
[Federal Register Volume 76, Number 42 (Thursday, March 3, 2011)]
[Notices]
[Pages 11825-11826]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-4723]


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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 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'') has submitted to the Office of 
Management and Budget (``OMB'') a request for extension of the 
previously approved collections of information under the Investment 
Company Act of 1940 (``Act'') \1\ summarized below.
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    \1\ 15 U.S.C 80a-1 et seq.
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    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-1 requires the depositor or 
principal underwriter for an issuer of a periodic payment plan 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. 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

[[Page 11826]]

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.\2\
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    \2\ 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 rule 27d-2: (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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    Rule 27d-1, 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 requirements in rule 27d-1 enable the 
Commission to monitor compliance with reserve rules.
    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 
information collection burden associated with rule 27d-1 or Form N-27D-
1. 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 necessarily even 
representative study of the cost of the Commission's rules and forms.
    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 (17 CFR 270.27d-2). The information provided pursuant to 
rule 27d-1 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 valid OMB 
control number.
    The public may view the background documentation for this 
information collection at the following Web site, http://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 e-
mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an 
email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB 
within 30 days of this notice.

    Dated: February 25, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-4723 Filed 3-2-11; 8:45 am]
BILLING CODE 8011-01-P


