[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)]
[Notices]
[Pages 59431-59432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25491]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; 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:
    Rules 400-404 of Regulation Crowdfunding (Intermediaries); SEC 
File No. 270-774, OMB Control No. 3235-0727

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collection of 
information provided for Rule 17Ab2-1 (17 CFR 240.17Ab2-1) and Form CA-
1: Registration of Clearing Agencies (17 CFR 249b.200) under the 
Securities Exchange Act of 1934 (``Exchange Act'') (15 U.S.C. 78a et 
seq.). The Commission plans to submit this existing collection of 
information to the Office of Management and Budget (``OMB'') for 
extension and approval.
    The collections of information required under Rules 400 through 404 
is mandatory for all funding portals. Form Funding Portal helps ensure 
that the Commission can make information about funding portals 
transparent and easily accessible to the investing public, including 
issuers and obligated persons who engage funding portals; investors who 
may purchase securities through offerings on funding portals; and other 
regulators. Further, the information provided on Form Funding Portal 
expands the amount of publicly available information about funding 
portals, including disciplinary history. Consequently, the rules and 
forms allows issuers and the investing public, as well as others, to 
become more fully informed about funding portals in a more efficient 
manner.
    Rule 400 requires each person applying for registration with the 
Commission as a funding portal to file electronically with the 
Commission Form Funding Portal. Rule 400(a) requires a funding portal 
to become a member of a national securities association registered 
under Section 15A of the Exchange Act. Rule 400(b) requires a funding 
portal to file an amendment to Form Funding Portal if any information 
previously submitted on Form Funding Portal becomes inaccurate for any 
reason. Rule 400(c) provides that a funding portal can succeed to the 
business of a predecessor funding portal upon the successor filing a 
registration on Form Funding Portal and the predecessor filing a 
withdrawal on Form Funding Portal.
    Rule 400(d) requires a funding portal to promptly file a withdrawal 
of registration on Form Funding Portal upon ceasing to operate as a 
funding portal. Rule 400(e) states that duplicate originals of the 
applications and reports provided for in this section must be filed 
with surveillance personnel designated by any registered national 
securities association of which the funding portal is a member. Rule 
400(f) requires a nonresident funding portal to: (1) Obtain a written 
consent and power of attorney appointing an agent for service of 
process in the United States; (2) furnish the Commission with the name 
and address of its agent for services of process on Schedule C of Form 
Funding Portal; (3) certify that it can, as a matter of law, and will 
provide the Commission and any registered national securities 
association of which it becomes a member with prompt access to its 
books and records and can, as a matter of law, and will submit to 
onsite inspection and examination by the Commission and any registered 
national securities association of which it becomes a member; and (4) 
provide the Commission with an opinion of counsel and certify on 
Schedule C on Form Funding Portal that the firm can, as a matter of 
law, provide the Commission and registered national securities 
association of which it becomes a member with prompt access to its 
books and records and can, as a matter of law, submit to onsite 
inspection and examination by the Commission and any registered 
national securities association of which it becomes a member.\1\
---------------------------------------------------------------------------

    \1\ Exchange Act Section 3(h)(1)(C) permits us to impose, as 
part of our authority to exempt funding portals from broker 
registration, ``such other requirements under [the Exchange Act] as 
the Commission determines appropriate.''
---------------------------------------------------------------------------

    Rule 403(a) requires a funding portal to implement written policies 
and procedures reasonably designed to achieve compliance with the 
federal securities laws and the rules and regulations thereunder 
relating to its business as a funding portal. Rule 403(b) provides that 
a funding portal must comply with privacy rules. Rule 404 requires all 
registered funding portals to maintain certain books and records 
relating to their funding portal activities, for not less than five 
years, the first two in an easily accessible place. Rule 404(e) 
requires funding portals to furnish promptly to the Commission, its 
representatives, and the registered national securities association of 
which the funding portal is a member true, correct, complete and 
current copies of such records of the funding portal that are requested 
by the representatives of the Commission and the registered national 
securities association.
    The Commission staff estimates that annualized industry burden 
would be 17,554.35 hours to comply with Rules 400-404. The Commission 
staff estimates that the costs associated with complying with Rules 
400-404 are estimated to be approximately a total amount of $308,729.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
estimates of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: Charles Riddle, Acting 
Director/Chief Information Officer, Securities and

[[Page 59432]]

Exchange Commission, c/o Candace Kenner, 100 F Street NE, Washington, 
DC 20549, or send an email to: [email protected].

    Dated: November 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25491 Filed 11-21-18; 8:45 am]
BILLING CODE 8011-01-P