83_FR_46705 83 FR 46527 - Proposed Collection; Comment Request

83 FR 46527 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 178 (September 13, 2018)

Page Range46527-46528
FR Document2018-19880

Federal Register, Volume 83 Issue 178 (Thursday, September 13, 2018) 
[Federal Register Volume 83, Number 178 (Thursday, September 13, 2018)]
[Notices]
[Pages 46527-46528]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19880]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange

[[Page 46528]]

Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rule 17Ad-13, SEC File No. 270-263; OMB Control No. 3235-0275

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.) the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collection of 
information provided for in Rule 17Ad-13 (17 CFR 240.17Ad-13). The 
Commission plans to submit this existing collection of information to 
the Office of Management and Budget (``OMB'') for extension and 
approval.
    Rule 17Ad-13 (17 CFR 240.17Ad-13) requires an annual study and 
evaluation of internal accounting controls under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.). It requires approximately 
100 registered transfer agents to obtain an annual report on the 
adequacy of their internal accounting controls from an independent 
accountant. In addition, transfer agents must maintain copies of any 
reports prepared pursuant to Rule 17Ad-13 plus any documents prepared 
to notify the Commission and appropriate regulatory agencies in the 
event that the transfer agent is required to take any corrective 
action. These recordkeeping requirements assist the Commission and 
other regulatory agencies with monitoring transfer agents and ensuring 
compliance with the rule. Small transfer agents are exempt from Rule 
17Ad-13 as are transfer agents that service only their own companies' 
securities.
    Approximately 100 independent, professional transfer agents must 
file the independent accountant's report annually. We estimate that the 
annual internal time burden for each transfer agent to comply with Rule 
17Ad-13 by submitting the report prepared by the independent accountant 
to the Commission is minimal. The time required for the independent 
accountant to prepare the accountant's report varies with each transfer 
agent depending on the size and nature of the transfer agent's 
operations. The Commission estimates that, on average, each report can 
be completed by the independent accountant in 120 hours, resulting in a 
total of 12,000 external hours annually (120 hours x 100 reports). The 
burden was estimated using Commission review of filed Rule 17Ad-13 
reports and Commission conversations with transfer agents and 
accountants. The Commission estimates that, on average, 120 hours are 
needed to perform the study, prepare the report, and retain the 
required records on an annual basis. Assuming an average hourly rate of 
an independent accountant of $60, the average total annual cost of the 
report is $7,200. The total annual cost for the approximate 100 
respondents is approximately $720,000.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the performance of the 
functions of the agency, including whether the information will have 
any practical utility; (b) the accuracy of the agency's estimate of the 
burden imposed by 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 of this publication.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    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: September 7, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-19880 Filed 9-12-18; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 83, No. 178 / Thursday, September 13, 2018 / Notices 46527 154 for the householding of of the rule, for a total of 3,500 hours. Notice is hereby given that, pursuant prospectuses relating to open-end Therefore, the total number of to the Paperwork Reduction Act of 1995 management investment companies that respondents for rule 154 is 475 (300 4 (44 U.S.C. 3501 et seq.), the Securities are registered under the Investment mutual funds plus 175 broker-dealers), and Exchange Commission Company Act of 1940 (‘‘mutual funds’’) and the estimated total hour burden is (‘‘Commission’’) has submitted to the must explain to investors who have approximately 7,975 hours (4,300 hours Office of Management and Budget this provided written or implied consent for mutual funds plus 3,675 hours for request for extension of the previously how they can revoke their consent.3 broker-dealers). approved collection of information Preparing and sending the notice and The estimate of average burden hours discussed below. the annual explanation of the right to is made solely for the purposes of the Form 40–F (17 CFR 249.240f) is used revoke are collections of information. Paperwork Reduction Act, and is not by certain Canadian issuers to register a The rule allows issuers, underwriters, derived from a comprehensive or even class of securities pursuant to Section or dealers to household prospectuses if a representative survey or study of the 12(b) or (g) of the Securities Exchange certain conditions are met. Among the costs of Commission rules and forms. Act of 1934 (‘‘Exchange Act’’) (15 U.S.C. conditions with which a person relying Written comments are invited on: (a) 78l) or as an annual report pursuant to on the rule must comply are providing Whether the collections of information Section 13(a) or 15(d) of the Exchange notice to each investor that only one are necessary for the proper Act (15 U.S.C. 78m(a) or 78o(d)). The prospectus will be sent to the household performance of the functions of the information required in the Form 40–F and, in the case of issuers that are Commission, including whether the is used by investors in making mutual funds, providing to each information has practical utility; (b) the investment decisions with respect to the investor who consents to householding accuracy of the Commission’s estimate securities of such Canadian companies. an annual explanation of the right to of the burden of the collections of We estimate that Form 40–F takes revoke consent to the delivery of a information; (c) ways to enhance the approximately 429.93 hours per single prospectus to multiple investors quality, utility, and clarity of the response and is filed by approximately sharing an address. The purpose of the information collected; and (d) ways to 132 respondents. We estimate that 25% notice and annual explanation minimize the burden of the collections of the 429.93 hours per response (107.48 requirements of the rule is to ensure that of information on respondents, hours) is prepared by the issuer for a investors who wish to receive including through the use of automated total reporting burden of 14,187 (107.48 individual copies of prospectuses are collection techniques or other forms of hours per response × 132 responses). able to do so. information technology. Consideration An agency may not conduct or Although rule 154 is not limited to will be given to comments and sponsor, and a person is not required to mutual funds, the Commission believes suggestions submitted in writing within respond to, a collection of information that it is used mainly by mutual funds unless it displays a currently valid 60 days of this publication. and by broker-dealers that deliver control number. Please direct your written comments prospectuses for mutual funds. The The public may view the background to Pamela Dyson, Director/Chief Commission is unable to estimate the documentation for this information Information Officer, Securities and number of issuers other than mutual collection at the following website, Exchange Commission, C/O Candace funds that rely on the rule. www.reginfo.gov. Comments should be The Commission estimates that, as of Kenner, 100 F Street NE, Washington, directed to: (i) Desk Officer for the August 2018, there are approximately DC 20549; or send an email to: PRA_ Securities and Exchange Commission, 1,590 mutual funds, approximately 400 Mailbox@sec.gov. Office of Information and Regulatory of which engage in direct marketing and Dated: September 7, 2018. Affairs, Office of Management and therefore deliver their own Eduardo A. Aleman, Budget, Room 10102, New Executive prospectuses. Of the approximately 400 Assistant Secretary. Office Building, Washington, DC 20503, mutual funds that engage in direct [FR Doc. 2018–19881 Filed 9–12–18; 8:45 am] or by sending an email to: marketing, the Commission estimates BILLING CODE 8011–01–P Lindsay.M.Abate@omb.eop.gov; and (ii) that approximately half of these mutual Pamela Dyson, Director/Chief funds (200) (i) do not send the implied Information Officer, Securities and consent notice requirement because SECURITIES AND EXCHANGE Exchange Commission, c/o Candace they obtain affirmative written consent COMMISSION Kenner, 100 F Street, NE, Washington, to household prospectuses in the fund’s DC 20549 or send an email to: PRA_ account opening documentation; or (ii) [SEC File No. 270–335, OMB Control No. Mailbox@sec.gov. Comments must be do not take advantage of the 3235–0381] submitted to OMB within 30 days of householding provision because of this notice. electronic delivery options which lessen Submission for OMB Review; Comment Request Dated: September 7, 2018. the economic and operational benefits Eduardo A. Aleman, of rule 154 when compared with the Upon Written Request Copies Available Assistant Secretary. costs of compliance. From: Securities and Exchange The Commission estimates that there [FR Doc. 2018–19879 Filed 9–12–18; 8:45 am] Commission, Office of FOIA Services, are approximately 175 broker-dealers BILLING CODE 8011–01–P 100 F Street NE, Washington, DC that carry customer accounts for the 20549–2736 remaining mutual funds and therefore daltland on DSKBBV9HB2PROD with NOTICES may be required to deliver mutual fund Extension: SECURITIES AND EXCHANGE prospectuses. The Commission Form 40–F COMMISSION estimates that each affected broker- Proposed Collection; Comment 4 The Commission estimates that 200 mutual dealer will spend, on average, 20 hours Request funds prepare both the implied consent notice and complying with the notice requirement the annual explanation of the right to revoke consent + 100 mutual funds that prepare only the Upon Written Request, Copies Available 3 See Rule 154(c). annual explanation of the right to revoke. From: Securities and Exchange VerDate Sep<11>2014 19:20 Sep 12, 2018 Jkt 244001 PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 E:\FR\FM\13SEN1.SGM 13SEN1

46528 Federal Register / Vol. 83, No. 178 / Thursday, September 13, 2018 / Notices Commission, Office of FOIA Services, required records on an annual basis. 242.204) under the Securities Exchange 100 F Street NE, Washington, DC Assuming an average hourly rate of an Act of 1934 (15 U.S.C. 78a et seq.). The 20549–2736 independent accountant of $60, the Commission plans to submit this Extension: average total annual cost of the report is existing collection of information to the Rule 17Ad–13, SEC File No. 270–263; $7,200. The total annual cost for the Office of Management and Budget OMB Control No. 3235–0275 approximate 100 respondents is (‘‘OMB’’) for extension and approval. approximately $720,000. Rule 204(a) provides that a participant Notice is hereby given that pursuant Written comments are invited on: (a) of a registered clearing agency must to the Paperwork Reduction Act of 1995 Whether the proposed collection of deliver securities to a registered clearing (‘‘PRA’’) (44 U.S.C. 3501 et seq.) the information is necessary for the agency for clearance and settlement on Securities and Exchange Commission performance of the functions of the a long or short sale in any equity (‘‘Commission’’) is soliciting comments agency, including whether the security by settlement date, or if a on the collection of information participant of a registered clearing information will have any practical provided for in Rule 17Ad–13 (17 CFR agency has a fail to deliver position at utility; (b) the accuracy of the agency’s 240.17Ad–13). The Commission plans a registered clearing agency in any estimate of the burden imposed by the to submit this existing collection of equity security for a long or short sale collection of information; (c) ways to information to the Office of transaction in the equity security, the enhance the quality, utility, and clarity Management and Budget (‘‘OMB’’) for participant shall, by no later than the of the information collected; and (d) extension and approval. beginning of regular trading hours on ways to minimize the burden of the Rule 17Ad–13 (17 CFR 240.17Ad–13) collection of information on the applicable close-out date, requires an annual study and evaluation respondents, including through the use immediately close out its fail to deliver of internal accounting controls under positions by borrowing or purchasing of automated collection techniques or the Securities Exchange Act of 1934 (15 securities of like kind and quantity. For other forms of information technology. U.S.C. 78a et seq.). It requires a short sale transaction, the participant Consideration will be given to approximately 100 registered transfer must close out a fail to deliver by no comments and suggestions submitted in agents to obtain an annual report on the later than the beginning of regular writing within 60 days of this adequacy of their internal accounting trading hours on the settlement day publication. controls from an independent following the settlement date. If a An agency may not conduct or accountant. In addition, transfer agents participant has a fail to deliver that the sponsor, and a person is not required to must maintain copies of any reports participant can demonstrate on its books respond to, a collection of information prepared pursuant to Rule 17Ad–13 and records resulted from a long sale, or under the PRA unless it displays a plus any documents prepared to notify that is attributable to bona-fide market currently valid OMB control number. the Commission and appropriate Please direct your written comments making activities, the participant must regulatory agencies in the event that the to: Pamela Dyson, Director/Chief close out the fail to deliver by no later transfer agent is required to take any Information Officer, Securities and than the beginning of regular trading corrective action. These recordkeeping Exchange Commission, c/o Candace hours on the third consecutive requirements assist the Commission and Kenner, 100 F Street NE, Washington settlement day following the settlement other regulatory agencies with DC 20549, or send an email to: PRA_ date. Rule 204 is intended to help monitoring transfer agents and ensuring Mailbox@sec.gov. further the Commission’s goal of compliance with the rule. Small transfer reducing fails to deliver by maintaining agents are exempt from Rule 17Ad–13 Dated: September 7, 2018. the reductions in fails to deliver as are transfer agents that service only Eduardo A. Aleman, achieved by the adoption of temporary their own companies’ securities. Assistant Secretary. Rule 204T, as well as other actions Approximately 100 independent, [FR Doc. 2018–19880 Filed 9–12–18; 8:45 am] taken by the Commission. In addition, professional transfer agents must file the BILLING CODE 8011–01–P Rule 204 is intended to help further the independent accountant’s report Commission’s goal of addressing annually. We estimate that the annual potentially abusive ‘‘naked’’ short internal time burden for each transfer SECURITIES AND EXCHANGE selling in all equity securities. agent to comply with Rule 17Ad–13 by COMMISSION The information collected under Rule submitting the report prepared by the [SEC File No. 270–586, OMB Control No. 204 will continue to be retained and/or independent accountant to the 3235–0647] provided to other entities pursuant to Commission is minimal. The time the specific rule provisions and will be required for the independent accountant Proposed Collection; Comment available to the Commission and self- to prepare the accountant’s report varies Request regulatory organization (‘‘SRO’’) with each transfer agent depending on examiners upon request. The Upon Written Request, Copies Available the size and nature of the transfer information collected will continue to From: Securities and Exchange agent’s operations. The Commission aid the Commission and SROs in Commission, Office of FOIA Services, estimates that, on average, each report monitoring compliance with these 100 F Street NE, Washington, DC can be completed by the independent requirements. In addition, the 20549–2736 accountant in 120 hours, resulting in a information collected will aid those total of 12,000 external hours annually Extension: subject to Rule 204 in complying with (120 hours × 100 reports). The burden Rule 204 its requirements. These collections of daltland on DSKBBV9HB2PROD with NOTICES was estimated using Commission review Notice is hereby given that pursuant information are mandatory. of filed Rule 17Ad–13 reports and to the Paperwork Reduction Act of 1995 Several provisions under Rule 204 Commission conversations with transfer (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the will impose a ‘‘collection of agents and accountants. The Securities and Exchange Commission information’’ within the meaning of the Commission estimates that, on average, (‘‘Commission’’) is soliciting comments Paperwork Reduction Act. 120 hours are needed to perform the on the collection of information I. Allocation Notification study, prepare the report, and retain the provided for in Rule 204 (17 CFR Requirement: As of December 31, 2017, VerDate Sep<11>2014 19:20 Sep 12, 2018 Jkt 244001 PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 E:\FR\FM\13SEN1.SGM 13SEN1


Document Created: 2018-09-13 01:01:17
Document Modified: 2018-09-13 01:01:17
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 46527 
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