Notice2024-18168
Proposed Collection; Comment Request; Extension: Rule 23c-1
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
August 14, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 157 (Wednesday, August 14, 2024)</title>
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[Federal Register Volume 89, Number 157 (Wednesday, August 14, 2024)]
[Notices]
[Pages 66162-66163]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-18168]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-253, OMB Control No. 3235-0260]
Proposed Collection; Comment Request; Extension: Rule 23c-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. 3501-3520), 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 23c-1(a) under the Investment Company Act (17 CFR 270.23c-
1(a)) permits a closed-end fund to repurchase its securities for cash
if, in addition to the other requirements set forth in the rule, the
following conditions are met: (i) payment of the purchase price is
accompanied or preceded by a written confirmation of the purchase
(``written confirmation''); (ii) the asset coverage per unit of the
security to be purchased is disclosed to the seller or his agent
(``asset coverage disclosure''); and (iii) if the security is a stock,
the fund has, within the preceding six months, informed stockholders of
its intention to purchase stock (``six month notice''). Commission
staff estimates that 48 closed-end funds undertake a total of 192
repurchases annually under rule 23c-1.\1\ Staff estimates further that,
with respect to each repurchase, each fund
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spends 2.5 hours to comply with the rule's written confirmation, asset
coverage disclosure and six month notice requirements. Thus, Commission
staff estimates the total annual respondent reporting burden is 480
hours.\2\ Commission staff further estimates that the cost of the
hourly burden per repurchase is approximately $388 (one half hour of a
compliance attorney's time at $440 per hour,\3\ and two hours of
clerical time at $84 per hour \4\). The total annual cost for all funds
is estimated to be $186,240.\5\
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\1\ The number of closed-end funds that undertake repurchases
annually under rule 23c-1 is based on information provided in
response to Item C.7.i of Form N-CEN from January 1, 2023 through
December 31, 2023; we estimate that each of the 48 funds undertook
an average of 4 repurchases annually (48 funds x 4 repurchases = 192
repurchases annually).
\2\ This estimate is based on the following calculation: 192
repurchases x 2.5 hours per repurchase = 480 hours.
\3\ The $440/hour figure for a compliance attorney is from
SIFMA'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 to account for
bonuses, firm size, employee benefits and overhead.
\4\ The $84/hour figure for a compliance clerk is from SIFMA's
Office Salaries in the Securities Industry 2013, modified by
Commission staff to account for an 1,800-hour work-year and
inflation, and multiplied by 2.93 to account for bonuses, firm size,
employee benefits and overhead.
\5\ This estimate is based on the following calculation: 192
repurchases x 2.5 hours per repurchase x $388 hourly cost =
$186,240.
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In addition, the fund must file with the Commission a copy of any
written solicitation to purchase securities given by or on behalf of
the fund to 10 or more persons. The copy must be filed as an exhibit to
Form N-CSR (17 CFR 249.331and 274.128).\6\ The burden associated with
filing Form N-CSR is addressed in the submission related to that form.
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\6\ In addition, Item 9 of Form N-CSR requires closed-end funds
to disclose information similar to the information that was required
in Form N-23C-1, which was discontinued in 2004.
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The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act, and is not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules and forms.
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 October 15, 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: Austin Gerig, Director/
Chief Data Officer, Securities and Exchange Commission, c/o Oluwaseun
Ajayi, 100 F Street NE, Washington, DC 20549 or send an email to:
<a href="/cdn-cgi/l/email-protection#550507140a18343c39373a2d152630367b323a23"><span class="__cf_email__" data-cfemail="0d5d5f4c52406c64616f62754d7e686e236a627b">[email protected]</span></a>.
Dated: August 9, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-18168 Filed 8-13-24; 8:45 am]
BILLING CODE 8011-01-P
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