

[Federal Register: January 30, 2008 (Volume 73, Number 20)]
[Notices]               
[Page 5601-5602]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja08-120]                         

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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-1 and Form N-27D-1; SEC File No. 270-499; OMB Control 
No. 3235-0560.

    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 
(``Act'') summarized below. The Commission plans to submit these 
collections of information to the Office of Management and Budget for 
approval.
    Rule 27d-1 (17 CFR 270.27d-1) is entitled ``Reserve Requirements 
for Principal Underwriters and Depositors To Carry Out The Obligations 
To Refund Charges Required by Section 27(d) and Section 27(f) of the 
Act.'' Form N-27D-1 (17 CFR 274.127d-1) is entitled ``Accounting of 
Segregated Trust Account.'' Rule 27d-2 (17 CFR 270.27d-2) is entitled 
``Insurance Company Undertaking in Lieu of Segregated Trust Account.'' 
Rule 27d-1 requires the depositor or principal underwriter for an 
issuer 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). The rule sets forth minimum reserve amounts 
and guidelines for the management and disbursement of the assets in the 
account. A single account may be used for the periodic payment plans of 
multiple investment companies. Rule 27d-1(j) directs depositors and 
principal underwriters to make an accounting of their segregated trust 
accounts on Form N-27D-1, which is intended to facilitate the 
Commission's oversight of compliance with the reserve requirements set 
forth in rule 27d-1. 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. Depositors and principal underwriters must file the form 
once a year on or before January 31 of the year following the year for 
which information is presented.
    Instead of relying on rule 27d-1 and filing Form N-27D-1, 
depositors or principal underwriters for the issuers of periodic 
payment plans may rely on the exemption afforded by rule 27d-2. 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.
    Rules 27d-1 and 27d-2, which were explicitly authorized by statute, 
provide 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 requirements in rules 27d-1 and 27d-2 
enable the Commission to monitor compliance with reserve rules.

[[Page 5602]]

    The depositor or principal underwriter of issuers must file a Form 
N-27D-1 annually or comply with the requirements in rule 27d-2. The 
Commission received zero Form N-27D-1 filings in 2007. Therefore, the 
total annual hour burden associated with rule 27d-1 and Form N-27d-1 is 
estimated to be zero hours; however, we are requesting 1 burden hour 
for administrative purposes.
    Only one registered investment company has issued a new periodic 
payment plan certificate within the past 18 months, and the principal 
underwriter or depositor for this sole issuer relies on the exemption 
in rule 27d-2. The respondent makes approximately three responses per 
year.\1\ The insurance company provides the written undertaking, annual 
statement, and certified balance sheet at no cost to the respondent. 
The staff estimates that the respondent spends approximately one hour 
per year filing the required documents from the insurance company on 
EDGAR. Thus, we estimate that the annual burden is approximately 1 
hour.
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    \1\ The three responses are: (i) Obtaining and filing the 
written undertaking or an amendment to the undertaking, (ii) filing 
the insurance company's annual statement that the financial 
conditions were satisfied, and (iii) filing the insurance company's 
certified balance sheet.
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    The staff believes that rules 27d-1 and 27d-2 and Form N-27D-1 do 
not impose any cost burdens other than those arising from the hour 
burdens discussed above.
    The estimates of average burden hours and costs are made solely for 
the purposes of the Paperwork Reduction Act, and are not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.\2\
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    \2\ These estimates are based on telephone interviews between 
the Commission staff and representatives of depositors or principal 
underwriters of periodic payment plan issuers.
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    Complying with the collection of information requirements of rule 
27d-1 is mandatory for depositors or principal underwriters of issuers 
of periodic payment plans unless they comply with the requirements in 
rule 27d-2. The information provided pursuant to rules 27d-1 and 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 R. Corey Booth, Director/
Chief Information Officer, Securities and Exchange Commission, C/O 
Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312; or 
send an e-mail to: PRA_Mailbox@sec.gov.

    Dated: January 22, 2008.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-1618 Filed 1-29-08; 8:45 am]

BILLING CODE 8011-01-P
