therefore estimates the total ongoing paperwork burden 
hours per year for all funds required by rule 17g-1 to be 6,346 hours 
(3,173 funds x 2 hours = 6,346 hours).
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    \1\ Based on statistics compiled by Commission staff, we 
estimate that there are approximately 3,173 funds that must comply 
with the collections of information under rule 17g-1 and have made a 
filing within the last 12 months.
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    These estimates of average burden hours are made solely for the 
purposes of the Paperwork Reduction Act. These estimates are not 
derived from a comprehensive or even a representative survey or study 
of Commission rules. The collection of information required by Rule 
17g-1 is mandatory and 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: May 18, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-11218 Filed 5-24-18; 8:45 am]
 BILLING CODE 8011-01-P
24376 Federal Register / Vol. 83, No. 102 / Friday, May 25, 2018 / Notices

IV. Solicitation of Comments For the Commission, by the Division of by the bond with a copy of the
Trading and Markets, pursuant to delegated agreement, a copy of any claim on the
Interested persons are invited to authority.38 bond, and notification of the terms of
submit written data, views, and Eduardo A. Aleman, the settlement of any claim prior to
arguments concerning the foregoing, Assistant Secretary. execution of that settlement. Finally, a
including whether the proposed rule [FR Doc. 2018–11222 Filed 5–24–18; 8:45 am] fund that is insured by a joint bond
change is consistent with the Act. BILLING CODE 8011–01–P must enter into an agreement with all
Comments may be submitted by any of other parties insured by the joint bond
the following methods: regarding recovery under the bond.
SECURITIES AND EXCHANGE
Electronic Comments Filings with the Commission
COMMISSION
Upon the execution of a fidelity bond
• Use the Commission’s internet or any amendment thereto, a fund must
Submission for OMB Review;
comment form (http://www.sec.gov/ Comment Request file with the Commission within 10
rules/sro.shtml); or days: (i) A copy of the executed bond or
• Send an email to rule-comments@ Upon Written Request, Copies Available any amendment to the bond, (ii) the
From: Securities and Exchange independent directors’ resolution
sec.gov. Please include File Number SR–
Commission, Office of FOIA Services, approving the bond, and (iii) a
CBOE–2018–040 on the subject line.
100 F Street NE, Washington, DC statement as to the period for which
Paper Comments 20549–2736 premiums have been paid on the bond.
Extension: In the case of a joint insured bond, a
• Send paper comments in triplicate Rule 17g–1, SEC File No. 270–208, OMB fund must also file: (i) A statement
to Secretary, Securities and Exchange Control No. 3235–0213 showing the amount the fund would
Commission, 100 F Street NE,
Notice is hereby given that, pursuant have been required to maintain under
Washington, DC 20549–1090. the rule if it were insured under a single
to the Paperwork Reduction Act of 1995
All submissions should refer to File (44 U.S.C. 350l-3520), the Securities and insured bond; and (ii) the agreement
Number SR–CBOE–2018–040. This file Exchange Commission (the between the fund and all other insured
number should be included on the ‘‘Commission’’) has submitted to the parties regarding recovery under the
subject line if email is used. To help the Office of Management and Budget a bond. A fund must also notify the
Commission process and review your request for extension of the previously Commission in writing within five days
comments more efficiently, please use approved collection of information of any claim or settlement on a claim
only one method. The Commission will discussed below. under the fidelity bond.
post all comments on the Commission’s Rule 17g–1 (17 CFR 270.17g–1) under Notices to Directors
internet website (http://www.sec.gov/ the Investment Company Act of 1940
(the ‘‘Act’’) (15 U.S.C. 80a–17(g)) A fund must notify by registered mail
rules/sro.shtml). Copies of the each member of its board of directors of:
governs the fidelity bonding of officers
submission, all subsequent (i) Any cancellation, termination, or
and employees of registered
amendments, all written statements modification of the fidelity bond at least
management investment companies
with respect to the proposed rule (‘‘funds’’) and their advisers. Rule 17g– 45 days prior to the effective date; and
change that are filed with the 1 requires, in part, the following: (ii) the filing or settlement of any claim
Commission, and all written under the fidelity bond when
communications relating to the Independent Directors’ Approval notification is filed with the
proposed rule change between the The form and amount of the fidelity Commission.
Commission and any person, other than bond must be approved by a majority of Rule 17g–1’s independent directors’
those that may be withheld from the the fund’s independent directors at least annual review requirements, fidelity
public in accordance with the once annually, and the amount of any bond content requirements, joint bond
provisions of 5 U.S.C. 552, will be premium paid by the fund for any ‘‘joint agreement requirement, and the
available for website viewing and insured bond,’’ covering multiple funds required notices to directors are
printing in the Commission’s Public or certain affiliates, must be approved designed to ensure the safety of fund
by a majority of the fund’s independent assets against losses due to the conduct
Reference Room, 100 F Street NE,
directors. of persons who may obtain access to
Washington, DC 20549 on official
those assets. These requirements also
business days between the hours of Terms and Provisions of the Bond seek to facilitate oversight of a fund’s
10:00 a.m. and 3:00 p.m. Copies of the fidelity bond. The rule’s required filings
The amount of the bond may not be
filing also will be available for with the Commission are designed to
less than the minimum amounts of
inspection and copying at the principal coverage set forth in a schedule based assist the Commission in monitoring
office of the Exchange. All comments on the fund’s gross assets. The bond funds’ compliance with the fidelity
received will be posted without change. must provide that it shall not be bond requirements.
Persons submitting comments are cancelled, terminated, or modified Based on conversations with
cautioned that we do not redact or edit except upon 60-days written notice to representatives in the fund industry, the
personal identifying information from the affected party and to the Commission staff estimates that for each
comment submissions. You should Commission. In the case of a joint of the estimated 3,173 active funds
amozie on DSK3GDR082PROD with NOTICES1

submit only information that you wish insured bond, 60-days written notice (respondents),1 the average annual
to make available publicly. All must also be given to each fund covered paperwork burden associated with rule
submissions should refer to File by the bond. A joint insured bond must
1 Based on statistics compiled by Commission
Number SR–CBOE–2018–040 and provide that the fidelity insurance
staff, we estimate that there are approximately 3,173
should be submitted on or before June company will provide all funds covered funds that must comply with the collections of
15, 2018. information under rule 17g–1 and have made a
38 17 CFR 200.30–3(a)(12). filing within the last 12 months.

VerDate Sep<11>2014 18:28 May 24, 2018 Jkt 241001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 E:\FR\FM\25MYN1.SGM 25MYN1
Document Created: 2018-05-25 02:12:45
Document Modified: 2018-05-25 02:12:45
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 24376