[Federal Register Volume 73, Number 173 (Friday, September 5, 2008)]
[Notices]
[Pages 51861-51862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-20616]


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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:
    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. 3501-3520), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget a request for extension of the previously approved 
collection of information discussed below.
    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-

[[Page 51862]]

17D-1 (17 CFR 274.200) (``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.
    Up to five SBICs may file the form in any year.\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 $185.\3\ The 
Commission will not keep responses on Form N-17D-1 confidential.
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    \1\ As of May 22, 2008, five SBICs were 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\ Commission staff estimates that the annual burden would be 
incurred by a senior accountant with an average hourly wage rate of 
$185 per hour. See Securities Industry Association and Financial 
Markets Association, Report on Management and Professional Earnings 
in the Securities Industry--2007 (2007), modified 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 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 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) Lewis W. Walker, Acting 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.

    August 27, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-20616 Filed 9-4-08; 8:45 am]
BILLING CODE 8010-01-P