Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices 54865 

11We believe that an SIBHC would have a Senior 

Accountant prepare and file these reports. 

According to the Securities Industry Financial 

Management Association (or ‘‘SIFMA’’), the hourly 

cost of a Senior Accountant is $178, as reflected in 

the SIFMA’s Report on Management and 

Professional Earnings for 2008, and modified to 

account for an 1,800-hour work-year and multiplied 

by 5.35 to account for bonuses, firm size, employee 

benefits and overhead. ($178 × 8 hours) = $1,424. 

($1,424 × 8 months) = $11,392. 

12We believe that an SIBHC would have a Senior 

Accountant prepare and file these reports. The 

hourly cost of a Senior Accountant is $178. ($178 

× 16 hours) = $2,848. ($2,848 × 4 quarters) = 

$11,392. 

13We believe that an SIBHC would have a Senior 

Internal Auditor work with accountants to prepare 

and file these reports. According to the SIFMA, the 

hourly cost of a Senior Internal Auditor is $202, as 

reflected in its Report on Management and 

Professional Earnings for 2008, and modified to 

account for an 1,800-hour work-year and multiplied 

by 5.35 to account for bonuses, firm size, employee 

benefits and overhead. ($202 × 200 hours) = 

$40,400. 

14 (($11,392 + $11,392 + $40,400) × 3 SIBHCs) = 

$189,552. 

1 44 U.S.C. 3501 et seq. 

2Public Law 106–102, 113 Stat. 1338 (1999). 

3See 15 U.S.C. 78q(i). 

4See Exchange Act Release No. 49831 (Jun. 8, 

2004), 69 FR 34472 (Jun. 21, 2004). 

5See H.R. Conf. Rep. No. 106–434, 165 (1999). 

See also Exchange Act Release No. 49831, at 6 (Jun. 

8, 2004), 69 FR 34472, at 34473 (Jun. 21, 2004). 

6 17 CFR 240.17i–5(b)(2). 

per year.11 On average, an SIBHC will 

incur a quarterly cost of $2,848 to 

prepare and file the required quarterly 

reports, and thus will incur an annual 

cost of $11,392 to file these reports.12

Finally, an SIBHC, on average, will 

incur an annual cost of $40,400 to 

prepare and file an annual audit.13

Thus, the total dollar cost of the ongoing 

paperwork burden associated with Rule 

17i–6 is approximately $189,552.14

We believe that an IBHC likely will 

upgrade its information technology 

(‘‘IT’’) systems in order to more 

efficiently comply with certain of the 

SIBHC framework rules (including 

Rules 17i–4, 17i–5, 17i–6 and 17i–7), 

and that this would be a one-time cost. 

Depending on the state of development 

of the IBHC’s IT systems, it would cost 

an IBHC between $1 million and $10 

million to upgrade its IT systems to 

comply with the SIBHC framework of 

rules. Thus, on average, it would cost 

each of the three IBHCs about $5.5 

million to upgrade their IT systems, or 

approximately $16.5 million in total. It 

is impossible to determine what 

percentage of the IT systems costs 

would be attributable to each Rule, so 

we allocated the total estimated upgrade 

costs equally (at 25% for each of the 

above-mentioned Rules), with 

$4,125,000 attributable to Rule 17i–6. 

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 shall have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the proposed collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information to be 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. 

Comments should be directed to 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312 or send an 

e-mail to: PRA_Mailbox@sec.gov. 

Dated: October 19, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25486 Filed 10–22–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Rule 17i–2; SEC File No. 270–528; OMB 

Control No. 3235–0592] 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: U.S. Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 

1995 1 the Securities and Exchange 

Commission (‘‘Commission’’) has 

submitted to the Office of Management 

and Budget requests for extension of the 

previously approved collections of 

information discussed below. The Code 

of Federal Regulations citation to this 

collection of information is the 

following: 17 CFR 240.17i–2. 

Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’) 

amended Section 17 of the Securities 

Exchange Act of 1934 to create a 

regulatory framework under which a 

holding company of a broker-dealer 

(‘‘investment bank holding company’’ or 

‘‘IBHC’’) may voluntarily be supervised 

by the Commission as a supervised 

investment bank holding company (or 

‘‘SIBHC’’).3 In 2004, the Commission 

promulgated rules, including Rule 17i– 

2, to create a framework for the 

Commission to supervise SIBHCs.4 This 

framework includes qualification 

criteria for SIBHCs, as well as 

recordkeeping and reporting 

requirements. Among other things, this 

regulatory framework for SIBHCs is 

intended to provide a basis for non-U.S. 

financial regulators to treat the 

Commission as the principal U.S. 

consolidated, home-country supervisor 5

for SIBHCs and their affiliated brokerdealers. 

Rule 17i–2 provides the method by 

which an IBHC can elect to become an 

SIBHC. In addition, Rule 17i–2 indicates 

that the IBHC will automatically become 

an SIBHC 45 days after the Commission 

receives its completed Notice of 

Intention unless the Commission issues 

an order indicating either that it will 

begin its supervision sooner or that it 

does not believe it to be necessary or 

appropriate in furtherance of Section 17 

of the Act for the IBHC to be so 

supervised. Finally, Rule 17i–2 sets 

forth the criteria the Commission would 

use to make this determination. The 

records required to be created pursuant 

to Rule 17i–2 must be preserved for a 

period of not less than three years.6

The collections of information 

required by Rule 17i–2 are necessary to 

allow the Commission to effectively 

determine whether supervision of an 

IBHC as an SIBHC is necessary or 

appropriate in furtherance of the 

purposes of Section 17 of the Act. In 

addition, these collections are needed so 

that the Commission can adequately 

supervise the activities of these SIBHCs. 

Finally, these rules enhance the 

Commission’s supervision of the 

SIBHCs’ subsidiary broker-dealers 

through collection of additional 

information and inspections of affiliates 

of those broker-dealers. 

We estimate that three IBHCs will file 

Notices of Intention with the 

Commission to be supervised by the 

Commission as SIBHCs. Each IBHC that 

files a Notice of Intention to become 

supervised by the Commission as an 

SIBHC will require approximately 900 

hours to draft the Notice of Intention, 

compile the various documents to be 

included with the Notice of Intention, 

and work with the Commission staff. 

Further, each IBHC likely will have an 

attorney review its Notice of Intention, 

and it will take the attorney 

approximately 100 hours to complete 

such a review. Consequently, we 

estimate the total one-time burden for 

all three firms to file their Notices of 

Intention would be approximately 3,000 


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54866 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices 

7 (900 hours + 100 hours) × 3 IBHCs/SIBHCs = 

3,000 hours. 

8An IBHC would be required to review and 

update its Notice of Intention to the extent it 

becomes inaccurate prior to a Commission 

determination, and an SIBHC would be required to 

update its Notice of Intention if it changes a 

mathematical model used to calculate its risk 

allowances pursuant to Rule 17i–7 after a 

Commission determination was made. 

9 (2 hours × 12 months each year) × 3 SIBHCs = 

72. 

10 (3,000 hours to file the Notices of Intention + 

72 hours to update them.) 

1All entities that currently intend to rely on the 

order are named as applicants. Any Funds that rely 

on the order in the future will comply with the 

terms and conditions of the application. An 

Investing Fund (as defined below) may rely on the 

hours.7 Rule 17i–2 also requires that an 

IBHC/SIBHC update its Notice of 

Intention on an ongoing basis.8 Each 

IBHC/SIBHC will require approximately 

two hours each month to update its 

Notice of Intention, as necessary. Thus, 

we estimate that it will take the three 

IBHC/SIBHCs, in the aggregate, about 72 

hours each year to update their Notices 

of Intention.9 Thus, the total burden 

relating to Rule 17i–2 for all SIBHCs 

would be approximately 3,072 hours in 

the first year,10 and approximately 72 

hours each year thereafter. 

Written comments are invited on: (a) 

Whether the 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 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. 

Comments should be directed to 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312 or send an 

e-mail to: PRA_Mailbox@sec.gov. 

Dated: October 19, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25484 Filed 10–22–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

28949; File No. 812–13571] 

Pacific Investment Management 

Company LLC and PIMCO ETF Trust; 

Notice of Application 

October 20, 2009. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of an application for an 

order under section 6(c) of the 

Investment Company Act of 1940 

(‘‘Act’’) for an exemption from sections 

2(a)(32), 5(a)(1), 22(d) and 22(e) of the 

Act and rule 22c–1 under the Act, and 

under sections 6(c) and 17(b) of the Act 

for an exemption from sections 17(a)(1) 

and (a)(2) of the Act, and under section 

12(d)(1)(J) for an exemption from 

sections 12(d)(1)(A) and (B) of the Act. 

APPLICANTS: Pacific Investment 

Management Company LLC (the 

‘‘Advisor’’) and PIMCO ETF Trust (the 

‘‘Trust’’). 

SUMMARY OF APPLICATION: Applicants 

request an order that permits: (a) Series 

of certain actively managed open-end 

management investment companies to 

issue shares (‘‘Shares’’) redeemable in 

large aggregations only (‘‘Creation 

Units’’); (b) secondary market 

transactions in Shares to occur at 

negotiated market prices; (c) certain 

series to pay redemption proceeds, 

under certain circumstances, more than 

seven days from the tender of Shares for 

redemption; (d) certain affiliated 

persons of the series to deposit 

securities into, and receive securities 

from, the series in connection with the 

purchase and redemption of Creation 

Units; and (e) certain registered 

management investment companies and 

unit investment trusts outside of the 

same group of investment companies as 

the series to acquire Shares. 

FILING DATES: The application was filed 

on September 4, 2008 and amended on 

October 8, 2009. Applicants have agreed 

to file an amendment during the notice 

period, the substance of which is 

reflected in this notice. 

HEARING OR NOTIFICATION OF HEARING: 

An order granting the requested relief 

will be issued unless the Commission 

orders a hearing. Interested persons may 

request a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on November 9, 2009, and 

should be accompanied by proof of 

service on applicants, in the form of an 

affidavit or, for lawyers, a certificate of 

service. Hearing requests should state 

the nature of the writer’s interest, the 

reason for the request, and the issues 

contested. Persons who wish to be 

notified of a hearing may request 

notification by writing to the 

Commission’s Secretary. 

ADDRESSES: Secretary, U.S. Securities 

and Exchange Commission, 100 F 

Street, NE., Washington, DC 20549– 

1090. Applicants: 840 Newport Center 

Drive, Newport Beach, CA 92660. 

FOR FURTHER INFORMATION CONTACT: Jill 

Ehrlich, Attorney Adviser, at (202) 551– 

6819 or Mary Kay Frech, Branch Chief, 

at (202) 551–6821 (Division of 

Investment Management, Office of 

Investment Company Regulation). 

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

application. The complete application 

may be obtained via the Commission’s 

Web site by searching for the file 

number, or for an applicant using the 

Company name box, at http:// 

www.sec.gov/search/search.htm, or by 

calling (202) 551–8090. 

Applicants’ Representations 

1. The Trust is an open-end 

management company registered under 

the Act and organized as a Delaware 

statutory trust. The Trust will offer five 

actively-managed investment series: 

PIMCO Enhanced Short Maturity 

Strategy Fund, PIMCO Government 

Limited Maturity Strategy Fund, PIMCO 

Intermediate Municipal Bond Strategy 

Fund, PIMCO Prime Limited Maturity 

Strategy Fund, and PIMCO Short Term 

Municipal Bond Strategy Fund 

(together, the ‘‘Initial Funds’’). The 

investment objective of PIMCO 

Enhanced Short Maturity Strategy Fund, 

PIMCO Government Limited Maturity 

Strategy Fund, and PIMCO Prime 

Limited Maturity Strategy Fund will be 

to seek maximum current income, 

consistent with preservation of capital 

and daily liquidity. The investment 

objective of PIMCO Intermediate 

Municipal Bond Strategy Fund and 

PIMCO Short Term Municipal Bond 

Strategy Fund will be to seek taxexempt income, consistent with 

preservation of capital. 

2. Applicants request that the order 

apply to any future series of the Trust 

or of other open-end management 

companies that may utilize active 

management investment strategies 

(‘‘Future Funds’’).1 Any Future Fund 


CPrice-Sewell on DSKGBLS3C1PROD with NOTICES