[Federal Register Volume 76, Number 42 (Thursday, March 3, 2011)]
[Page 11827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4727]



Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
    Rule 27d-2, SEC File No. 270-500, OMB Control No. 3235-0566.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (the ``Commission'') has submitted to the Office of 
Management and Budget (``OMB'') a request for approval of the 
collections of information under the Investment Company Act of 1940 
(``Act'') summarized below.
    Rule 27d-2 (17 CFR 270.27d-2) is entitled ``Insurance Company 
Undertaking in Lieu of Segregated Trust Account.'' Rule 27d-1 (17 CFR 
270.27d-1) under the Act requires the depositor or principal 
underwriter for an issuer of periodic payment plans to deposit funds 
into a segregated trust account to provide assurance of its ability to 
fulfill its refund obligations under sections 27(d) and 27(f) of the 
Act.\1\ Rule 27d-2 provides an exemption from rule 27d-1 under the Act 
for depositors or principal underwriters for the issuers of periodic 
payment plans. In order to comply with the rule: (i) The depositor or 
principal underwriter must secure from an insurance company a written 
guarantee of the refund requirements; (ii) the insurance company must 
satisfy certain financial criteria; and (iii) the depositor or 
principal underwriter must file as an exhibit to the issuer's 
registration statement, a copy of the written undertaking, an annual 
statement that the insurance company has met the requisite financial 
criteria on a monthly basis, and an annual audited balance sheet.

    \1\ The rule sets forth minimum reserve amounts and guidelines 
for the management and disbursement of the assets in the account. 
Rule 27d-1(j) directs depositors and principal underwriters annually 
to make an accounting of their segregated trust accounts on Form N-
27D-1, which is filed with the Commission. The form requires 
depositors and principal underwriters to report deposits to a 
segregated trust account, including those made pursuant to 
paragraphs (c) and (e) of the rule. Withdrawals pursuant to 
paragraph (f) of the rule also must be reported. In addition, the 
form solicits information regarding the minimum amount required to 
be maintained under paragraphs (d) and (e) of rule 27d-1.

    Rule 27d-2, which was explicitly authorized by statute, provides 
assurance that depositors and principal underwriters of issuers have 
access to sufficient cash to meet the demands of certificate holders 
who reconsider their decisions to invest in a periodic payment plan. 
The information collection requirement in rule 27d-2 enables the 
Commission to monitor compliance with insurance company undertaking 
    Effective October 27, 2006, the Military Personnel Financial 
Services Protection Act banned the issuance or sale of new periodic 
payment plans. Accordingly, the staff estimates that there is no longer 
any information collection burden associated with rule 27d-2. For 
administrative purposes, however, we are requesting approval for an 
information collection burden of one hour per year. This estimate of 
burden hours is not derived from a comprehensive or even a 
representative survey or study of the costs of Commission rules and 
    Complying with the collection of information requirements of rule 
27d-2 is mandatory for depositors or principal underwriters of issuers 
of periodic payment plans who rely on the rule for an exemption from 
complying with rule 27d-1 and filing Form N-27D-1. The information 
provided pursuant to rule 27d-2 is public and, therefore, will not be 
kept confidential. 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 OMB control number.
    The public may view the background documentation for this 
information collection at the following Web site, http://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 e-
mail to: [email protected]; and (ii) Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an 
e-mail to: [email protected]. Comments must be submitted to OMB 
within 30 days of this notice.

    Dated: February 25, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-4727 Filed 3-2-11; 8:45 am]