[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Pages 15007-15008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6362]
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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:
Form N-17D-1; SEC File No. 270-231; OMB Control No. 3235-0229.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the collections
of information summarized below. The Commission plans to submit these
existing collections of information to the Office of Management and
Budget (``OMB'') for extension and approval.
Section 17(d) (15 U.S.C. 80a-17(d)) of the Investment Company Act
of 1940 (``Act'') authorizes the Commission to adopt rules that protect
funds and their security holders from overreaching by affiliated
persons when the fund and the affiliated person participate in any
joint enterprise or other joint arrangement or profit-sharing plan.
Rule 17d-1 under the Act (17 CFR 270.17d-1) prohibits funds and their
affiliated persons from participating in a joint enterprise, unless an
application regarding the transaction has been filed with and approved
by the
[[Page 15008]]
Commission. Paragraph (d)(3) of the rule provides an exemption from
this requirement for any loan or advance of credit to, or acquisition
of securities or other property of, a small business concern, or any
agreement to do any of the foregoing (``investments'') made by a small
business investment company (``SBIC'') and an affiliated bank, provided
that reports about the investments are made on forms the Commission may
prescribe. Rule 17d-2 (17 CFR 270.17d-2) designates Form N-17D-1 (17
CFR 274.00) (``form'') as the form for reports required by rule 17d-1.
SBICs and their affiliated banks use form N-17D-1 to report any
contemporaneous investments in a small business concern. The form
provides shareholders and persons seeking to make an informed decision
about investing in an SBIC an opportunity to learn about transactions
of the SBIC that have the potential for self dealing and other forms of
overreaching by affiliated persons at the expense of shareholders.
Form N-17D-1 requires SBICs and their affiliated banks to report
identifying information about the small business concern and the
affiliated bank. The report must include, among other things, the
SBIC's and affiliated bank's outstanding investments in the small
business concern, the use of the proceeds of the investments made
during the reporting period, any changes in the nature and amount of
the affiliated bank's investment, the name of any affiliated person of
the SBIC or the affiliated bank (or any affiliated person of the
affiliated person of the SBIC or the affiliated bank) who has any
interest in the transactions, the basis of the affiliation, the nature
of the interest, and the consideration the affiliated person has
received or will receive.
Up to three SBICs may file the form in any year.\1\ The Commission
estimates the burden of filling out the form is approximately one hour
per response and would likely be completed by an accountant or other
professional. Based on past filings, the Commission estimates that no
more than one SBIC is likely to use the form each year. Most of the
information requested on the form should be readily available to the
SBIC or the affiliated bank in records kept in the ordinary course of
business, or with respect to the SBIC, pursuant to the recordkeeping
requirements under the Act. Commission staff estimates that it should
take approximately one hour for an accountant or other professional to
complete the form.\2\ The estimated total annual burden of filling out
the form is 1 hour, at an estimated total annual cost of $198.\3\ The
Commission will not keep responses on Form N-17D-1 confidential.
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\1\ As of February 4, 2011, three SBICs were registered with the
Commission.
\2\ This estimate of hours is based on past conversations with
representatives of SBICs and accountants that have filed the form.
\3\ Commission staff estimates that the annual burden would be
incurred by a senior accountant with an average hourly wage rate of
$198 per hour. See Securities Industry and Financial Markets
Association, Report on Management and Professional Earnings in the
Securities Industry 2010, modified to account for an 1,800-hour work
year and multiplied by 5.35 to account for bonuses, firm size,
employee benefits and overhead.
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The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act, and is not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules. 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].
Dated: March 15, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-6362 Filed 3-17-11; 8:45 am]
BILLING CODE 8011-01-P