[Federal Register Volume 85, Number 42 (Tuesday, March 3, 2020)]
[Notices]
[Pages 12633-12634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04349]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-231, OMB Control No. 3235-0229]
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Form N-17D-1
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 350l-3520), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget a request for extension of the previously approved
collection of information discussed below.
Section 17(d) (15 U.S.C. 80a-17(d)) of the Investment Company Act
of 1940 (``Act'') authorizes the Commission to adopt rules that protect
funds and their security holders from overreaching by affiliated
persons when the fund and the affiliated person participate in any
joint enterprise or other joint arrangement or profit-sharing plan.
Rule 17d-1 under the Act (17 CFR 270.17d-1) prohibits funds and their
affiliated persons from participating in a joint enterprise, unless an
application regarding the transaction has been filed with and approved
by the Commission. Paragraph (d)(3) of the rule provides an exemption
from this requirement for any loan or advance of credit to, or
acquisition of securities or other property of, a small business
concern, or any agreement to do any of the foregoing (``investments'')
made by a small business investment company (``SBIC'') and an
affiliated bank, provided that reports about the investments are made
on forms the Commission may prescribe. Rule 17d-2 (17 CFR 270.17d-2)
designates Form N-17D-1 (17 CFR 274.200) (``form'') as the form for
reports required by rule 17d-1.
SBICs and their affiliated banks use form N-17D-1 to report any
contemporaneous investments in a small business concern. The form
provides shareholders and persons seeking to make an informed decision
about investing in an SBIC an
[[Page 12634]]
opportunity to learn about transactions of the SBIC that have the
potential for self dealing and other forms of overreaching by
affiliated persons at the expense of shareholders.
Form N-17D-1 requires SBICs and their affiliated banks to report
identifying information about the small business concern and the
affiliated bank. The report must include, among other things, the
SBIC's and affiliated bank's outstanding investments in the small
business concern, the use of the proceeds of the investments made
during the reporting period, any changes in the nature and amount of
the affiliated bank's investment, the name of any affiliated person of
the SBIC or the affiliated bank (or any affiliated person of the
affiliated person of the SBIC or the affiliated bank) who has any
interest in the transactions, the basis of the affiliation, the nature
of the interest, and the consideration the affiliated person has
received or will receive.
There is one SBIC that may file the form annually.\1\ The
Commission estimates the burden of filling out the form is
approximately one hour per response and would likely be completed by an
accountant or other professional. Based on past filings, the Commission
estimates that no more than one SBIC is likely to use the form each
year. Most of the information requested on the form should be readily
available to the SBIC or the affiliated bank in records kept in the
ordinary course of business, or with respect to the SBIC, pursuant to
the recordkeeping requirements under the Act. Commission staff
estimates that it should take approximately one hour for an accountant
or other professional to complete the form.\2\ The estimated total
annual burden of filling out the form is 1 hour, at an estimated total
annual cost of $216.\3\ The Commission will not keep responses on Form
N-17D-1 confidential.
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\1\ As of October 22, 2019, one SBIC was registered with the
Commission.
\2\ This estimate of hours is based on past conversations with
representatives of SBICs and accountants that have filed the form.
\3\ The estimated wage figure is based on published rates for
Senior Accountants ($216). The $216/hour figure for a Senior Account
is from Securities Industry and Financial Markets Association's
Management & Professional Earnings in the Securities Industry 2013,
modified by Commission staff to account for an 1800-hour work-year
and multiplied by 5.35 to account for bonuses, firm size, employee
benefits and overhead.
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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. 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 the background documentation for this
information collection at the following website, www.reginfo.gov.
Comments should be directed to: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503, or by sending an email to:
[email protected]; and (ii) David Bottom, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington, DC 20549 or send an email to:
[email protected]. Comments must be submitted to OMB within 30 days
of this notice.
Dated: February 27, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-04349 Filed 3-2-20; 8:45 am]
BILLING CODE 8011-01-P