83 FR 42957 - Proposed Collection; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 165 (August 24, 2018)
Federal Register Volume 83, Issue 165 (August 24, 2018)
| Page Range | 42957-42958 | |
| FR Document | 2018-18360 |
[Federal Register Volume 83, Number 165 (Friday, August 24, 2018)] [Notices] [Pages 42957-42958] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-18360] ----------------------------------------------------------------------- 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 22e-3, SEC File No. 270-603, OMB Control No. 3235-0658 Notice is hereby given that, under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), 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. Section 22(e) of the Investment Company Act [15 U.S.C. 80a-22(e)] (``Act'') generally prohibits funds, including money market funds, from suspending the right of redemption, and from postponing the payment or satisfaction upon redemption of any redeemable security for more than seven days. The provision was designed to prevent funds and their investment advisers from interfering with the redemption rights of shareholders for improper purposes, such as the preservation of management fees. Although section 22(e) permits funds to postpone the date of payment or satisfaction upon redemption for up to seven days, it does not permit funds to suspend the right of redemption for any amount of time, absent certain specified circumstances or a Commission order. Rule 22e-3 under the Act [17 CFR 270.22e-3] exempts money market funds from section 22(e) to permit them to suspend redemptions in order to facilitate an orderly liquidation of the fund. Specifically, rule 22e-3 permits a money market fund to suspend redemptions and postpone the payment of proceeds pending board-approved liquidation proceedings if: (i) The fund's board of directors, including a majority of disinterested directors, determines pursuant to Sec. 270.2a- 7(c)(8)(ii)(C) that the extent of the deviation between the fund's amortized cost price per share and its current net asset value per share calculated using available market quotations (or an appropriate substitute that reflects current market conditions) may result in material dilution or other unfair results to investors or existing shareholders; (ii) the fund's board of directors, including a majority of disinterested directors, irrevocably approves the liquidation of the fund; and (iii) the fund, prior to suspending redemptions, notifies the Commission of its decision to liquidate and suspend redemptions. Rule 22e-3 also provides an exemption from section 22(e) for registered investment companies that own shares of a money market fund pursuant to section 12(d)(1)(E) of the Act (``conduit funds''), if the underlying money market fund has suspended redemptions pursuant to the rule. A conduit fund that suspends redemptions in reliance on the exemption provided by rule 22e-3 is required to provide prompt notice of the suspension of redemptions to the Commission. Notices required by the rule must be provided by electronic mail, directed to the attention of the Director of the Division of Investment Management or the Director's designee.\1\ Compliance with the notification requirement is mandatory for money market funds and conduit funds that rely on rule 22e-3 to suspend redemptions and postpone payment of proceeds pending a liquidation, and are not kept confidential. --------------------------------------------------------------------------- \1\ See rule 22e-3(a)(3). --------------------------------------------------------------------------- Commission staff estimates that, on average, one money market fund would break the buck and liquidate every six years.\2\ In addition, Commission staff estimates that there are an average of two conduit funds that may be invested in a money market fund that breaks the buck.\3\ Commission staff further estimates that a money market fund or conduit fund would spend approximately one hour of an in-house attorney's time to prepare and submit the notice required by the rule. Given these estimates, the total annual burden of the notification requirement of rule 22e-3 for all money market funds and [[Page 42958]] conduit funds would be approximately 30 minutes,\4\ at a cost of $201.\5\ --------------------------------------------------------------------------- \2\ This estimate is based upon the Commission's experience with the frequency with which money market funds have historically required sponsor support. Although the vast majority of money market fund sponsors have supported their money market funds in times of market distress, for purposes of this estimate Commission staff conservatively estimates that one or more sponsors may not provide support. \3\ Based on a review of filings with the Commission, Commission staff estimates that 2.3 conduit funds are invested in each master fund. However, master funds account for only 5.1% of all money market funds. Solely for the purposes of this information collection, and to avoid underestimating possible burdens, the Commission conservatively assumes that any money market that breaks the buck and liquidates would be a master fund. \4\ This estimate is based on the following calculations: (1 hour / 6 years) = 10 minutes per year for each fund and conduit fund that is required to provide notice under the rule. 10 minutes per year x 3 (combined number of affected funds and conduit funds) = 30 minutes. \5\ This estimate is based on the following calculation: $401/ hour x 30 minutes = $200.50. The estimated hourly wages used in this PRA analysis were derived from reports prepared by the Securities Industry and Financial Markets Association, modified to account for an 1,800-hour work year and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead, and adjusted for inflation. --------------------------------------------------------------------------- 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 of the costs of Commission rules and forms. 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 Candace Kenner, 100 F Street NE, Washington, DC 20549; or send an email to: [email protected]. Dated: August 21, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-18360 Filed 8-23-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Notices 42957
Comments may be submitted by any of SECURITIES AND EXCHANGE and (iii) the fund, prior to suspending
the following methods: COMMISSION redemptions, notifies the Commission of
its decision to liquidate and suspend
Electronic Comments Proposed Collection; Comment redemptions. Rule 22e–3 also provides
• Use the Commission’s internet Request an exemption from section 22(e) for
comment form (http://www.sec.gov/ Upon Written Request, Copies Available registered investment companies that
rules/sro.shtml); or From: Securities and Exchange own shares of a money market fund
• Send an email to rule-comments@ Commission, Office of FOIA Services, pursuant to section 12(d)(1)(E) of the
sec.gov. Please include File Number SR– 100 F Street NE, Washington, DC Act (‘‘conduit funds’’), if the underlying
NASDAQ–2018–069 on the subject line. 20549–2736 money market fund has suspended
Extension: redemptions pursuant to the rule. A
Paper Comments Rule 22e–3, SEC File No. 270–603, OMB conduit fund that suspends redemptions
Control No. 3235–0658 in reliance on the exemption provided
• Send paper comments in triplicate
to Secretary, Securities and Exchange Notice is hereby given that, under the by rule 22e–3 is required to provide
Commission, 100 F Street NE, Paperwork Reduction Act of 1995 (44 prompt notice of the suspension of
Washington, DC 20549–1090. U.S.C. 3501–3520), the Securities and redemptions to the Commission. Notices
Exchange Commission (the required by the rule must be provided
All submissions should refer to File ‘‘Commission’’) has submitted to the by electronic mail, directed to the
Number SR–NASDAQ–2018–069. This Office of Management and Budget a attention of the Director of the Division
file number should be included on the request for extension of the previously of Investment Management or the
subject line if email is used. To help the approved collection of information Director’s designee.1 Compliance with
Commission process and review your discussed below. the notification requirement is
comments more efficiently, please use Section 22(e) of the Investment mandatory for money market funds and
only one method. The Commission will Company Act [15 U.S.C. 80a–22(e)]
post all comments on the Commission’s conduit funds that rely on rule 22e–3 to
(‘‘Act’’) generally prohibits funds, suspend redemptions and postpone
internet website (http://www.sec.gov/ including money market funds, from
rules/sro.shtml). Copies of the payment of proceeds pending a
suspending the right of redemption, and
submission, all subsequent from postponing the payment or liquidation, and are not kept
amendments, all written statements satisfaction upon redemption of any confidential.
with respect to the proposed rule redeemable security for more than seven Commission staff estimates that, on
change that are filed with the days. The provision was designed to average, one money market fund would
Commission, and all written prevent funds and their investment break the buck and liquidate every six
communications relating to the advisers from interfering with the years.2 In addition, Commission staff
proposed rule change between the redemption rights of shareholders for estimates that there are an average of
Commission and any person, other than improper purposes, such as the two conduit funds that may be invested
those that may be withheld from the preservation of management fees. in a money market fund that breaks the
public in accordance with the Although section 22(e) permits funds to buck.3 Commission staff further
provisions of 5 U.S.C. 552, will be postpone the date of payment or estimates that a money market fund or
available for website viewing and satisfaction upon redemption for up to conduit fund would spend
printing in the Commission’s Public seven days, it does not permit funds to approximately one hour of an in-house
Reference Room, 100 F Street NE, suspend the right of redemption for any
attorney’s time to prepare and submit
Washington, DC 20549, on official amount of time, absent certain specified
the notice required by the rule. Given
business days between the hours of circumstances or a Commission order.
10:00 a.m. and 3:00 p.m. Copies of the Rule 22e–3 under the Act [17 CFR these estimates, the total annual burden
filing also will be available for 270.22e–3] exempts money market of the notification requirement of rule
inspection and copying at the principal funds from section 22(e) to permit them 22e–3 for all money market funds and
office of the Exchange. All comments to suspend redemptions in order to
received will be posted without change. facilitate an orderly liquidation of the
Persons submitting comments are fund. Specifically, rule 22e–3 permits a
cautioned that we do not redact or edit money market fund to suspend
personal identifying information from redemptions and postpone the payment 1 See rule 22e–3(a)(3).
comment submissions. You should of proceeds pending board-approved 2 This estimate is based upon the Commission’s
submit only information that you wish liquidation proceedings if: (i) The fund’s experience with the frequency with which money
to make available publicly. All board of directors, including a majority market funds have historically required sponsor
of disinterested directors, determines support. Although the vast majority of money
submissions should refer to File market fund sponsors have supported their money
Number SR–NASDAQ–2018–069 and pursuant to § 270.2a–7(c)(8)(ii)(C) that
market funds in times of market distress, for
should be submitted on or before the extent of the deviation between the purposes of this estimate Commission staff
September 14, 2018. fund’s amortized cost price per share conservatively estimates that one or more sponsors
and its current net asset value per share may not provide support.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
calculated using available market 3 Based on a review of filings with the
authority.18 quotations (or an appropriate substitute Commission, Commission staff estimates that 2.3
daltland on DSKBBV9HB2PROD with NOTICES
that reflects current market conditions) conduit funds are invested in each master fund.
Eduardo A. Aleman, However, master funds account for only 5.1% of all
may result in material dilution or other
Assistant Secretary. unfair results to investors or existing money market funds. Solely for the purposes of this
[FR Doc. 2018–18294 Filed 8–23–18; 8:45 am] information collection, and to avoid
shareholders; (ii) the fund’s board of underestimating possible burdens, the Commission
BILLING CODE 8011–01–P directors, including a majority of conservatively assumes that any money market that
disinterested directors, irrevocably breaks the buck and liquidates would be a master
18 17 CFR 200.30–3(a)(12). approves the liquidation of the fund; fund.
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![42958 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Notices
conduit funds would be approximately SECURITIES AND EXCHANGE must be submitted to OMB within 30
30 minutes,4 at a cost of $201.5 COMMISSION days of this notice.
The estimate of average burden hours Dated: August 21, 2018.
Proposed Collection; Comment
is made solely for the purposes of the Eduardo A. Aleman,
Request
Paperwork Reduction Act, and is not Assistant Secretary.
derived from a comprehensive or even Upon Written Request, Copies Available [FR Doc. 2018–18359 Filed 8–23–18; 8:45 am]
a representative survey or study of the From: Securities and Exchange BILLING CODE 8011–01–P
costs of Commission rules and forms. Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
Compliance with the collection of
20549–2736 SECURITIES AND EXCHANGE
information requirements of the rule is
necessary to obtain the benefit of relying Extension: COMMISSION
Rule 17g–5; SEC File. No. 270–581, OMB
on the rule. An agency may not conduct Control No. 3235–0649 Proposed Collection; Comment
or sponsor, and a person is not required Request
to respond to, a collection of Notice is hereby given that pursuant
information unless it displays a to the Paperwork Reduction Act of 1995
Upon Written Request, Copies Available
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
currently valid control number. From: Securities and Exchange
Securities and Exchange Commission
Written comments are invited on: (a) Commission, Office of FOIA Services,
(‘‘Commission’’) the Securities and
Whether the collection of information is 100 F Street NE, Washington, DC
Exchange Commission (‘‘Commission’’)
necessary for the proper performance of 20549–2736
has submitted to the Office of
the functions of the Commission, Management and Budget (‘‘OMB’’) a Extension:
including whether the information has request for approval of extension of the Rule 17a–12/Form X–17A–5 Part IIB, SEC
previously approved collection of File No. 270–442, OMB Control No.
practical utility; (b) the accuracy of the
3235–0498
Commission’s estimate of the burden of information provided for in Rule 17g–5
the collection of information; (c) ways to (17 CFR 240.17g–5) under the Securities Notice is hereby given that pursuant
enhance the quality, utility, and clarity Exchange Act of 1934 (15 U.S.C. 78a et to the Paperwork Reduction Act of 1995
of the information collected; and (d) seq.) (‘‘Exchange Act’’). (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
ways to minimize the burden of the Rule 17g–5 requires the disclosure of Securities and Exchange Commission
collection of information on and establishment of procedures to (‘‘Commission’’) is soliciting comments
manage certain NRSRO conflicts of on the existing collection of information
respondents, including through the use
interest, prohibits certain other NRSRO provided for in Rule 17a–12 (17 CFR
of automated collection techniques or conflicts of interest, and contains
other forms of information technology. 240.17a–12) and Part IIB of Form X–
requirements regarding the disclosure of 17A–5 (17 CFR 249.617) under the
Consideration will be given to information in the case of the conflict of
comments and suggestions submitted in Securities Exchange Act of 1934 (15
interest of an NRSRO issuing or U.S.C. 78a et seq.). The Commission
writing within 60 days after this maintaining a credit rating on an asset-
publication. plans to submit this existing collection
backed security that was paid for by the of information to the Office of
Please direct your written comments issuer, sponsor, or underwriter of the Management and Budget (‘‘OMB’’) for
to Pamela Dyson, Director/Chief security. The Commission previously extension and approval.
Information Officer, Securities and estimated that the total annual burden
for respondents to comply with Rule Rule 17a–12 is the reporting rule
Exchange Commission, C/O Candace tailored specifically for over-the-counter
Kenner, 100 F Street NE, Washington, 17g–5 is 261,295 hours.
The Commission may not conduct or (‘‘OTC’’) derivatives dealers registered
DC 20549; or send an email to: PRA_ with the Commission, and Part IIB of
sponsor a collection of information
Mailbox@sec.gov. Form X–17A–5, the Financial and
unless it displays a currently valid OMB
Dated: August 21, 2018. control number. No person shall be Operational Combined Uniform Single
Eduardo A. Aleman, subject to any penalty for failing to (‘‘FOCUS’’) Report, is the basic
comply with a collection of information document for reporting the financial
Assistant Secretary.
subject to the PRA that does not display and operational condition of OTC
[FR Doc. 2018–18360 Filed 8–23–18; 8:45 am]
a valid Office of Management and derivatives dealers. Rule 17a–12
BILLING CODE 8011–01–P
Budget (OMB) control number. requires registered OTC derivatives
Background documentation for this dealers to file Part IIB of the FOCUS
information collection may be viewed at Report quarterly. Rule 17a–12 also
the following website: www.reginfo.gov. requires that OTC derivatives dealers
Comments should be directed to: (i) file audited financial statements
4 This estimate is based on the following
Desk Officer for the Securities and annually.
calculations: (1 hour ÷ 6 years) = 10 minutes per
year for each fund and conduit fund that is required Exchange Commission, Office of The reports required under Rule 17a–
to provide notice under the rule. 10 minutes per Information and Regulatory Affairs, 12 provide the Commission with
year × 3 (combined number of affected funds and Office of Management and Budget, information used to monitor the
conduit funds) = 30 minutes. Room 10102, New Executive Office operations of OTC derivatives dealers
5 This estimate is based on the following
Building, Washington, DC 20503, or by and to enforce their compliance with
daltland on DSKBBV9HB2PROD with NOTICES
calculation: $401/hour × 30 minutes = $200.50. The sending an email to: Shagufta_Ahmed@ the Commission’s rules. These reports
estimated hourly wages used in this PRA analysis omb.eop.gov; and (ii) Pamela Dyson, also enable the Commission to review
were derived from reports prepared by the
Director/Chief Information Officer, the business activities of OTC
Securities Industry and Financial Markets
Association, modified to account for an 1,800-hour
Securities and Exchange Commission, c/ derivatives dealers and to anticipate,
work year and multiplied by 5.35 to account for o Candace Kenner, 100 F St NE, where possible, how these dealers may
bonuses, firm size, employee benefits and overhead, Washington, DC 20549 or send an email be affected by significant economic
and adjusted for inflation. to: PRA_Mailbox@sec.gov. Comments events.
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Document Created: 2018-08-24 04:13:19
Document Modified: 2018-08-24 04:13:19
| 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 42957 |
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