34494 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices

Description: Under part 1 of Title I of

the Employee Retirement Income

Security Act of 1974 (ERISA), Title IV

of ERISA, and the Internal Revenue

Code of 1986, as amended,

administrators of pension and welfare

benefit plans (collectively employee

benefit plans) subject to those

provisions, and employers sponsoring

certain fringe benefit plans and other

plans of deferred compensation, are

required to file returns/reports annually

concerning the financial condition and

operations of the plans. These reporting

requirements are satisfied generally by

filing the Form 5500 Series in

accordance with its instructions and the

related regulations. This ICR is for the

revised Form 5500 Series as proposed

by the Department of Labor, Pension

and Welfare Benefits Administration

(PWBA), Department of the Treasury,

Internal Revenue Service (IRS), and

PBGC (collectively the Agencies) in a

Notice of Proposed Forms Revision on

September 3, 1997 (62 FR 46556) and as

subsequently revised in response to

public comment. The Agencies

anticipate that the revised Form 5500

Series will be finalized and available for

use for plan years which begin in 1999.

Also published in today’s Federal

Register is the Agencies’ notice

concerning the proposed extension/

reinstatement of the ICR for the 1998

Form 5500 Series. The ICR for the

existing Form 5500 Series is approved

under OMB Numbers 1210–0016

(PWBA) and 1545–0710 (IRS). PBGC’s

ICR for the Form 5500 Series was

previously approved under OMB

Number 1212–0026.

Agencies: Department of Labor,

Pension and Welfare Benefits

Administration; Department of the

Treasury, Internal Revenue Service;

Pension Benefit Guaranty Corporation.

Title: Form 5500 Series.

Form Number: Form 5500 and

Schedules.

OMB Numbers: 1210–NEW; 1545–

NEW; 1212–NEW.

Frequency: Annually.

Affected Public: Individuals or

households; business or other for-profit;

Not-for-profit institutions.

Total Respondents: 801,934 for PWBA

and PBGC; 901,400 for IRS.

Total Responses: 801,934 for PWBA

and PBGC; 901,400 for IRS.

Estimated Burden Hours, Total

Annual Burden: 1.7 million burden

hours (using the PWBA methodology) to

48.7 million burden hours (using the

IRS methodology) for preparing the

revised Form 5500 Series and filing it

with the government. This total burden

is shared among the Agencies. See the

September 3 Notice for detailed

information on the burden estimation

methodologies. In the September 3

Notice, the Agencies requested

comments on the burden hour estimates

and the methodologies used to estimate

burden for preparing and filing the

Form 5500, and received comments

generally indicating that the estimates

were too low. In an effort to respond to

those comments, the Agencies have

undertaken an evaluation of the burden

estimation methodologies for the

purpose of developing a revised and

uniform methodology. The Agencies

will modify these burden estimates

based on a revised methodology prior to

the date the revised Form 5500 Series

comes into use.

A computerized processing system

(the ERISA Filing and Acceptance

System, or EFAST) is being developed

to simplify and expedite the processing

of the revised Form 5500 Series by

relying on computer scannable forms

and electronic filing technologies. The

Agencies intend to publish a Federal

Register notice announcing the

opportunity to comment on the

electronic filing options and computer

scannable version of the revised Form

5500 Series, which will be designed as

part of the EFAST project. The EFAST

project is described in detail in the

Request for Proposal issued in final

form on January 6, 1998. The final

computer scannable version of the

forms, which will be required to be used

for 1999 plan years, will be published

in the Federal Register following the

Agencies’ evaluation of public

comments.

Total annualized capital/start-up

costs: $1,266,905 (PWBA estimate).

Total annual cost (operating and

maintenance): $20,843,860 (PWBA’s

estimate of its allocated share);

$2,600,000 (PBGC’s estimate of its

allocated share).

Dated: June 18, 1998.

Todd R. Owen,

Departmental Clearance Officer, Department

of Labor.

Dated: June 18, 1998.

Lois K. Holland,

Departmental Reports Management Officer,

Department of the Treasury.

Dated: June 18, 1998.

Stuart A. Sirkin,

Director, Corporate Policy and Research

Department, Pension Benefit Guaranty

Corporation.

[FR Doc. 98–16791 Filed 6–23–98; 8:45 am]

BILLING CODE 4510–29–P

SECURITIES AND EXCHANGE

COMMISSION

Extension; Comment Request

Upon written request, copy available from:

Securities and Exchange Commission,

Office of Filings and Information Services,

450 Fifth Street, N.W., Washington, D.C.

20549.

Extension:

Form N–2, SEC File No. 270–21, OMB

Control No. 3235–0026

Form N–5, SEC File No. 270–172, OMB

Control No. 3235–0169

Form N–8A, SEC File No. 270–135, OMB

Control No. 3235–0175

Rule 17f–5, SEC File No. 270–259, OMB

Control No. 3235–0269

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 collections of information

summarized below. The Commission

plans to submit these existing

collections of information to the Office

Management and Budget for extension

and approval.

Form N–2—Registration Statement of

Closed-end Management Investment

Companies

Form N–2 is the form used by closedend management investment companies

(‘‘closed-end funds’’) to register as

investment companies under the

Investment Company Act of 1940 [15

U.S.C. 80a–1 et seq.] (‘‘Investment

Company Act’’) and to register their

securities under the Securities Act of

1933 [15 U.S.C. 77a et seq.] (‘‘Securities

Act’’). Section 5 of the Securities Act [15

U.S.C. 77e] requires the filing of a

registration statement prior to the offer

of securities to the public and that the

statement be effective before any

securities are sold. The primary purpose

of the registration process is to provide

disclosure of financial and other

information to investors and potential

investors for the purpose of evaluating

an investment in a security. Section 5(b)

of the Securities Act requires that

investors be provided with a prospectus

containing the information required in a

registration statement prior to the sale or

at the time of confirmation or delivery

of the securities.

A closed-end fund is required to

register as an investment company

under Section 8(a) of the Investment

Company Act [15 U.S.C. 80a–8(a)]. Form

N–2 permits a closed-end fund to

provide investors with a prospectus

covering essential information about the

fund when the fund makes an initial or

additional offering of its securities.

More detailed information is provided
Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices 34495

1See Custody of Investment Company Assets

Outside the United States, Investment Company Act

Release No. 22658 (May 12, 1997) [62 FR 26923

(May 16, 1997)].

2The original compliance date for the 1997

amendments was June 16, 1998. The Commission

has extended this compliance date for most of the

amendments to February 1, 1999. The extension

does not apply to the amended definitions of

‘‘eligible foreign custodian,’’ ‘‘qualified foreign

bank,’’ and ‘‘U.S. bank,’’ for which the compliance

date remains June 16, 1998.

3Certain amended definitions would apply under

either version of the rule. See supra note 2.

4 ‘‘Eligible foreign custodians’’ under the rule

generally include foreign banks and trust

companies, national or transnational securities

depositories, and majority-owned subsidiaries of

U.S. banks or bank holding companies. The

compliance date for this amended definition of

eligible foreign custodian remains June 16, 1998.

to interested investors in the Statement

of Additional Information (‘‘SAI’’). The

SIA is provided to investors upon

request and without charge.

The Commission uses the information

provided in Form N–2 registration

statements to determine whether closedend funds have complied with the

requirements of the Investment

Company Act.

The Commission estimates that

closed-end funds file 44 initial

registration statements and 39

amendments to registration

statements—a total of 83 filings—on

Form N–2 each year. Based on

consultations with a sample of recent

filers, it is estimated that the hour

burden to prepare and file an initial

Form N–2 filing is 500 hours and the

hour burden to prepare an amendment

is 100 hours. The total hour burden for

all closed-end funds filing Form N–2 is

25,900 hours per year.

Form N–5—Registration Statement of

Small Business Investment Companies

Form N–5 is the integrated

registration statement form adopted by

the Commission for use by a small

business investment company which

has been licensed as such under the

Small Business Administration and has

been notified by the Administration that

the company may submit a license

application, to register its securities

under the Securities Act and to register

as an investment company under

section 8 of the Investment Company

Act. The purpose of registration under

the Securities Act is to ensure that

investors are provided with material

information concerning securities

offered for public sale that will permit

investors to make informed decisions

regarding such securities. The

Commission reviews the registration

statements for the adequacy of the

disclosure contained therein. Without

Form N–5, the Commission would be

unable to carry out the requirements of

the Securities Act and the Investment

Company Act for registration of small

business investment companies. The

respondents to the collection of

information are small business

investment companies seeking to

register under the Investment Company

Act and to register their securities for

sale to the public under the Securities

Act. The estimated number of

respondents is two and the proposed

frequency of response is annually. The

estimate of the total annual reporting

burden of the collection of information

is approximately 352 hours per

respondent, for a total of 704 hours.

Form N–8A—Notification of

Registration of Investment Companies

Form N–8A is the form that

investment companies file to notify the

Commission of the existence of active

investment companies. After an

investment company has filed its

notification of registration under section

8(a) of the Investment Company Act, the

company is then subject to the

provisions of the Act which govern

certain aspects of its organization and

activities, such as the composition of its

board of directors and the issuance of

senior securities. Form N–8A requires

an investment company to provide its

name, state or organization, form of

organization, classification, if it is a

management company, the name and

address of each investment adviser of

the investment company, the current

value of its total assets and certain other

information readily available to the

investment company. If the investment

company is filing simultaneously its

notification of registration and

registration statement, Form N–8A

requires only that the registrant file the

cover page (giving its name, address and

agent for service of process) and sign the

form in order to effect registration.

The Commission uses the information

provided in the notification on Form N–

8A to determine the existence of active

investment companies and to enable the

Commission to administer the

provisions of the Investment Company

Act with respect to those companies.

Each year approximately 266

investment companies file a notification

on Form N–8A. The Commission

estimates that preparing Form N–8A

requires an investment company to

spend approximately one hour so that

the total burden of preparing Form N–

8A for all affected investment

companies is 266 hours.

Rule 17f–5—Custody of Investment

Company Assets Outside the United

States

Rule 17f–5 under the Investment

Company Act permits registered

management investment companies

(‘‘funds’’) to maintain their assets in

custody arrangements outside the

United States. The Commission adopted

comprehensive amendments to rule

17f–5 on May 12, 1997.1 The

amendments became effective on June

16, 1997, but funds are not yet required

to comply with most of the

amendments.2 Funds may comply with

either prior rule 17f–5 or with the rule

as amended in 1997 until February 1,

1999.3

Before rule 17f–5 was amended in

1997, the rule permitted funds to

maintain their assets with certain

foreign banks and securities

depositories subject to certain

conditions. The funds’s board of

directors had to approve (i) each

country where fund assets were

maintained, (ii) each foreign bank or

depository that held the assets, and (iii)

a written contract that had to contain

specified provisions governing each

foreign custody arrangement. Notes to

the rule listed factors that the board was

required to consider when investing

assets in foreign countries and placing

them with foreign custodian. The rule

also required the fund board to monitor

each foreign custody arrangement and to

approve it at least annually.

As amended in 1997, rule 17f–5

permits a fund’s board of directors to

play a more traditional oversight role by

delegating its responsibilities for foreign

custody arrangements to a U.S. or

foreign bank custodian or the fund’s

investment adviser or officers

(collectively with the board, the

‘‘foreign custody manager’’). The board

can delegate different responsibilities to

different persons. The board must find

that it is reasonably to rely on each

delegate it selects. The delegate must

agree to exercise reasonably care,

prudence, and diligence or to adhere to

a higher standard of care in performing

the delegated responsibilities. The board

must require the delegate to provide, at

times that the board deems reasonable

and appropriate, written reports that

notify the board when the fund’s assets

are placed with a particular foreign

custodian and when any material

change occurs in the fund’s foreign

custody arrangements.

When the foreign custody manager

selects a particular ‘‘eligible foreign

custodian,’’ 4 the foreign custody

manager must determine that, based on

its consideration of specified factors, the
34496 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices

5The requirement that the foreign custody

manager determine that the custody contract (or

equivalent rules or practices) will provide

reasonable care for fund assets is intended to ensure

that the foreign custody manager weighs the

adequacy of contractual obligations when it

determines whether the foreign custodian will

maintain the fund’s assets with reasonable care.

6The Commission estimates that these 3,690

portfolios are divided among approximately 1,327

registered funds within approximately 650 fund

complexes that may share the same board of

directors, U.S. bank custodian, investment adviser,

or all of thee entities. The board of directors and

its foreign custody delegates for a fund complex

could therefore meet rule 17f–5’s requirements by

making similar arrangements for an average of 6

portfolios at the same time. The Commission also

estimates that each portfolio has foreign custody

arrangements with an average of 10 foreign

custodians (i.e., 1 bank and 1 security depository in

each of 5 countries).

fund’s assets will be subject to

reasonable care if maintained with that

custodian. The foreign custody manager

also must determine that, based on the

same factors, the written contract that

governs each custody arrangement with

the foreign custodian (or the set of

depository rules or practices or the

combination of a contract and rules or

practices) will provide reasonable care

for fund assets. The written contract (or

equivalent rules or practices) must

contain either certain specified

provisions, or other provisions that

provide the same or a greater level of

care for fund assets. In addition, the

foreign custody manager must establish

a system to monitor the contract that

governs each custody arrangement and

the appropriateness of maintaining the

fund’s assets with a particular foreign

custodian.

The collections of information

required under rule 17f–5 are intended

to further the protection of fund assets

held in foreign custody arrangements

permitted under the rule, which are

more flexible than the foreign custody

arrangements permitted under the Act.

The requirements that the fund board

determine that it is reasonable to rely on

each delegate is intended to ensure that

the board considers carefully each

delegate’s qualifications to perform its

responsibilities. The requirement that

the delegate provide written reports to

the board is intended to ensure that the

delegate notifies the board of important

developments concerning custody

arrangements so that the board may

exercise effective oversight.

The requirement that each custody

arrangement by governed by a written

contract (or equivalent rules or

practices) that contains specified

provisions or other provisions that

provide an equivalent level of care is

intended to ensure that each

arrangement is subject to certain

minimal contractual safeguards.5 The

requirement that the foreign custody

manager establish a monitoring system

is intended to ensure that the foreign

custody manager periodically reviews

each custody arrangement and takes any

action necessary or appropriate when

changes in circumstances could threaten

fund assets.

The Commission estimates that

during the first year when funds are

required to comply with the 1997

amendments to rule 17f–5, the boards of

directors of approximately 3,690

portfolios that use foreign custody

arrangements will delegate

responsibility for their arrangements to

approximately 15 U.S. bank custodians

and approximately 650 investment

advisers.6

The Commission estimates that the

board of each portfolio will expend

approximately 2 burden hours during

the first year in determining that the

board may reasonably rely on each of

two delegates to evaluate the portfolio’s

foreign custody arrangements, for a total

7,380 burden hours for all, 3,690

portfolios. The Commission estimates

that each U.S. custodian bank will

expend approximately (i) 400 burden

hours in determining for some 250

portfolios that a written contract

containing required terms governs each

foreign custody arrangement and that

each contract will provide reasonable

care for fund assets; (ii) 96 burden hours

in establishing a system for monitoring

custody arrangement and contracts; and

(iii) 400 burden hours in providing

periodic reports to fund boards; for a

total of 13,440 burden hours for all 15

U.S. bank custodians. The Commission

estimates that each investment adviser

will expend approximately (i) 10 burden

hours in determining for some 6

portfolios that a written contract

containing required terms governs each

foreign custody arrangement and that

each contract will provide reasonable

care for fund assets; (ii) 24 burden hours

in establishing a system for monitoring

certain arrangements and contracts; and

(iii) 10 burden hours in providing

periodic reports to fund boards; for a

total of 28,600 burden hours for all 650

investment advisers.

The total annual burden of the rule’s

paperwork requirements for all

portfolios, U.S. bank custodians, and

investment advisers therefore is

estimated to be 49,420 hours. This

estimate represents an increase of

40,680 hours from the prior estimate of

8,740 hours. Approximately 30,680

hours of the increase are attributable to

updated information about the number

of affected portfolios and other entities,

and to a more accurate calculation of the

component parts of some information

burdens. Approximately 10,000 hours of

the increase are attributable to the

adoption of rule amendments not fully

addressed in the prior estimate.

Written comments are invited on: (a)

whether the 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 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 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 Michael E. Bartell, Associate

Executive Director, Office of

Information Technology, Securities and

Exchange Commission, 450 Fifth Street,

N.W., Washington, DC 20549.

Dated: June 17, 1998.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–16754 Filed 6–23–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Investment Company Act Release No.

23262; 812–10336]

SEI Liquid Asset Trust, et al.; Notice of

Application

June 18, 1998.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of application for an

order under section 17(d) of the

Investment Company Act of 1940 (the

‘‘Act’’) and rule 17d–1 under the Act.

SUMMARY OF APPLICATION: Applicants

request an order to permit SEI Liquid

Asset Trust (‘‘SLAT’’), SEI Tax Exempt

Trust (‘‘STET’’), SEI Daily Income Trust

(‘‘SDIT’’), SEI Institutional Managed

Trust (‘‘SIMT’’), SEI International Trust

(‘‘SIT’’), SEI Asset Allocation Trust

(‘‘SAAT’’), and SEI Institutional

Investments Trust (‘‘SIIT’’) (each a

‘‘Trust,’’ and together, the ‘‘Trusts’’) and

certain other existing or future

registered open-end management

investment companies to deposit their

daily uninvested cash balances in joint