[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Pages 15007-15008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6362]


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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:
    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'') 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

[[Page 15008]]

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.
    Up to three 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 $198.\3\ The 
Commission will not keep responses on Form N-17D-1 confidential.
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    \1\ As of February 4, 2011, three 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 
$198 per hour. See Securities Industry and Financial Markets 
Association, Report on Management and Professional Earnings in the 
Securities Industry 2010, modified to account for an 1,800-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 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 Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, C/O Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an 
e-mail to: [email protected].

    Dated: March 15, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-6362 Filed 3-17-11; 8:45 am]
BILLING CODE 8011-01-P