[Federal Register Volume 85, Number 117 (Wednesday, June 17, 2020)]
[Notices]
[Page 36657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13065]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection 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:
Rule 30b1-10, Form N-LIQUID
SEC File No. 270-803, OMB Control No. 3235-0754
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 existing collection of information to the Office of
Management and Budget for extension and approval.
17 CFR 270.30b1-10 (Rule 30b1-10) and 17 CFR 274.223 (Form N-
LIQUID) require open-end investment companies, including exchange-
traded funds that redeem in kind (``In-Kind ETFs'') but not including
money market funds, to file a current report on Form N-LIQUID on a non-
public basis when certain events related to their liquidity occur. The
information reported on Form N-LIQUID concerns events under which more
than 15% of a fund's or In-Kind ETF's net assets are, or become,
illiquid investments that are assets as defined in 17 CFR 270.22e-4
(rule 22e-4) and when holdings in illiquid investments are assets that
previously exceeded 15% of a fund's net assets have changed to be less
than or equal to 15% of the fund's net assets.\1\ The information
reported on Form N-LIQUID also regards events under which a fund's
holdings in assets that are highly liquid investments fall below the
fund's highly liquid investment minimum for more than 7 consecutive
calendar days. A report on Form N-LIQUID is required to be filed, as
applicable, within one business day of the occurrence of one or more of
these events.\2\
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\1\ See Item C.1 and Item C.2 of Part A of Form N-LIQUID.
\2\ See General Instruction A.2 of Form N-LIQUID.
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Based on staff analysis, we estimate that the Commission receives
an average of 30 reports per year on Form N-LIQUID.\3\ When filing a
report on Form N-LIQUID, staff estimates that a fund will spend on
average approximately 4 hours of an in-house attorney's time and 1 hour
of an in-house accountant's time to prepare, review, and submit Form N-
LIQUID, at a total time cost of $1,894.\4\ Accordingly, in the
aggregate, staff estimates that compliance with rule 30b1-10 and Form
N-LIQUID will result in a total annual burden of approximately 150
burden hours and total annual time costs of approximately $56,820.\5\
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\3\ The estimated number of annual filings is based on the
number of filings in 2019, adjusted because certain of these filings
would no longer be necessary going forward and a subset of funds
were not subject to the filing requirement for all of 2019.
\4\ This estimate is based on the following calculations: (4
hours x $419/hour for an attorney = $1,676), plus (1 hour x $218/
hour for a senior accountant = $218), for a combined total of 5
hours at total time costs of $1,894. The estimates concerning the
wage rates for attorney and senior accountant time are based on
salary information for the securities industry compiled by the
Securities Industry and Financial Markets Association. The estimated
wage figure is based on published rates for in-house attorneys and
senior accountants, modified to account for a 1,800-hour work-year
and inflation, and multiplied by 5.35 to account for bonuses, firm
size, employee benefits, and overhead. See Securities Industry and
Financial Markets Association, Report on Management & Professional
Earnings in the Securities Industry 2013.
\5\ This estimate is based on the following calculations: 30
reports filed per year x 5 hours per report = approximately 150
total annual burden hours. 30 reports filed per year x $1,894 in
costs per report = $56,820 total annual costs.
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Compliance with rule 30b1-10 is mandatory for all open-end
investment companies, other than money market funds. Responses to the
disclosure requirements will be kept confidential. The estimate of
average burden hours is made solely for the purposes of the PRA. The
estimate is not derived from a comprehensive or even a representative
survey or study of the costs of Commission rules. Complying with this
collection of information requirement is necessary to enable the
Commission to receive information on fund liquidity events more
uniformly and efficiently, and to enhance the Commission's oversight of
funds when significant liquidity events occur and its ability to
respond to market events. 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.
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency'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 in writing within 60
days of this publication.
Please direct your written comments to 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].
Dated: June 12, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-13065 Filed 6-16-20; 8:45 am]
BILLING CODE 8011-01-P