Notice2023-20907
Proposed Collection; Comment Request; Extension: Rule 30b1-10, Form N-RN
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 26, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 185 (Tuesday, September 26, 2023)</title>
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[Federal Register Volume 88, Number 185 (Tuesday, September 26, 2023)]
[Notices]
[Pages 66099-66100]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-20907]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-803, OMB Control No. 3235-0754]
Proposed Collection; Comment Request; Extension: Rule 30b1-10,
Form N-RN
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.), 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 30b1-10 [17 CFR 270.30b1-10] and Form N-RN [17 CFR 274.223]
require registered open-end management investment companies (not
including entities regulated as money market funds under 17 CFR 270.2a-
7), registered closed-end funds, and business development companies
(collectively, ``funds''), to file a current report on Form N-RN on a
non-public basis when certain events related to their liquidity and
events regarding funds' compliance with the VaR-based limit on fund
leverage risk in 17 CFR 270.18f-4 (``rule 18f-4'') occur. The first
category of information reported on Form N-RN concerns events under
which more than 15% of an open-end fund's net assets are, or become,
illiquid investments that are assets as defined in 17 CFR 270.22e-4
(``rule 22e-4'') and when holdings in illiquid investments are assets
that previously exceeded 15% of a fund's net assets have changed to be
less than or equal to 15% of the fund's net assets. The second category
of information reported on Form N-RN regards events for certain open-
end funds under which a fund's holdings in assets that are highly
liquid investments fall below the fund's highly liquid investment
minimum defined in rule 22e-4 for more than 7 consecutive calendar
days. The third category of information reported on Form N-RN regards
information about a fund's breaches of the VaR test under rule 18f-4. A
report on Form N-RN is required to be filed, as applicable, within one
business day of the occurrence of one or more of these events. In
addition, a fund is in certain cases required to file a second Form N-
RN when it is no longer in breach of the applicable limit.
Based on historical filing data and projected estimates of the
annual number of VAR-based filings, the staff estimates that the
Commission will receive roughly 66 reports per year on Form N-RN on
average.\1\ When filing a report on Form N-RN, staff estimates that a
fund will spend on average approximately 3 hours of an in-house
compliance attorney's time and 1 hour of a senior programmer time to
prepare, review, and submit Form N-RN, at a total time cost of
$1,661.\2\ Accordingly,
[[Page 66100]]
in the aggregate, staff estimates that compliance with rule 30b1-10 and
Form N-RN will result in a total annual burden of approximately 264
burden hours and total annual time costs of approximately $109,626.\3\
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\1\ Because the compliance date for the VaR-based reporting
requirements was August 1, 2022, we have made adjustments to
estimate an annual number of VAR-based filings.
\2\ This estimate is based on the following calculations: (3
hours x $425/hour for an in house compliance attorney = $1,275),
plus (1 hour x $386/hour for a senior programmer = $386), for a
combined total of 4 hours at total time costs of $1,661. The
estimates concerning the wage rates for attorney and senior
accountant time are based on salary information for the securities
industry compiled by the Securities Industry and Financial Markets
Association. The estimated wage figure is based on published rates
for in-house compliance attorneys and senior programmers, modified
to account for a 1,800-hour work-year and inflation, and multiplied
by 5.35 to account for bonuses, firm size, employee benefits, and
overhead. See Securities Industry and Financial Markets Association,
Report on Management & Professional Earnings in the Securities
Industry 2013.
\3\ This estimate is based on the following calculations: 66
reports filed per year x 4 hours per report = approximately 264
total annual burden hours. 66 reports filed per year x $1,661 in
costs per report = $109,626 total annual costs.
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Compliance with rule 30b1-10 is mandatory for all funds. Responses
to the disclosure requirements will be kept confidential. The estimate
of average burden hours is made solely for the purposes of the PRA. The
estimate is not derived from a comprehensive or even a representative
survey or study of the costs of Commission rules. Complying with this
collection of information requirement is necessary to enable the
Commission to receive information on fund liquidity events more
uniformly and efficiently, and to enhance the Commission's oversight of
funds when significant liquidity events occur and its ability to
respond to market events. 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 proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have 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 by November 27, 2023,
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
Please direct your written comments to: David Bottom, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John Pezzullo, 100 F Street NE, Washington, DC 20549 or send an
email to: <a href="/cdn-cgi/l/email-protection#1a4a485b45577b73767875625a697f79347d756c"><span class="__cf_email__" data-cfemail="6c3c3e2d33210d05000e03142c1f090f420b031a">[email protected]</span></a>.
Dated: September 21, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-20907 Filed 9-25-23; 8:45 am]
BILLING CODE 8011-01-P
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