60 Day Notice

Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–01561 Filed 1–26–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–225, OMB Control No.
3235–0235]

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Proposed Collection; Comment
Request; Extension: Rule 17a–8
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
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 17a–8 (17 CFR 270.17a–8) under
the Investment Company Act of 1940
(the ‘‘Act’’) (15 U.S.C. 80a–1 et seq.) is
entitled ‘‘Mergers of affiliated
companies.’’ Rule 17a–8 exempts
certain mergers and similar business
combinations (‘‘mergers’’) of affiliated
registered investment companies
(‘‘funds’’) from prohibitions under
section 17(a) of the Act (15 U.S.C. 80a–
17(a)) on purchases and sales between a
fund and its affiliates. The rule requires
fund directors to consider certain issues
and to record their findings in board
minutes. The rule requires the directors
of any fund merging with an
unregistered entity to approve
procedures for the valuation of assets
received from that entity. These
procedures must provide for the
preparation of a report by an
independent evaluator that sets forth the
fair value of each such asset for which
market quotations are not readily
available. The rule also requires a fund
being acquired to obtain approval of the
merger transaction by a majority of its
outstanding voting securities, except in
certain situations, and requires any
surviving fund to preserve written
records describing the merger and its
terms for six years after the merger (the
first two in an easily accessible place).

The average annual burden of meeting
the requirements of rule 17a–8 is
estimated to be 7 hours for each fund.
The Commission staff estimates that
each year approximately 384 funds rely
on the rule. The estimated total average
annual burden for all respondents
therefore is 2,688 hours.
The average cost burden of preparing
a report by an independent evaluator in
a merger with an unregistered entity is
estimated to be $15,000. The average net
cost burden of obtaining approval of a
merger transaction by a majority of a
fund’s outstanding voting securities is
estimated to be $100,000. The
Commission staff estimates that each
year approximately 59 funds hold
shareholder votes that would not
otherwise have held a shareholder vote.
The total annual cost burden of meeting
these requirements is estimated to be
$5,900,000.
The estimates of average burden hours
and average cost burdens 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. 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.
Written comments are requested 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 burdens 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 David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O John R.
Pezzullo, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: January 21, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–01546 Filed 1–26–22; 8:45 am]

11 17

CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–224, OMB Control No.
3235–0217]

Submission for OMB Review;
Comment Request, Extension: Rule
17e–1
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (the
‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information described below.
Rule 17e–1 (17 CFR 270.17e–1) under
the Investment Company Act of 1940
(15 U.S.C. 80a–1 et seq.) (the
‘‘Investment Company Act’’) deems a
remuneration as ‘‘not exceeding the
usual and customary broker’s
commission’’ for purposes of Section
17(e)(2)(A) of the Act (15 U.S.C. 80a–
17(e)(2)(A)) if, among other things, a
registered investment company’s
(‘‘fund’s’’) board of directors has
adopted procedures reasonably
designed to provide that the
remuneration to an affiliated broker is
reasonable and fair compared to that
received by other brokers in connection
with comparable transactions involving
similar securities being purchased or
sold on a securities exchange during a
comparable period of time and the
board makes and approves such changes
as it deems necessary. In addition, each
quarter, the board must determine that
all transactions effected under the rule
during the preceding quarter complied
with the established procedures
(‘‘review requirement’’). Rule 17e–1 also
requires the fund to (i) maintain
permanently a written copy of the
procedures adopted by the board for
complying with the requirements of the
rule; and (ii) maintain for a period of six
years, the first two in an easily
accessible place, a written record of
each transaction subject to the rule,
setting forth the amount and source of
the commission, fee, or other
remuneration received; the identity of
the broker; the terms of the transaction;
and the materials used to determine that
the transactions were effected in
compliance with the procedures
adopted by the board (‘‘recordkeeping
requirement’’). The review and

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Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Notices

recordkeeping requirements under rule
17e–1 enable the Commission to ensure
that affiliated brokers receive
compensation that does not exceed the
usual and customary broker’s
commission. Without the recordkeeping
requirement, Commission inspectors
would have difficulty ascertaining
whether funds were complying with
rule 17e–1.
Based upon an analysis of fund filings
on Form N–CEN, approximately 1,640
funds report reliance on rule 17e–1.
Based on staff experience and
conversations with fund representatives,
we estimate that the burden of
compliance with rule 17e–1 is
approximately 50 hours per fund per
year. This time is spent, for example,
reviewing the applicable transactions
and maintaining records. Accordingly,
we calculate the total estimated annual
internal burden of complying with the
review and recordkeeping requirements
of rule 17e–1 to be approximately
82,000 hours.1 We further estimate that,
of these:
• 60 percent (49,200 hours) are spent
by senior accountants, at an estimated
hourly wage of $221,2 for a total of
approximately $10,873,200 per year; 3
• 30 percent (24,600 hours) are spent
by in-house attorneys at an estimated
hourly wage of $425, for a total of
approximately $10,455,000 per year; 4
and
• 10 percent (8,200) are spent by the
funds’ board of directors at an hourly
cost of $4,770, for a total of
approximately $39,114,000 per year.5
Based on these estimated wage rates,
the total cost to the industry of the hour
burden for complying with the review
and recordkeeping requirements of rule
17e–1 is approximately $60,442,200.6
The Commission staff estimates that
funds × 50 hours per fund = 82,000 hours.
Commission’s estimates concerning the
allocation of burden hours and the relevant wage
rates are based on consultations with industry
representatives and on salary information for the
securities industry compiled by the Securities
Industry and Financial Markets Association. The
estimated wage figures are also based on published
rates for senior accountants and in-house attorneys,
modified to account for an 1800-hour work-year
and multiplied by 5.35 to account for bonuses, firm
size, employee benefits, and overhead, yielding
effective hourly rates of $221 and $425,
respectively. See Securities Industry and Financial
Markets Association, Report on Management &
Professional Earnings in the Securities Industry
2013.
3 49,200 hours × $221 per hour = $10,873,200.
4 24,600 hours × $425 per hour = $10,455,000.
5 8,200 hours × $4,770 per hour = $39,114,000.
The estimate for the cost of board time as a whole
is derived from estimates made by the staff
regarding typical board size and compensation that
is based on information received from fund
representatives and publicly available sources.
6 $10,873,200 + $10,455,000 + $39,114,000 =
$60,442,200.
1 1,604

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there is no cost burden associated with
the information collection requirement
of rule 17e–1 other than this cost.
Estimates of the average burden hours
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.
The collection of information under rule
17e–1 is mandatory. The information
provided under rule 17e–1 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 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:
Lindsay.M.Abate@omb.eop.gov; and (ii)
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John R.
Pezzullo, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov. Written comments
and recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
Dated: January 24, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–01612 Filed 1–26–22; 8:45 am]
BILLING CODE 8011–01–P

SMALL BUSINESS ADMINISTRATION
Reporting and Recordkeeping
Requirements Under OMB Review
U.S. Small Business
Administration.
ACTION: 30-Day notice; request for
comments.
AGENCY:

The Small Business
Administration will submit the
information collection described below
to the Office of Management and Budget
(OMB) for review and clearance in
accordance with the Paperwork
Reduction Act of 1995, on or after the

SUMMARY:

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date of publication of this notice. SBA
published the required 60-day public
comment notice in the Federal Register
on December 2, 2021, and is publishing
this notice to allow all interested
members of the public an additional 30
days to provide comments on the
collection of information.
DATES: Submit comments on or before
March 2, 2022.
ADDRESSES: Written comments and
recommendations for this information
collection request should be submitted
through ‘‘www.reginfo.gov/public/do/
PRAMain.’’ Find this information
collection request by selecting ‘‘Small
Business Administration’’; ‘‘Currently
Under Review,’’ then selecting ‘‘Only
Show ICR for Public Comment.’’ This
information collection can be identified
by the title and/or OMB Control Number
identified below.
FOR FURTHER INFORMATION CONTACT:
Adrienne Grierson, Program Manager, at
adrienne.grierson@sba.gov; 202–205–
6573, or Curtis B. Rich, Management
Analyst, 202–205–7030; curtis.rich@
sba.gov.
SUPPLEMENTARY INFORMATION: Section
1102 of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act, Public
Law 116–136, authorized SBA to
guarantee loans made by banks or other
financial institutions under a new
temporary 7(a) program titled the
‘‘Paycheck Protection Program’’ (‘‘PPP’’)
to small businesses, certain non-profit
organizations, veterans’ organizations,
Tribal business concerns, independent
contractors and self-employed
individuals adversely impacted by the
Coronavirus Disease (COVID–19)
Emergency. This authority initially
expired on August 8, 2020. The
Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues Act
(Economic Aid Act), Public Law 116–
260, renewed SBA’s authority to make
PPP loans until March 31, 2021, and
added authority for second draw PPP
loans under § 7(a)(37) of the Small
Business Act. The program authority
was further extended until June 30,
2021, by the PPP Extension Act of 2021,
Public Law 117–6.
This information collection is
currently approved for the PPP Loan
Program under the emergency
procedures authorized by 5 U.S.C.
3507(j) and 5 CFR 1320.13. This
approval will expire on January 31,
2022. Although SBA’s PPP program
authority has expired, this information
collection is still needed for the
following reasons: (1) PPP borrowers
may apply for forgiveness of their loans
up to the date of loan maturity, which
may be as late as 2026; (2) SBA may

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