Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 17f-1

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<title>Federal Register, Volume 91 Issue 207 (Wednesday, October 28, 2026)</title>
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[Federal Register Volume 91, Number 207 (Wednesday, October 28, 2026)]
[Notices]
[Pages 67880-67881]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22001]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0222]


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Extension: Rule 17f-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 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 17f-1 (17 CFR 270.17f-1) under the Investment Company Act of 
1940 (the ``Act'') (15 U.S.C. 80a) is entitled: ``Custody of securities 
with members of national securities exchanges.'' Rule 17f-1 provides 
that any registered management investment company (``fund'') that 
wishes to place its assets in the custody of a national securities 
exchange member may do so only under a written contract that must be 
ratified initially and approved annually by a majority of the fund's 
board of directors. The written contract also must contain certain 
specified provisions. In addition, the rule requires an independent 
public accountant to examine the fund's assets in the custody of the 
exchange member at least three times during the fund's fiscal year. The 
rule requires the written contract and the certificate of each 
examination to be transmitted to the Commission. The purpose of the 
rule is to ensure the safekeeping of fund assets.
    Commission staff estimate that each fund makes 1 response and 
spends an average of 3.5 hours annually in complying with the rule's 
requirements. Commission staff estimate that on an annual basis it 
takes: (i) 0.5 hours for the board of directors \1\ to review and 
ratify the custodial contracts; and (ii) 3 hours for the fund's 
controller to assist the fund's independent public auditors in 
verifying the fund's assets. Approximately 4 funds rely on the rule 
annually, with a total of 4 responses.\2\ Thus, the total annual 
internal hour burden for rule 17f-1 is approximately 14 hours.\3\
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    \1\ Estimates of the number of hours are based on conversations 
with representatives of mutual funds that comply with the rule. The 
actual number of hours may vary significantly depending on 
individual fund assets. The hour burden for rule 17f-1 does not 
include preparing the custody contract because that would be part of 
customary and usual business practice.
    \2\ This estimate is based on a review of Form N-17f-1 filings 
over the last three years. In 2023 there were six unique filers, in 
2024 there were three unique filers, and in 2025 there were four 
unique filers. (6 + 3 + 4)/3 = 4.33 funds, rounded down to an 
estimated 4 funds. 4 funds x 1 response per filer = 4 responses.
    \3\ This estimate is based on the following calculation: (4 
respondents x 3.5 hours = 14 hours). The annual burden for rule 17f-
1 does not include time spent preparing Form N-17f-1. The burden for 
Form N-17f-1 is included in a separate collection of information.
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    Funds that rely on rule 17f-1 generally use a lawyer to prepare the 
custodial contract for the board's review and to transmit the contract 
to the Commission. Commission staff estimate the cost of a lawyer to 
perform these tasks for a fund each year is $1,548.\4\ Funds also must 
have an independent public accountant verify the fund's assets three 
times each year and prepare the certificate of examination. Commission 
staff estimates the annual cost for an independent public accountant to 
perform this service is $11,550.\5\ Therefore, the total annual cost 
burden for a fund that relies on rule 17f-1 would be approximately 
$13,098.\6\ As noted above, the staff estimates that 4 funds rely on 
rule 17f-1 each year, for an estimated total annualized external cost 
burden of $52,392.\7\
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    \4\ This estimate is based on the following calculation: (2 
hours of outside counsel time x $774 = $1,548). To calculate the 
occupational hourly rates used in this release, the Commission uses 
occupational mean hourly wage data from the Occupational Employment 
and Wage Statistics (``OEWS'') program of the Bureau of Labor 
Statistics (``BLS'') for ``Securities, Commodity Contracts, and 
Other Financial Investments and Related Activities'' (``NAICS 
523'').
    \5\ Commission staff estimates that this would require 
approximately 35 hours for an accountant to complete at a cost of 
approximately $330 per hour. 35 hours x $330 = $11,550. The 
occupational wage rate was derived using wage data from the OEWS 
program of BLS for NAICS 523.
    \6\ This estimate is based on the following calculation: $1,548 
+ $11,550 = $13,098.
    \7\ This estimate is based on the following calculation: 4 funds 
x $13,098 = $52,392.
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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. Compliance with the collections of information 
required by rule 17f-1 is mandatory for funds that place their assets 
in the custody of a national securities exchange member. Responses 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

[[Page 67881]]

unless it displays a currently valid control number.
    The public may view and comment on this information collection 
request at: <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202608-3235-011">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202608-3235-011</a> or email comment to 
MBX.OMB.OIRA.SEC_desklowbar;officercommat;<a href="http://omb.eop.gov">omb.eop.gov</a> within 30 days of 
the day after publication of this notice, by November 30, 2026.

    Dated: October 26, 2026.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22001 Filed 10-27-26; 8:45 am]
BILLING CODE 8011-01-P


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