[Federal Register Volume 80, Number 18 (Wednesday, January 28, 2015)]
[Notices]
[Pages 4597-4598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01512]
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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 23c-1, OMB Control No. 3235-0260, SEC File No. 270-253.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 350l-3520), the Securities and Exchange
Commission (the ``Commission'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit this existing collection of information to the Office of
Management and Budget for extension and approval.
Rule 23c-1(a) under the Investment Company Act (17 CFR 270.23c-
1(a)) permits a closed-end fund to repurchase its securities for cash
if, in addition to the other requirements set forth in the rule, the
following conditions are met: (i) Payment of the purchase price is
accompanied or preceded by a written confirmation of the purchase
(``written confirmation''); (ii) the asset coverage per unit of the
security to be purchased is disclosed to the seller or his agent
(``asset coverage disclosure''); and (iii) if the security is a stock,
the fund has, within the preceding six months, informed stockholders of
its intention to purchase stock (``six month notice''). Commission
staff estimates that 78 closed-end funds undertake a total of 702
repurchases annually under rule 23c-1.\1\ Staff estimates further that,
with respect to each repurchase, each fund spends 2.5 hours to comply
with the rule's written confirmation, asset coverage disclosure and six
month notice requirements. Thus, Commission staff estimates the total
annual respondent reporting burden is 1755 hours.\2\ Commission staff
further estimates that the cost of the hourly burden per repurchase is
$295 (one half hour of a compliance attorney's time at $334 per
hour,\3\ and two hours of clerical time at $64 per hour \4\). The total
annual cost for all funds is estimated to be $207,090.\5\
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\1\ The number of closed-end funds that undertake repurchases
annually under rule 23c-1 is based on information provided in
response to Item 9 of Form N-CSR from December 30, 2013 through
December 30, 2014. Although 112 closed-end funds made disclosures
regarding ``publicly announced'' repurchase plans in response to
Item 9, not all repurchases are made pursuant to rule 23c-1. We
estimate that approximately 30% of such closed-end funds have not
made repurchases pursuant to rule 23c-1. Therefore, our estimate
does not include all 112 funds that made disclosures of publicly
announced repurchases under Item 9, but only a subset thereof.
\2\ This estimate is based on the following calculation: 702
repurchases x 2.5 hours per repurchase = 1755 hours.
\3\ The $334/hour figure for a compliance attorney is from
SIFMA's Management & Professional Earnings in the Securities
Industry 2013, modified by Commission staff to account for an 1800-
hour work-year and multiplied by 5.35 to account for bonuses, firm
size, employee benefits and overhead.
\4\ The $64/hour figure for a compliance clerk is from SIFMA's
Office Salaries in the Securities Industry 2013, modified by
Commission staff to account for an 1800-hour work-year and
multiplied by 2.93 to account for bonuses, firm size, employee
benefits and overhead.
\5\ This estimate is based on the following calculation: 702
repurchases x $295 per repurchase = $207,090.
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In addition, the fund must file with the Commission a copy of any
written solicitation to purchase securities given by or on behalf of
the fund to 10 or more persons. The copy must be filed as an exhibit to
Form N-CSR (17 CFR 249.331 and 274.128).\6\ The burden associated
[[Page 4598]]
with filing Form N-CSR is addressed in the submission related to that
form.
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\6\ In addition, Item 9 of Form N-CSR requires closed-end funds
to disclose information similar to the information that was required
in Form N-23C-1, which was discontinued in 2004.
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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.
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 of this
publication.
Please direct your written comments to Pamela Dyson, Acting
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: [email protected].
Dated: January 22, 2015.
Brent Fields,
Secretary.
[FR Doc. 2015-01512 Filed 1-27-15; 8:45 am]
BILLING CODE 8011-01-P