27596 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices 

For the Nuclear Regulatory Commission. 

Dated this 8th day of May 2007 at 

Rockville, Maryland. 

Janice Dunn Lee, 

Director, Office of International Programs. 

[FR Doc. E7–9414 Filed 5–15–07; 8:45 am] 

BILLING CODE 7590–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

Proposed Submission of Information 

Collection for OMB Review; Comment 

Request; Termination of SingleEmployer Plans, Missing Participants 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Notice of intention to request 

extension of OMB approval 

SUMMARY: Pension Benefit Guaranty 

Corporation intends to request that the 

Office of Management and Budget 

(‘‘OMB’’) extend approval (with 

modifications), under the Paperwork 

Reduction Act of 1995, of a collection of 

information in its regulations on 

Termination of Single-Employer Plans 

and Missing Participants, and 

implementing forms and instructions 

(OMB control number 1212–0036; 

expires September 30, 2007). This 

notice informs the public of PBGC’s 

intent and solicits public comment on 

the collection of information. 

DATES: Comments should be submitted 

by July 16, 2007. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. 

• Follow the Web site instructions for 

submitting comments. 

• E-mail: 

paperwork.comments@pbgc.gov. 

• Fax: 202–326–4224. 

• Mail or Hand Delivery: Legislative 

and Regulatory Department, Pension 

Benefit Guaranty Corporation, 1200 K 

Street, NW., Washington, DC 20005–

4026 

Comments received will be posted to 

http://www.pbgc.gov. 

Copies of the collection of 

information may be obtained without 

charge by writing to PBGC’s 

Communications and Public Affairs 

Department at Suite 240 at the above 

address or by visiting that office or 

calling 202–326–4040 during normal 

business hours. (TTY and TDD users 

may call the Federal relay service tollfree at 1–800–877–8339 and ask to be 

connected to 202–326–4040.) The 

regulations and forms and instructions 

relating to this collection of information 

may be accessed on PBGC’s Web site at 

http://www.pbgc.gov. 

FOR FURTHER INFORMATION CONTACT: Jo 

Amato Burns, Attorney, or Catherine B. 

Klion, Manager, Regulatory and Policy 

Division, Legislative and Regulatory 

Department, Pension Benefit Guaranty 

Corporation, 1200 K Street, NW., 

Washington, DC 20005–4026, 202–326–

4024. (For TTY and TDD, call 800–877–

8339 and request connection to 202–

326–4024.) 

SUPPLEMENTARY INFORMATION: Under 

section 4041 of the Employee 

Retirement Income Security Act of 1974, 

as amended, a single-employer pension 

plan may terminate voluntarily only if 

it satisfies the requirements for either a 

standard or a distress termination. 

Pursuant to ERISA section 4041(b), for 

standard terminations, and section 

4041(c), for distress terminations, and 

PBGC’s termination regulation (29 CFR 

part 4041), a plan administrator wishing 

to terminate a plan is required to submit 

specified information to PBGC in 

support of the proposed termination and 

to provide specified information 

regarding the proposed termination to 

third parties (participants, beneficiaries, 

alternate payees, and employee 

organizations). In the case of a plan with 

participants or beneficiaries who cannot 

be located when their benefits are to be 

distributed, the plan administrator is 

subject to the requirements of ERISA 

section 4050 and PBGC’s regulation on 

missing participants (29 CFR part 4050). 

PBGC is making clarifying, simplifying, 

editorial, and other changes to the 

existing forms and instructions. 

PBGC estimates that 1,175 plan 

administrators will be subject to the 

collection of information requirements 

in PBGC’s regulations on termination 

and missing participants and 

implementing forms and instructions 

each year, and that the total annual 

burden of complying with these 

requirements is 2,175 hours and 

$2,886,003. (Much of the work 

associated with terminating a plan is 

performed for purposes other than 

meeting these requirements.) 

PBGC is soliciting public comments 

to—

• Evaluate whether the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

• Evaluate the accuracy of the 

agency’s estimate of the burden of the 

collection of information, including the 

validity of the methodology and 

assumptions used; 

• Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• Minimize the burden of the 

collection of information on those who 

are to respond, including the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology, e.g., permitting 

electronic submission of responses. 

Issued in Washington, DC, this 10th day of 

May, 2007. 

John H. Hanley, 

Director, Legislative and Regulatory 

Department, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E7–9397 Filed 5–15–07; 8:45 am] 

BILLING CODE 7709–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Filings and 

Information Services, Washington, DC 

20549. 

Extension: 

Rule 3a–4; SEC File No. 270–401; OMB 

Control No. 3235–0459. 

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 

(‘‘OMB’’) a request for extension of the 

previously approved collections of 

information discussed below. 

Rule 3a–4 (17 CFR 270.3a–4) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a) (‘‘Investment Company 

Act’’ or ‘‘Act’’) provides a nonexclusive 

safe harbor from the definition of 

investment company under the Act for 

certain investment advisory programs. 

These programs, which include ‘‘wrap 

fee’’ and ‘‘mutual fund wrap’’ programs, 

generally are designed to provide 

professional portfolio management 

services to clients who are investing less 

than the minimum usually required by 

portfolio managers but more than the 

minimum account size of most mutual 

funds. Under wrap fee and similar 

programs, a client’s account is typically 

managed on a discretionary basis 

according to pre-selected investment 

objectives. Clients with similar 

investment objectives often receive the 

same investment advice and may hold 

the same or substantially the same 

securities in their accounts. Some of 


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices 27597 

1Status of Investment Advisory Programs Under 

the Investment Company Act of 1940, Investment 

Company Act Release No. 22579 (Mar. 24, 1997) (62 

FR 15098 (Mar. 31,1997)) (‘‘Adopting Release’’). In 

addition, there are no registration requirements 

under section 5 of the Securities Act of 1933 for 

these programs. See 17 CFR 270.3a–4, introductory 

note. 

2For purposes of rule 3a–4, the term ‘‘sponsor’’

refers to any person who receives compensation for 

sponsoring, organizing or administering the 

program, or for selecting, or providing advice to 

clients regarding the selection of, persons 

responsible for managing the client’s account in the 

program. 

3Clients specifically must be allowed to designate 

securities that should not be purchased for the 

account or that should be sold if held in the 

account. The rule does not require that a client be 

able to require particular securities be purchased for 

the account. 

4The sponsor also must provide a means by 

which clients can contact the sponsor (or its 

designee). 

5These estimates are based on statistical 

information on wrap fee and mutual fund wrap 

programs provided by Cerulli Associates in 2003. 

We request comment on whether the number of 

wrap programs and program sponsors has changed. 

6See Cerulli Associates, The Cerulli Edge: 

Managed Accounts Edition, Advisors Issue 10 (3d 

quarter 2006). 

7 Id. at 13. 

8The requirement for initial client contact and 

evaluation is not a recurring obligation, but only 

occurs when the account is opened. The estimated 

annual hourly burden is based on the average 

number of new accounts opened each year. 

these investment advisory programs 

may meet the definition of investment 

company under the Act because of the 

similarity of account management. 

In 1997, the Commission adopted rule 

3a–4, which clarifies that programs 

organized and operated in a manner 

consistent with the conditions of rule 

3a–4 are not required to register under 

the Investment Company Act or comply 

with the Act’s requirements.1 These 

programs differ from investment 

companies because, among other things, 

they provide individualized investment 

advice to the client. The rule’s 

provisions have the effect of ensuring 

that clients in a program relying on the 

rule receive advice tailored to the 

client’s needs. 

Rule 3a–4 provides that each client’s 

account must be managed on the basis 

of the client’s financial situation and 

investment objectives and consistent 

with any reasonable restrictions the 

client imposes on managing the 

account. When an account is opened, 

the sponsor 2 (or its designee) must 

obtain information from each client 

regarding the client’s financial situation 

and investment objectives, and must 

allow the client an opportunity to 

impose reasonable restrictions on 

managing the account.3 In addition, the 

sponsor (or its designee) annually must 

contact the client to determine whether 

the client’s financial situation or 

investment objectives have changed and 

whether the client wishes to impose any 

reasonable restrictions on the 

management of the account or 

reasonably modify existing restrictions. 

The sponsor (or its designee) also must 

notify the client quarterly, in writing, to 

contact the sponsor (or the designee) 

regarding changes to the client’s 

financial situation, investment 

objectives, or restrictions on the 

account’s management.4

The program must provide each client 

with a quarterly statement describing all 

activity in the client’s account during 

the previous quarter. The sponsor and 

personnel of the client’s account 

manager who know about the client’s 

account and its management must be 

reasonably available to consult with the 

client. Each client also must retain 

certain indicia of ownership of all 

securities and funds in the account. 

Rule 3a–4 is intended primarily to 

provide guidance regarding the status of 

investment advisory programs under the 

Investment Company Act. The rule is 

not intended to create a presumption 

about a program that is not operated 

according to the rule’s guidelines. 

The requirement that the sponsor (or 

its designee) obtain information about 

the client’s financial situation and 

investment objectives when the account 

is opened is designed to ensure that the 

investment adviser has sufficient 

information regarding the client’s 

unique needs and goals to enable the 

portfolio manager to provide 

individualized investment advice. The 

sponsor is required to contact clients 

annually and provide them with 

quarterly notices to ensure that the 

sponsor has current information about 

the client’s financial status, investment 

objectives, and restrictions on 

management of the account. 

Maintaining current information enables 

the portfolio manager to evaluate the 

client’s portfolio in light of the client’s 

changing needs and circumstances. The 

requirement that clients be provided 

with quarterly statements of account 

activity is designed to ensure the client 

receives an individualized report, which 

the Commission believes is a key 

element of individualized advisory 

services. 

The Commission staff estimates that 

approximately 64 wrap fee and mutual 

fund wrap programs administered by 56 

program sponsors use the procedures 

under rule 3a–4.5 Although it is 

impossible to determine the exact 

number of clients that participate in 

investment advisory programs, an 

estimate can be made by dividing total 

assets by the industry average account 

size ($345.5 billion 6 divided by 

$126,202),7 for a total of 2,737,675 

clients. Additionally, an average 

number of new accounts opened each 

year can be estimated by dividing the 

average annual increase in account 

assets in 2003 through 2006, by the 

average account size ($57.7 billion 

divided by $126,202), for an average 

annual number of new accounts of 

457,204.8

The Commission staff estimates that 

each program sponsor spends 

approximately 1.25 hours annually in 

preparing, conducting and/or reviewing 

interviews for each new client; 30 

minutes annually preparing, conducting 

and/or reviewing annual interviews for 

each continuing client; and one hour 

preparing and mailing quarterly account 

activity statements, including the notice 

to update information to each client. 

Based on the foregoing, the Commission 

staff therefore estimates the total annual 

burden of the rule’s paperwork 

requirements for all program sponsors to 

be 4,449,415.5 hours. This represents a 

decrease of 2,063,087 hours from the 

prior estimate of 6,512,502.5 hours. The 

decrease results from a change in the 

method of computation for the number 

of clients that participate in these 

investment advisory programs. 

Previously, we have computed the 

number of clients based on the 

minimum account requirement for 

participation in these programs. For this 

estimate we computed the number of 

clients based on the industry average 

account size in these programs resulting 

in a decrease in the estimated number 

of clients in these investment advisory 

programs. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act. The estimate 

is not derived from a comprehensive or 

even a representative survey or study of 

the costs of Commission rules and 

forms. 

Compliance with the collection of 

information requirements of the rule is 

necessary to obtain the benefit of relying 

on the rule’s safe harbor. Nevertheless, 

rule 3a-4 is a nonexclusive safe harbor, 

and a program that does not comply 

with the rule’s collection of information 

requirements does not necessarily meet 

the Investment Company Act’s 

definition of investment company. 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. 

Please direct general comments 

regarding the above information to the 

following persons: (i) Desk Officer for 


cprice-sewell on PROD1PC66 with NOTICES
27598 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices 

the Securities and Exchange 

Commission, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503 

or e-mail to: 

David_Rostker@omb.eop.gov; and (ii) R. 

Corey Booth, 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: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: May 11, 2007. 

Florence E. Hartmon, 

Deputy Secretary. 

[FR Doc. E7–9363 Filed 5–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copy Available 

From: Securities and Exchange 

Commission, Office of Filings and 

Information Services, Washington, 

DC 20549. 

Extension: 

Form N–5; SEC File No. 270–172; OMB 

Control No. 3235–0169. 

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 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) requests for extension of the 

previously approved collection of 

information discussed below. 

Form N–5 (17 CFR 239.24 and 

274.5)—Registration Statement of Small 

Business Investment Companies Under 

the Securities Act of 1933 (15 U.S.C. 77a 

et seq.) and the Investment Company 

Act of 1940 (15 U.S.C. 80a–1 et seq.) 

Form N–5 is the integrated registration 

statement form adopted by the 

Commission for use by a small business 

investment company which has been 

licensed as such under the Small 

Business Investment Act of 1958 and 

has been notified by the Small Business 

Administration that the company may 

submit a license application, to register 

its securities under the Securities Act of 

1933 (‘‘Securities Act’’), and to register 

as an investment company under 

section 8 of the Investment Company 

Act of 1940 (‘‘Investment Company 

Act’’). The purpose of registration under 

the Securities Act is to ensure that 

investors are provided with material 

information concerning securities 

offered for public sale that will permit 

investors to make informed decisions 

regarding such securities. The 

Commission staff reviews the 

registration statements for the adequacy 

and accuracy of the disclosure 

contained therein. Without Form N–5, 

the Commission would be unable to 

carry out the requirements to the 

Securities Act and Investment Company 

Act for registration of small business 

investment companies. The respondents 

to the collection of information are 

small business investment companies 

seeking to register under the Investment 

Company Act and to register their 

securities for sale to the public under 

the Securities Act. The estimated 

number of respondents is one and the 

proposed frequency of response is 

annually. The estimate of the total 

annual reporting burden of the 

collection of information is 

approximately 352 hours per 

respondent, for a total of 352 hours. 

Providing the information on Form N–

5 is mandatory. Responses will not be 

kept confidential. Estimates of the 

burden hours are made solely for the 

purposes of the Paperwork Reduction 

Act, and are not derived from a 

comprehensive or even a representative 

survey or study of the costs of SEC rules 

and forms. 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. 

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: 

David_Rostker@omb.eop.gov; and (ii) R. 

Corey Booth, 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: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: May 11, 2007. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–9367 Filed 5–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copy Available 

From: Securities and Exchange 

Commission, Office of Filings and 

Information Services, Washington, DC 

20549. 

Extension: 

Form N–8A; File No. 270–135; OMB 

Control No. 3235–0175. 

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 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

requests for extension of the previously 

approved collection of information 

discussed below. 

Form N–8A (17 CFR 274.10)—

Notification of Registration of 

Investment Companies Form N–8A is 

the form that investment companies file 

to notify the Commission of the 

existence of active investment 

companies. After an investment 

company has filed its notification of 

registration under section 8(a) of the 

Investment Company Act of 1940 (15 

U.S.C. 80a–1 et seq.) (‘‘1940 Act’’), the 

company is then subject to the 

provisions of the 1940 Act which govern 

certain aspects of its organization and 

activities, such as the composition of its 

board of directors and the issuance of 

senior securities. Form N–8A requires 

an investment company to provide its 

name, state of organization, form of 

organization, classification, if it is a 

management company, the name and 

address of each investment adviser of 

the investment company, the current 

value of its total assets and certain other 

information readily available to the 

investment company. If the investment 

company is filing simultaneously its 

notification of registration and 

registration statement, Form N–8A 

requires only that the registrant file the 

cover page (giving its name, address and 

agent for service of process) and sign the 

form in order to effect registration. 

The Commission uses the information 

provided in the notification on Form N–

8A to determine the existence of active 

investment companies and to enable the 

Commission to administer the 

provisions of the 1940 Act with respect 

to those companies. Each year 

approximately 156 investment 

companies file a notification on Form 

N–8A, which is required to be filed only 

once by an investment company. The 

Commission estimates that preparing 

Form N–8A requires an investment 


cprice-sewell on PROD1PC66 with NOTICES