21790 Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices 

1This estimate is based on information from the 

Commission’s NSAR database. 

2This allocation is based on previous 

conversations with fund representatives on how 

fund boards comply with the requirements of rule 

12b–1. Despite this allocation of hourly burdens 

and costs, the number of annual responses each 

year will continue to depend on the number of fund 

portfolios with rule 12b–1 plans rather than the 

number of fund families with rule 12b–1 plans. The 

staff estimates that the number of annual responses 

per fund portfolio will be four per year (quarterly, 

with the annual reviews taking place at one of the 

quarterly intervals). Thus, we estimate that funds 

will make 31,348 responses (7837 fund portfolios × 

4 responses per fund portfolio = 31,348 responses) 

each year. 

3We do not estimate any costs or time burden 

related to the recordkeeping requirements in rule 

12b–1, as funds are either required to maintain 

these records pursuant to other rules or would keep 

these records in any case as a matter of business 

practice. 

4 In general, a fund adopts a rule 12b–1 plan 

before it begins operations. Therefore, the fund is 

not required to obtain the approval of its public 

shareholders because the fund’s shares have not yet 

been offered to the public. 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

not influenced by considerations about 

the sale of fund shares. 

Based on information filed with the 

Commission by funds, Commission staff 

estimates that there are approximately 

7837 mutual fund portfolios that have at 

least one share class subject to a rule 

12b–1 plan.1 However, many of these 

portfolios are part of an affiliated group 

of funds, or mutual fund family, that is 

overseen by a common board of 

directors. Although the board must 

review and approve the rule 12b–1 plan 

for each fund separately, we have 

allocated the costs and hourly burden 

related to rule 12b–1 based on the 

number of fund families that have at 

least one fund that charges rule 12b–1 

fees, rather than on the total number of 

mutual fund portfolios that individually 

have a rule 12b–1 plan.2 Based on 

information filed with the Commission, 

the staff estimates that there are 

approximately 330 fund families with 

common boards of directors that have at 

least one fund with a rule 12b–1 plan. 

Based on previous conversations with 

fund representatives, Commission staff 

estimates that for each of the 330 mutual 

fund families with a portfolio that has 

a rule 12b–1 plan, the average annual 

burden of complying with the rule is 

425 hours. This estimate takes into 

account the time needed to prepare 

quarterly reports to the board of 

directors, the board’s consideration of 

those reports, and the board’s initial or 

annual consideration of whether to 

continue the plan.3 We therefore 

estimate that the total hourly burden per 

year for all funds to comply with 

current information collection 

requirements under rule 12b–1, is 

140,250 hours (330 fund families × 425 

hours per fund family = 140,250 hours). 

If a currently operating fund seeks to 

(i) adopt a new rule 12b–1 plan or (ii) 

materially increase the amount it spends 

for distribution under its rule 12b–1 

plan, rule 12b–1 requires that the fund 

obtain shareholder approval. As a 

consequence, the fund will incur the 

cost of a proxy.4 Based on previous 

conversations with fund representatives, 

Commission staff estimates that 

approximately three funds per year 

prepare a proxy in connection with the 

adoption or material amendment of a 

rule 12b–1 plan. Funds typically hire 

outside legal counsel and proxy 

solicitation firms to prepare, print, and 

mail such proxies. The staff further 

estimates that the cost of each fund’s 

proxy is $34,372. Thus the total annual 

cost burden of rule 12b–1 to the fund 

industry is $103,116 (3 funds requiring 

a proxy × $34,372 per proxy). 

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. 

The collections of information 

required by Rule 12b–1 are necessary to 

obtain the benefits of the rule. 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 

Commission, including whether the 

information will have 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, 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: April 15, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08992 Filed 4–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74724; File No. SR–BX– 

2015–017] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX BX, Inc. Relating to Member 

Application 

April 14, 2015. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 8, 

2015, NASDAQ OMX BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

BX proposes to amend Rule 1013 

titled ‘‘New Member Application’’ to 

include an expedited application 

process for firms that are already 

approved members of NASDAQ OMX 

PHLX LLC (‘‘PHLX’’). 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

nasdaqomxbx.cchwallstreet.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

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Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices 21791 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(5). 

5Today, FINRA conducts the new member 

application reviews for NASDAQ and BX pursuant 

to a 17d–2 and Regulatory Services Agreement. 

These application reviews are administered by 

FINRA and subject to BX’s final review and 

decision. PHLX maintains a separate new member 

application review that is conducted by NASDAQ 

and not FINRA. 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend BX Rule 1013(a)(5), 

entitled Applicants That Are Members 

of an Association or Another Exchange, 

to permit an expedited review for new 

member applications seeking BX 

membership provided those applicants 

are approved members of PHLX. 

Specifically, Exchange Rule 

1013(a)(5)(C) currently permits the 

Exchange to accept applicants that 

gained membership at Financial 

Industry Regulatory Authority 

(‘‘FINRA’’) or The NASDAQ Stock 

Market LLC (‘‘NASDAQ’’) when 

considering a BX new member 

application. Applicants who are 

approved members of FINRA or 

NASDAQ are eligible for an abbreviated 

waive-in application eliminating the 

submission and review of duplicative 

supplemental material that has already 

been submitted and reviewed in 

connection with a FINRA or NASDAQ 

new member application. 

At this time, the Exchange proposes to 

extend the abbreviated application 

process already in place for approved 

FINRA and/or NASDAQ members to 

PHLX members. The Exchange notes 

that the PHLX qualifications are the 

same as those applicable to BX 

membership requirements. PHLX 

approved members seeking BX 

membership will be required to submit 

a fully executed Waive-In Membership 

Application and Membership 

Agreement but will not be required to 

submit any duplicative documentation 

that was previously provided as part of 

the PHLX application. These PHLX 

members would still be required to 

provide additional information if there 

has been a material change in status 

from its original application with PHLX. 

Applicants will be required to attest that 

the information provided as part of 

previously conducted new membership 

review remains complete and accurate. 

The Exchange also proposes to amend 

language in section (C) of this rule to 

further harmonize the application with 

the current NASDAQ application by 

updating the title of the BX membership 

application from ‘‘Short Form’’ to 

‘‘Waive-in’’ and deleting unnecessary 

language that does not appear in the 

corresponding NASDAQ rule. The 

application is attached as Exhibit 3. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with section 6(b) 

of the Act 3 in general, and furthers the 

objectives of section 6(b)(5) of the Act 4

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

Today, the BX Membership 

Department performs similar functions 

when reviewing new member 

applications for BX, NASDAQ and 

PHLX.5 The Membership Department 

reviews: Applicant business plans, 

clearing arrangements, FOCUS reports, 

organizational charts, and written 

supervisory procedures for applicants 

desiring membership in any of the 

aforementioned markets. These 

membership requirements include, but 

are not limited to, review of registration 

as a Broker Dealer with the Commission, 

a net capital review, qualification of 

associated persons and examining 

written supervisory procedures. The 

same material is considered for each 

new member review conducted by 

FINRA on behalf of BX. 

This proposed amendment is 

consistent with its current practices 

today when reviewing applications for 

members of NASDAQ and FINRA. BX 

proposes this rule change to harmonize 

its affiliated exchanges’ rules to provide 

applicants similar application 

procedures for each of its markets. The 

PHLX new member review process is 

consistent with the BX new member 

review process. Applicants that are 

members of PHLX should be eligible for 

the waive-in process when seeking 

membership on BX similar to current 

waive-in opportunities available today 

for NASDAQ and FINRA members. 

The proposed rule change would 

eliminate the duplicate review for 

prospective BX applicants that were 

approved for membership by PHLX. The 

waive-in process will promote 

efficiency with respect to the 

Exchange’s membership review process 

and reduce the burden on applicants 

that have already been approved for 

membership on PHLX by reducing the 

duplicative information and 

documentation required to be provided 

to the Exchange for these members. As 

a result, Exchange staff will be able to 

focus its regulatory efforts on reviewing 

any material changes or new 

information that may affect the 

applicant’s eligibility for Exchange 

membership. 

This proposed rule change does not 

affect the protection of investors as BX 

will maintain the vigorous membership 

review that is conducted today when 

reviewing PHLX member applications. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed waive-in process for approved 

PHLX members will not impose any 

burden on competition, but rather it will 

remove unnecessary burdens that 

currently exist for PHLX member 

applicants seeking BX membership. The 

proposal will eliminate the redundant 

review process for PHLX members that 

currently does not exist for FINRA and 

NASDAQ members applying to become 

BX members. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest; does not impose any significant 

burden on competition; and by its terms 

does not become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate, it has become effective 

pursuant to section 19(b)(3)(A) 6 of the 

Act and Rule 19b–4(f)(6) thereunder.7

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: Necessary or appropriate in 

the public interest; for the protection of 

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21792 Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices 

8 17 CFR 200.30–3(a)(12). 

investors; or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BX–2015–017 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–BX–2015–017. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–BX– 

2015–017 and should be submitted on 

or before May 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08940 Filed 4–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #14259 and #14260]; 

[RHODE ISLAND Disaster #RI–00013] 

Administrative Declaration of a 

Disaster for the State of Rhode Island 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Rhode Island dated 04/ 

06/2015. 

Incident: Condo Fire. 

Incident Period: 03/11/2015. 

DATES: Effective: 04/06/2015. 

Physical Loan Application Deadline 

Date: 06/05/2015. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 01/06/2016. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Kent. 

Contiguous Counties: 

Rhode Island: Bristol, Providence, 

Washington. 

Connecticut: New London, Windham. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners With Credit Available Elsewhere ........................ 3.625 

Homeowners Without Credit 

Available Elsewhere ................ 1.813 

Businesses With Credit Available 

Elsewhere ................................ 6.000 

Percent 

Businesses Without Credit Available Elsewhere ........................ 4.000 

Non-Profit Organizations With 

Credit Available Elsewhere ..... 2.625 

Non-Profit Organizations Without 

Credit Available Elsewhere ..... 2.625 

For Economic Injury: 

Businesses & Small Agricultural 

Cooperatives Without Credit 

Available Elsewhere ................ 4.000 

Non-Profit Organizations Without 

Credit Available Elsewhere ..... 2.625 

The number assigned to this disaster 

for physical damage is 14259 5 and for 

economic injury is 14260 0. 

The States which received an EIDL 

Declaration # are Rhode Island, 

Connecticut. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

Dated: April 6, 2015. 

Maria Contreras-Sweet, 

Administrator. 

[FR Doc. 2015–08968 Filed 4–17–15; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

April 17, 2015 [Disaster Declaration #14266 

and #14267] 

New York Disaster #NY–00158 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of New York dated 04/09/ 

2015. 

Incident: Apartment Building Fire. 

Incident Period: 03/06/2015. 

Effective Date: 04/09/2015. 

Physical Loan Application Deadline 

Date: 06/08/2015. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 01/11/2016. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

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