[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)]
[Notices]
[Pages 17694-17695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08400]
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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 17f-6; SEC File No. 270-392, OMB Control No. 3235-0447
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520), 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 17f-6 (17 CFR 270.17f-6) under the Investment Company Act of
1940 (15 U.S.C. 80a) permits registered investment companies
(``funds'') to maintain assets (i.e., margin) with futures commission
merchants (``FCMs'') in connection with commodity transactions effected
on both domestic and foreign exchanges. Prior to the rule's adoption,
funds generally were required to maintain these assets in special
accounts with a custodian bank.
The rule requires a written contract that contains certain
provisions designed to ensure important safeguards and other benefits
relating to the custody of fund assets by FCMs. To protect fund assets,
the contract must require that FCMs comply with the segregation or
secured amount requirements of the Commodity Exchange Act (``CEA'') and
the rules under that statute. The contract also must contain a
requirement that FCMs obtain an acknowledgment from any clearing
organization that the fund's assets are held on behalf of the FCM's
customers according to CEA provisions.
Because rule 17f-6 does not impose any ongoing obligations on funds
or FCMs, Commission staff estimates there are no costs related to
existing contracts between funds and FCMs. This estimate does not
include the time required by an FCM to comply with the rule's contract
requirements because, to the extent that complying with the contract
provisions could be considered ``collections of information,'' the
burden hours for compliance are already included in other PRA
submissions.\1\
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\1\ The rule requires a contract with the FCM to contain two
provisions requiring the FCM to comply with existing requirements
under the CEA and rules adopted thereunder. Thus, to the extent
these provisions could be considered collections of information, the
hours required for compliance would be included in the collection of
information burden hours submitted by the CFTC for its rules.
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Thus, Commission staff estimates that any burden of the rule would
be borne by funds and FCMs entering into new contracts pursuant to the
rule. Commission staff estimates that approximately 214 fund complexes
and 2,825 funds currently effect commodities transactions and could
deposit margin with FCMs in connection with those transactions pursuant
to rule 17f-6.\2\ Staff further
[[Page 17695]]
estimates that of this number, 21 fund complexes and 283 funds enter
into new contracts with FCMs each year.\3\
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\2\ This estimate is based on the number of funds that reported
on Form N-SAR from June 1, 2017-November 30, 2017, in response to
sub-items E through I of item 70, that they engaged in futures and
commodity options transactions.
\3\ These estimates are based on the assumption that 10% of fund
complexes and funds enter into new FCM contracts each year. This
assumption encompasses fund complexes and funds that enter into FCM
contracts for the first time, as well as fund complexes and fund
that change the FCM with whom they maintain margin accounts for
commodities transactions.
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Based on conversations with fund representatives, Commission staff
understands that fund complexes typically enter into contracts with
FCMs on behalf of all funds in the fund complex that engage in
commodities transactions. Funds covered by the contract are typically
listed in an attachment, which may be amended to encompass new funds.
Commission staff estimates that the burden for a fund complex to enter
into a contract with an FCM that contains the contract requirements of
rule 17f-6 is one hour, and further estimates that the burden to add a
fund to an existing contract between a fund complex and an FCM is 6
minutes.
Accordingly, Commission staff estimates that funds and FCMs spend
49 burden hours annually complying with the information collection
requirements of rule 17f-6.\4\ These estimates are made solely for the
purposes of the Paperwork Reduction Act, and are not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules and forms.
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\4\ This estimate is based upon the following calculation: (21
fund complexes x 1 hour) + (283 funds x 0.1 hours) = 49 hours.
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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 Remi
Pavlik-Simon, 100 F Street NE, Washington, DC 20549; or send an email
to: [email protected].
Dated: April 18, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08400 Filed 4-20-18; 8:45 am]
BILLING CODE 8011-01-P