60872 Federal Register / Vol. 79, No. 195 / Wednesday, October 8, 2014 / Notices 

1United States Postal Service Notice of Filing 

Functionally Equivalent Agreement with Royal 

Mail Group, Ltd., October 1, 2014 (Notice). 

1 15 U.S.C. 80a. 

2Section 4(3) of the Act (15 U.S.C. 80a–4(3)) 

defines ‘‘management company’’ as ‘‘any 

investment company other than a face amount 

certificate company or a unit investment trust.’’ 

3This estimate is based on statistics compiled by 

Commission staff as of May 31, 2014. The number 

of management investment company portfolios that 

make distributions for which compliance with rule 

19a–1 is required depends on a wide range of 

factors and can vary greatly across years. Therefore, 

the calculation of estimated burden hours is based 

on the total number of management investment 

company portfolios, each of which may be subject 

to rule 19a–1. 

4A few portfolios make monthly distributions 

from sources other than net income, so the rule 

requires them to send out a statement 12 times a 

year. Other portfolios never make such 

distributions. 

5This estimate is based on the following 

calculation: 11,066 management investment 

company portfolios × 2 statements per year × 1 hour 

per statement = 22,132 burden hours. 

6Hourly rates are derived from the Securities 

Industry and Financial Markets Association 

(‘‘SIFMA’’), Management and Professional Earnings 

in the Securities Industry 2013, modified to account 

for an 1800-hour work-year and multiplied by 5.35 

to account for bonuses, firm size, employee 

benefits, and overhead. 

7Hourly rates are derived from SIFMA’s Office 

Salaries in the Securities Industry 2013, modified 

to account for an 1800-hour work-year and 

multiplied by 2.93 to account for bonuses, firm size, 

employee benefits and overhead. 

Group, Ltd. (Agreement).1 The Postal 

Service seeks to include the portion of 

the Agreement pertaining to returns 

from the United States to the United 

Kingdom within the larger grouping of 

Inbound Competitive Multi-Service 

Agreement with a Foreign Postal 

Operators product. Id. at 1. 

To support its Notice, the Postal 

Service filed a copy of the Agreement, 

a copy of the Governors’ Decision 

authorizing the product, a certification 

of compliance with 39 U.S.C. 3633(a), 

and an application for non-public 

treatment of certain materials. It also 

filed supporting financial workpapers. 

II. Notice of Commission Action 

The Commission establishes Docket 

No. CP2015–1 for consideration of 

matters raised by the Notice. 

The Commission invites comments on 

whether the Postal Service’s filing is 

consistent with 39 U.S.C. 3632, 3633, or 

3642, 39 CFR part 3015, and 39 CFR 

part 3020, subpart B. Comments are due 

no later than October 9, 2014. The 

public portions of the filing can be 

accessed via the Commission’s Web site 

(http://www.prc.gov). 

The Commission appoints Lyudmila 

Y. Bzhilyanskaya to serve as Public 

Representative in this docket. 

III. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. CP2015–1 to consider matters raised 

by the Postal Service’s Notice. 

2. Pursuant to 39 U.S.C. 505, 

Lyudmila Y. Bzhilyanskaya is appointed 

to serve as officer of the Commission 

(Public Representative) to represent the 

interests of the general public. 

3. Comments by interested persons in 

this proceeding are due no later than 

October 9, 2014. 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Ruth Ann Abrams, 

Acting Secretary. 

[FR Doc. 2014–23987 Filed 10–7–14; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

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: Rule 19a–1. 

OMB Control No. 3235–0216, SEC File No. 

270–240. 

Notice is hereby given that, pursuant 

to 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 19(a) (15 U.S.C. 80a–19(a)) of 

the Investment Company Act of 1940 

(the ‘‘Act’’) 1 makes it unlawful for any 

registered investment company to pay 

any dividend or similar distribution 

from any source other than the 

company’s net income, unless the 

payment is accompanied by a written 

statement to the company’s 

shareholders which adequately 

discloses the sources of the payment. 

Section 19(a) authorizes the 

Commission to prescribe the form of 

such statement by rule. 

Rule 19a–1 (17 CFR 270.19a–1) under 

the Act, entitled ‘‘Written Statement to 

Accompany Dividend Payments by 

Management Companies,’’ sets forth 

specific requirements for the 

information that must be included in 

statements made pursuant to section 

19(a) by or on behalf of management 

companies.2 The rule requires that the 

statement indicate what portions of 

distribution payments are made from 

net income, net profits from the sale of 

a security or other property (‘‘capital 

gains’’) and paid-in capital. When any 

part of the payment is made from capital 

gains, rule 19a–1 also requires that the 

statement disclose certain other 

information relating to the appreciation 

or depreciation of portfolio securities. If 

an estimated portion is subsequently 

determined to be significantly 

inaccurate, a correction must be made 

on a statement made pursuant to section 

19(a) or in the first report to 

shareholders following the discovery of 

the inaccuracy. 

The purpose of rule 19a–1 is to afford 

fund shareholders adequate disclosure 

of the sources from which distribution 

payments are made. The rule is 

intended to prevent shareholders from 

confusing income dividends with 

distributions made from capital sources. 

Absent rule 19a–1, shareholders might 

receive a false impression of fund gains. 

Based on a review of filings made 

with the Commission, the staff estimates 

that approximately 11,066 series of 

registered investment companies that 

are management companies may be 

subject to rule 19a–1 each year,3 and 

that each portfolio on average mails two 

statements per year to meet the 

requirements of the rule.4 The staff 

further estimates that the time needed to 

make the determinations required by the 

rule and to prepare the statement 

required under the rule is 

approximately 1 hour per statement. 

The total annual burden for all 

portfolios therefore is estimated to be 

approximately 22,132 burden hours.5

The staff estimates that approximately 

one-third of the total annual burden 

(7,377 hours) would be incurred by a 

paralegal with an average hourly wage 

rate of approximately $199 per hour,6

and approximately two-thirds of the 

annual burden (14,755 hours) would be 

incurred by a compliance clerk with an 

average hourly wage rate of $64 per 

hour.7 The staff therefore estimates that 

the aggregate annual cost of complying 

with the paperwork requirements of the 

rule is approximately $2,412,343 ((7,377 

hours × $199 = $1,468,023) + (14,755 

hours × $64 = $944,320)). 

To comply with state law, many 

investment companies already must 

distinguish the different sources from 

which a shareholder distribution is paid 

and disclose that information to 

shareholders. Thus, many investment 

companies would be required to 

distinguish the sources of shareholder 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 195 / Wednesday, October 8, 2014 / Notices 60873 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 34–72833 

(Aug. 13, 2014), 79 FR 48797 (Aug. 18, 2014) (SR– 

CME–2014–31). 

4On August 18, 2014, CME filed Amendment No. 

1 to the proposed rule change. CME withdrew 

Amendment No. 1 on August 29, 2014. CME 

subsequently filed Amendment No. 2 to the 

proposed rule change. Amendment No. 2 is 

currently pending Federal Register publication. See 

Securities Exchange Act Release No. 34–73275 (Oct. 

1, 2014), 79 FR ll (Oct. l, 2014) (SR–CME– 

2014–31). 

5 15 U.S.C. 78s(b)(2). 

dividends whether or not the 

Commission required them to do so 

under rule 19a–1. 

The estimate of average burden hours 

is 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. Compliance 

with the collection of information 

required by rule 19a–1 is mandatory for 

management companies that make 

statements to shareholders pursuant to 

section 19(a) of the Act. 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. 

The public may view the background 

documentation for this information 

collection at the following Web site, 

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: Shagufta_

Ahmed@omb.eop.gov; and (ii) Thomas 

Bayer, Chief Information Officer, 

Securities and Exchange Commission, 

c/o Remi Pavlik-Simon, 100 F Street, 

NE., Washington, DC 20549 or send an 

email to: PRA_Mailbox@sec.gov. 

Comments must be submitted to OMB 

within 30 days of this notice. 

Dated: October 1, 2014. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2014–23978 Filed 10–7–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

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: Rule 6e–2 and Form N–6EI–1 

OMB Control No. 3235–0177, SEC File No. 

270–177 

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’’) has submitted to the 

Office of Management and Budget a 

request for extension of the previously 

approved collection of information 

discussed below. 

Rule 6e–2 (17 CFR 270.6e–2) under 

the Investment Company Act of 1940 

(‘‘Act’’) (15 U.S.C. 80a) is an exemptive 

rule that provides separate accounts 

formed by life insurance companies to 

fund certain variable life insurance 

products, exemptions from certain 

provisions of the Act, subject to 

conditions set forth in the rule. The rule 

sets forth several information collection 

requirements. 

Rule 6e–2 provides a separate account 

with an exemption from the registration 

provisions of section 8(a) of the Act if 

the account files with the Commission 

Form N–6EI–1 (17 CFR 274.301), a 

notification of claim of exemption. 

The rule also exempts a separate 

account from a number of other sections 

of the Act, provided that the separate 

account makes certain disclosure in its 

registration statements (in the case of 

those separate account that elect to 

register), reports to contractholders, 

proxy solicitations, and submissions to 

state regulatory authorities, as 

prescribed by the rule. 

Paragraph (b)(9) of rule 6e–2 provides 

an exemption from the requirements of 

section 17(f) of the Act and imposes a 

reporting burden and certain other 

conditions. Section 17(f) requires that 

every registered management company 

meet various custody requirements for 

its securities and similar investments. 

The exemption provided in paragraph 

(b)(9) applies only to management 

accounts that offer life insurance 

contracts. 

Since 2008, there have been no filings 

under paragraph (b)(9) of rule 6e–2 by 

management accounts. Therefore, since 

2008, there has been no cost or burden 

to the industry regarding the 

information collection requirements of 

paragraph (b)(9) of rule 6e–2. In 

addition, there have been no filings of 

Form N–6EI–1 by separate accounts 

since 2008. Therefore, there has been no 

cost or burden to the industry since that 

time. The Commission requests 

authorization to maintain an inventory 

of one burden hour for administrative 

purposes. 

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. 

The public may view the background 

documentation for this information 

collection at the following Web site, 

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: Shagufta_

Ahmed@omb.eop.gov; and (ii) Thomas 

Bayer, Chief Information Officer, 

Securities and Exchange Commission, c/ 

o Remi Pavlik-Simon, 100 F Street NE., 

Washington, DC 20549 or send an email 

to: PRA_Mailbox@sec.gov. Comments 

must be submitted to OMB within 30 

days of this notice. 

Dated: October 1, 2014. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2014–23977 Filed 10–7–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73290; File No. SR–CME– 

2014–31] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Designation of Longer Period 

for Commission Action on Proposed 

Rule Change, as Modified by 

Amendment No. 2, Related to Clearing 

of Certain iTraxx Europe Index 

Untranched CDS Contracts on Indices 

Administered by Markit 

October 2, 2014. 

On August 11, 2014, Chicago 

Mercantile Exchange Inc. (‘‘CME’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change SR–CME–2014–31 

pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder.2

The proposed rule change was 

published for comment in the Federal 

Register on August 18, 2014.3 The 

Commission has not received comments 

on the proposed rule change. On 

September 2, 2014, CME filed 

Amendment No. 2 to the proposed rule 

change.4 The Commission is publishing 

this notice to designate a longer period 

for Commission action on the proposed 

rule change, as modified by Amendment 

No. 2. 

Section 19(b)(2) of the Act 5 provides 

that within 45 days of the publication of 


asabaliauskas on DSK5VPTVN1PROD with NOTICES