18404 Federal Register / Vol. 87, No. 61 / Wednesday, March 30, 2022 / Notices 

1Prevention of Certain Unlawful Activities with 

Respect to Registered Investment Companies, 

Investment Company Act Release No. 11421 (Oct. 

31, 1980) (45 FR 73915 (Nov. 7, 1980)). 

2Personal Investment Activities of Investment 

Company Personnel, Investment Company Act 

Release No. 23958 (Aug. 20, 1999) (64 FR 46821 

(Aug. 27, 1999)). 

3 Investment Adviser Codes of Ethics, Investment 

Advisers Act Release No. 2256 (Jul. 2, 2004) (69 FR 

41696 (Jul. 9, 2004)). 

4Rule 17j–1(a)(1) defines an ‘‘access person’’ as 

‘‘Any Advisory Person of a Fund or of a Fund’s 

investment adviser. If an investment adviser’s 

primary business is advising Funds or other 

advisory clients, all of the investment adviser’s 

directors, officers, and general partners are 

presumed to be Access Persons of any Fund advised 

by the investment adviser. All of a Fund’s directors, 

officers, and general partners are presumed to be 

Access Persons of the Fund.’’ The definition of 

Access Person also includes ‘‘Any director, officer 

or general partner of a principal underwriter who, 

in the ordinary course of business, makes, 

participates in or obtains information regarding, the 

purchase or sale of Covered Securities by the Fund 

for which the principal underwriter acts, or whose 

functions or duties in the ordinary course of 

business relate to the making of any 

recommendation to the Fund regarding the 

purchase or sale of Covered Securities.’’ Rule 17j– 

1(a)(1). 

5A ‘‘Covered Security’’ is any security that falls 

within the definition in section 2(a)(36) of the Act, 

except for direct obligations of the U.S. 

Government, bankers’ acceptances, bank certificates 

of deposit, commercial paper and high quality 

short-term debt instruments, including repurchase 

agreements, and shares issued by open-end funds. 

Rule 17j–1(a)(4). 

6Rule 17j–1(d)(2) contains the following 

exceptions: (i) An Access Person need not file a 

report for transactions effected for, and securities 

held in, any account over which the Access Person 

does not have control; (ii) an independent director 

POSTAL SERVICE 

International Product Change—Priority 

Mail Express International, Priority Mail 

International & First-Class Package 

International Service Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a Priority 

Mail Express International, Priority Mail 

International & First-Class Package 

International Service contract to the list 

of Negotiated Service Agreements in the 

Competitive Product List in the Mail 

Classification Schedule. 

DATES: Date of notice: March 30, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Christopher C. Meyerson, (202) 268– 

7820. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on March 23, 2022, 

it filed with the Postal Regulatory 

Commission a USPS Request To Add 

Priority Mail Express International, 

Priority Mail International & First-Class 

Package International Service Contract 

4 to Competitive Product List. 

Documents are available at 

www.prc.gov, Docket Nos. MC2022–47 

and CP2022–52. 

Joshua J. Hofer, 

Attorney, Ethics & Legal Compliance. 

[FR Doc. 2022–06698 Filed 3–29–22; 8:45 am] 

BILLING CODE 7710–12–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–239, OMB Control No. 

3235–0224] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

17j–1 

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. 350l–3520), 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. 

Conflicts of interest between 

investment company personnel (such as 

portfolio managers) and their funds can 

arise when these persons buy and sell 

securities for their own accounts 

(‘‘personal investment activities’’). 

These conflicts arise because fund 

personnel have the opportunity to profit 

from information about fund 

transactions, often to the detriment of 

fund investors. Beginning in the early 

1960s, Congress and the Securities and 

Exchange Commission (‘‘Commission’’) 

sought to devise a regulatory scheme to 

effectively address these potential 

conflicts. These efforts culminated in 

the addition of section 17(j) to the 

Investment Company Act of 1940 (the 

‘‘Investment Company Act’’) (15 U.S.C. 

80a–17(j)) in 1970 and the adoption by 

the Commission of rule 17j–1 (17 CFR 

270.17j–1) in 1980.1 The Commission 

proposed amendments to rule 17j–1 in 

1995 in response to recommendations 

made in the first detailed study of fund 

policies concerning personal investment 

activities by the Commission’s Division 

of Investment Management since rule 

17j–1 was adopted. Amendments to rule 

17j–1, which were adopted in 1999, 

enhanced fund oversight of personal 

investment activities and the board’s 

role in carrying out that oversight.2

Additional amendments to rule 17j–1 

were made in 2004, conforming rule 

17j–1 to rule 204A–1 under the 

Investment Advisers Act of 1940 (15 

U.S.C. 80b), avoiding duplicative 

reporting, and modifying certain 

definitions and time restrictions.3

Section 17(j) makes it unlawful for 

persons affiliated with a registered 

investment company (‘‘fund’’) or with 

the fund’s investment adviser or 

principal underwriter (each a ‘‘17j–1 

organization’’), in connection with the 

purchase or sale of securities held or to 

be acquired by the investment company, 

to engage in any fraudulent, deceptive, 

or manipulative act or practice in 

contravention of the Commission’s rules 

and regulations. Section 17(j) also 

authorizes the Commission to 

promulgate rules requiring 17j–1 

organizations to adopt codes of ethics. 

In order to implement section 17(j), 

rule 17j–1 imposes certain requirements 

on 17j–1 organizations and ‘‘Access 

Persons’’ 4 of those organizations. The 

rule prohibits fraudulent, deceptive or 

manipulative acts by persons affiliated 

with a 17j–1 organization in connection 

with their personal securities 

transactions in securities held or to be 

acquired by the fund. The rule requires 

each 17j–1 organization, unless it is a 

money market fund or a fund that does 

not invest in Covered Securities,5 to: (i) 

Adopt a written codes of ethics, (ii) 

submit the code and any material 

changes to the code, along with a 

certification that it has adopted 

procedures reasonably necessary to 

prevent Access Persons from violating 

the code of ethics, to the fund board for 

approval, (iii) use reasonable diligence 

and institute procedures reasonably 

necessary to prevent violations of the 

code, (iv) submit a written report to the 

fund describing any issues arising under 

the code and procedures and certifying 

that the 17j–1 entity has adopted 

procedures reasonably necessary to 

prevent Access Persons form violating 

the code, (v) identify Access Persons 

and notify them of their reporting 

obligations, and (vi) maintain and make 

available to the Commission for review 

certain records related to the code of 

ethics and transaction reporting by 

Access Persons. 

The rule requires each Access Person 

of a fund (other than a money market 

fund or a fund that does not invest in 

Covered Securities) and of an 

investment adviser or principal 

underwriter of the fund, who is not 

subject to an exception,6 to file: (i) 


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