Document ID: SEC-2010-1997-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2010-12-28T05:00Z

[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Notices]
[Pages 81682-81683]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32520]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension: Rule 27d-2; SEC File No. 270-500; OMB Control No. 3235-
0566.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 350l et seq.), the Securities and Exchange 
Commission (the ``Commission'') is soliciting comments on the 
collections of information under the Investment Company Act of 1940 (15 
U.S.C. 80a) (``Act'') summarized below. The Commission plans to submit 
these collections of information to the Office of Management and Budget 
for approval.
    Rule 27d-2 (17 CFR 270.27d-2) is entitled ``Insurance Company 
Undertaking in Lieu of Segregated Trust Account.'' Rule 27d-1 (17 CFR 
270.27d-1) under the Act requires the depositor or principal 
underwriter for an issuer of periodic payment plans to deposit funds 
into a segregated trust account to provide assurance of its ability to 
fulfill its refund obligations under sections 27(d) and 27(f) of the 
Act.\1\ Rule 27d-2 provides an exemption from rule 27d-1 under the Act 
for depositors or principal underwriters for the issuers of periodic 
payments plans. In order to comply with the rule: (i) The depositor or 
principal underwriter must secure from an insurance company a written 
guarantee of the refund requirements; (ii) the insurance company must 
satisfy certain financial criteria; and (iii) the depositor or 
principal underwriter must file as an exhibit to the issuer's 
registration statement, a copy of the written undertaking, an annual 
statement that the insurance company has met the requisite financial 
criteria on a monthly basis, and an annual audited balance sheet.
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    \1\ The rule sets forth minimum reserve amounts and guidelines 
for the management and disbursement of the assets in the account. 
Rule 27d-1(j) directs depositors and principal underwriters annually 
to make an accounting of their segregated trust accounts on Form N-
27D-1, which is filed with the Commission. The form requires 
depositors and principal underwriters to report deposits to a 
segregated trust account, including those made pursuant to 
paragraphs (c) and (e) of the rule. Withdrawals pursuant to 
paragraph (f) of the rule also must be reported. In addition, the 
form solicits information regarding the minimum amount required to 
be maintained under paragraphs (d) and (e) of rule 27d-1.
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    Rule 27d-2, which was explicitly authorized by statute, provides 
assurance that depositors and principal underwriters of issuers have 
access to sufficient cash to meet the demands of certificate holders 
who reconsider their decisions to invest in a periodic payment plan. 
The information collection requirement in rule 27d-2 enables the 
Commission to monitor compliance with insurance company undertaking 
requirements.

[[Page 81683]]

    Effective October 27, 2006, the Military Personnel Financial 
Services Protection Act banned the issuance or sale of new periodic 
payment plans. Accordingly, the staff estimates that there is no longer 
any information collection burden associated with rule 27d-2. For 
administrative purposes, however, we are requesting approval for an 
information collection burden of one hour per year. This estimate of 
burden hours is not derived from a comprehensive or even a 
representative survey or study of the costs of Commission rules and 
forms.
    Complying with the collection of information requirements of rule 
27d-2 is mandatory for depositors or principal underwriters of issuers 
of periodic payment plans who rely on the rule for an exemption from 
complying with rule 27d-1 and filing Form N-27D-1. The information 
provided pursuant to rule 27d-2 is public and, therefore, will not be 
kept confidential. 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 OMB control number.
    Written comments are invited on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information has 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 in writing within 60 days of this 
publication.
    Please direct your written comments to Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an 
e-mail to: PRA_Mailbox@sec.gov.

     December 20, 2010
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32520 Filed 12-27-10; 8:45 am]
BILLING CODE 8011-01-P