[Federal Register Volume 73, Number 34 (Wednesday, February 20, 2008)]
[Notices]
[Pages 9369-9370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-3109]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension:
    Rule 27d-2; SEC File No. 270-500; OMB Control No. 3235-0566.

    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 
collections of information under the Investment Company Act of 1940 (15 
U.S.C. 80a) (``Act'') summarized below. The Commission plans to submit 
these collections of information to the Office of Management and Budget 
for approval.
    Rule 27d-2 (17 CFR 270.27d-2) is entitled ``Insurance Company 
Undertaking in Lieu of Segregated Trust Account.'' Rule 27d-1 (17 CFR 
270.27d-1) \1\ under the Act requires the depositor or principal 
underwriter for an issuer of periodic payment plans to deposit funds 
into a segregated trust account to provide assurance of its ability to 
fulfill its refund obligations under sections 27(d) and 27(f).\2\ Rule 
27d-2 provides an exemption from rule 27d-1 under the Act for 
depositors or principal underwriters for the issuers of periodic 
payments plans. In order to comply with the rule: (i) The depositor or 
principal underwriter must secure from an insurance company a written 
guarantee of the refund requirements; (ii) the insurance company must 
satisfy certain financial criteria; and (iii) the depositor or 
principal underwriter must file as an exhibit to the issuer's 
registration statement, a copy of the written undertaking, an annual 
statement that the insurance company has met the requisite financial 
criteria on a monthly basis, and an annual audited balance sheet.
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    \1\ The information collection requirements for rule 27d-1 and 
Form N-27D-1 are covered in a separate Federal Register notice under 
OMB Control No. 3235-0560.
    \2\ The rule sets forth minimum reserve amounts and guidelines 
for the management and disbursement of the assets in the account. 
Rule 27d-1(j) directs depositors and principal underwriters annually 
to make an accounting of their segregated trust accounts on Form N-
27D-1, which is filed with the Commission. The form requires 
depositors and principal underwriters to report deposits to a 
segregated trust account, including those made pursuant to 
paragraphs (c) and (e) of the rule. Withdrawals pursuant to 
paragraph (f) of the rule also must be reported. In addition, the 
form solicits information regarding the minimum amount required to 
be maintained under paragraphs (d) and (e) of rule 27d-1.
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    Rules 27d-1 and 27d-2, which were explicitly authorized by statute, 
provide assurance that depositors and principal underwriters of issuers 
have access to sufficient cash to meet the demands of certificate 
holders who reconsider their decisions to invest in a periodic payment 
plan. The information collection requirements in rules 27d-1 and 27d-2 
enable the Commission to monitor compliance with reserve rules.
    Only one registered investment company has issued a new periodic 
payment plan certificate within the past 18 months, and the principal 
underwriter or depositor for this sole issuer relies on the exemption 
in rule 27d-2. The respondent makes approximately three responses per 
year.\3\ The insurance company provides the written undertaking, annual 
statement, and certified balance sheet at no cost to the respondent. 
The staff estimates that the respondent spends approximately one hour 
per year filing the required documents from the insurance company on 
EDGAR. Thus, we estimate that the annual burden is approximately 1 
hour.
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    \3\ The three responses are: (i) obtaining and filing the 
written undertaking or an amendment to the undertaking, (ii) filing 
the insurance company's annual statement that the financial 
conditions were satisfied, and (iii) filing the insurance company's 
certified balance sheet.
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    The staff believes that rule 27d-2 does not impose any cost burdens 
other than those arising from the hour burdens discussed above.
    The estimates of average burden hours and costs are made solely for 
the purposes of the Paperwork Reduction Act, and are not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.\4\
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    \4\ These estimates are based on telephone interviews between 
the Commission staff and representatives of depositors or principal 
underwriters of periodic payment plan issuers.
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    Complying with the collection of information requirements of rule 
27d-2 is mandatory for depositors or principal underwriters of issuers 
of periodic payment plans who rely on the rule for an exemption from 
complying with rule 27d-1 and filing Form N-27D-1 (17 CFR 274.127d-1). 
The information provided pursuant to rule 27d-2 is public and, 
therefore, 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 unless it displays a 
currently valid OMB control number.

[[Page 9370]]

    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 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: February 14, 2008.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-3109 Filed 2-19-08; 8:45 am]
BILLING CODE 8011-01-P