Notice2023-26990
Proposed Collection; Comment Request; Extension: Rule 0-5
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 8, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 235 (Friday, December 8, 2023)</title>
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[Federal Register Volume 88, Number 235 (Friday, December 8, 2023)]
[Notices]
[Pages 85677-85678]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26990]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-819, OMB Control No. 3235-0780]
Proposed Collection; Comment Request; Extension: Rule 0-5
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 collection of information to the Office of Management and
Budget for extension and approval.
Rule 0-5 (17 CFR 270.0-5) under the Investment Company Act (the
``Act'') (15 U.S.C. 80a et seq.) entitled ``Procedure with Respect to
Applications and Other Matters,'') sets forth procedure for
applications seeking orders for exemptions or other relief under the
Investment Company Act. Rule 0-5(e) requires applicants seeking
expedited review to include certain information with the application.
Rule 0-5(e)(1) requires that the cover page of the application include
a notation prominently stating ``EXPEDITED REVIEW REQUESTED UNDER 17
CFR 270.0-5(d).'' Rule 0-5(e)(2) requires applicants to submit exhibits
with marked copies of the application showing changes from the final
versions of two precedent applications identified as substantially
identical. Rule 0-5(e)(3) requires an accompanying cover letter,
signed, on behalf of the applicant, by the person executing the
application (i) identifying two substantially identical applications
and explaining why the applicant chose those particular applications,
and if more recent applications of the same type have been approved,
why the applications chosen, rather than the more recent applications,
are appropriate; and (ii) certifying that that the applicant believes
the application meets the requirements of rule 0-5(d) and that the
marked copies required by rule 0-5(e)(2) are complete and accurate.
Rule 0-5(g) provides that, if an applicant has not responded in
writing to a request for clarification or modification of an
application filed under standard review within 120 days after the
request, the application will be deemed withdrawn. As an oral response
would not stop an application from being deemed withdrawn, rule 0-5(g),
requires applicants to respond ``in writing'' and therefore create an
additional cost within the meaning of the PRA.
The information collected under rule 0-5(g) and (e) is intended to
provide an expedited review procedure for certain applications and
establish an internal timeframe for review of applications outside of
the expedited procedure. The rule is meant to provide relief as
efficiently and timely as possible, while also ensuring that
applications continue to be carefully analyzed consistent with the
relevant statutory standards.
Applicants for orders under the Act can include investment
companies and affiliated persons of investment companies. Applicants
file applications as they deem necessary. The Commission receives
approximately 116 applications per year under the Act, and of the 116
applications, we estimate to receive approximately 32 applications
seeking expedited review under the Act. Although each application is
typically submitted on behalf of multiple entities, the entities in the
vast majority of cases are related companies and are treated as a
single applicant for purposes of this analysis. Each application
subject to rules 0-5(e) and 0-5(g) does not impose any ongoing
obligations or burdens on the part of an applicant.
Much of the work of preparing an application is performed by
outside counsel. Based on conversations with applicants and Staff
experience, approximately 20 percent of applications are prepared by
in-house counsel.
The mandatory requirements under rule 0-5(e) increase the estimated
hour or cost burden for applicants utilizing in-house counsel by 7
hours \1\ or $3,388 \2\ per application. Therefore, the mandatory
requirements under rule 0-5(e) increase the total estimated annual hour
burden by approximately 50 hours utilizing in-house counsel.\3\ The
total estimated annual cost burden for utilizing in-house counsel is
$24,200.\4\
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\1\ This estimate is based on the following calculation: 5 hours
(estimated hours per application to prepare the marked copies) + 2
hour (estimated hours per application to explain, notate, and
certify) = 7 hours.
\2\ This estimate is based on the following calculation: 5
(estimated hours per application to prepare the marked copies) x
$484 (hourly rate for an in-house counsel) = $2,420; 2 (estimated
hours per application to explain, notate, and certify) x $484
(hourly rate for an in-house counsel) = $968; $2,420 (estimated cost
per application to prepare the marked copies) + $968 (estimated cost
per application to explain, notate, and certify) = $3,388; the
hourly wages data is from the Securities Industry Financial Markets
Association's Management & Professional Earnings in the Securities
Industry 2013, modified by Commission Staff to account for an 1,800-
hour work-year and inflation, and multiplied by 5.35 (professionals)
to account for bonuses, firm size, employee benefits, and overhead,
suggests that the cost for in-house counsel is $484 per hour.
\3\ This estimate is based on the following calculations: [5
(estimated hours per application to prepare the marked copies) + 2
(estimated hours per application to explain, notate, and certify)] x
32 (estimated number of applications under expedited review) x 0.20
(approximate percentage of applications prepared by in-house
counsel) = 44.8 (rounded up to 50).
\4\ This estimate is based on the following calculation: 50
(estimated total hours utilizing in-house counsel) x $484 (hourly
rate for an in-house counsel) = $24,200.
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We estimate to receive approximately 84 applications \5\ per year
seeking standard review under the Act and of the 84 applications, we
estimate that in approximately 10 percent of those, the applicants
respond ``in writing'' to avoid the application being deemed withdrawn
pursuant to rule 0-5(g). We believe the ``in writing'' requirement
under rule 0-5(g) increases the burden for applicants utilizing in-
house counsel by 2 hours or $968 per application.\6\ Therefore, the
``in writing'' requirement under rule 0-5(g) increases the total
estimated annual hour burden by approximately 3.36 hours utilizing in-
house counsel.\7\ The total estimated
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annual cost burden utilizing in-house counsel is $1,626.24.\8\
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\5\ This estimate is based on the following calculation: 116
(estimated number of all applications) -32 (estimated number of
applications under expedited review) = 84.
\6\ This estimate is based on the following calculation: 2
(estimated hours to prepare ``in writing'' response) x $484 (hourly
rate for an in-house counsel) = $968.
\7\ This estimate is based on the following calculations: 2
(estimated hours to prepare ``in writing'' response) x 84 (estimated
number of applications under standard review) x 0.10 (approximate
percentage of application required to respond ``in writing'') x 0.20
(approximate percentage of applications prepared by in-house
counsel) = 3.36.
\8\ This estimate is based on the following calculation: 3.36
(estimated total hours utilizing in-house counsel) x $484 (hourly
rate for an in-house counsel) = $1,626.24.
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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 February 6, 2024.
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, 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#a8f8fae9f7e5c9c1c4cac7d0e8dbcdcb86cfc7de"><span class="__cf_email__" data-cfemail="09595b4856446860656b6671497a6c6a276e667f">[email protected]</span></a>.
Dated: December 5, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-26990 Filed 12-7-23; 8:45 am]
BILLING CODE 8011-01-P
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