[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Notices]
[Pages 81682-81683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32520]
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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-2; SEC File No. 270-500; OMB Control No. 3235-
0566.
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 (15
U.S.C. 80a) (``Act'') summarized below. The Commission plans to submit
these collections of information to the Office of Management and Budget
for approval.
Rule 27d-2 (17 CFR 270.27d-2) is entitled ``Insurance Company
Undertaking in Lieu of Segregated Trust Account.'' Rule 27d-1 (17 CFR
270.27d-1) under the Act requires the depositor or principal
underwriter for an issuer of periodic payment plans 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.\1\ Rule 27d-2 provides an exemption from rule 27d-1 under the Act
for depositors or principal underwriters for the issuers of periodic
payments plans. 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.
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\1\ The rule sets forth minimum reserve amounts and guidelines
for the management and disbursement of the assets in the account.
Rule 27d-1(j) directs depositors and principal underwriters annually
to make an accounting of their segregated trust accounts on Form N-
27D-1, which is filed with the Commission. 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.
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Rule 27d-2, 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 requirement in rule 27d-2 enables the
Commission to monitor compliance with insurance company undertaking
requirements.
[[Page 81683]]
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 longer
any information collection burden associated with rule 27d-2. 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 even a
representative survey or study of the costs of Commission rules and
forms.
Complying with the collection of information requirements of rule
27d-2 is mandatory for depositors or principal underwriters of issuers
of periodic payment plans who rely on the rule for an exemption from
complying with rule 27d-1 and filing Form N-27D-1. The information
provided pursuant to rule 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 Thomas Bayer, Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an
e-mail to: [email protected].
December 20, 2010
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32520 Filed 12-27-10; 8:45 am]
BILLING CODE 8011-01-P