83 FR 3459 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 17 (January 25, 2018)

Page Range		3459-3460
FR Document		2018-01337
Federal Register, Volume 83 Issue 17 (Thursday, January 25, 2018)
[Federal Register Volume 83, Number 17 (Thursday, January 25, 2018)]
[Notices]
[Pages 3459-3460]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01337]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-173, OMB Control No. 3235-0178]


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 31a-1.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget a request for extension of the previously approved 
collection of information discussed below.
    Rule 31a-1 (17 CFR 270.31a-1) under the Investment Company Act of 
1940 (the ``Act'') (15 U.S.C. 80a) is entitled ``Records to be 
maintained by registered investment companies, certain majority-owned 
subsidiaries thereof, and other persons having transactions with 
registered investment companies.'' Rule 31a-1 requires registered 
investment companies (``funds''), and every underwriter, broker, 
dealer, or investment adviser that is a majority-owned subsidiary of a 
fund, to maintain and keep current accounts, books, and other documents 
which constitute the record forming the basis for financial statements 
required to be filed pursuant to section 31 of the Act (15 U.S.C. 80a-
30) and of the auditor's certificates relating thereto. The rule lists 
specific records to be maintained by funds. The rule also requires 
certain underwriters, brokers, dealers, depositors, and investment 
advisers to maintain the records that they are required to maintain 
under federal securities laws. The Commission periodically inspects the 
operations of funds to insure their compliance with the provisions of 
the Act and the rules thereunder. The books and records required to be 
maintained by rule 31a-1 constitute a major focus of the Commission's 
inspection program.
    There are approximately 4029 investment companies registered with 
the Commission, all of which are required to comply with rule 31a-1. 
For purposes of determining the burden imposed by rule 31a-1, the 
Commission staff estimates that each fund is divided into approximately 
four series, on average, and that each series is required to comply 
with the recordkeeping requirements of rule 31a-1. Based on 
conversations with fund representatives, it is estimated that rule 31a-
1 imposes an average burden of approximately 1750 hours annually per 
series for a total of 7000 annual hours per fund. The estimated total 
annual burden for all 4029 funds subject to the rule therefore is 
approximately 28,203,000 hours. Based on conversations with fund 
representatives, however, the Commission staff estimates that even 
absent the requirements of rule 31a-1, 90 percent of the records 
created pursuant to the rule are the type that generally would be 
created as a matter of normal business practice and to prepare 
financial statements. Thus, the Commission staff estimates that the 
total annual burden associated with rule 31a-1 is 2,820,300 hours.
    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. The collection 
of information required by rule 31a-1 is mandatory. Responses will not 
be kept confidential. The records required by rule 31a-1 are required 
to be preserved pursuant to rule 31a-2 under the Investment Company Act 
(17 CFR 270.31a-2). Rule 31a-2 requires that certain of these records 
be preserved permanently, and that others be preserved six years from 
the end of the fiscal year in which any transaction occurred. In both 
cases, the records should be kept in an easily accessible place for the 
first two years. An agency may not conduct or sponsor, and a

[[Page 3460]]

person is not required to respond to, a collection of information 
unless it displays a currently valid OMB 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: 
Shagufta_Ahmed@omb.eop.gov; 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: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: January 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01337 Filed 1-24-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 17 / Thursday, January 25, 2018 / Notices 3459

HOUR BURDEN FOR REPORTS ON information unless it displays a statements required to be filed pursuant
FORM N–CSR currently valid OMB control number. to section 31 of the Act (15 U.S.C. 80a–
The public may view the background 30) and of the auditor’s certificates
Number of funds ....................... 3 11,856 documentation for this information relating thereto. The rule lists specific
Number of filings per fund per collection at the following website, records to be maintained by funds. The
year ....................................... 2 www.reginfo.gov. Comments should be rule also requires certain underwriters,
Hour burden per fund per filing 7.31 directed to: (i) Desk Officer for the brokers, dealers, depositors, and
Hour burden per fund per year Securities and Exchange Commission, investment advisers to maintain the
(7.31 hours per filing × 2 fil- Office of Information and Regulatory records that they are required to
ings per year) ........................ 14.62 Affairs, Office of Management and maintain under federal securities laws.
Additional aggregate annual Budget, Room 10102, New Executive
4 750
The Commission periodically inspects
burden for closed-end funds
Office Building, Washington, DC 20503, the operations of funds to insure their
Total annual hour burden .. 5 174,085 or by sending an email to: Shagufta_ compliance with the provisions of the
Ahmed@omb.eop.gov; and (ii) Pamela Act and the rules thereunder. The books
In total, the Commission estimates it Dyson, Director/Chief Information and records required to be maintained
will take 174,085 burden hours per year Officer, Securities and Exchange by rule 31a–1 constitute a major focus
for all funds to prepare and file reports Commission, c/o Remi Pavlik-Simon, of the Commission’s inspection
on Form N–CSR. Based on the 100 F Street NE, Washington, DC 20549 program.
Commission’s estimate of 174,085 or send an email to: PRA_Mailbox@ There are approximately 4029
burden hours and an estimated wage sec.gov. Comments must be submitted to investment companies registered with
rate of approximately $324 per hour,6 OMB within 30 days of this notice. the Commission, all of which are
the total internal annual cost to Dated: January 19, 2018. required to comply with rule 31a–1. For
registrants of the hour burden for Eduardo A. Aleman,
purposes of determining the burden
complying with Form N–CSR imposed by rule 31a–1, the Commission
Assistant Secretary.
requirements is approximately $56 staff estimates that each fund is divided
[FR Doc. 2018–01338 Filed 1–24–18; 8:45 am]
million.7 into approximately four series, on
BILLING CODE 8011–01–P average, and that each series is required
Estimates of average burden hours
and costs are made solely for the to comply with the recordkeeping
purposes of the Paperwork Reduction requirements of rule 31a–1. Based on
SECURITIES AND EXCHANGE
Act, and are not derived from a conversations with fund representatives,
COMMISSION it is estimated that rule 31a–1 imposes
comprehensive or even representative
[SEC File No. 270–173, OMB Control No. an average burden of approximately
survey or study of the costs of 3235–0178] 1750 hours annually per series for a
Commission rules and forms.
total of 7000 annual hours per fund. The
Compliance with the collection of Submission for OMB Review; estimated total annual burden for all
information requirements of Form N– Comment Request 4029 funds subject to the rule therefore
CSR is mandatory. Responses to the
Upon Written Request, Copies Available is approximately 28,203,000 hours.
collection of information will not be
From: Securities and Exchange Based on conversations with fund
kept confidential. An agency may not
Commission, Office of FOIA Services, representatives, however, the
conduct or sponsor, and a person is not
100 F Street NE, Washington, DC Commission staff estimates that even
required to respond to a collection of
20549–2736. absent the requirements of rule 31a–1,
90 percent of the records created
3 This estimate is based on the following Extension:
pursuant to the rule are the type that
calculation: 11,856 management investment Rule 31a–1.
companies = (1,594 exchange-traded funds ¥ eight generally would be created as a matter
organized as unit investment trusts + 750 closed- Notice is hereby given that, pursuant of normal business practice and to
end funds + 481 money market funds + 9,039 other to the Paperwork Reduction Act of 1995 prepare financial statements. Thus, the
mutual funds). (44 U.S.C. 3501–3520), the Securities Commission staff estimates that the total
4 This estimate is based on the following
and Exchange Commission annual burden associated with rule 31a–
calculation: 750 hours = (750 closed-end funds × 1
hour per closed-end fund).
(‘‘Commission’’) has submitted to the 1 is 2,820,300 hours.
5 This estimate is based on the following Office of Management and Budget a The estimate of average burden hours
calculation: 174,085 hours = 750 hours + (11,856 request for extension of the previously is made solely for the purposes of the
funds × 14.62 burden hours per fund per year). approved collection of information Paperwork Reduction Act, and is not
6 The Commission’s estimate concerning the wage
discussed below. derived from a comprehensive or even
rate is based on salary information for the securities Rule 31a–1 (17 CFR 270.31a–1) under
industry compiled by the Securities Industry and
a representative survey or study. The
Financial Markets Association. The estimated wage the Investment Company Act of 1940 collection of information required by
figure is based on published rates for compliance (the ‘‘Act’’) (15 U.S.C. 80a) is entitled rule 31a–1 is mandatory. Responses will
attorneys and senior programmers, modified to ‘‘Records to be maintained by registered not be kept confidential. The records
account for an 1,800-hour work year and inflation; investment companies, certain majority-
multiplied by 5.35 to account for bonuses, firm size,
required by rule 31a–1 are required to
employee benefits, and overhead; and adjusted to owned subsidiaries thereof, and other be preserved pursuant to rule 31a–2
account for the effects of inflation, yielding effective persons having transactions with under the Investment Company Act (17
hourly rates of $340 and $308, respectively. See registered investment companies.’’ Rule CFR 270.31a–2). Rule 31a–2 requires
Securities Industry and Financial Markets 31a–1 requires registered investment
sradovich on DSK3GMQ082PROD with NOTICES

Association, Report on Management & Professional
that certain of these records be
Earnings in the Securities Industry 2013. We companies (‘‘funds’’), and every preserved permanently, and that others
estimate that compliance attorneys and senior underwriter, broker, dealer, or be preserved six years from the end of
programmers would divide their time equally, investment adviser that is a majority- the fiscal year in which any transaction
yielding an estimated hourly wage rate of $324. owned subsidiary of a fund, to maintain occurred. In both cases, the records
($340 per hour for compliance attorneys + $308 per
hour for senior programmers) ÷ 2 = $324 per hour. and keep current accounts, books, and should be kept in an easily accessible
7 174,085 hours × $324 per hour = $56,403,540 other documents which constitute the place for the first two years. An agency
per year. record forming the basis for financial may not conduct or sponsor, and a

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3460 Federal Register / Vol. 83, No. 17 / Thursday, January 25, 2018 / Notices

person is not required to respond to, a place its assets in the custody of a collection at the following website,
collection of information unless it member of a national securities www.reginfo.gov. Comments should be
displays a currently valid OMB control exchange. Rule 17f–1 requires, among directed to: (i) Desk Officer for the
number. other things, that an independent public Securities and Exchange Commission,
The public may view the background accountant verify the fund’s assets at the Office of Information and Regulatory
documentation for this information end of every annual and semi-annual Affairs, Office of Management and
collection at the following website, fiscal period, and at least one other time Budget, Room 10102, New Executive
www.reginfo.gov. Comments should be during the fiscal year as chosen by the Office Building, Washington, DC 20503,
directed to: (i) Desk Officer for the independent accountant. Requiring an or by sending an email to: Shagufta_
Securities and Exchange Commission, independent accountant to examine the Ahmed@omb.eop.gov; and (ii) Pamela
Office of Information and Regulatory fund’s assets in the custody of a member Dyson, Director/Chief Information
Affairs, Office of Management and of a national securities exchange assists Officer, Securities and Exchange
Budget, Room 10102, New Executive Commission staff in its inspection Commission, c/o Remi Pavlik-Simon,
Office Building, Washington, DC 20503, program and helps to ensure that the 100 F Street NE, Washington, DC 20549
or by sending an email to: Shagufta_ fund assets are subject to proper or send an email to: PRA_Mailbox@
Ahmed@omb.eop.gov; and (ii) Pamela auditing procedures. The accountant’s sec.gov. Comments must be submitted to
Dyson, Director/Chief Information certificate stating that it has made an OMB within 30 days of this notice.
Officer, Securities and Exchange examination, and describing the nature Dated: January 19, 2018.
Commission, c/o Remi Pavlik-Simon, and the extent of the examination, must Eduardo A. Aleman,
100 F Street NE, Washington, DC 20549 be attached to Form N–17f–1 and filed
Assistant Secretary.
or send an email to: PRA_Mailbox@ with the Commission promptly after
sec.gov. Comments must be submitted to [FR Doc. 2018–01339 Filed 1–24–18; 8:45 am]
each examination. The form facilitates
OMB within 30 days of this notice. the filing of the accountant’s certificates, BILLING CODE 8011–01–P

Dated: January 19, 2018. and increases the accessibility of the
Eduardo A. Aleman, certificates to both Commission staff
and interested investors. SECURITIES AND EXCHANGE
Assistant Secretary. COMMISSION
Commission staff estimates that it
[FR Doc. 2018–01337 Filed 1–24–18; 8:45 am]
takes: (i) 1 Hour of clerical time to [SEC File No. 270–516, OMB Control No.
BILLING CODE 8011–01–P prepare and file Form N–17f–1; and (ii) 3235–0574]
0.5 hour for the fund’s chief compliance
officer to review Form N–17f–1 prior to Submission for OMB Review;
SECURITIES AND EXCHANGE filing with the Commission, for a total Comment Request
COMMISSION of 1.5 hours. Each fund is required to Upon Written Request, Copies Available
[SEC File No. 270–316, OMB Control No. make 3 filings annually, for a total From: Securities and Exchange
3235–0359] annual burden per fund of Commission, Office of FOIA Services,
approximately 4.5 hours.1 Commission 100 F Street NE, Washington, DC
Submission for OMB Review; staff estimates that an average of 6 funds
Comment Request 20549–2736.
currently file Form N–17f–1 with the
Commission 3 times each year, for a Extension:
Upon Written Request, Copies Available Rule 3a–8.
From: Securities and Exchange total of 18 responses annually.2 The
Commission, Office of FOIA Services, total annual hour burden for Form N– Notice is hereby given that pursuant
100 F Street NE, Washington, DC 17f–1 is therefore estimated to be to the Paperwork Reduction Act of 1995
20549–2736. approximately 27 hours.3 (44 U.S.C. 3501 et seq.), the Securities
The estimate of average burden hours and Exchange Commission
Extension: (‘‘Commission’’) has submitted to the
Form N–17f–1.
is made solely for the purposes of the
Paperwork Reduction Act, and is not Office of Management and Budget a
Notice is hereby given that pursuant derived from a comprehensive or even request for extension of the previously
to the Paperwork Reduction Act of 1995 a representative survey or study of the approved collection of information
(44 U.S.C. 3501 et seq.), the Securities costs of Commission rules. Compliance discussed below.
and Exchange Commission (the with the collections of information Rule 3a–8 (17 CFR 270.3a–8) of the
‘‘Commission’’) has submitted to the required by Form N–17f–1 is mandatory Investment Company Act of 1940 (15
Office of Management and Budget a for funds that place their assets in the U.S.C. 80a) (the ‘‘Act’’), serves as a
request for extension of the previously custody of a national securities nonexclusive safe harbor from
approved collection of information exchange member. Responses will not investment company status for certain
discussed below. be kept confidential. An agency may not research and development companies
Form N–17f–1 (17 CFR 274.219) is conduct or sponsor, and a person is not (‘‘R&D companies’’).
entitled ‘‘Certificate of Accounting of required to respond to a collection of The rule requires that the board of
Securities and Similar Investments of a information unless it displays a directors of an R&D company seeking to
Management Investment Company in currently valid control number. rely on the safe harbor adopt an
the Custody of Members of National The public may view the background appropriate resolution evidencing that
Securities Exchanges.’’ The form serves documentation for this information the company is primarily engaged in a
as a cover sheet to the accountant’s
sradovich on DSK3GMQ082PROD with NOTICES

non-investment business and record
certificate that is required to be filed 1 This estimate is based on the following that resolution contemporaneously in its
periodically with the Commission calculation: (1.5 hours × 3 responses annually = 4.5 minute books or comparable
pursuant to rule 17f–1 (17 CFR 270.17f– hours). documents.1 An R&D company seeking
2 This estimate is based on a review of Form N–
1) under the Act, entitled ‘‘Custody of to rely on the safe harbor must retain
17f–1 filings made with the Commission over the
Securities with Members of National last three years. these records only as long as such
Securities Exchanges,’’ which sets forth 3 This estimate is based on the following

the conditions under which a fund may calculations: (4.5 hours × 6 funds = 27 total hours). 1 Rule 3a–8(a)(6) (17 CFR 270.3a–8(6)).

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Document Created: 2018-01-25 08:50:33
Document Modified: 2018-01-25 08:50:33
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 3459