4318 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Notices 

1 1,604 funds × 50 hours per fund = 82,000 hours. 

2The Commission’s estimates concerning the 

allocation of burden hours and the relevant wage 

rates are based on consultations with industry 

representatives and on salary information for the 

securities industry compiled by the Securities 

Industry and Financial Markets Association. The 

estimated wage figures are also based on published 

rates for senior accountants and in-house attorneys, 

modified to account for an 1800-hour work-year 

and multiplied by 5.35 to account for bonuses, firm 

size, employee benefits, and overhead, yielding 

effective hourly rates of $221 and $425, 

respectively. See Securities Industry and Financial 

Markets Association, Report on Management & 

Professional Earnings in the Securities Industry 

2013. 

3 49,200 hours × $221 per hour = $10,873,200. 

4 24,600 hours × $425 per hour = $10,455,000. 

5 8,200 hours × $4,770 per hour = $39,114,000. 

The estimate for the cost of board time as a whole 

is derived from estimates made by the staff 

regarding typical board size and compensation that 

is based on information received from fund 

representatives and publicly available sources. 

6 $10,873,200 + $10,455,000 + $39,114,000 = 

$60,442,200. 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Rule 17e–1 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) (‘‘Paperwork 

Reduction Act’’), 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 collection of 

information described below. 

Rule 17e–1 (17 CFR 270.17e–1) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a–1 et seq.) (the 

‘‘Investment Company Act’’) deems a 

remuneration as ‘‘not exceeding the 

usual and customary broker’s 

commission’’ for purposes of Section 

17(e)(2)(A) of the Act (15 U.S.C. 80a– 

17(e)(2)(A)) if, among other things, a 

registered investment company’s 

(‘‘fund’s’’) board of directors has 

adopted procedures reasonably 

designed to provide that the 

remuneration to an affiliated broker is 

reasonable and fair compared to that 

received by other brokers in connection 

with comparable transactions involving 

similar securities being purchased or 

sold on a securities exchange during a 

comparable period of time and the 

board makes and approves such changes 

as it deems necessary. In addition, each 

quarter, the board must determine that 

all transactions effected under the rule 

during the preceding quarter complied 

with the established procedures 

(‘‘review requirement’’). Rule 17e–1 also 

requires the fund to (i) maintain 

permanently a written copy of the 

procedures adopted by the board for 

complying with the requirements of the 

rule; and (ii) maintain for a period of six 

years, the first two in an easily 

accessible place, a written record of 

each transaction subject to the rule, 

setting forth the amount and source of 

the commission, fee, or other 

remuneration received; the identity of 

the broker; the terms of the transaction; 

and the materials used to determine that 

the transactions were effected in 

compliance with the procedures 

adopted by the board (‘‘recordkeeping 

requirement’’). The review and 

recordkeeping requirements under rule 

17e–1 enable the Commission to ensure 

that affiliated brokers receive 

compensation that does not exceed the 

usual and customary broker’s 

commission. Without the recordkeeping 

requirement, Commission inspectors 

would have difficulty ascertaining 

whether funds were complying with 

rule 17e–1. 

Based upon an analysis of fund filings 

on Form N–CEN, approximately 1,640 

funds report reliance on rule 17e–1. 

Based on staff experience and 

conversations with fund representatives, 

we estimate that the burden of 

compliance with rule 17e–1 is 

approximately 50 hours per fund per 

year. This time is spent, for example, 

reviewing the applicable transactions 

and maintaining records. Accordingly, 

we calculate the total estimated annual 

internal burden of complying with the 

review and recordkeeping requirements 

of rule 17e–1 to be approximately 

82,000 hours.1 We further estimate that, 

of these: 

• 60 percent (49,200 hours) are spent 

by senior accountants, at an estimated 

hourly wage of $221,2 for a total of 

approximately $10,873,200 per year; 3

• 30 percent (24,600 hours) are spent 

by in-house attorneys at an estimated 

hourly wage of $425, for a total of 

approximately $10,455,000 per year; 4

and 

• 10 percent (8,200) are spent by the 

funds’ board of directors at an hourly 

cost of $4,770, for a total of 

approximately $39,114,000 per year.5

Based on these estimated wage rates, 

the total cost to the industry of the hour 

burden for complying with the review 

and recordkeeping requirements of rule 

17e–1 is approximately $60,442,200.6

The Commission staff estimates that 

there is no cost burden associated with 

the information collection requirement 

of rule 17e–1 other than this cost. 

Estimates of the average 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 Commission rules and forms. 

The collection of information under rule 

17e–1 is mandatory. The information 

provided under rule 17e–1 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 OMB control number. 

The public may view the background 

documentation for this information 

collection at the following website, 

www.reginfo.gov. Comments should be 

directed to: (i) Desk Officer for the 

Securities and Exchange Commission, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503, 

or by sending an email to: 

Lindsay.M.Abate@omb.eop.gov; and (ii) 

David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John R. 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. Written comments 

and recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 

PRAMain. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. 

Dated: January 24, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01624 Filed 1–26–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–247, OMB Control No. 

3235–0259] 

Submission for OMB Review; 

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 19h–1 

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’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Notices 4319 

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

2 17 CFR 240.19b–4. 

3FINRA operates Web CRD, the central licensing 

and registration system for the U.S. securities 

industry. FINRA uses Web CRD to maintain the 

qualification, employment, and disciplinary 

histories of registered associated persons of brokerdealers. 

Rule 19h–1 (17 CFR 240.19h–1), under 

the Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.). 

Rule 19h–1 prescribes the form and 

content of notices and applications by 

self-regulatory organizations (‘‘SROs’’) 

regarding proposed admissions to, or 

continuances in, membership, 

participation or association with a 

member of any person subject to a 

statutory disqualification. 

The Commission uses the information 

provided in the submissions filed 

pursuant to Rule 19h–1 to review 

decisions by SROs to permit the entry 

into or continuance in the securities 

business of persons who have 

committed serious misconduct. The 

filings submitted pursuant to the Rule 

also permit inclusion of an application 

to the Commission for consent to 

associate with a member of an SRO 

notwithstanding a Commission order 

barring such association. 

The Commission reviews filings made 

pursuant to the Rule to ascertain 

whether it is in the public interest to 

permit the employment in the securities 

business of persons subject to statutory 

disqualification. The filings contain 

information that is essential to the staff’s 

review and ultimate determination on 

whether an association or employment 

is in the public interest and consistent 

with investor protection. 

It is estimated that approximately 20 

respondents will make submissions 

pursuant to this Rule annually. With 

respect to submissions for Rule 19h–1(a) 

notices, and based upon past 

submissions, the staff estimates that 

respondents will make a total of 11 

submissions per year. The staff 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(a) 

notices is 80 hours (for a total annual 

burden for all respondents in the 

amount of 17,600 hours). With respect 

to submissions for Rule 19h–1(a)(4) 

notifications, and based upon past 

submissions, the staff estimates that 

respondents will make a total of 9 

submissions per year. The staff 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(a)(4) 

notifications is 80 hours (for a total 

annual burden for all respondents in the 

amount of 14,400 hours). With respect 

to submissions for Rule 19h–1(b), and 

based upon past submissions, the staff 

estimates that respondents will make a 

total of 28 submissions per year. The 

staff estimates that the average number 

of hours necessary to complete a 

submission pursuant to Rule 19h–1(b) is 

13 hours (for a total annual burden for 

all respondents in the amount of 7,280 

hours). With respect to submissions for 

Rule 19h–1(d), and based upon past 

submissions, the staff estimates that 

respondents will make a total of 5 

submissions per year. The staff 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(d) is 

80 hours (for a total annual burden for 

all respondents in the amount of 8,000 

hours). The aggregate annual burden for 

all respondents is thus approximately 

47,280 hours (17,600 +14,400 + 7,280 + 

8,000). 

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. 

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 to (i) www.reginfo.gov/public/do/ 

PRAMain 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: PRA_Mailbox@sec.gov. 

Dated: January 21, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01554 Filed 1–26–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94023; File No. SR–C2– 

2022–002] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule With Respect to Its FINRA 

Non-Member Processing Registration 

Fee 

January 21, 2022. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on January 

11, 2022 Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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 

Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) proposes to amend 

its Fees Schedule with respect to its 

FINRA Non-Member Processing 

registration fee. The text of the proposed 

rule change is provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/ctwo/), 

at the Exchange’s Office of the 

Secretary, 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 

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 Exchange proposes to amend the 

FINRA Non-Member Processing fee to 

reflect adjustments to the FINRA 

registration fees. The applicable fee is 

collected and retained by FINRA via 

Web CRD 3 for the registration of 

employees of Exchange TPH 

organizations that are not FINRA 

members (‘‘Non-FINRA members’’). The 

Exchange is merely listing these fees on 

its Fees Schedule and does not collect 

or retain this fee. 

Today, under the Regulatory Fees 

section of the Fees Schedule are various 

fees collected and retained by FINRA 

via the Web CRD registration system, 


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