Notice2023-26406
Submission for OMB Review; 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
December 1, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 230 (Friday, December 1, 2023)</title>
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[Federal Register Volume 88, Number 230 (Friday, December 1, 2023)]
[Notices]
[Pages 84000-84001]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26406]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-803, OMB Control No. 3235-0754]
Submission for OMB Review; 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'') has submitted to the Office of
Management and Budget a request for extension of the previously
approved collection of information discussed below.
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
[[Page 84001]]
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 When filing a report on Form N-RN, staff estimates that a fund
will spend on average approximately 3 hours of a in house compliance
attorney's time and 1 hour of a senior programmer time to prepare,
review, and submit Form NRN at a total time cost of $1,661.\1\
Accordingly, in the aggregate, staff estimates that compliance with
rule 30b1-10 and Form N-LIQUID will result in a total annual burden of
approximately 264 burden hours and total annual time costs of
approximately $109,626.\2\
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\1\ 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 an in house compliance attorney and a
senior programmer 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.
\2\ 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.
The public may view background documentation for this information
collection at the following website: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
by January 2, 2024 to (i) <a href="/cdn-cgi/l/email-protection#b6fbf4ee98f9fbf498f9ffe4f798e5f3f5e9d2d3c5dde9d9d0d0dfd5d3c4f6d9dbd498d3d9c698d1d9c0"><span class="__cf_email__" data-cfemail="3479766c1a7b79761a7b7d66751a6771776b5051475f6b5b52525d575146745b59561a515b441a535b42">[email protected]</span></a> and
(ii) David Bottom, Director/Chief Information Officer, Securities and
Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC
20549, or by sending an email to: <a href="/cdn-cgi/l/email-protection#18484a5947557971747a7760586b7d7b367f776e"><span class="__cf_email__" data-cfemail="acfcfeedf3e1cdc5c0cec3d4ecdfc9cf82cbc3da">[email protected]</span></a>.
Dated: November 27, 2023.
Christina Z. Milnor,
Assistant Secretary.
[FR Doc. 2023-26406 Filed 11-30-23; 8:45 am]
BILLING CODE 8011-01-P
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