Federal Register / Vol. 80, No. 15 / Friday, January 23, 2015 / Notices 3671 

39This estimate is based on the following 

calculation: (0.5 hours × $4,500 per hour for board 

time) + (7.2 hours × $378 per hour for an attorney) 

+ (7.8 hours × $174 per hour for support staff) = 

$6,328 per response. 

40The estimate is based on the following 

calculations: (10 funds × 1 response) = 10 

responses. 

41This estimate is based on the following 

calculations: (10 funds × 15.5 hours) = 155 hours. 

42This estimate is based on the following 

calculations: (10 funds × $6,238) = $62,380. 

43See supra note 12. 

44The recordkeeping cost estimates are 

$0.0051295 per dollar of assets under management 

for small funds, and $0.0005041 per dollar of assets 

under management for medium-sized funds. The 

cost estimates are the same as those used in the 

most recently approved rule 2a–7 submission. 

45This estimate is based on the following 

calculation: ($257 billion × $0.0000009) = $231,300 

billion for small funds. 

46This estimate is based on the following 

calculation: ($257 billion × 0.0000132) = $3.39 

million. 

22(e) of the Act. The staff estimates the 

burden as follows: 

Establish written procedures and 

guidelines designed to ensure that the 

unregistered money market funds 

comply with sections 17(a), (d), (e), and 

22(e) of the Act: 

1 response 

15.5 hours of director, legal, and 

support staff time 

Cost: $6,328 39

Accordingly, the staff estimates that 

10 unregistered money market funds 

will comply with this collection of 

information requirement and engage in 

10 annual responses under rule 12d1– 

1,40 the aggregate annual burden hours 

associated with these responses is 155,41

and the aggregate annual cost to funds 

is $62,380.42

Commission staff also estimates that 

unregistered money market funds will 

incur costs to preserve records, as 

required under rule 2a–7. These costs 

will vary significantly for individual 

funds, depending on the amount of 

assets under fund management and 

whether the fund preserves its records 

in a storage facility in hard copy or has 

developed and maintains a computer 

system to create and preserve 

compliance records. In the rule 2a–7 

submissions, Commission staff 

estimated that the amount an individual 

money market fund may spend ranges 

from $100 per year to $300,000. We 

have no reason to believe the range is 

different for unregistered money market 

funds. Based on Form PF data as of May 

7, 2014, private liquidity funds have 

$257 billion in regulatory assets under 

management.43 The Commission does 

not have specific information about the 

proportion of assets held in small, 

medium-sized, or large unregistered 

money market funds. Because private 

liquidity funds are often used as cash 

management vehicles, the staff estimates 

that each private liquidity fund is a 

‘‘large’’ fund (i.e., more than $1 billion 

in assets under management). Based on 

a cost of $0.0000009 per dollar of assets 

under management (for large funds),44

the staff estimates compliance with rule 

2–7 for these unregistered money 

market funds totals $231,300 

annually.45

Consistent with estimates made in the 

rule 2a–7 submissions, Commission 

staff estimates that unregistered money 

market funds also incur capital costs to 

create computer programs for 

maintaining and preserving compliance 

records for rule 2a–7 of $0.0000132 per 

dollar of assets under management. 

Based on the assets under management 

figures described above, staff estimates 

annual capital costs for all unregistered 

money market funds of $3.39 million.46

Commission staff further estimates that, 

even absent the requirements of rule 2a– 

7, money market funds would spend at 

least half of the amounts described 

above for record preservation ($115,650) 

and for capital costs ($1.7 million). 

Commission staff concludes that the 

aggregate annual costs of compliance 

with the rule are $115,650 for record 

preservation and $1.7 million for capital 

costs. 

The collections of information 

required for unregistered money market 

funds by rule 12d1–1 are necessary in 

order for acquiring funds to be able to 

obtain the benefits described above. 

Notices to the Commission will not be 

kept confidential. 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. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’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 Pamela Dyson, Acting 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: PRA_Mailbox@sec.gov. 

Dated: January 16, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01076 Filed 1–22–15; 8:45 am] 

BILLING CODE 8011–01–P 

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: 

Rule 206(3)–2; SEC File No. 270–216, OMB 

Control No. 3235–0243. 

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’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 206(3)–2, (17 CFR 275.206(3)–2) 

which is entitled ‘‘Agency Cross 

Transactions for Advisory Clients,’’ 

permits investment advisers to comply 

with section 206(3) of the Investment 

Advisers Act of 1940 (the ‘‘Act’’) (15 

U.S.C. 80b–6(3)) by obtaining a client’s 

blanket consent to enter into agency 

cross transactions (i.e., a transaction in 

which an adviser acts as a broker to both 

the advisory client and the opposite 

party to the transaction), provided that 

certain disclosures are made to the 

client. Rule 206(3)–2 applies to all 

registered investment advisers. In 

relying on the rule, investment advisers 

must provide certain disclosures to their 

clients. Advisory clients can use the 

disclosures to monitor agency cross 

transactions that affect their advisory 

account. The Commission also uses the 

information required by Rule 206(3)–2 

in connection with its investment 

adviser inspection program to ensure 

that advisers are in compliance with the 

rule. Without the information collected 

under the rule, advisory clients would 

not have information necessary for 

monitoring their adviser’s handling of 

their accounts and the Commission 

would be less efficient and effective in 

its inspection program. 


tkelley on DSK3SPTVN1PROD with NOTICES
3672 Federal Register / Vol. 80, No. 15 / Friday, January 23, 2015 / Notices 

The information requirements of the 

rule consist of the following: (1) Prior to 

obtaining the client’s consent 

appropriate disclosure must be made to 

the client as to the practice of, and the 

conflicts of interest involved in, agency 

cross transactions; (2) at or before the 

completion of any such transaction the 

client must be furnished with a written 

confirmation containing specified 

information and offering to furnish 

upon request certain additional 

information; and (3) at least annually, 

the client must be furnished with a 

written statement or summary as to the 

total number of transactions during the 

period covered by the consent and the 

total amount of commissions received 

by the adviser or its affiliated brokerdealer attributable to such transactions. 

The Commission estimates that 

approximately 464 respondents use the 

rule annually, necessitating about 32 

responses per respondent each year, for 

a total of 14,848 responses. Each 

response requires an estimated 0.5 

hours, for a total of 7,424 hours. The 

estimated average burden hours are 

made solely for the purposes of the 

Paperwork Reduction Act and are not 

derived from a comprehensive or 

representative survey or study of the 

cost of Commission rules and forms. 

This collection of information is 

found at (17 CFR 275.206(3)–2) and is 

necessary in order for the investment 

adviser to obtain the benefits of Rule 

206(3)–2. The collection of information 

requirements under the rule is 

mandatory. Information subject to the 

disclosure requirements of Rule 206(3)– 

2 does not require submission to the 

Commission; and, accordingly, the 

disclosure pursuant to the rule is not 

kept confidential. Commissionregistered investment advisers are 

required to maintain and preserve 

certain information required under Rule 

206(3)–2 for five (5) years. The longterm retention of these records is 

necessary for the Commission’s 

inspection program to ascertain 

compliance with the Advisers Act. 

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. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the agency’s estimate 

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 sixty 60 days of this 

publication. 

Please direct your written comments 

to Pamela Dyson, Acting 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: PRA_Mailbox@sec.gov. 

Dated: January 16, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01078 Filed 1–22–15; 8:45 am] 

BILLING CODE 8011–01–P 

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: 

Rule 11a–2; SEC File No. 270–267, OMB 

Control No. 3235–0272. 

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’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 11a–2 (17 CFR 270.11a–2) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a–1 et seq.) permits certain 

registered insurance company separate 

accounts, subject to certain conditions, 

to make exchange offers without prior 

approval by the Commission of the 

terms of those offers. Rule 11a–2 

requires disclosure, in certain 

registration statements filed pursuant to 

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

et seq.) of any administrative fee or sales 

load imposed in connection with an 

exchange offer. 

There are currently 652 registrants 

governed by Rule 11a–2. The 

Commission includes the estimated 

burden of complying with the 

information collection required by Rule 

11a–2 in the total number of burden 

hours estimated for completing the 

relevant registration statements and 

reports the burden of Rule 11a–2 in the 

separate Paperwork Reduction Act 

(‘‘PRA’’) submissions for those 

registration statements (see the separate 

PRA submissions for Form N–3 (17 CFR 

274.11b), Form N–4 (17 CFR 274.11c) 

and Form N–6 (17 CFR 274.11d). The 

Commission is requesting a burden of 

one hour for Rule 11a–2 for 

administrative purposes. 

The estimate of average burden hours 

is made solely for the purposes of the 

PRA, and is not derived from a 

comprehensive or even a representative 

survey or study of the costs of 

Commission rules or forms. With regard 

to Rule 11a–2, the Commission includes 

the estimate of burden hours in the total 

number of burden hours estimated for 

completing the relevant registration 

statements and reported on the separate 

PRA submissions for those statements 

(see the separate PRA submissions for 

Form N–3, Form N–4 and Form N–6). 

The information collection requirements 

imposed by Rule 11a–2 are mandatory. 

Responses to the collection of 

information will not be kept 

confidential. 

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 Pamela Dyson, Acting 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: PRA_Mailbox@sec.gov. 

Dated: January 16, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01075 Filed 1–22–15; 8:45 am] 

BILLING CODE 8011–01–P 


tkelley on DSK3SPTVN1PROD with NOTICES