83 FR 55223 - Submission to OMB; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 213 (November 2, 2018)

Page Range		55223-55224
FR Document		2018-23962
Federal Register, Volume 83 Issue 213 (Friday, November 2, 2018)
[Federal Register Volume 83, Number 213 (Friday, November 2, 2018)]
[Notices]
[Pages 55223-55224]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23962]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-603, OMB Control No. 3235-0658]


Submission to OMB; 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

    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.
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    \1\ See rule 22e-3(a)(3).
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    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 conduit funds 
would be approximately 30 minutes,\4\ at a cost of $201.\5\
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    \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 1800-hour work year and multiplied by 5.35 to account for 
bonuses, firm size, employee benefits and overhead, and adjusted for 
inflation.
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    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.
    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) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Candace

[[Page 55224]]

Kenner, 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: October 29, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23962 Filed 11-1-18; 8:45 am]
 BILLING CODE 8011-01-P
55224 Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices

Kenner, 100 F Street NE, Washington, covering essential information about a displays a currently valid control
DC 20549 or send an email to: PRA_ separate account. Section 5(b) of the number.
Mailbox@sec.gov. Comments must be Securities Act requires that investors be Written comments are invited on: (a)
submitted to OMB within 30 days of provided with a prospectus containing Whether the proposed collection of
this notice. the information required in a information is necessary for the proper
Dated: October 29, 2018. registration statement prior to or at the performance of the functions of the
Eduardo A. Aleman, time of sale or delivery of securities. agency, including whether the
The purpose of Form N–4 is to meet information will have practical utility;
Assistant Secretary.
the filing and disclosure requirements of (b) the accuracy of the agency’s estimate
[FR Doc. 2018–23962 Filed 11–1–18; 8:45 am] the Securities Act and the Investment of the burden of the collection of
BILLING CODE 8011–01–P Company Act and to enable filers to information; (c) ways to enhance the
provide investors with information quality, utility, and clarity of the
necessary to evaluate an investment in information collected; and (d) ways to
SECURITIES AND EXCHANGE a security. The information required to
COMMISSION minimize the burden of the collection of
be filed with the Commission permits information on respondents, including
[SEC File No. 270–282, OMB Control No. verification of compliance with through the use of automated collection
3235–0318] securities law requirements and assures techniques or other forms of information
the public availability and technology. Consideration will be given
Proposed Collection; Comment dissemination of the information. to comments and suggestions submitted
Request The estimated annual number of in writing within 60 days of this
Upon Written Request, Copies Available filings on Form N–4 is 35 initial publication.
From: Securities and Exchange registration statements and 1,326 post- Please direct your written comments
Commission, Office of FOIA Services, effective amendments. The estimated to Charles Riddle, Acting Director/Chief
100 F Street NE, Washington, DC average number of portfolios per filing Information Officer, Securities and
20549–2736 is one, both for initial registration Exchange Commission, C/O Candace
statements and post-effective Kenner, 100 F Street NE, Washington,
Extension: amendments on Form N–4.
Form N–4 DC 20549; or send an email to: PRA_
Accordingly, the estimated number of Mailbox@sec.gov.
Notice is hereby given that, pursuant portfolios referenced in initial Form N–
to the Paperwork Reduction Act of 1995 4 filings annually is 35 and the Dated: October 29, 2018.
(44 U.S.C. 3501 et seq.), the Securities estimated number of portfolios Eduardo A. Aleman,
and Exchange Commission (the referenced in post-effective amendment Assistant Secretary.
‘‘Commission’’) is soliciting comments filings on Form N–4 annually is 1,326. [FR Doc. 2018–23957 Filed 11–1–18; 8:45 am]
on the collection of information The estimate of the annual hour burden BILLING CODE 8011–01–P
summarized below. The Commission for Form N–4 is approximately 278.5
plans to submit this existing collection hours per initial registration statement
of information to the Office of and 197.25 hours per post-effective
Management and Budget for extension SMALL BUSINESS ADMINISTRATION
amendment, for a total of 271,301 hours
and approval. ((35 initial registration statements × [Docket No.: SBA–2018–0010]
The collection of information is 278.5 hours) + (1,326 post-effective
entitled: ‘‘Form N–4 (17 CFR 239.17b) amendments × 197.25 hours)). Development Company Loan
under the Securities Act of 1933 and (17 The current estimated annual cost Program—Job Creation and Retention
CFR 274.11c) under the Investment burden for preparing an initial Form N– Requirements; Additional Areas for
Company Act of 1940, registration 4 filing is $24,858 per portfolio and the Higher Portfolio Average
statement of separate accounts current estimated annual cost burden
organized as unit investment trust.’’ for preparing a post-effective AGENCY: U.S. Small Business
Form N–4 is the form used by insurance amendment filing on Form N–4 is Administration.
company separate accounts organized as $23,561 per portfolio. The Commission ACTION: Notification of changes to
unit investment trusts that offer variable estimates that, on an annual basis, 35 Development Company Program;
annuity contracts to register as portfolios will be referenced in initial request for comments.
investment companies under the Form N–4 filings and 1,326 portfolios
Investment Company Act of 1940 (15 will be referenced in post-effective SUMMARY: The Small Business
U.S.C. 80a–1 et seq.) and/or to register amendment filings on Form N–4. Thus, Administration (SBA) is changing the
their securities under the Securities Act the estimated total annual cost burden job creation or retention requirements
of 1933 (15 U.S.C. 77a et seq.). Section allocated to Form N 4 would be under its Development Company Loan
5 of the Securities Act (15 U.S.C. 77e) $32,111,916 ((35 × $24,858) + (1,326 × Program (504 Loan Program) by
requires the filing of a registration $23,561)). increasing the dollar amounts used in
statement prior to the offer of securities Providing the information required by calculating the number of jobs that must
to the public and that the registration Form N–4 is mandatory. Responses will be created or retained for each 504
statement be effective before any not be kept confidential. Estimates of Project and for the portfolio average of
securities are sold, and Section 8 of the average burden hours are made solely each Certified Development Company.
Investment Company Act (15 U.S.C. for the purposes of the Paperwork In addition, SBA is designating
80a–8) provides for the registration of Reduction Act, and are not derived from additional areas for application of the
investment companies. Pursuant to a comprehensive or even a higher portfolio average.
Form N–4, separate accounts organized representative survey or study of the DATES: Applicability Date: The job
as unit investment trusts that offer costs of Commission rules and forms. creation or retention requirements and
variable annuity contracts provide An agency may not conduct or sponsor, the designation of the additional areas
investors with a prospectus and a and a person is not required to respond that are described in this document will
statement of additional information to, a collection of information unless it apply to all 504 loans that are approved

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Document Created: 2018-11-02 01:09:25
Document Modified: 2018-11-02 01:09:25
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 55223