
[Federal Register: October 30, 2009 (Volume 74, Number 209)]
[Notices]               
[Page 56247-56248]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30oc09-100]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; Comment Request

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

Extension:
    Rule 17f-6; SEC File No. 270-392; OMB Control No. 3235-0447.

    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.
    Rule 17f-6 (17 CFR 270.17f-6) under the Investment Company Act of 
1940 (15 U.S.C. 80a) permits registered investment companies 
(``funds'') to maintain assets (i.e., margin) with futures commission 
merchants (``FCMs'') in connection with commodity transactions effected 
on both domestic and foreign exchanges. Before the rule was adopted, 
funds generally were required to maintain

[[Page 56248]]

such assets in special accounts with a custodian bank.\1\
---------------------------------------------------------------------------

    \1\ Custody of Investment Company Assets With Futures Commission 
Merchants and Commodity Clearing Organizations, Investment Company 
Act Release No. 22389 (Dec. 11, 1996) [61 FR 66207 (Dec. 17, 1996)].
---------------------------------------------------------------------------

    The rule requires a written contract that contains certain 
provisions designed to ensure important safeguards and other benefits 
relating to the custody of fund assets by FCMs. To protect fund assets, 
the contract must require that FCMs comply with the segregation or 
secured amount requirements of the Commodity Exchange Act (``CEA'') and 
the rules under that statute. The contract also must contain a 
requirement that FCMs obtain an acknowledgment from any clearing 
organization that the fund's assets are held on behalf of the FCM's 
customers according to CEA provisions. Finally, FCMs are required to 
furnish to the Commission or its staff on request information 
concerning the fund's assets in order to facilitate Commission 
inspections.
    The Commission estimates that approximately 2270 funds effect 
commodities transactions and could deposit margin with FCMs under Rule 
17f-6 in connection with those transactions. Commission staff estimates 
that each fund uses and deposits margin with two different FCMs in 
connection with its commodity transactions.\2\
---------------------------------------------------------------------------

    \2\ This estimate is based on information conversations with 
representatives of the fund industry.
---------------------------------------------------------------------------

    The Commission estimates that each of the 2270 funds spends an 
average of 1 hour annually complying with the contract requirements of 
the rule (i.e., executing contracts that contain the requisite 
provisions with additional FCMs), for a total of 2270 burden hours. The 
estimate does not include the time required by an FCM to comply with 
the rule's contract requirements because, to the extent that complying 
with the contract provisions could be considered ``collections of 
information,'' the burden hours for compliance are already included in 
other PRA submissions or are de minimis.\3\ 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 and forms.
---------------------------------------------------------------------------

    \3\ The rule requires a contract with the FCM to contain three 
provisions. Two of the provisions require the FCM to comply with 
existing requirements under the CEA and rules adopted under that 
Act. Thus, to the extent these provisions could be considered 
collections of information, the hours required for compliance would 
be included in the collection of information burden hours submitted 
by the Commodity Futures Trading Commission for its rules. The third 
contract provision requires that the FCM produce records or other 
information requested by the Commission or its staff. Commission 
staff has requested this type of information from an FCM so 
infrequently in the past that the annual burden hours are de 
minimis.
---------------------------------------------------------------------------

    Compliance with the collection of information requirements of the 
rule is necessary to obtain the benefit of relying on the rule. If an 
FCM furnishes records pertaining to a fund's assets at the request of 
the Commission or its staff, the records will be kept confidential to 
the extent permitted by relevant statutory or regulatory provisions. 
The rule does not require these records be retained for any specific 
period of time. 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.
    Please direct general comments regarding the above information to 
the following persons: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Management and Budget, Room 10102, New Executive 
Office Building, Washington, DC 20503 or send an e-mail to Shagufta 
Ahmed at Shagufta_Ahmed@omb.eop.gov; and (ii) Charles Boucher, 
Director/CIO, 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. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: October 26, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-26177 Filed 10-29-09; 8:45 am]

BILLING CODE 8011-01-P
