[Federal Register Volume 88, Number 230 (Friday, December 1, 2023)]
[Notices]
[Pages 84000-84001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26406]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-803, OMB Control No. 3235-0754]


Submission for OMB Review; Comment Request; Extension: Rule 30b1-
10, Form N-RN

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

    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 a request for extension of the previously 
approved collection of information discussed below.
    Rule 30b1-10 [17 CFR 270.30b1-10] and Form N-RN [17 CFR 274.223] 
require registered open-end management investment companies (not 
including entities regulated as money market funds under 17 CFR 270.2a-
7), registered closed-end funds, and business development companies 
(collectively, ``funds''), to file a current report on Form N-RN on a 
non-public basis when certain events related to their liquidity and 
events regarding funds' compliance with the VaR-based limit on fund 
leverage risk in 17 CFR 270.18f-4 (``rule 18f-4'') occur. The first 
category of information reported on Form N-RN concerns events under 
which more than 15% of an open-end fund's net assets are, or become, 
illiquid investments that are assets as defined in 17 CFR 270.22e-4 
(``rule 22e-4'') and when holdings in illiquid investments are assets 
that previously exceeded 15% of a fund's net assets have changed to be 
less than or equal to 15% of the fund's net assets. The second category 
of

[[Page 84001]]

information reported on Form N-RN regards events for certain open-end 
funds under which a fund's holdings in assets that are highly liquid 
investments fall below the fund's highly liquid investment minimum 
defined in rule 22e-4 for more than 7 consecutive calendar days. The 
third category of information reported on Form N-RN regards information 
about a fund's breaches of the VaR test under rule 18f-4. A report on 
Form N-RN is required to be filed, as applicable, within one business 
day of the occurrence of one or more of these events. In addition, a 
fund is in certain cases required to file a second Form N-RN when it is 
no longer in breach of the applicable limit.
    Based on historical filing data and projected estimates of the 
annual number of VAR-based filings, the staff estimates that the 
Commission will receive roughly 66 reports per year on Form N-RN on 
average When filing a report on Form N-RN, staff estimates that a fund 
will spend on average approximately 3 hours of a in house compliance 
attorney's time and 1 hour of a senior programmer time to prepare, 
review, and submit Form NRN at a total time cost of $1,661.\1\ 
Accordingly, in the aggregate, staff estimates that compliance with 
rule 30b1-10 and Form N-LIQUID will result in a total annual burden of 
approximately 264 burden hours and total annual time costs of 
approximately $109,626.\2\
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    \1\ This estimate is based on the following calculations: (3 
hours x $425/hour for an in house compliance attorney = $1,275 plus 
(1 hour x $386/hour for a senior programmer = $386, for a combined 
total of 4 hours at total time costs of $1,661. The estimates 
concerning the wage rates for an in house compliance attorney and a 
senior programmer time are based on salary information for the 
securities industry compiled by the Securities Industry and 
Financial Markets Association. The estimated wage figure is based on 
published rates for in-house compliance attorneys and senior 
programmers, modified to account for a 1,800-hour work-year and 
inflation, and multiplied by 5.35 to account for bonuses, firm size, 
employee benefits, and overhead. See Securities Industry and 
Financial Markets Association, Report on Management & Professional 
Earnings in the Securities Industry 2013.
    \2\ This estimate is based on the following calculations: 66 
reports filed per year x 4 hours per report = approximately 264 
total annual burden hours. 66 reports filed per year x $1,661 in 
costs per report = $109,626 total annual costs.
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    Compliance with rule 30b1-10 is mandatory for all funds. Responses 
to the disclosure requirements will be kept confidential. The estimate 
of average burden hours is made solely for the purposes of the PRA. The 
estimate is not derived from a comprehensive or even a representative 
survey or study of the costs of Commission rules. Complying with this 
collection of information requirement is necessary to enable the 
Commission to receive information on fund liquidity events more 
uniformly and efficiently, and to enhance the Commission's oversight of 
funds when significant liquidity events occur and its ability to 
respond to market events. 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 background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
by January 2, 2024 to (i) [email protected] and 
(ii) David Bottom, Director/Chief Information Officer, Securities and 
Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 
20549, or by sending an email to: [email protected].

    Dated: November 27, 2023.
Christina Z. Milnor,
Assistant Secretary.
[FR Doc. 2023-26406 Filed 11-30-23; 8:45 am]
BILLING CODE 8011-01-P