Federal Register / Vol. 87, No. 45 / Tuesday, March 8, 2022 / Notices 13033 

1A significant portion of the recordkeeping 

burden involves organizing information that the 

funds already collect when initially purchasing 

securities. In addition, when a money market fund 

analyzes a security, the analysis need not be 

presented in any particular format. Money market 

funds therefore have a choice of methods for 

maintaining these records that vary in technical 

sophistication and formality. Accordingly, the cost 

of preparing these documents may vary 

significantly among individual funds. The burden 

hours associated with filing reports to the 

Commission as an exhibit to Form N–CR are 

included in the PRA burden estimate for that form. 

2The amount assets under management in 

individual money market funds ranges widely, 

varying from below $50 million to well over $150 

billion. We further note that the assets under 

management figures were calculated based on net 

assets at the fund level and not the sum of the 

market values of the underlying funds. 

3The staff estimated the annual cost of preserving 

the required books and records by identifying the 

annual costs incurred by several funds and then 

relating this total cost to the average net assets of 

these funds during the year. With a total of $328.5 

million under management in small funds, $52.4 

billion under management in medium funds and 

$5.4 trillion under management in large funds, the 

costs of preservation were estimated as follows: 

((0.0051295 × $328.5 million) + (0.0005041 × $52.4 

billion) + (0.0000009 × $5.4 trillion) = $33.0 

million. For purposes of this PRA submission, 

Commission staff used the following categories for 

fund sizes: (i) Small—money market funds with $50 

million or less in assets under management; (ii) 

medium—money market funds with more than $50 

million up to and including $1 billion in assets 

under management; and (iii) large—money market 

funds with more than $1 billion in assets under 

management. 

4This estimate is based on the following 

calculation: $0.0000132 × $5.4 trillion in assets 

under management for large funds = $71.6 million. 

5This estimate is based on the following 

calculation: $71.6 million in capital costs/2 = $35.8 

million. 

6This estimate is based on the following 

calculation: $33.0 million in record preservation 

costs/2 = $16.5 million. 

burden for 80 fund complexes to be 

4,000 hours. 

• Website disclosures of portfolio 

holdings, of daily and weekly liquid 

assets and net shareholder flow, of daily 

current NAV, and disclosures of 

financial support received by the fund, 

the imposition and removal of liquidity 

fees and the suspension and resumption 

of fund redemptions. Commission staff 

estimates a total annual hour burden for 

320 funds to be 27,251 hours. 

• For funds electing retail fund status, 

written policies and procedures limiting 

all beneficial owners of the fund to 

natural persons. Commission staff 

estimates a total annual hour burden for 

2 funds to be 26 hours. 

Thus, the Commission estimates the 

total annual burden of the rule’s 

information collection requirements is 

293,516 hours. 

The estimated total annual burden is 

being decreased from 337,328 hours to 

293,516 hours. This net decrease of 

43,812 hours is attributable to a 

combination of factors, including a 

decrease in the number of money 

market funds and fund complexes, and 

updated information from money 

market funds regarding hourly burdens, 

including revised staff estimates of the 

burden hours required to comply with 

rule 2a–7. 

Commission staff estimates that in 

addition to the costs described in 

section 12, money market funds will 

incur costs to preserve records, as 

required under rule 2a–7.1 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.2 Commission staff 

estimates that the amount an individual 

fund may spend ranges from $100 per 

year to $300,000. Based on a cost of 

$0.0051295 per dollar of assets under 

management for small funds, 

$0.0005041 per dollar assets under 

management for medium funds, and 

$0.0000009 per dollar of assets under 

management for large funds, the staff 

estimates compliance with the record 

storage requirements of rule 2a–7 costs 

the fund industry approximately $33.0 

million per year.3

Based on responses from individuals 

in the money market fund industry, the 

staff estimates that some of the largest 

fund complexes have created computer 

programs for maintaining and 

preserving compliance records for rule 

2a–7. Based on a cost of $0.0000132 per 

dollar of assets under management for 

large funds, the staff estimates that total 

annualized capital/startup costs range 

from $0 for small funds to $71.6 million 

for all large funds.4 Commission staff 

further estimates that, even absent the 

requirements of rule 2a–7, money 

market funds would spend at least half 

of the amount for capital costs ($35.8 

million) 5 and for record preservation 

($16.5 million) 6 to establish and 

maintain these records and the systems 

for preserving them as a part of sound 

business practices to ensure 

diversification and minimal credit risk 

in a portfolio for a fund that seeks to 

maintain a stable price per share. 

These estimates of burden hours and 

costs are made solely for the purposes 

of the Paperwork Reduction Act. The 

estimates are not derived from a 

comprehensive or even a representative 

survey or study of Commission rules. 

The collections of information 

required by rule 2a–7 are necessary 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 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimates of the burden of the proposed 

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 by May 9, 2022. 

Please direct your written comments 

to David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549; or send an email to: PRA_

Mailbox@sec.gov. 

Dated: March 3, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–04884 Filed 3–7–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–437, OMB Control No. 

3235–0494] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

30e–2 

Notice is hereby given that, under 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 discussed below. 

Rule 30e–2 (17 CFR 270.30e–2) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a–1 et seq.) (‘‘Investment 

Company Act’’) requires registered unit 

investment trusts (‘‘UITs’’) that invest 

substantially all of their assets in shares 

of a management investment company 

(‘‘fund’’) to send their unitholders 

annual and semiannual reports 

containing financial information on the 

underlying company. Specifically, rule 


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13034 Federal Register / Vol. 87, No. 45 / Tuesday, March 8, 2022 / Notices 

30e–2 requires that the report contain 

all the applicable information and 

financial statements or their equivalent, 

required by rule 30e–1 under the 

Investment Company Act (17 CFR 

270.30e–1) to be included in reports of 

the underlying fund for the same fiscal 

period. Rule 30e–1 requires that the 

underlying fund’s report contain, among 

other things, the information that is 

required to be included in such reports 

by the fund’s registration statement form 

under the Investment Company Act. 

The purpose of this requirement is to 

apprise current shareholders of the 

operational and financial condition of 

the UIT. Absent the requirement to 

disclose all material information in 

reports, investors would be unable to 

obtain accurate information upon which 

to base investment decisions and 

consumer confidence in the securities 

industry might be adversely affected. 

Requiring the submission of these 

reports to the Commission permits us to 

verify compliance with securities law 

requirements. 

Rule 30e–2, however, permits, under 

certain conditions, delivery of a single 

shareholder report to investors who 

share an address (‘‘householding’’). 

Specifically, rule 30e–2 permits 

householding of annual and semiannual reports by UITs to satisfy the 

delivery requirements of rule 30e–2 if, 

in addition to the other conditions set 

forth in the rule, the UIT has obtained 

from each applicable investor written or 

implied consent to the householding of 

shareholder reports at such address. The 

rule requires UITs that wish to 

household shareholder reports with 

implied consent to send a notice to each 

applicable investor stating that the 

investors in the household will receive 

one report in the future unless the 

investors provide contrary instructions. 

In addition, at least once a year, UITs 

relying on the rule for householding 

must explain to investors who have 

provided written or implied consent 

how they can revoke their consent. The 

purpose of the notice and annual 

explanation requirements associated 

with the householding provisions of the 

rule is to ensure that investors who wish 

to receive individual copies of 

shareholder reports are able to do so. 

The Commission estimates that the 

annual burden associated with rule 30e– 

2 is 125 hours per respondent. The 

Commission estimates that there are 

currently approximately 660 UITs that 

file 1,320 reports per year. Therefore, 

the Commission estimates that the total 

hour burden is approximately 82,500 

hours. In addition to the burden hours, 

the Commission estimates that the 

annual cost of contracting for outside 

services associated with rule 30e–2 is 

$20,000 per respondent, or $6,667 per 

respondent that transmits reports 

electronically, for a total cost of 

approximately $5,280,198. 

Estimates of average burden hours are 

made solely for the purposes of the 

Paperwork Reduction Act and are not 

derived from a comprehensive or even 

representative survey or study of the 

costs of Commission rules and forms. 

The collection of information under rule 

30e–2 is mandatory. The information 

provided under rule 30e–2 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 Cynthia 

Roscoe, 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: March 2, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–04800 Filed 3–7–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–121, OMB Control No. 

3235–0110] 

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: 

Form T–1 

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’’) 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. 

Form T–1 (17 CFR 269.1) is a 

statement of eligibility and qualification 

under the Trust Indenture Act of 1939 

(15 U.S.C. 77aaa et seq.) of a corporation 

designated to act as a trustee under an 

indenture. The information is used to 

determine whether the corporation is 

qualified to serve as a trustee. Form T– 

1 takes approximately 15 hours per 

response to prepare and is filed by 

approximately 2 respondents. We 

estimate that 25% of the 15 hours (4 

hours per response) is prepared by the 

company for a total reporting burden of 

8 hours (4 hours per response × 2 

responses). 

Written comments are invited on: (a) 

Whether this 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 imposed by 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 by May 9, 2022. 

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. 

Please direct your written comment to 

David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: March 2, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–04797 Filed 3–7–22; 8:45 am] 

BILLING CODE 8011–01–P 


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