83_FR_4117 83 FR 4098 - Submission for OMB Review; Comment Request

83 FR 4098 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 19 (January 29, 2018)

Page Range4098-4099
FR Document2018-01602

Federal Register, Volume 83 Issue 19 (Monday, January 29, 2018) 
[Federal Register Volume 83, Number 19 (Monday, January 29, 2018)]
[Notices]
[Pages 4098-4099]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01602]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-425 OMB Control No. 3235-0468]


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213

Extension:
    Rule 10A-1.

    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 (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for extension of the previously approved 
collection of information discussed below.
    Rule 10A-1 (17 CFR 240.10A-1) implements the reporting requirements 
in Section 10A of the Exchange Act (15 U.S.C. 78j-1), which was enacted 
by Congress on December 22, 1995 as part of the Private Securities 
Litigation Reform Act of 1995, Public Law 104-67, 109 Stat 737. Under 
section 10A and Rule 10A-1 reporting occurs only if a registrant's 
board of directors receives a report from its auditor that (1) there is 
an illegal act material to the registrant's financial statements, (2) 
senior

[[Page 4099]]

management and the board have not taken timely and appropriate remedial 
action, and (3) the failure to take such action is reasonably expected 
to warrant the auditor's modification of the audit report or 
resignation from the audit engagement. The board of directors must 
notify the Commission within one business day of receiving such a 
report. If the board fails to provide that notice, then the auditor, 
within the next business day, must provide the Commission with a copy 
of the report that it gave to the board.
    Likely respondents are those registrants filing audited financial 
statements under the Securities Exchange Act of 1934 (15 U.S.C. 78a, et 
seq.) and the Investment Company Act of 1940 (15 U.S.C. 80a-1, et 
seq.).
    It is estimated that Rule 10A-1 results in an aggregate additional 
reporting burden of 5 hours per year. The estimated average burden 
hours are solely for purposes of the Paperwork Reduction Act and are 
not derived from a comprehensive or even a representative survey or 
study of the costs of SEC rules or forms.
    There are no recordkeeping retention periods in Rule 10A-1. Because 
of the one business day reporting periods, recordkeeping retention 
periods should not be significant.
    Filing the notice or report under Rule 10A-1 is mandatory once the 
conditions noted above have been satisfied. Because these notices and 
reports discuss potential illegal acts, they are considered to be 
investigative records and are 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 information discussed in this notice at 
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, 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: January 24, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01602 Filed 1-26-18; 8:45 am]
 BILLING CODE 8011-01-P

4098 Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Notices 3. Shares will be purchased and section 22(e) to prevent unreasonable, intended by the policy and provisions of redeemed in Creation Units and undisclosed or unforeseen delays in the the Act. Section 12(d)(1)(J) of the Act generally on an in-kind basis. Except actual payment of redemption proceeds. provides that the Commission may where the purchase or redemption will 7. Applicants request an exemption to exempt any person, security, or include cash under the limited permit Funds of Funds to acquire Fund transaction, or any class or classes of circumstances specified in the shares beyond the limits of section persons, securities, or transactions, from application, purchasers will be required 12(d)(1)(A) of the Act; and the Funds, any provision of section 12(d)(1) if the to purchase Creation Units by and any principal underwriter for the exemption is consistent with the public depositing specified instruments Funds, and/or any broker or dealer interest and the protection of investors. (‘‘Deposit Instruments’’), and registered under the Exchange Act, to Section 17(b) of the Act authorizes the shareholders redeeming their shares sell shares to Funds of Funds beyond Commission to grant an order will receive specified instruments the limits of section 12(d)(1)(B) of the permitting a transaction otherwise (‘‘Redemption Instruments’’). The Act. The application’s terms and prohibited by section 17(a) if it finds Deposit Instruments and the conditions are designed to, among other that (a) the terms of the proposed Redemption Instruments will each things, help prevent any potential (i) transaction are fair and reasonable and correspond pro rata to the positions in undue influence over a Fund through do not involve overreaching on the part the Fund’s portfolio (including cash control or voting power, or in of any person concerned; (b) the positions) except as specified in the connection with certain services, proposed transaction is consistent with application. transactions, and underwritings, (ii) the policies of each registered 4. Because shares will not be excessive layering of fees, and (iii) investment company involved; and (c) individually redeemable, applicants overly complex fund structures, which the proposed transaction is consistent request an exemption from section are the concerns underlying the limits with the general purposes of the Act. 5(a)(1) and section 2(a)(32) of the Act in sections 12(d)(1)(A) and (B) of the For the Commission, by the Division of that would permit the Funds to register Act. Investment Management, under delegated as open-end management investment 8. Applicants request an exemption authority. companies and issue shares that are from sections 17(a)(1) and 17(a)(2) of the Eduardo A. Aleman, redeemable in Creation Units only. Act to permit persons that are Affiliated Persons, or Second-Tier Affiliates, of the Assistant Secretary. 5. Applicants also request an Funds, solely by virtue of certain [FR Doc. 2018–01549 Filed 1–26–18; 8:45 am] exemption from section 22(d) of the Act and rule 22c–1 under the Act as ownership interests, to effectuate BILLING CODE 8011–01–P secondary market trading in shares will purchases and redemptions in-kind. The take place at negotiated prices, not at a deposit procedures for in-kind purchases of Creation Units and the SECURITIES AND EXCHANGE current offering price described in a redemption procedures for in-kind COMMISSION Fund’s prospectus, and not at a price based on NAV. Applicants state that (a) redemptions of Creation Units will be [SEC File No. 270–425 OMB Control No. secondary market trading in shares does the same for all purchases and 3235–0468] not involve a Fund as a party and will redemptions and Deposit Instruments not result in dilution of an investment and Redemption Instruments will be Submission for OMB Review; in shares, and (b) to the extent different valued in the same manner as those Comment Request prices exist during a given trading day, investment positions currently held by Upon Written Request, Copies Available or from day to day, such variances occur the Funds. Applicants also seek relief From: Securities and Exchange as a result of third-party market forces, from the prohibitions on affiliated Commission, Office of Investor such as supply and demand. Therefore, transactions in section 17(a) to permit a Education and Advocacy, applicants assert that secondary market Fund to sell its shares to and redeem its Washington, DC 20549–0213 transactions in shares will not lead to shares from a Fund of Funds, and to engage in the accompanying in-kind Extension: discrimination or preferential treatment Rule 10A–1. among purchasers. Finally, applicants transactions with the Fund of Funds.3 represent that share market prices will The purchase of Creation Units by a Notice is hereby given that, pursuant be disciplined by arbitrage Fund of Funds directly from a Fund will to the Paperwork Reduction Act of 1995 opportunities, which should prevent be accomplished in accordance with the (44 U.S.C. 3501 et seq.), the Securities shares from trading at a material policies of the Fund of Funds and will and Exchange Commission discount or premium from NAV. be based on the NAVs of the Funds. (‘‘Commission’’) has submitted to the 6. With respect to Funds that effect 9. Section 6(c) of the Act permits the Office of Management and Budget creations and redemptions of Creation Commission to exempt any persons or (‘‘OMB’’) a request for extension of the Units in kind and that are based on transactions from any provision of the previously approved collection of certain Underlying Indexes that include Act if such exemption is necessary or information discussed below. foreign securities, applicants request appropriate in the public interest and Rule 10A–1 (17 CFR 240.10A–1) relief from the requirement imposed by consistent with the protection of implements the reporting requirements section 22(e) in order to allow such investors and the purposes fairly in Section 10A of the Exchange Act (15 Funds to pay redemption proceeds U.S.C. 78j–1), which was enacted by within fifteen calendar days following 3 The requested relief would apply to direct sales Congress on December 22, 1995 as part of shares in Creation Units by a Fund to a Fund of of the Private Securities Litigation sradovich on DSK3GMQ082PROD with NOTICES the tender of Creation Units for Funds and redemptions of those shares. Applicants redemption. Applicants assert that the are not seeking relief from section 17(a) for, and the Reform Act of 1995, Public Law 104–67, requested relief would not be requested relief will not apply to, transactions 109 Stat 737. Under section 10A and inconsistent with the spirit and intent of where a Fund could be deemed an Affiliated Rule 10A–1 reporting occurs only if a Person, or a Second-Tier Affiliate, of a Fund of registrant’s board of directors receives a Funds because an Adviser or an entity controlling, Funds to maintain full portfolio transparency will controlled by or under common control with an report from its auditor that (1) there is help address, together with other protections, Adviser provides investment advisory services to an illegal act material to the registrant’s conflicts of interest with respect to such Funds. that Fund of Funds. financial statements, (2) senior VerDate Sep<11>2014 19:42 Jan 26, 2018 Jkt 244001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 E:\FR\FM\29JAN1.SGM 29JAN1

Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Notices 4099 management and the board have not Dated: January 24, 2018. 17,774 hours (10.792 hours per response taken timely and appropriate remedial Eduardo A. Aleman, × 1,647 responses). action, and (3) the failure to take such Assistant Secretary. Written comments are invited on: (a) action is reasonably expected to warrant [FR Doc. 2018–01602 Filed 1–26–18; 8:45 am] Whether this collection of information the auditor’s modification of the audit BILLING CODE 8011–01–P is necessary for the proper performance report or resignation from the audit of the functions of the agency, including engagement. The board of directors whether the information will have must notify the Commission within one SECURITIES AND EXCHANGE practical utility; (b) the accuracy of the business day of receiving such a report. COMMISSION agency’s estimate of the burden imposed by the collection of information; (c) If the board fails to provide that notice, [SEC File No. 270–613, OMB Control No. ways to enhance the quality, utility, and then the auditor, within the next 3235–0712] clarity of the information collected; and business day, must provide the (d) ways to minimize the burden of the Commission with a copy of the report collection of information on Proposed Collection; Comment that it gave to the board. respondents, including through the use Request Likely respondents are those of automated collection techniques or registrants filing audited financial Upon Written Request Copies Available other forms of information technology. statements under the Securities From: Securities and Exchange Consideration will be given to Exchange Act of 1934 (15 U.S.C. 78a, et Commission, Office of FOIA Services, comments and suggestions submitted in seq.) and the Investment Company Act 100 F Street NE, Washington, DC writing within 60 days of this of 1940 (15 U.S.C. 80a–1, et seq.). 20549–2736. publication. Extension: An agency may not conduct or It is estimated that Rule 10A–1 results Credit Risk Retention—Regulation RR. sponsor, and a person is not required to in an aggregate additional reporting respond to, a collection of information burden of 5 hours per year. The Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 unless it displays a currently valid estimated average burden hours are control number. solely for purposes of the Paperwork (44 U.S.C. 3501 et seq.), the Securities Please direct your written comment to Reduction Act and are not derived from and Exchange Commission Pamela Dyson, Director/Chief a comprehensive or even a (‘‘Commission’’) is soliciting comments Information Officer, Securities and on the collection of information representative survey or study of the Exchange Commission, c/o Remi Pavlik- summarized below. The Commission costs of SEC rules or forms. Simon, 100 F Street NE, Washington, plans to submit this existing collection There are no recordkeeping retention DC 20549 or send an email to: PRA_ of information to the Office of periods in Rule 10A–1. Because of the Mailbox@sec.gov. Management and Budget for extension one business day reporting periods, and approval. Dated: January 24, 2018. recordkeeping retention periods should Credit Risk Retention (‘‘Regulation Eduardo A. Aleman, not be significant. RR’’) (17 CFR 246.1 through 246.22) Assistant Secretary. Filing the notice or report under Rule recordkeeping and disclosure [FR Doc. 2018–01600 Filed 1–26–18; 8:45 am] 10A–1 is mandatory once the conditions requirements implement Section 15G of BILLING CODE 8011–01–P noted above have been satisfied. the Securities Exchange Act of 1934 (15 Because these notices and reports U.S.C. 78o–11) Section 15G clarifies the scope and application of Section 306(a) SECURITIES AND EXCHANGE discuss potential illegal acts, they are of the Sarbanes-Oxley Act of 2002 (15 COMMISSION considered to be investigative records U.S.C. 7244(a)). Section 306(a) of the [SEC File No. 270–305, OMB Control No. and are kept confidential. Sarbanes-Oxley Act requires, among 3235–0346] An agency may not conduct or other things, an issuer to provide timely sponsor, and a person is not required to notice to its directors and executive Submission for OMB Review; respond to, a collection of information officers and to the Commission of the Comment Request unless it displays a currently valid imposition of a blackout period that control number. would trigger a trading prohibition Upon Written Request, Copies Available under Section 306(a)(1) of the Sarbanes- From: Securities and Exchange The public may view the information Commission, Office of FOIA Services, discussed in this notice at Oxley Act. Section 306(a)(1) prohibits any director or executive officer of an 100 F Street NE, Washington, DC www.reginfo.gov . Comments should be 20549–2736 issuer of any equity security, from directed to: (i) Desk Officer for the Extension: directly or indirectly, purchasing, Securities and Exchange Commission, Rule 34b–1. selling or otherwise acquiring or Office of Information and Regulatory transferring any equity security of that Notice is hereby given that pursuant Affairs, Office of Management and issuer during the blackout period with to the Paperwork Reduction Act of 1995 Budget, Room 10102, New Executive respect to such equity security, if the (44 U.S.C. 3501 et seq.), the Securities Office Building, Washington, DC 20503, director or executive officer acquired and Exchange Commission (the or by sending an email to: Shagufta_ the equity security in connection with ‘‘Commission’’) has submitted to the Ahmed@omb.eop.gov ; and (ii) Pamela his or her service or employment. sradovich on DSK3GMQ082PROD with NOTICES Office of Management and Budget a Dyson, Chief Information Officer, Approximately 1,647 issuers file using request for extension of the previously Securities and Exchange Commission, c/ Regulation RR responses and it takes approved collection of information o Remi Pavlik-Simon, 100 F Street NE, approximately 14.389 hours per discussed below. Washington, DC 20549 or send an email response. We estimate that 75% of the Rule 34b–1 under the Investment to: PRA_Mailbox@sec.gov. Comments 14.389 hours per response (10.792 Company Act (17 CFR 270.34b–1) must be submitted to OMB within 30 hours) is prepared by the registrant for governs sales material that accompanies days of this notice. a total annual reporting burden of or follows the delivery of a statutory VerDate Sep<11>2014 19:42 Jan 26, 2018 Jkt 244001 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 E:\FR\FM\29JAN1.SGM 29JAN1


Document Created: 2018-01-27 00:57:55
Document Modified: 2018-01-27 00:57:55
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 4098 
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