[Federal Register Volume 76, Number 42 (Thursday, March 3, 2011)]
[Notices]
[Pages 11825-11826]
From the Federal Register Online via the Government Publishing 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: [email protected]; 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: [email protected]. 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