Notice2025-22650
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 17f-7
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 12, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 237 (Friday, December 12, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 237 (Friday, December 12, 2025)]
[Notices]
[Pages 57794-57795]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22650]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[OMB Control No. 3235-0529]
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension: Rule 17f-7
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
[[Page 57795]]
(44 U.S.C. 3501-3521) (``Paperwork Reduction Act''), the Securities and
Exchange Commission (the ``Commission'') is soliciting comments on the
collections of information summarized below. The Commission plans to
submit these existing collections of information to the Office of
Management and Budget (``OMB'') for extension and approval.
Rule 17f-7 (17 CFR 270.17f-7) permits a fund under certain
conditions to maintain its foreign assets with an eligible securities
depository, which has to meet minimum standards for a depository. The
fund or its investment adviser generally determines whether the
depository complies with those requirements based on information
provided by the fund's primary custodian (a bank that acts as global
custodian). The depository custody arrangement also must meet certain
conditions. The fund or its adviser must receive from the primary
custodian (or its agent) an initial risk analysis of the depository
arrangements, and the fund's contract with its primary custodian must
state that the custodian will monitor risks and promptly notify the
fund or its adviser of material changes in risks. The primary custodian
and other custodians also are required to agree to exercise at least
reasonable care, prudence, and diligence.
The collection of information requirements in rule 17f-7 are
intended to provide workable standards that protect funds from the
risks of using foreign securities depositories while assigning
appropriate responsibilities to the fund's primary custodian and
investment adviser based on their capabilities. The requirement that
the foreign securities depository meet specified minimum standards is
intended to ensure that the depository is subject to basic safeguards
deemed appropriate for all depositories. The requirement that the fund
or its adviser must receive from the primary custodian (or its agent)
an initial risk analysis of the depository arrangements, and that the
fund's contract with its primary custodian must state that the
custodian will monitor risks and promptly notify the fund or its
adviser of material changes in risks, is intended to provide essential
information about custody risks to the fund's investment adviser as
necessary for it to approve the continued use of the depository. The
requirement that the primary custodian agree to exercise reasonable
care is intended to provide assurances that its services and the
information it provides will meet an appropriate standard of care.
In addition, based on public filings made with the Commission, we
calculate that there are approximately 87 global custodians that are
engaged to perform global custodial services to funds and thus subject
to the provisions of rule 17f-7.\1\ This estimate is based on
information that is publicly available on Form N-CEN filings.\2\ The
staff further estimates that during each year, each of the
approximately 87 global custodians will make an average of 4 responses
to analyze custody risks and provide notice of any materials changes to
custody risks under the rule.\3\ The staff estimates that each response
will take 260 hours, requiring approximately 1,040 hours annually per
global custodian.\4\ Thus the total annual burden associated with this
aspect of the rule is approximately 90,480 hours.\5\ Assuming an
estimated wage rate of approximately $287 per hour, the total internal
cost to the industry is approximately $25,967,760 to comply with this
aspect of the rule.\6\
---------------------------------------------------------------------------
\1\ We analyzed Form N-CEN filings for registrants as of
September 15, 2025 and based on these filings, we calculated the
number of global custodians that have been retained by funds and are
subject to the provisions of rule 17f-7 to be 87.
\2\ See Item C.12.a.vii.7 of Form N-CEN.
\3\ 87 custodians x 4 responses = 348 responses.
\4\ 260 hours per response x 4 responses per global custodian =
1,040 hours per global custodian.
\5\ 87 global custodians x 1,040 hours per global custodian =
90,480 hours.
\6\ 90,480 hours x $287 per hour (wage rate for trust
administrators) = $25,967,760.
---------------------------------------------------------------------------
The total annual hour burden associated with all collection of
information requirements of the rule is therefore 151,152 hours,\7\ and
the total internal cost to the industry of the hour burden is
approximately $49,083,792.\8\
---------------------------------------------------------------------------
\7\ 60,672 hours + 90,480 hours = 151,152 hours.
\8\ $23,116,032 + $25,967,760 = $49,083,792.
---------------------------------------------------------------------------
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. Compliance with the collection of
information requirements of the rule is necessary to obtain the benefit
of relying on the rule's permission for funds to maintain their assets
in foreign custodians. The information provided under rule 17f-7 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.
Written comments are invited on: (a) whether this proposed
collection of information is necessary for the proper performance of
the functions of the SEC, including whether the information will have
practical utility; (b) the accuracy of the SEC's estimate of the burden
imposed by the proposed collection of information, including the
validity of the methodology and the assumptions used; (c) ways to
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated,
electronic collection techniques or other forms of information
technology.
Please direct your written comments on this 60-Day Collection
Notice to Austin Gerig, Director/Chief Data Officer, Securities and
Exchange Commission, c/o Tanya Ruttenberg via email to
<a href="/cdn-cgi/l/email-protection#1b4b7a6b7e696c746970497e7f6e786f7274755a786f5b687e78357c746d"><span class="__cf_email__" data-cfemail="ffaf9e8f9a8d88908d94ad9a9b8a9c8b969091be9c8bbf8c9a9cd1989089">[email protected]</span></a> by February 10, 2026. There will be a
second opportunity to comment on this SEC request following the Federal
Register publishing a 30-Day Submission Notice.
Dated: December 10, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-22650 Filed 12-11-25; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 12, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.