[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)]
[Notices]
[Pages 17697-17698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08402]
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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 FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 23c-1, SEC File No. 270-253, OMB Control No. 3235-0260
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 350l-3520), the Securities and Exchange
Commission (the ``Commission'') has submitted to the Office of
Management and Budget a request for extension of the previously
approved collection of information discussed below.
Rule 23c-1(a) under the Investment Company Act (17 CFR 270.23c-
1(a)) permits a closed-end fund to repurchase its securities for cash
if, in addition to the other requirements set forth in the rule, the
following conditions are met: (i) Payment of the purchase price is
accompanied or preceded by a written confirmation of the purchase
(``written confirmation''); (ii) the asset coverage per unit of the
security to be purchased is disclosed to the seller or his agent
(``asset coverage disclosure''); and (iii) if the security is a stock,
the fund has, within the preceding six months, informed stockholders of
its intention to purchase stock (``six month notice''). Commission
staff estimates that 91 closed-end funds undertake a total of 364
repurchases annually under rule 23c-1.\1\ Staff estimates further that,
with respect to each repurchase, each fund spends 2.5 hours to comply
with the rule's written confirmation, asset coverage disclosure and six
month notice requirements. Thus, Commission staff estimates the total
annual respondent reporting burden is 910
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hours.\2\ Commission staff further estimates that the cost of the
hourly burden per repurchase is $305 (one half hour of a compliance
attorney's time at $345 per hour,\3\ and two hours of clerical time at
$66 per hour \4\). The total annual cost for all funds is estimated to
be $111,020.\5\
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\1\ The number of closed-end funds that undertake repurchases
annually under rule 23c-1 is based on information provided in
response to Item 9 of Form N-CSR from January 1, 2017 through
December 31, 2017. Although 136 closed-end funds made disclosures
regarding ``publicly announced'' repurchase plans in response to
Item 9, not all repurchases are made pursuant to rule 23c-1. We
estimate that approximately 30% of such closed-end funds have not
made repurchases pursuant to rule 23c-1. Therefore, our estimate
does not include all 136 funds that made disclosures of publicly
announced repurchases under Item 9, but only a subset thereof (91
funds). We also estimate that each of the 91 funds undertook an
average of 4 repurchases annually (91 funds x 4 repurchases = 364
repurchases annually).
\2\ This estimate is based on the following calculation: 364
repurchases x 2.5 hours per repurchase = 910 hours.
\3\ The $345/hour figure for a compliance attorney is from
SIFMA's Management & Professional Earnings in the Securities
Industry 2013, modified by Commission staff to account for an 1800-
hour work-year and multiplied by 5.35 to account for bonuses, firm
size, employee benefits and overhead (includes a CPI inflation
adjustment from the 2013 estimate).
\4\ The $66/hour figure for a compliance clerk is from SIFMA's
Office Salaries in the Securities Industry 2013, modified by
Commission staff to account for an 1800-hour work-year and
multiplied by 2.93 to account for bonuses, firm size, employee
benefits and overhead (includes a CPI inflation adjustment from the
2013 estimate).
\5\ This estimate is based on the following calculation: 364
repurchases x $305 per repurchase = $111,020.
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In addition, the fund must file with the Commission a copy of any
written solicitation to purchase securities given by or on behalf of
the fund to 10 or more persons. The copy must be filed as an exhibit to
Form N-CSR (17 CFR 249.331and 274.128).\6\ The burden associated with
filing Form N-CSR is addressed in the submission related to that form.
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\6\ In addition, Item 9 of Form N-CSR requires closed-end funds
to disclose information similar to the information that was required
in Form N-23C-1, which was discontinued in 2004.
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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 and forms.
Complying with the collection of information requirements of the
rule is mandatory. The filings that the rule requires to be made with
the Commission are available to the public. 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.
The public may view the background documentation for this
information collection at the following website, www.reginfo.gov.
Comments should be directed to: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503, or by sending an email to:
[email protected]; and (ii) Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE, Washington, DC 20549 or send an email
to: [email protected]. Comments must be submitted to OMB within 30
days of this notice.
Dated: April 18, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08402 Filed 4-20-18; 8:45 am]
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