[Federal Register Volume 84, Number 248 (Friday, December 27, 2019)]
[Notices]
[Pages 71518-71519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27853]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; 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; SEC File No. 270-231, OMB Control No. 3235-0229
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'') 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.
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 274.00) (``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 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
[[Page 71519]]
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 OMB control number.
Written comments are invited on: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information has 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 in writing within 60 days of this
publication.
Please direct your written comments to Charles Riddle, Acting
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: December 19, 2019.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-27853 Filed 12-26-19; 8:45 am]
BILLING CODE 8011-01-P