[Federal Register Volume 71, Number 236 (Friday, December 8, 2006)]
[Notices]
[Pages 71199-71200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-20805]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon written request, copies available from: Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549.
Extension:
Rule 17f-6; SEC File No. 270-392; OMB Control No. 3235-0447.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520), 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 (``OMB'') for extension and approval.
Rule 17f-6 (17 CFR 270.17f-6) under the Investment Company Act of
1940 (15 U.S.C. 80a) permits registered investment companies
(``funds'') to maintain assets (i.e., margin) with futures commission
merchants (``FCMs'') in connection with commodity transactions effected
on both domestic and foreign exchanges. \1\ Prior to the rule's
adoption, funds generally were required to maintain these assets in
special accounts with a custodian bank.
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\1\ Custody of Investment Company Assets With Futures Commission
Merchants and Commodity Clearing Organizations, Investment Company
Act Release No. 22389 (Dec. 11, 1996) (61 FR 66207 (Dec. 17, 1996)).
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The rule requires a written contract that contains certain
provisions designed to ensure important safeguards and other benefits
relating to the custody of fund assets by FCMs. To protect fund assets,
the contract must require that FCMs comply with the segregation or
secured amount requirements of the Commodity Exchange Act (``CEA'') and
the rules under that statute. The contract also must contain a
requirement that FCMs obtain an acknowledgment from any clearing
organization that the fund's assets are held on behalf of the FCM's
customers according to CEA provisions. Finally, FCMs are required to
furnish to the Commission or its staff on request information
concerning the fund's assets in order to facilitate Commission
inspections.
The Commission estimates that approximately 2,275 funds effect
commodities transactions and could deposit margin with FCMs under Rule
17f-6 in connection with those transactions. Commission staff estimates
that each fund uses and deposits margin with two different FCMs in
connection with its commodity transactions.\2\
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\2\ This estimate is based on information conversations with
representatives of the fund industry.
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The Commission estimates that each of the 2,275 funds spends an
average of 1 hour annually complying with the contract requirements of
the rule (i.e., executing contracts that contain the requisite
provisions with additional FCMs), for a total of 2,275 annual burden
hours. The estimate does not include the time required by an FCM to
comply with the rule's contract requirements because, to the extent
that complying with the contract provisions could be considered
``collections of information,'' the burden hours for compliance are
already included in other PRA submissions or are de minimis.\3\ The
estimate of average burden hours is made solely for the purposes of the
Paperwork Reduction
[[Page 71200]]
Act, and is not derived from a comprehensive or even a representative
survey or study of the costs of Commission rules and forms.
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\3\ The rule requires a contract with the FCM to contain three
provisions. Two of the provisions require the FCM to comply with
existing requirements under the CEA and rules adopted under that
Act. Thus, to the extent these provisions could be considered
collections of information, the hours required for compliance would
be included in the collection of information burden hours submitted
by the Commodity Futures Trading Commission for its rules. The third
contract provision requires that the FCM produce records or other
information requested by the Commission or its staff. Commission
staff has requested this type of information from an FCM so
infrequently in the past that the annual burden hours are de
minimis.
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Compliance with the collection of information requirements of the
rule is necessary to obtain the benefit of relying on the rule. If an
FCM furnishes records pertaining to a fund's assets at the request of
the Commission or its staff, the records will be kept confidential to
the extent permitted by relevant statutory or regulatory provisions.
The rule does not require these records be retained for any specific
period of time. 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 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 after this
publication.
Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Securities and Exchange Commission, C/O
Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312; or
send an e-mail to: [email protected].
Dated: November 30, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6-20805 Filed 12-7-06; 8:45 am]
BILLING CODE 8011-01-P