[Federal Register Volume 82, Number 20 (Wednesday, February 1, 2017)]
[Notices]
[Pages 8966-8968]
[FR Doc No: 2017-02080]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 32453; 812-14700]

StrongVest ETF Trust, et al.; Notice of Application

January 26, 2017.

AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 6(c) of the
Investment Company Act of 1940 (the ``Act'') for an exemption from
sections 2(a)(32), 5(a)(1), 22(d), and 22(e) of the Act and rule 22c-1
under the Act, under sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and 17(a)(2) of the Act, and under
section 12(d)(1)(J) for an exemption from sections 12(d)(1)(A) and
12(d)(1)(B) of the Act. The requested order would permit (a) index-
based series of certain open-end management investment companies
(``Funds'') to issue shares redeemable in large aggregations only
(``Creation Units''); (b) secondary market transactions in Fund shares
to occur at negotiated market prices rather than at net asset value
(``NAV''); (c) certain Funds to pay redemption proceeds, under certain
circumstances, more than seven days after the tender of shares for
redemption; (d) certain affiliated persons of a Fund to deposit
securities into, and receive securities from, the Fund in connection
with the purchase and redemption of Creation Units; (e) certain
registered management investment companies and unit investment trusts
outside of the same group of investment companies as the Funds (``Funds
of Funds'') to acquire shares of the Funds; and (f) certain Funds
(``Feeder Funds'') to create and redeem Creation Units in-kind in a
master-feeder structure.

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Applicants:  StrongVest ETF Trust (the ``Trust''), a Delaware statutory
trust, which will be registered under the Act as an open-end management
investment company with multiple series, StrongVest Global Advisors,
LLC (the ``Initial Adviser''), a Delaware limited liability company,
which will be registered as an investment adviser under the Investment
Advisers Act of 1940, and Quasar Distributors, LLC (the
``Distributor''), a Delaware limited liability company and broker-
dealer registered under the Securities Exchange Act of 1934 (``Exchange
Act'').

Filing Dates:  The application was filed on September 20, 2016 and
amended on January 12, 2017.

Hearing or Notification of Hearing:  An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on February 21, 2017, and should be accompanied by proof of
service on applicants, in the form of an affidavit, or for lawyers, a
certificate of service. Pursuant to rule 0-5 under the Act, hearing
requests should state the nature of the writer's interest, any facts
bearing upon the desirability of a hearing on the matter, the reason
for the request, and the issues contested. Persons who wish to be
notified of a hearing may request notification by writing to the
Commission's Secretary.

ADDRESSES:  Secretary, Securities and Exchange Commission, 100 F Street
NE., Washington, DC 20549-1090; Applicants: The Trust and Initial
Adviser, 106 Corporate Park Drive, Mooresville, NC 28117; the
Distributor, 615 East Michigan Street, Milwaukee, WI 53202.

FOR FURTHER INFORMATION CONTACT:  Hae-Sung Lee, Attorney-Adviser, at
(202) 551-7345, or Mary Kay Frech, Branch

Chief, at<PHONE_NUMBER> (Division of Investment Management, Chief
Counsel's Office).

SUPPLEMENTARY INFORMATION:  The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or for an
applicant using the Company name box, at http://www.sec.gov/search/search.htm or by calling<PHONE_NUMBER>.

Summary of the Application

    1. Applicants request an order that would allow Funds to operate as
index-based exchange traded funds (``ETFs'').\1\ Fund shares will be
purchased and redeemed at their NAV in Creation Units only. All orders
to purchase Creation Units and all redemption requests will be placed
by or through an ``Authorized Participant'', which will have signed a
participant agreement with the Distributor. Shares will be listed and
traded individually on a national securities exchange, where share
prices will be based on the current bid/offer market. Certain Funds may
operate as Feeder Funds in a master-feeder structure. Any order
granting the requested relief would be subject to the terms and
conditions stated in the application.
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    \1\ Applicants request that the order apply to the existing
series of the Trust that are index-based ETFs and any additional
series of the Trust, and any other open-end management investment
company or existing or future series thereof that may be created in
the future (each, included in the term ``Fund'') each of which will
operate as an ETF and will track a specified index comprised of
domestic or foreign equity and/or fixed income securities (each, an
``Underlying Index''). Any Fund will (a) be advised by the Initial
Adviser or an entity controlling, controlled by, or under common
control with the Initial Adviser (such entity or any successor
thereto is included in the term ``Adviser'') and (b) comply with the
terms and conditions of the application.
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    2. Each Fund will hold investment positions selected to correspond
generally to the performance of an Underlying Index. In the case of
Self-Indexing Funds, an affiliated person, as defined in section
2(a)(3) of the Act (``Affiliated Person''), or an affiliated person of
an Affiliated Person (``Second-Tier Affiliate''), of the Trust or a
Fund, of the Adviser, of any sub-adviser to or promoter of a Fund, or
of the Distributor will compile, create, sponsor or maintain the
Underlying Index.\2\
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    \2\ Each Self-Indexing Fund will post on its Web site the
identities and quantities of the investment positions that will form
the basis for the Fund's calculation of its NAV at the end of the
day. Applicants believe that requiring Self-Indexing Funds to
maintain full portfolio transparency will help address, together
with other protections, conflicts of interest with respect to such
Funds.
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    3. Shares will be purchased and redeemed in Creation Units and
generally on an in-kind basis. Except where the purchase or redemption
will include cash under the limited circumstances specified in the
application, purchasers will be required to purchase Creation Units by
depositing specified instruments (``Deposit Instruments''), and
shareholders redeeming their shares will receive specified instruments
(``Redemption Instruments''). The Deposit Instruments and the
Redemption Instruments will each correspond pro rata to the positions
in the Fund's portfolio (including cash positions) except as specified
in the application.
    4. Because shares will not be individually redeemable, applicants
request an exemption from section 5(a)(1) and section 2(a)(32) of the
Act that would permit the Funds to register as open-end management
investment companies and issue shares that are redeemable in Creation
Units only.
    5. Applicants also request an exemption from section 22(d) of the
Act and rule 22c-1 under the Act as secondary market trading in shares
will take place at negotiated prices, not at a current offering price
described in a Fund's prospectus, and not at a price based on NAV.
Applicants state that (a) secondary market trading in shares does not
involve a Fund as a party and will not result in dilution of an
investment in shares, and (b) to the extent different prices exist
during a given trading day, or from day to day, such variances occur as
a result of third-party market forces, such as supply and demand.
Therefore, applicants assert that secondary market transactions in
shares will not lead to discrimination or preferential treatment among
purchasers. Finally, applicants represent that share market prices will
be disciplined by arbitrage opportunities, which should prevent shares
from trading at a material discount or premium from NAV.
    6. With respect to Funds that effect creations and redemptions of
Creation Units in kind and that are based on certain Underlying Indexes
that include foreign securities, applicants request relief from the
requirement imposed by section 22(e) in order to allow such Funds to
pay redemption proceeds within fifteen calendar days following the
tender of Creation Units for redemption. Applicants assert that the
requested relief would not be inconsistent with the spirit and intent
of section 22(e) to prevent unreasonable, undisclosed or unforeseen
delays in the actual payment of redemption proceeds.
    7. Applicants request an exemption to permit Funds of Funds to
acquire Fund shares beyond the limits of section 12(d)(1)(A) of the
Act; and the Funds, and any principal underwriter for the Funds, and/or
any broker or dealer registered under the Exchange Act, to sell shares
to Funds of Funds beyond the limits of section 12(d)(1)(B) of the Act.
The application's terms and conditions are designed to, among other
things, help prevent any potential (i) undue influence over a Fund
through control or voting power, or in connection with certain
services, transactions, and underwritings, (ii) excessive layering of
fees, and (iii) overly complex fund structures, which are the concerns
underlying the limits in sections 12(d)(1)(A) and (B) of the Act.
    8. Applicants request an exemption from sections 17(a)(1) and
17(a)(2) of the Act to permit persons that are Affiliated Persons, or
Second Tier Affiliates, of the Funds, solely by virtue of certain
ownership interests, to effectuate purchases and redemptions in-kind.
The deposit procedures for in-kind purchases of Creation Units and the
redemption procedures for in-kind redemptions of Creation Units will be
the same for all purchases and redemptions and Deposit Instruments and
Redemption Instruments will be valued in the same manner as those
investment positions currently held by the Funds. Applicants also seek
relief from the prohibitions on affiliated transactions in section
17(a) to permit a Fund to sell its shares to and redeem its shares from
a Fund of Funds, and to engage in the accompanying in-kind transactions
with the Fund of Funds.\3\ The purchase of Creation Units by a Fund of
Funds directly from a Fund will be accomplished in accordance with the
policies of the Fund of Funds and will be based on the NAVs of the
Funds.
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    \3\ The requested relief would apply to direct sales of shares
in Creation Units by a Fund to a Fund of Funds and redemptions of
those shares. Applicants, moreover, are not seeking relief from
section 17(a) for, and the requested relief will not apply to,
transactions where a Fund could be deemed an Affiliated Person, or a
Second-Tier Affiliate, of a Fund of Funds because an Adviser or an
entity controlling, controlled by or under common control with an
Adviser provides investment advisory services to that Fund of Funds.
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    9. Applicants also request relief to permit a Feeder Fund to
acquire shares of another registered investment company managed by the
Adviser having substantially the same investment objectives as the
Feeder Fund (``Master Fund'') beyond the limitations in section
12(d)(1)(A) and permit the Master Fund, and any principal underwriter
for the Master

Fund, to sell shares of the Master Fund to the Feeder Fund beyond the
limitations in section 12(d)(1)(B).
    10. Section 6(c) of the Act permits the Commission to exempt any
persons or transactions from any provision of the Act if such exemption
is necessary or appropriate in the public interest and consistent with
the protection of investors and the purposes fairly intended by the
policy and provisions of the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may exempt any person, security, or
transaction, or any class or classes of persons, securities, or
transactions, from any provision of section 12(d)(1) if the exemption
is consistent with the public interest and the protection of investors.
Section 17(b) of the Act authorizes the Commission to grant an order
permitting a transaction otherwise prohibited by section 17(a) if it
finds that (a) the terms of the proposed transaction are fair and
reasonable and do not involve overreaching on the part of any person
concerned; (b) the proposed transaction is consistent with the policies
of each registered investment company involved; and (c) the proposed
transaction is consistent with the general purposes of the Act.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-02080 Filed 1-31-17; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: September 10, 2010 (Volume 75, Number 175)]
[Notices]
[Page 55323-55324]
[DOCID:fr10se10-49]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL10-85-000]

Alta Wind Holdings, LLC; Notice of Petition for Declaratory Order

September 2, 2010.
    Take notice that on August 31, 2010, Alta Wind Holdings, LLC filed
a Petition for Declaratory Order requesting that the Federal Energy
Regulatory Commission (Commission) disclaim jurisdiction, under section
201 of the Federal Power Act, over passive owner lessors and owner
participants associated with a proposed sale and leaseback of
generation associated with four generation projects under development.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed on or before the

comment date. On or before the comment date, it is not necessary to
serve motions to intervene or protests on persons other than the
Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://
www.ferc.gov. Persons unable to file electronically should submit an
original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. Eastern Time on September 30, 2010.

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-22511 Filed 9-9-10; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 13 (Friday, January 20, 2012)]
[Notices]
[Pages 2966-2967]
[FR Doc No: 2012-1069]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 14345-000]

Rock River Beach, Inc.; Notice of Application Tendered for Filing
With the Commission and Soliciting Additional Study Requests

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection.
    a. Type of Application: Exemption from Licensing.
    b. Project No.: 14345-000.
    c. Filing Date: January 5, 2012.
    d. Applicant: Rock River Beach, Inc.
    e. Name of Project: Rock River Beach Hydroelectric Project.
    f. Location: On the Rock River, in the Township of Onota, Alger
County, Michigan. The proposed project would not occupy any federal
lands.
    g. Filed Pursuant to: Public Utility Regulatory Policies Act of
1978, 16 U.S.C. 2705, 2708.
    h. Applicant Contact: Mary C. Edgar, Rock River Beach, Inc., 2617
Rockwood Drive, East Lansing, MI 48823<EMAIL_ADDRESS>    i. FERC Contact: Aaron Liberty at<PHONE_NUMBER>; or email at
<EMAIL_ADDRESS>    j. Cooperating agencies: Federal, state, local, and tribal agencies
with jurisdiction and/or special expertise with respect to
environmental issues that wish to cooperate in the preparation of the
environmental document should follow the instructions for filing such
requests described in item l below. Cooperating agencies should note
the Commission's policy that agencies that cooperate in the preparation
of the environmental document cannot also intervene. See, 94 FERC ]
61,076 (2001).
    k. Pursuant to section 4.32(b)(7) of the Commission's regulations,
18 CFR 4.32(b)(7), if any resource agency, Indian Tribe, or person
believes that an additional scientific study should be conducted in
order to form an adequate factual basis for a complete analysis of the
application on its merit, the resource agency, Indian Tribe, or person
must file a request for a study with the Commission not later than 60
days from the date of filing of the application, and serve a copy of
the request on the applicant.
    l. Deadline for filing additional study requests and requests for
cooperating agency status: March 5, 2012.
    All documents may be filed electronically via the Internet. See 18
CFR 385.2001(a)(1)(iii) and the instructions on the Commission's Web
site http://www.ferc.gov/docs-filing/efiling.asp. Commenters can submit
brief comments up to 6,000 characters, without prior registration,
using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact information at the
end of your comments. For assistance, please contact FERC Online
Support at<EMAIL_ADDRESS>or toll free at 1-(866) 208-3676,
or for TTY,<PHONE_NUMBER>. Although the Commission strongly encourages
electronic filing, documents may also be paper-filed. To paper-file,
mail an original and seven copies to: Kimberly D. Bose, Secretary,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426.
    m. The application is not ready for environmental analysis at this
time.
    n. Project description: The project would include the following
existing facilities: (1) A 33.6-foot-long, 5.5-foot-high concrete
gravity dam with a crest elevation of 607.5 feet National Geodetic
Vertical Datum; (2) a 3-foot-high by 6-foot-wide vertical steel slide
sluice gate; (3) a 5-acre impoundment; (4) a 30-foot-wide by 50-foot-
long power canal that feeds water to a water wheel and turbine; (5) a
100-foot-long by 50-foot-wide bypass reach that directs overflow water
to the dam; (6) a powerhouse containing a 3-kilowatt (kW) and a 5-kW
generating unit; and (7) a 2,640-foot-long transmission line. The
project

would generate an annual average of approximately 9,000 to 18,000 kW-
hours.
    The proposed project is currently unlicensed and was found to be
jurisdictional because it is located on a Commerce Clause water and
affects the interests of interstate commerce. See, 103 FERC ] 62,180
(2003).
    o. A copy of the application is available for review at the
Commission in the Public Reference Room or may be viewed on the
Commission's Web site at http://www.ferc.gov using the ``eLibrary''
link. Enter the docket number excluding the last three digits in the
docket number field to access the document. For assistance, contact
FERC Online Support. A copy is also available for inspection and
reproduction at the address in item h above.
    You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    p. With this notice, we are initiating consultation with the
Michigan State Historic Preservation Officer (SHPO), as required by
106, National Historic Preservation Act, and the regulations of the
Advisory Council on Historic Preservation, 36 CFR 800.4.
    q. Procedural schedule: The application will be processed according
to the following preliminary Hydro Licensing Schedule. Revisions to the
schedule will be made as appropriate.

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------------------------------------------------------------------------
Issue Acceptance Letter or Deficiency     April 2012.
 Letter.
Issue Notice of Ready for Environmental   June 2012.
 Analysis.
Comments, Recommendations, and Terms and  August 2012.
 Conditions.
Commission issues EA....................  November 2012.
------------------------------------------------------------------------

    Dated: January 13, 2012.
Kimberly D. Bose,
Secretary.
[FR Doc. 2012-1069 Filed 1-19-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 81, Number 81 (Wednesday, April 27, 2016)]
[Notices]
[Pages 24935-24937]
[FR Doc No: 2016-09849]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2016-0102]

Broker and Freight Forwarder Financial Responsibility Roundtable

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of meeting, request for public comment.

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SUMMARY: FMCSA announces that it will host an informal roundtable
discussion pertaining to property broker and freight forwarder
financial responsibility. The meeting will focus on the adequacy of
existing trust fund industry practices, Federal requirements for such
institutions, and the underlying instruments they issue for use by
brokers and freight forwarders submitting the Broker's or Freight
Forwarder's Trust Fund Agreement (FMCSA Form BMC-85) to satisfy the

Agency's financial responsibility rules. The Agency seeks information
from motor carriers and shippers that have experienced challenges
receiving compensation for claims against freight forwarders and
brokers due to insufficient funds. The meeting will be public.
Individuals with diverse experience, expertise, and perspectives are
encouraged to attend. This meeting does not pertain to increasing motor
carrier, broker, or freight forwarder minimum financial responsibility
limits. If all comments have been exhausted prior to the end of the
session, the session may conclude early.

DATES: The roundtable discussion will be held on Friday, May 20, 2016,
from 9:30 a.m. to 4:30 p.m., Eastern Time (ET) at the U. S. Department
of Transportation, Media Center, 1200 New Jersey Avenue SE., Ground
Floor, Washington, DC 20590. The entire proceedings will be public.

ADDRESSES: You may submit comments bearing the Federal Docket
Management System Docket ID (FMCSA-2016-0102) using any of the
following methods:
    Federal eRulemaking Portal: Go to http://www.regulations.gov.
Follow the online instructions for submitting comments.
    Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590.
    Hand Delivery or Courier: West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5
p.m., ET, Monday through Friday, except Federal holidays.
    Fax: 1-202-493-2251.
    Each submission must include the Agency name and the docket number
for this notice. Note that DOT posts all comments received without
change to www.regulations.gov, including any personal information
included in a comment. Please see the Privacy Act heading below.
    Docket: For access to the docket to read background documents or
comments, go to www.regulations.gov at any time or visit Room W12-140
on the ground level of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The online Federal document management system
is available 24 hours each day, 365 days each year. If you would like
acknowledgment that the Agency received your comments, please include a
self-addressed, stamped envelope or postcard or print the
acknowledgement page that appears after submitting comments online. The
docket FMCSA-2016-0102 will remain open indefinitely.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.dot.gov/privacy.

FOR FURTHER INFORMATION CONTACT: For information concerning this
notice, contact Dr. Gerald Folsom, Office of Registration and Safety
Information,<PHONE_NUMBER>, or by email at<EMAIL_ADDRESS>    For information about the public meeting: Ms. Shannon L. Watson,
Senior Policy Advisor, Federal Motor Carrier Safety Administration,
1200 New Jersey Avenue SE., Washington, DC 20590, by telephone at 202-
366-2551, or by email at<EMAIL_ADDRESS>If you have questions
on viewing or submitting material to the docket, contact Docket
Services at<PHONE_NUMBER>. Business hours are from 8:00 a.m. to 4:30
p.m. ET, Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

I. Public Participation and Request for Comments

    FMCSA encourages participation in the roundtable discussion and the
submission of comments and related materials. Documents for discussion
at the meeting should be submitted to the docket at least 7 business
days in advance of the meeting.

A. Submitting Comments

    If you submit a comment, please include the docket number for this
notice (FMCSA-2016-0102), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
online or by fax, mail, or hand delivery, but please use only one of
these methods. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so that the Agency can contact you if it has questions
regarding your submission.
    To submit your comment online, go to http://www.regulations.gov and
put the docket number, ``FMCSA-2016-0102'' in the ``Keyword'' box and
click ``Search.'' When the new screen appears, click on the ``Comment
Now!''' button and type your comment into the text box in the following
screen. Choose whether you are submitting your comment as an individual
or on behalf of a third party and then submit. If you submit your
comments by mail or hand delivery, submit them in an unbound format, no
larger than 8\1/2\ by 11 inches, suitable for copying and electronic
filing. If you submit comments by mail and would like to know that they
reached the facility, please enclose a stamped, self-addressed postcard
or envelope.
Confidential Business Information
    Confidential Business Information (CBI) is commercial or financial
information that is customarily not made available to the general
public by the submitter. Under the Freedom of Information Act, CBI is
eligible for protection from public disclosure. If you have CBI that is
relevant or responsive to this Notice, it is important that you clearly
designate the submitted comments as CBI. Accordingly, please mark each
page of your submission as ``confidential'' or ``CBI.'' Submissions
designated as CBI and meeting the definition noted above will not be
placed in the public docket of this Notice. Submissions containing CBI
should be sent to Mr. Brian Dahlin, Chief, Regulatory Analysis
Division, 1200 New Jersey Avenue SE., Washington, DC 20590. Any
commentary that FMCSA receives which is not specifically designated as
CBI will be placed in the public docket for this rulemaking.
    FMCSA will consider all comments and materials received during the
comment period.

B. Viewing Comments and Documents

    To view comments, go to http://www.regulations.gov and insert the
docket number, ``FMCSA-2016-0102'' in the ``Keyword'' box and click
``Search.'' Next, click the ``Open Docket Folder'' button and choose
the document listed to review. If you do not have access to the
internet, you may view the docket by visiting the Docket Management
Facility in Room W12-140 on the ground floor of the DOT West Building,
1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays.

II. Background

MAP-21 Section 32918

    In the Moving Ahead for Progress in the 21st Century Act (MAP-21)
(Pub. L. 112-141), Congress enacted Section 32918, Financial Security
of Brokers and Freight Forwarders. Section 32918

raised the financial security amount for brokers to $75,000 and
extended the financial security requirement to freight forwarders for
the first time. FMCSA implemented those requirements in a 2013 Omnibus
rulemaking (78 FR 60226) (Oct. 1, 2013), codified at 49 CFR 387.307(a)
(brokers) and 49 CFR 387.403(c) and 387.405 (freight forwarders).
Brokers or Freight Forwarders are required to have either a BMC-84
Surety Bond or BMC-85 trust fund on file with the Agency as a condition
of obtaining FMCSA operating authority.
    MAP-21 added requirements pertaining to the composition of trust
fund assets (49 U.S.C. 13906(b)(1)(C),(c)(1)(D)), the immediate
suspension of broker or freight forwarder operating authority if their
financial security falls below $75,000 (49 U.S.C. 13906(b)(5),(c)(6)),
and the payment of claims in the event of financial failure or
insolvency (49 U.S.C. 13906(b)(6),(c)(7)). Additionally, it gave FMCSA
the authority to take direct enforcement action against surety
providers, either through administrative proceedings, court action or
suspending their ability to make financial security filings with the
agency. (49 U.S.C. 13906(b)(7),(c)(8)).
    Since MAP-21's enactment, various parties have filed numerous
complaints with the agency pertaining to BMC-85 trust fund providers.
Multiple entities have sought guidance from the Agency, pertaining to
the portions of section 32918 not covered in the omnibus rule,
particularly regarding procedures to be followed in connection with the
insolvency or financial failure of a broker.
    As an agency whose primary mission is to promote motor carrier
safety, 49 U.S.C. 113(c), FMCSA requests additional input from
stakeholders in connection with broker/freight forwarder financial
security. The Agency seeks to ensure that shippers and motor carriers
can collect on the required broker/freight forwarder financial
instruments and that appropriate guidance on section 32918 is available
to interested parties while avoiding the diversion of Agency resources
from critical safety functions. The Agency believes that this
roundtable discussion will help gather critical information on how to
best meet its responsibilities pursuant to section 32918.
    FMCSA seeks attendance or participation by all interested parties
at the roundtable discussion, including but not limited to, various
aspects of the brokerage and freight forwarding industries (including
small business segments of the industry and their representatives),
motor carriers (including the household goods industry), shippers,
owner-operators, the surety bond industry, BMC-85 trust fund filers,
groups representing small businesses, state regulators of loan and
finance companies and insurance companies, Federal surety bond
regulators and all other interested parties.
    As a result of this roundtable discussion, FMCSA hopes to develop a
clear path toward implementing fully section 32918 of MAP-21.

Topics for Roundtable Discussion

    FMCSA welcomes comments or questions before and during the
roundtable discussion. The roundtable will center on the following
questions but may be expanded as necessary for a full discussion of the
relevant issues:
    (1) Which, if any, BMC-85 Trust Fund holders routinely deny claims
made by shippers and motor carriers against those trust funds?
    (2) What is the nature of the assets that are being held in BMC-85
trust funds and what is the most desirable composition of the assets?
For example, should trust funds consist solely of cash or other highly
liquid financial instruments? What types of instruments constitute
``highly liquid?'' Aside from cash, what else can satisfy MAP-21's
mandate that trust funds consist of ``readily available assets . . .
?'' Should the Agency define the classes of investments held in trust
relative to risk profile of the issuer and identify the relative
liquidity of such assets or should it rely on other sources for such
information?
    (3) Aside from FMCSA, are BMC-85 trust fund filers being regulated
by any other governmental entity? If so, what is the nature of their
regulation by state or other authorities?
    (4) What actions can FMCSA take to ensure that motor carriers and
shippers are able to collect on BMC-85 trust funds where legitimate
claims are filed with the financial institution?
    (5) Should the Agency act to address potential issues associated
with the solvency of BMC-85 trust funds? If so, what type of action
would be most appropriate? What type of FMCSA action pertaining to 49
U.S.C. 13906(b)(6) and (c)(7)(payment in cases of financial failure or
insolvency) is necessary? Would agency guidance, as opposed to
rulemaking, be sufficient?
    (6) Should FMCSA require brokers and freight forwarders to
demonstrate the creditworthiness of the entity with whom brokers or
freight forwarders intend to execute a trust fund, based on a
determination of creditworthiness by the applicable state regulatory
authority or the Department of Treasury Financial Management Service?
    FMCSA will utilize the comments received in advance of the
roundtable discussion to further frame the issues.

Accessibility Needs

    The U.S. Department of Transportation is committed to providing
equal access to the roundtable discussion. If you need special
accommodations for the roundtable, such as sign language
interpretation, please contact Ms. Shannon L. Watson, Senior Policy
Advisor, FMCSA, by telephone at<PHONE_NUMBER>, at least one week prior
to the event to allow us sufficient time to arrange for such services.
We will make every attempt to fulfill requested accommodations.

    Issued on: April 21, 2016.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2016-09849 Filed 4-26-16; 8:45 am]
 BILLING CODE 4910-EX-P