
[Federal Register Volume 82, Number 121 (Monday, June 26, 2017)]
[Notices]
[Pages 28912-28913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13227]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0704, SEC File No. 270-654]


Submission for OMB Review; Comment Request

Upon Written Request Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736.

Extension:
    Rule 506(e) of Regulation D Felons and Other Bad Actors 
Disclosure Statement.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget the following request for an extension of the previously 
approved collection of information discussed below.
    Regulation 506(e) of Regulation D (17 CFR 230.506(e)) under the 
Securities Act of 1933 (15 U.S.C. 77a et seq.) requires the issuer to 
furnish to each purchaser, a reasonable time prior to sale, a 
description in writing of any matters that would have triggered 
disqualification under Rule 506(d)(1) of Regulation D, but occurred 
before September 23, 2013. The disclosure required by Rule 506(e) is 
not filed with the Commission, but serves as an important investor 
protection tool to inform investors of an issuer's and its covered 
persons, involvement in past ``bad actor'' disqualifying events such as 
pre-existing criminal convictions, court injunctions, disciplinary 
proceedings, and other sanctions enumerated in Rule 506(d). Without the 
mandatory written statement requirements set forth in Rule 506(e), 
purchasers may have the impression that all bad actors are disqualified 
from participation in Rule 506 offerings.
    We estimate there are 19,908 respondents that will conduct a one-
hour factual inquiry to determine whether the issuer and its covered 
persons have had pre-existing

[[Page 28913]]

disqualifying events before September 23, 2013. Of those 19,908 
respondents, we estimate that 220 respondents with disqualifying events 
will spend ten hours to prepare a disclosure statement describing the 
matters that would have triggered disqualification under 506(d)(1) of 
Regulation D, except that these disqualifying events occurred before 
September 23, 2013, the effective date of the Rule 506 amendments. An 
estimated 2,200 burden hours are attributed to the 220 respondents with 
disqualifying events in addition to the 19,908 burden hours associated 
with the one-hour factual inquiry. In sum, the total annual increase in 
paperwork burden for all affected respondents to comply with the Rule 
506(e) disclosure statement is estimated to be approximately 22,108 
hours of company personnel 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.
    The public may view the background documentation for this 
information collection at the following Web site, 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 email to: 
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or send an email 
to: PRA_Mailbox@sec.gov.
    Comments must be submitted to OMB within 30 days of this notice.

    Dated: June 19, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-13227 Filed 6-23-17; 8:45 am]
 BILLING CODE 8011-01-P


