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[Federal Register Volume 89, Number 241 (Monday, December 16, 2024)]
[Notices]
[Pages 101679-101680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29579]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-603, OMB Control No. 3235-0658]

Proposed Collection; Comment Request; Extension: Rule 22e-3

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, under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520), the Securities and Exchange Commission (the 
``Commission'') has submitted to the Office of Management and Budget a 
request for extension of the previously approved collection of 
information discussed below.
    Section 22(e) of the Investment Company Act of 1940, as amended [15 
U.S.C. 80a-22(e)] (``Act'') generally prohibits funds, including money 
market funds, from suspending the right of redemption, and from 
postponing the payment or satisfaction upon redemption of any 
redeemable security for more than seven days. The provision was 
designed to prevent funds and their investment advisers from 
interfering with the redemption rights of shareholders for improper 
purposes, such as the preservation of management fees. Although section 
22(e) permits funds to postpone the date of payment or satisfaction 
upon redemption for up to seven days, it does not permit funds to 
suspend the right of redemption for any longer amount of time, absent 
certain specified circumstances or a Commission order.
    Rule 22e-3 under the Act [17 CFR 270.22e-3] exempts money market 
funds from section 22(e) to permit them to suspend redemptions in order 
to facilitate an orderly liquidation of the fund. Specifically, rule 
22e-3 permits a money market fund to suspend redemptions and postpone 
the payment of proceeds pending board-approved liquidation proceedings 
if: (i) the fund, at the end of a business day, has invested less than 
ten percent of its total assets in weekly liquid assets or, in the case 
of a fund that is a government money market fund or a retail money 
market fund, the fund's price per share as computed for the purpose of 
distribution, redemption and repurchase, rounded to the nearest one 
percent, has deviated from the stable price established by the board of 
directors or the fund's board of directors, including a majority of 
directors who are not interested persons of the fund, determines that 
such a deviation is likely to occur; (ii) the fund's board of 
directors, including a majority of disinterested directors, irrevocably 
has approved the liquidation of the fund; and (iii) the fund, prior to 
suspending redemptions, notifies the Commission of its decision to 
liquidate and suspend redemptions. Rule 22e-3 also provides an 
exemption from section 22(e) for registered investment companies that 
own shares of a money market fund pursuant to section 12(d)(1)(E) of 
the Act (``conduit funds''), if the underlying money market fund has 
suspended redemptions pursuant to the rule. A conduit fund that 
suspends redemptions in reliance on the exemption provided by rule 22e-
3 is required to provide prompt notice of the suspension of redemptions 
to the Commission. Notices required by the rule must be provided by 
electronic mail, directed to the attention of the Director of the 
Division of Investment Management or the Director's designee.\1\ 
Compliance with the notification requirement is mandatory for money 
market funds and conduit funds that rely on rule 22e-3 to suspend 
redemptions and postpone payment of proceeds pending a liquidation, and 
are not kept confidential.
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    \1\ See rule 22e-3(a)(3) and 22e-3(b).
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    Commission staff estimates that, on average, one fund would be 
required to make the required notice every year.\2\ Commission staff 
further estimates that a money market fund or conduit fund would spend 
approximately one hour of an in-house attorney's time to prepare and 
submit the notice required by the rule. Given these estimates, the 
total annual burden of the notification requirement of rule 22e-3 for 
all money market funds and conduit funds would be approximately one 
hour at a cost of $511. The estimated total annual burden hours 
associated with rule 22e-3 is 1 hour and external costs increased from 
$0 to $584. This change in external costs reflects revised estimates. 
These estimates are made solely for the purposes of the Paperwork 
Reduction Act, and is not derived from a comprehensive or even a 
representative survey or study of the costs of Commission rules.
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    \2\ The Commission has not received any notices invoking rule 
22e-3 to halt redemptions. However, for administrative purposes, we 
are reporting one respondent and one annual response.
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    Compliance with the collection of information requirements of the 
rule is necessary to obtain the benefit of relying on the rule. 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 
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 the use of automated collection 
techniques or other forms of information technology. Consideration will 
be given to comments and suggestions submitted by February 14, 2025.
    Please direct your written comments to: Austin Gerig, Director/
Chief Data Officer, Securities and Exchange Commission, c/o Tanya 
Ruttenberg, 100

[[Page 101680]]

F Street, NE Washington, DC 20549 or send an email to: 
[email protected].

    Dated: December 11, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-29579 Filed 12-13-24; 8:45 am]
BILLING CODE 8011-01-P
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