[Federal Register Volume 73, Number 89 (Wednesday, May 7, 2008)]
[Notices]
[Pages 25788-25789]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10047]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; 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'') has submitted to the Office of
Management and Budget (``OMB'') a request for approval of the
collections of information under the Investment Company Act of 1940 (15
U.S.C. 80a) (``Act'') summarized below.
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.
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.
[[Page 25789]]
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.
Please direct general comments regarding the above information to
the following persons: (i) Desk Officer for the Securities and Exchange
Commission, Office of Management and Budget, Room 10102, New Executive
Office Building, Washington, DC 20503 or e-mail to: [email protected]; and (ii) 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]. Comments must be submitted to OMB within 30 days
of this notice.
Dated: April 30, 2008.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-10047 Filed 5-6-08; 8:45 am]
BILLING CODE 8010-01-P