[Federal Register Volume 87, Number 61 (Wednesday, March 30, 2022)]
[Notices]
[Pages 18414-18416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06704]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-604, OMB Control No. 3235-0657]


Proposed Collection; Comment Request; Extension: Form N-MFP and 
Rule 30b1-7

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736.

    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 (``OMB'') for extension and approval.
    Section 30(b) of the Investment Company Act of 1940 (``Investment 
Company Act'') \1\ provides that ``[e]very registered investment 
company shall file with the Commission . . . such information, 
documents, and reports (other than financial statements), as the 
Commission may require to keep reasonably current the information and 
documents contained in the registration statement of such company. . . 
.'' \2\ Rule 30b1-7 under the Investment Company Act, entitled 
``Monthly Report for Money Market Funds,'' provides that every 
registered investment company, or series thereof, that is regulated as 
a money market funds under rule 2a-7 \3\ must file with the Commission 
a monthly report of portfolio holdings on Form N-MFP \4\ no later than 
the fifth business day of each month.\5\ Form N-

[[Page 18415]]

MFP sets forth the specific disclosure items that money market funds 
must provide. Filers must submit this report electronically using the 
Commission's electronic filing system (``EDGAR'') in Extensible Markup 
Language (``XML'').
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    \1\ 15 U.S.C. 80a-1 et seq.
    \2\ 15 U.S.C. 80a-29(b).
    \3\ 17 CFR 270.2a-7.
    \4\ 17 CFR 274.201.
    \5\ 17 CFR 270.30b1-7.
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    Compliance with rule 30b1-7 is mandatory for any fund that holds 
itself out as a money market fund in reliance on rule 2a-7. Responses 
to the disclosure requirements 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 following estimates of average burden hours and costs are made 
solely for purposes of the Paperwork Reduction Act and are not derived 
from a comprehensive or even representative survey or study of the cost 
of Commission rules and forms.
    The Commission calculates there are currently 353 \6\ money market 
funds that report information on Form N-MFP, with approximately 8 \7\ 
of them being new money market funds that are filing reports on Form N-
MFP for the first time.
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    \6\ This estimate is based on staff review of reports on Form N-
MFP filed with the Commission for the month ended December 31, 2021 
and includes both feeder and non-feeder money market funds.
    \7\ This calculation is based on staff review of reports on Form 
N-MFP filed with the Commission for 2019 (16 new funds), 2020 (5 new 
funds) and 2021 (2 new funds). Averaging those numbers over three 
years provides an estimate of 8 new funds per year.
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    We estimate that 35% of money market funds (or 124 money market 
funds, broken down into 121 existing funds and 3 new funds) \8\ license 
a software solution and file reports on Form N-MFP in house; we further 
estimate that each fund that files reports on Form N-MFP in house 
requires an average of approximately 47 burden hours to compile 
(including review of the information), tag, and electronically file the 
Form N-MFP for the first time and an average of approximately 13 burden 
hours for subsequent filings.\9\ Therefore, we estimate the per fund 
average annual hour burden is 156 hours \10\ for existing funds and 190 
hours \11\ for new money market funds. Based on an estimate of 121 
existing funds and 3 new funds each year, we estimate that filing 
reports on Form N-MFP in house takes 19,446 hours and costs funds, in 
aggregate, $6,319,950 per year.\12\
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    \8\ The estimate is based on the following calculation: (353 
money market funds x 35% = 124 money market funds. Of that amount, 
we estimate that 3 are new money market funds (8 new money market 
funds each year x 35% = 2.8 funds, rounded to 3). Therefore, 124 
money market funds-3 new money market funds = 121 existing money 
market funds.
    \9\ We understand that the required information is currently 
maintained by money market funds pursuant to other regulatory 
requirements or in the ordinary course of business. Accordingly, for 
the purposes of our analysis, we do not ascribe any time to 
producing the required information.
    \10\ This estimate is based on the following calculation: 12 
filings per year x 13 burden hours per filing = 156 burden hours per 
year.
    \11\ This estimate is based on the following calculation: (First 
month's initial filing x 47 burden hours) + (11 subsequent monthly 
filings x 13 burden hours per filing) = 190 burden hours per year.
    \12\ These estimates are based on the following calculations: 
Existing funds: (156 hours x blended hourly rate of $325 for a 
financial reporting manager ($318 per hour), senior accountant ($237 
per hour), senior database administrator ($373 per hour), senior 
portfolio manager ($360 per hour) and compliance manager ($339 per 
hour)) = $44,772. The blended hourly rate was calculated as ($318 + 
$237 + $373 + $360 + $339/5 = $325. There are 121 existing money 
market funds that use in house solutions x 156 hours with an 
internal time cost of $50,700 per fund = 18,876 hours with an 
internal time cost of $6,134,700.
    New money market funds: (190 hours x blended hourly rate of $325 
for a financial reporting manager ($318 per hour), senior accountant 
($237 per hour), senior database administrator ($373 per hour), 
senior portfolio manager ($360 per hour) and compliance manager 
($339 per hour)) = $61,750. The blended hourly rate was calculated 
as ($318 + $237 + $373 + $360 + $339/5 = $325. Three new money 
market funds x 190 hours with an internal time cost of $61,750 per 
fund = 570 hours with an internal time cost of $185,250.
    Aggregate annual hourly burden for all funds filing reports on 
Form N-MFP in house: 18,876 hours + 570 hours = 19,446 hours.
    Aggregate annual costs for all funds filing reports on Form N-
MFP in house: $6,134,700 + $185,250 = $6,319,950.
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    We estimate that 65% of money market funds (or 229 money market 
funds, broken down into 224 existing funds and 5 new funds) \13\ retain 
the services of a third party to provide data aggregation and 
validation services as part of the preparation and filing of reports on 
Form N-MFP on the fund's behalf; we further estimate that each fund 
requires an average of approximately 26 burden hours to compile and 
review the information with the service provider prior to 
electronically filing the report for the first time and an average of 
approximately 9 burden hours for subsequent filings. Therefore, we 
estimate the per fund average annual hour burden is 108 hours \14\ for 
existing funds and 125 hours \15\ for new money market funds. Based on 
an estimate of 224 existing funds and 5 new funds each year, we 
estimate that filing reports on Form N-MFP using a service provider 
takes 24,817 hours and costs funds, in aggregate, $8,065,525 per 
year.\16\ In sum, we estimate that filing reports on Form N-MFP imposes 
a total annual hour burden of 44,263 hours,\17\ at an aggregate cost of 
$14,385,475 on all money market funds.\18\
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    \13\ The estimate is based on the following calculation: (353 
money market funds x 65% = 229 money market funds. Of that amount, 
we estimate that 5 are new money market funds (8 new money market 
funds each year x 65% = 5.2 funds, rounded to 5). Therefore, 229 
money market funds--5 new money market funds = 224 existing money 
market funds.
    \14\ This estimate is based on the following calculation: 12 
filings per year x 9 burden hours per filing = 108 burden hours per 
year.
    \15\ This estimate is based on the following calculation: (First 
month's initial filing x 26 burden hours) + (11 subsequent month 
filings x 9 burden hours per filing) = 125 burden hours per year.
    \16\ These estimates are based on the following calculations: 
existing funds: (108 hours x blended hourly rate of $325 for a 
financial reporting manager ($318 per hour), senior accountant ($237 
per hour), senior database administrator ($373 per hour), senior 
portfolio manager ($360 per hour) and compliance manager ($339 per 
hour)) = $35,000. The blended hourly rate was calculated as ($318 + 
$237 + $373 + $360 + $339)/5 = $325. There are 224 existing money 
market funds who use a third-party service provider x 108 hours with 
an internal time cost of $35,100 per fund = 24,192 hours with an 
internal time cost of $7,862,400.
    New money market funds: (125 hours x blended hourly rate of $325 
for a financial reporting manager ($318 per hour), fund senior 
accountant ($237 per hour), senior database administrator ($373 per 
hour), senior portfolio manager ($360 per hour) and compliance 
manager ($339 per hour)) = $40,625. The blended hourly rate was 
calculated as ($318 + $237 + $373 + $360 + $339)/5 = $325. Five new 
money market funds x 125 hours with an internal cost of $40,625 per 
fund = 625 hours with an internal time cost of $203,125.
    Aggregate annual hourly burden for all funds filing reports on 
Form N-MFP using a third party service provider: 24,192 6 hours + 
625 hours = 24,817 hours.
    Aggregate annual costs for all funds filing reports on Form N-
MFP using a third party service provider: $7,862,400 + $203,125 = 
$8,065,525.
    \17\ This estimate is based on the following calculation: 19,446 
hours for filers licensing a software solution and filing in-house + 
24,817 hours for filers using a third-party service provider = 
44,263 hours in total.
    \18\ This estimate is based on the following calculation: 
$6,319,950 (in-house filers) + $8,065,525 (filers using a service 
provider) = $14,385,475.
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    Cost burden is the cost of goods and services purchased in 
connection with complying with the collection of information 
requirements of rule 30b1-7 and Form N-MFP. The cost burden does not 
include the cost of the hour burden discussed above.
    Based on discussions with industry participants, we estimate that 
money market funds that file reports on Form N-MFP in house license a 
third-party software solution to assist in filing their reports at an 
average cost of $3,900 per fund per year. In addition, we estimate that 
money market funds that use a service provider to prepare and file 
reports on Form N-MFP pay an average fee of $9,300 per fund per year. 
In sum, we estimate that all money market funds

[[Page 18416]]

incur on average, in the aggregate, external annual costs of 
$2,613,300.\19\
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    \19\ This estimate is based on the following calculation: (124 
money market funds (121 existing funds + 3 new funds) that file 
reports on Form N-MFP in house x $3,900 per fund, per year) + (229 
money market funds (224 existing funds + 5 new funds) that file 
reports on Form N-MFP using a service provider x $9,300 per fund, 
per year) = $2,613,300.
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    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 31, 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: 
<a href="/cdn-cgi/l/email-protection#07575546584a666e6b65687f4774626429606871"><span class="__cf_email__" data-cfemail="124240534d5f737b7e707d6a526177713c757d64">[email protected]</span></a>.

    Dated: March 25, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-06704 Filed 3-29-22; 8:45 am]
BILLING CODE 8011-01-P


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