
[Federal Register Volume 88, Number 185 (Tuesday, September 26, 2023)]
[Notices]
[Pages 66099-66100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-20907]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-803, OMB Control No. 3235-0754]


Proposed Collection; Comment Request; Extension: Rule 30b1-10, 
Form N-RN

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

    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 (the ``Commission'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this existing collection of information to the Office of 
Management and Budget for extension and approval.
    Rule 30b1-10 [17 CFR 270.30b1-10] and Form N-RN [17 CFR 274.223] 
require registered open-end management investment companies (not 
including entities regulated as money market funds under 17 CFR 270.2a-
7), registered closed-end funds, and business development companies 
(collectively, ``funds''), to file a current report on Form N-RN on a 
non-public basis when certain events related to their liquidity and 
events regarding funds' compliance with the VaR-based limit on fund 
leverage risk in 17 CFR 270.18f-4 (``rule 18f-4'') occur. The first 
category of information reported on Form N-RN concerns events under 
which more than 15% of an open-end fund's net assets are, or become, 
illiquid investments that are assets as defined in 17 CFR 270.22e-4 
(``rule 22e-4'') and when holdings in illiquid investments are assets 
that previously exceeded 15% of a fund's net assets have changed to be 
less than or equal to 15% of the fund's net assets. The second category 
of information reported on Form N-RN regards events for certain open-
end funds under which a fund's holdings in assets that are highly 
liquid investments fall below the fund's highly liquid investment 
minimum defined in rule 22e-4 for more than 7 consecutive calendar 
days. The third category of information reported on Form N-RN regards 
information about a fund's breaches of the VaR test under rule 18f-4. A 
report on Form N-RN is required to be filed, as applicable, within one 
business day of the occurrence of one or more of these events. In 
addition, a fund is in certain cases required to file a second Form N-
RN when it is no longer in breach of the applicable limit.
    Based on historical filing data and projected estimates of the 
annual number of VAR-based filings, the staff estimates that the 
Commission will receive roughly 66 reports per year on Form N-RN on 
average.\1\ When filing a report on Form N-RN, staff estimates that a 
fund will spend on average approximately 3 hours of an in-house 
compliance attorney's time and 1 hour of a senior programmer time to 
prepare, review, and submit Form N-RN, at a total time cost of 
$1,661.\2\ Accordingly,

[[Page 66100]]

in the aggregate, staff estimates that compliance with rule 30b1-10 and 
Form N-RN will result in a total annual burden of approximately 264 
burden hours and total annual time costs of approximately $109,626.\3\
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    \1\ Because the compliance date for the VaR-based reporting 
requirements was August 1, 2022, we have made adjustments to 
estimate an annual number of VAR-based filings.
    \2\ This estimate is based on the following calculations: (3 
hours x $425/hour for an in house compliance attorney = $1,275), 
plus (1 hour x $386/hour for a senior programmer = $386), for a 
combined total of 4 hours at total time costs of $1,661. The 
estimates concerning the wage rates for attorney and senior 
accountant time are based on salary information for the securities 
industry compiled by the Securities Industry and Financial Markets 
Association. The estimated wage figure is based on published rates 
for in-house compliance attorneys and senior programmers, modified 
to account for a 1,800-hour work-year and inflation, and multiplied 
by 5.35 to account for bonuses, firm size, employee benefits, and 
overhead. See Securities Industry and Financial Markets Association, 
Report on Management & Professional Earnings in the Securities 
Industry 2013.
    \3\ This estimate is based on the following calculations: 66 
reports filed per year x 4 hours per report = approximately 264 
total annual burden hours. 66 reports filed per year x $1,661 in 
costs per report = $109,626 total annual costs.
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    Compliance with rule 30b1-10 is mandatory for all funds. Responses 
to the disclosure requirements will be kept confidential. The estimate 
of average burden hours is made solely for the purposes of the PRA. The 
estimate is not derived from a comprehensive or even a representative 
survey or study of the costs of Commission rules. Complying with this 
collection of information requirement is necessary to enable the 
Commission to receive information on fund liquidity events more 
uniformly and efficiently, and to enhance the Commission's oversight of 
funds when significant liquidity events occur and its ability to 
respond to market events. 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.
    Written comments are invited on: (a) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have 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 by November 27, 2023,
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Acting 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o John Pezzullo, 100 F Street NE, Washington, DC 20549 or send an 
email to: [email protected].

    Dated: September 21, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-20907 Filed 9-25-23; 8:45 am]
BILLING CODE 8011-01-P


