[Federal Register Volume 86, Number 135 (Monday, July 19, 2021)]
[Notices]
[Page 38140]
[FR Doc No: 2021-15191]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92387; File No. SR-BOX-2021-06]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of
Designation of Longer Period for Commission Action on a Proposed Rule
Change To Adopt Rules Governing the Trading of Equity Securities on the
Exchange Through a Facility of the Exchange Known as Boston Security
Token Exchange LLC

July 13, 2021.
    On May 12, 2021, BOX Exchange LLC (the ``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to adopt rules
governing the listing and trading of equity securities on the Exchange
through a facility of the Exchange known as the Boston Security Token
Exchange LLC (``BSTX''). The proposed rule change was published for
comment in the Federal Register on June 2, 2021.\3\ The Commission has
received comment letters on the proposed rule change.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 92017 (May 25,
2021), 86 FR 29634.
    \4\ Comments received on the proposed rule change are available
at: https://www.sec.gov/comments/sr-box-2021-06/srbox202106.htm.
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    Section 19(b)(2) of the Act \5\ provides that, within 45 days of
the publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
45th day after publication of the notice for this proposed rule change
is July 17, 2021.
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    \5\ 15 U.S.C. 78s(b)(2).
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    The Commission hereby is extending the 45-day time period for
Commission action on the proposed rule change. The Commission finds
that it is appropriate to designate a longer period within which to
take action on the proposed rule change so that it has sufficient time
to consider the proposed rule change. Accordingly, pursuant to Section
19(b)(2) of the Act,\6\ the Commission designates August 31, 2021, as
the date by which the Commission shall either approve or disapprove, or
institute proceedings to determine whether to disapprove, the proposed
rule change (File No. SR-BOX-2021-06).
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    \6\ Id.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(31).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-15191 Filed 7-16-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)]
[Notices]
[Pages 70862-70864]
[FR Doc No: 2015-28860]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76391; File No. SR-FINRA-2015-044]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Establish an Examination Fee for the Securities
Trader Qualification Examination (Series 57)

November 9, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 29, 2015, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as ``establishing or changing a
due, fee or other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon receipt of this filing by the Commission. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    FINRA is proposing to amend Section 4(c) of Schedule A to the FINRA
By-Laws to establish an examination fee for the Securities Trader
qualification examination (Series 57).
    The text of the proposed rule change is available on FINRA's Web
site at http://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B,

and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
Background
    The SEC recently approved amendments to FINRA rules to establish
two new registration categories for associated persons who engage in
the securities trading activities specified in NASD Rule 1032(f) and
for principals who supervise such activities: (1) Securities Traders;
and (2) Securities Trader Principals.\5\ The Securities Trader
registration category and associated examination (Series 57) \6\ will
replace the current Equity Trader registration category and associated
examination (Series 55).\7\ Further, unlike Equity Trader registration,
there is no prerequisite registration requirement for Securities Trader
registration.\8\ To qualify for registration as a Securities Trader, an
eligible candidate must only pass the Series 57 examination. In
addition, to qualify for registration as a Securities Trader Principal,
an associated person must be registered as a Securities Trader and pass
the General Securities Principal qualification examination (Series
24).\9\
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    \5\ See Securities Exchange Act Release No. 75783 (August 28,
2015), 80 FR 53369 (September 3, 2015) (Order Approving File No. SR-
FINRA-2015-017).
    \6\ FINRA has filed the Series 57 examination program with the
SEC for immediate effectiveness. See SR-FINRA-2015-042 (October 13,
2015) (Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Relating to the New Securities Trader Qualification
Examination (Series 57)).
    \7\ The fee for the Series 55 examination is $110.
    \8\ Before registration as an Equity Trader may become
effective, an associated person must be registered as either a
General Securities Representative (Series 7) or Corporate Securities
Representative (Series 62). The fee for the Series 7 examination is
$305, and the fee for the Series 62 examination is $95.
    \9\ The fee for the Series 24 examination is $120.
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    FINRA is expecting the national securities exchanges to also file
amendments to their respective registration rules relating to
securities trading activities to replace the Proprietary Trader
qualification examination (Series 56) with the Series 57
examination.\10\ In addition, the Series 57 examination will replace
the Series 56 examination for those exchange registration categories,
such as the Proprietary Trader Principal registration category, where
the Series 56 examination is currently an acceptable prerequisite.
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    \10\ For instance, under the rules of the Chicago Board Options
Exchange (CBOE), an individual trading permit holder or individual
associated person who is engaged in proprietary trading, market-
making or effecting transactions on behalf of a broker-dealer is
required to register and qualify as a Proprietary Trader. See
Interpretation and Policy .08(a)(1) to CBOE Rule 3.6A (Qualification
and Registration of Trading Permit Holders and Associated Persons).
To qualify as a Proprietary Trader under the CBOE rules, an
individual must pass the Series 56 examination or be registered as a
General Securities Representative. See Interpretation and Policy
.08(b) to CBOE Rule 3.6A. FINRA administers the Series 56
examination on behalf of the national securities exchanges. The fee
for the Series 56 examination is $195.
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Proposal
    FINRA currently administers examinations electronically through the
PROCTOR[supreg] system \11\ at testing centers operated by vendors
under contract with FINRA. FINRA charges an examination fee to
candidates for FINRA-sponsored and co-sponsored examinations to cover
the development, maintenance and delivery of these examinations.\12\
Consistent with this practice, FINRA is proposing to amend Section 4(c)
of Schedule A to the FINRA By-Laws to establish a fee of $120 for the
Series 57 examination.\13\
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    \11\ PROCTOR is a computer system that is specifically designed
for the administration and delivery of computer-based testing and
training.
    \12\ Delivery costs vary based on the length of the examination
because FINRA pays its delivery vendors an hourly rate for seat time
at test delivery centers. The length of the Series 57 examination
will be longer than the Series 55 examination as well as the Series
56 examination.
    \13\ Consequently, the total examination fee for associated
persons registering as Securities Trader Principals will be $240,
which includes the proposed fee for the Series 57 examination ($120)
and the current fee for the Series 24 examination ($120).
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    FINRA has filed the proposed rule change for immediate
effectiveness. FINRA is expecting to implement the proposed rule change
on January 4, 2016, which coincides with the anticipated implementation
date for the Securities Trader registration category and examination
program.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\14\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls.
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    \14\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

    FINRA believes that the proposed rule change constitutes an
equitable allocation of fees as the examination fee will be used to
cover FINRA's costs in developing, maintaining and delivering the
examination and will be assessed only on those individuals who will
take the Series 57 examination. FINRA further believes that the
proposed fee for the Series 57 examination is reasonable because it is
aligned with the overall cost associated with the Series 57 examination
program. Accordingly, FINRA believes that the proposed fee for the
Series 57 examination is equitably allocated and reasonable.

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. FINRA believes that the
establishment of the fee for the Series 57 examination will have a
limited economic impact on the industry.
    In proposing a fee of $120 for the Series 57 examination, FINRA
applied the same criteria as it does for establishing the fees for
other FINRA qualification examinations. The primary factors that FINRA
considered include the number of test questions, test session time,
staff effort associated with test development and delivery, corporate
overhead and operational and technology costs associated with
maintaining the PROCTOR system (i.e., item banking, test authoring and
test delivery). The proposed fee was also compared with the fees for
qualification examinations with comparable test session times (e.g.,
the Series 24 and Series 27 examinations \15\), because a primary cost
of administering examinations is vendor fees.
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    \15\ The Series 27 examination qualifies an associated person to
function as a Financial and Operations Principal. The fee for the
Series 27 examination is $120.
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    Moreover, the proposed rule change will reduce the examination fees
for the registration of associated persons who are required to be
registered to engage in or supervise securities trading.
Economic Impact Assessment
    The need for the rule and the regulatory objective are discussed
previously.

 Economic Baseline

    Currently, associated persons who engage in the securities trading
activities specified under NASD Rule 1032(f) or who directly supervise
such activities, including principals, are required to take and pass
the Series 55 examination in combination with other examinations. As
described above, the new registration categories of Securities Trader
and Securities Trader Principal will allow such individuals to engage
in

the same trading and supervisory activities by taking and passing fewer
examinations. Specifically, individuals will no longer be required to
take and pass a prerequisite examination, such as the Series 7 or
Series 62 examination, to engage in or supervise securities trading.
Thus, the proposed rule change will reduce the overall costs, including
the cost of having to sit for additional examinations, on individuals
who will engage in or supervise securities trading under the new
categories, as well as the costs on their associated firms.
    Based on a survey of Equity Traders, FINRA understands that some
Equity Traders, albeit a limited number, currently engage in sales
activities in addition to securities trading. Today, such individuals
may engage in sales activities because, concurrent to registration as
an Equity Trader, they are registered as either a General Securities
Representative or Corporate Securities Representative. However, a
newly-registered Securities Trader who will be engaging in sales
activities in addition to securities trading must separately register
in an appropriate sales-related registration category (e.g., General
Securities Representative or Corporate Securities Representative). As a
result, such individuals may experience an increase in their total
examination fees.

 Economic Impacts

    The proposed rule change will reduce the examination fees for the
registration of associated persons who are required to be registered to
engage in or supervise securities trading. By way of example, the
current examination fee for registering as an Equity Trader is $415
(for associated persons who take the Series 7 and 55 examinations) or
$205 (for associated persons who take the Series 62 and 55
examinations). Under the proposed rule change, the examination fee for
registering as a Securities Trader will be $120. Assuming a constant
examination volume at the 2014 level, FINRA estimates that the
aggregate cost savings will be approximately $188,000 per year for
individuals who currently take the Series 7 and 55 examinations or
Series 62 and 55 examinations to engage only in securities trading. In
addition, the current examination fee for registering as a Proprietary
Trader is $305 (for individuals who take the Series 7 examination) or
$195 (for individuals who take the Series 56 examination). Assuming a
constant volume at the 2014 level, FINRA estimates that the aggregate
cost savings for individuals who currently take the Series 56
examination to engage in securities trading will be approximately
$58,200 per year.\16\
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    \16\ FINRA does not have data on the number of individuals who
take the Series 7 examination and register as General Securities
Representatives in order to function as Proprietary Traders and
engage in securities trading.
---------------------------------------------------------------------------

    As noted above, newly-registered persons who will engage in both
sales and trading activities may experience an increase in their total
examination fees. For instance, the examination fee for associated
persons who will take the Series 7 and 57 examinations to engage in
both sales and trading activities will be $425 compared to the current
fee of $415 for associated persons who take the Series 7 and 55
examinations to engage in such activities.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \17\ and paragraph (f)(2) of Rule 19b-4
thereunder.\18\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act. If
the Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule should be approved
or disapproved.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2015-044 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2015-044. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices of FINRA. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-FINRA-2015-044, and should
be submitted on or before December 7, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Robert W. Errett,
Deputy Secretary.
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    \19\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-28860 Filed 11-13-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 145 (Monday, July 29, 2019)]
[Notices]
[Pages 36636-36641]
[FR Doc No: 2019-15975]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 33566; File No. 812-14911]

The Guardian Insurance & Annuity Company, Inc., et al.

July 23, 2019.
AGENCY: Securities and Exchange Commission (``Commission'')

ACTION: Notice.

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    Notice of application for an order approving the substitution of
certain securities pursuant to section 26(c) of the Investment Company
Act of 1940, as amended (the ``1940 Act'') and an order of exemption
pursuant to section 17(b) of the Act from section 17(a) of the 1940
Act.

APPLICANTS: The Guardian Insurance & Annuity Company, Inc.,
(``Guardian''), The Guardian Separate Account Q, and The Guardian
Separate Account R (collectively, the ``Separate Accounts'' and
together with Guardian, the ``Section 26 Applicants''); and the Section
26 Applicants, Guardian Variable Products Trust (the ``Trust''), and
Park Avenue Institutional Advisers LLC (``Park Avenue'') (collectively,
the ``Section 17 Applicants''). All applicants to this Application may
also be collectively referred to herein as the ``Applicants.''

SUMMARY OF APPLICATION: Section 26 Applicants seek an order pursuant to
section 26(c) of the 1940 Act, approving the substitution of shares
issued by certain investment portfolios of registered investment
companies (the ``Existing Portfolios'') for shares of certain
investment portfolios of the Trust (the ``Replacement Portfolios''),
held by the Separate Accounts under certain variable annuity contracts
(the ``Contracts''). The Section 17 Applicants seek an order pursuant
to section 17(b) of the Act exempting them from section 17(a) of the
Act to the extent necessary to permit them to engage in certain in-kind
transactions.

FILING DATE: The application was filed on June 1, 2018 and was amended
on November 5, 2018 and April 1, 2019.

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 Secretary of
the Commission and serving the 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 August 19, 2019 and should be accompanied by
proof of service on the Applicants in the form of an affidavit or, for
lawyers, a certificate of service. Pursuant to rule 0-5 under the 1940
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: Richard T. Potter, Senior
Vice President, Counsel and Assistant Corporate Secretary, The Guardian
Insurance & Annuity Company, Inc., 7 Hanover Square, New York, New York
10004; Stephen E. Roth, Esq. and Cynthia R. Beyea, Esq., Eversheds
Sutherland (US) LLP, 700 Sixth Street NW, Suite 700, Washington, DC
20001-3980.

FOR FURTHER INFORMATION CONTACT: Jill Corrigan, Senior Counsel, at
(202) 551-8929, or Aaron Gilbride, 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 website 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>.

Applicants' Representations

    1. Guardian is a Delaware stock life insurance company licensed to
conduct insurance business in the District of Columbia and all fifty
states of the United States. Guardian is wholly-owned by The Guardian
Life Insurance Company of America (``Guardian Life''), a mutual life
insurance company.
    2. Each Separate Account meets the definition of ``separate
account,'' as defined in section 2(a)(37) of the 1940 Act and rule 0-
1(e) thereunder. The Separate Accounts are registered with the
Commission under the 1940 Act as unit investment trusts. The assets of
the Separate Accounts support the Contracts and interests in the
Separate Accounts offered through such Contracts. Guardian is the legal
owner of the assets in the Separate Accounts. The Separate Accounts are
segmented into subaccounts, and each subaccount invests in an
underlying registered open-end management investment company or series
thereof.
    3. The Contracts are each registered under the Securities Act of
1933, as amended (the ``1933 Act'') on Form N-4. Each Contract has
particular fees, charges, and investment options, as described in the
Contracts' respective prospectuses.
    4. The Contracts are individual flexible or single premium deferred
variable annuity contracts. As set forth in the prospectuses for the
Contracts, each Contract provides that Guardian reserves the right to
substitute shares of the funds in which the Separate Accounts invest
for shares of any funds

already held or to be held in the future by the Separate Accounts.\1\
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    \1\ Certain Contracts make or made available guaranteed living
benefit riders (each, a ``Living Benefit Rider'' and collectively,
the ``Living Benefit Riders''). The terms of certain Living Benefit
Riders include investment restrictions that limit the available
investment options to identified allocation models consisting of a
specified selection of investment options. A Contract owner with a
Living Benefit Rider that has investment restrictions may transfer
Contract value by reallocating all of his Contract value to a
different allocation model under the rider or, depending on the
terms of the rider, by reallocating his Contract value within the
parameters of the allocation model.
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    5. Guardian, on behalf of itself and the Separate Accounts,
proposes to exercise its contractual right to substitute shares of the
Existing Portfolios for shares of the Replacement Portfolios
(``Substitutions''), as shown in the table below:
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    \2\ On October 18, 2018, Massachusetts Mutual Life Insurance
Company, an indirect corporate parent of OppenheimerFunds, Inc. and
certain of its subsidiaries, announced that it has entered into an
agreement whereby Invesco Ltd. will acquire OppenheimerFunds, Inc.
(the ``Transaction''). In connection with the Transaction, a proxy
statement has been submitted to shareholders of the Oppenheimer Main
Street Small Cap Fund/VA (Service Shares) and the Oppenheimer Global
Strategic Income Fund/VA (Service Shares) (the ``Target Funds'').
See AIM Variable Insurance Funds (Invesco Variable Insurance Funds),
Definitive Materials (497) (Feb. 19, 2019) (File No. 333-229243).
The proxy statement requests shareholder approval to reorganize (i)
the Oppenheimer Main Street Small Cap Fund/VA (Service Shares) into
the Invesco Oppenheimer V.I. Main Street[supreg] Small Cap Fund
(Series II) and (ii) the Oppenheimer Global Strategic Income Fund/VA
(Service Shares) into the Invesco Oppenheimer V.I. Global Strategic
Income Fund (Series II). As described in the proxy statement, each
of the Invesco funds referenced above (the ``Acquiring Funds'') is
``a newly organized shell fund created to acquire the assets and
assume the accrued liabilities of the corresponding [Target Fund],''
and no funds other than the Target Funds would be acquired by the
Acquiring Funds as part of the Transaction. In that regard, each
Acquiring Fund does not currently have any operating or performance
history, and would be a continuation of its Target Fund within a
different fund complex once it commences operations. Each Acquiring
Fund has the same investment objectives and substantially similar
principal investment strategies and risks as its Target Fund. The
fee structure (including management and Rule 12b-1 fees) of each
Acquiring Fund is identical to its Target Fund. As disclosed in the
proxy statement and the Acquiring Funds' current prospectuses as of
the date of this Application, the net expense ratio of the Invesco
Oppenheimer V.I. Main Street[supreg] Small Cap Fund (Series II) is
identical to the Oppenheimer Main Street Small Cap Fund/VA (Service
Shares), and the net expense ratio of the Invesco Oppenheimer V.I.
Global Strategic Income Fund (Series II) is 0.02% lower than the net
expense ratio of the Oppenheimer Global Strategic Income Fund/VA
(Service Shares). The same portfolio management team that manages
each Target Fund will manage the corresponding Acquired Fund. The
Acquiring Funds will not commence operations unless and until the
reorganizations occur, and when the Acquiring Funds do commence
operations, they would continue the historical performance
information of their Target Funds. In light of each Acquiring Fund
being a continuation of its Target Fund, if the reorganizations are
approved and occur prior to the Substitutions, the Applicants intend
to rely on the requested order of approval to substitute the
Acquiring Funds as if they were Existing Funds under Substitution
Nos. 6 and 12, and such substitutions would be performed in
accordance with the policies and procedures and conditions set forth
in this Application. As of the date of the Application, shareholders
of the Target Funds had yet to vote on the reorganizations.
    \3\ Id.

------------------------------------------------------------------------
  Substitution No.       Existing portfolio       Replacement portfolio
------------------------------------------------------------------------
1...................  Fidelity VIP Contrafund   Guardian Large Cap
                       Portfolio (Service        Disciplined Growth VIP
                       Class 2).                 Fund.
2...................  AB Large Cap Growth       Guardian Large Cap
                       Portfolio (Class B).      Disciplined Growth VIP
                                                 Fund.
3...................  Franklin Rising           Guardian Diversified
                       Dividends VIP Fund        Research VIP Fund.
                       (Class 2).
4...................  BlackRock Capital         Guardian Large Cap
                       Appreciation V.I. Fund    Fundamental Growth VIP
                       (Class III).              Fund.
5...................  Invesco V.I. Small Cap    Guardian Small Cap Core
                       Equity Fund (Series II).  VIP Fund.
6...................  Oppenheimer Main Street   Guardian Small Cap Core
                       Small Cap Fund/VA         VIP Fund.
                       (Service Shares) \2\.
7...................  MFS[supreg] Utilities     Guardian Global
                       Series (Service Class).   Utilities VIP Fund.
8...................  Franklin U.S. Government  Guardian U.S. Government
                       Securities VIP Fund       Securities VIP Fund.
                       (Class 2).
9...................  Invesco V.I. Government   Guardian U.S. Government
                       Securities Fund (Series   Securities VIP Fund.
                       II).
10..................  PIMCO Total Return        Guardian Total Return
                       Portfolio (Advisor        Bond VIP Fund.
                       Class).
11..................  Western Asset Core Plus   Guardian Total Return
                       VIT Portfolio (Class      Bond VIP Fund.
                       II).
12..................  Oppenheimer Global        Guardian Multi-Sector
                       Strategic Income Fund/    Bond VIP Fund.
                       VA (Service Shares) \3\.
------------------------------------------------------------------------

    6. The Replacement Portfolios are series of the Trust, a Delaware
statutory trust registered as an open-end management investment company
under the 1940 Act (File No. 811-23148) and whose shares are registered
under the 1933 Act (File No. 333-210205). The Replacement Portfolios
that have begun operations are currently available (or, in the case of
the New Replacement Portfolios) \4\ only as investment allocation
options under variable insurance contracts issued by Guardian.
---------------------------------------------------------------------------

    \4\ The Replacement Portfolio that have begun operations are:
Guardian Large Cap Disciplined Growth VIP Fund; Guardian Diversified
Research VIP Fund; Guardian Large Cap Fundamental Growth VIP Fund;
Guardian Small Cap Core VIP Fund; Guardian Global Utilities VIP
Fund; Guardian U.S. Government Securities VIP Fund; Guardian Total
Return Bond VIP Fund; Guardian Multi-Sector Bond VIP Fund. The New
Replacement Portfolios are: Guardian Small Cap Core VIP Fund;
Guardian Global Utilities VIP Fund; Guardian Multi-Sector Bond VIP
Fund; Guardian Total Return Bond VIP Fund; and Guardian U.S.
Government Securities VIP Fund.
---------------------------------------------------------------------------

    7. Park Avenue, an indirect wholly-owned subsidiary of Guardian
Life, serves as the investment adviser of each Replacement Portfolio.
Park Avenue is a Delaware limited liability company that is registered
as an investment adviser under the Investment Advisers Act of 1940.
Each Replacement Portfolio is sub-advised by a registered investment
adviser that is unaffiliated with Applicants, the Trust, or Park
Avenue.

    8. The Section 26 Applicants state that the proposed Substitutions
are part of a strategic business goal of Guardian to improve the
administrative efficiency and cost-effectiveness of the Contracts, as
well as to make the Contracts more attractive to Contract owners. The
Section 26 Applicants note that the proposed Substitutions are intended
to improve portfolio manager selection \5\ and simplify fund lineups
while reducing costs and maintaining a menu of investment options that
would offer a similar diversity of investment options after the
proposed Substitutions as is currently available under the Contracts.
The Section 26 Applicants believe that the Replacement Portfolios have
investment objectives, principal investment strategies, and principal
risks, as described in their prospectuses, which are substantially
similar to the corresponding Existing Portfolios, making those
Replacement Portfolios appropriate candidates as substitutes.
Information for each Existing Portfolio and Replacement Portfolio,
including investment objectives, principal investment strategies,
principal risks, and comparative performance history, can be found in
the application.
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    \5\ The Trust and Park Avenue may rely on an order from the
Commission that permits Park Avenue, subject to certain conditions,
including approval of the Trust's board of directors but without the
approval of shareholders, to select certain wholly-owned and non-
affiliated investment sub-advisers to manage all or a portion of the
assets of each portfolio of the Trust pursuant to an investment sub-
advisory agreement with Park Avenue, and to materially amend sub-
advisory agreements with Park Avenue. See Guardian Variable Products
Trust and Park Avenue Institutional Advisers LLC, Investment Company
Act Release Nos. 32420 (Jan. 9, 2017) (notice) and 32468 (Feb. 6,
2017) (the ``Manager of Managers Order''). After the Substitution
Date (defined below), Park Avenue will not change a Replacement
Portfolio's sub-adviser, add a new sub-adviser, or otherwise rely on
the Manager of Managers Order or any replacement order from the
Commission with respect to any Replacement Portfolio without first
obtaining shareholder approval of the change in sub-adviser, the new
sub-adviser, or the Replacement Portfolio's ability to rely on the
Manager of Managers Order or any replacement order from the
Commission, at a shareholder meeting, the record date for which will
be after the proposed Substitution has been effected.
---------------------------------------------------------------------------

    9. The Section 26 Applicants state that for all the proposed
Substitutions, the net annual operating expenses of the Replacement
Portfolio will not exceed, on an annualized basis, the net annual
operating expenses of any corresponding Existing Portfolio for the last
fiscal year preceding the date of the application (the ``Expense
Cap''). The Section 26 Applicants will cause Park Avenue, as the
investment adviser of each Replacement Portfolio, to enter into a
written contract with the Replacement Portfolio under which the net
annual operating expenses of the Replacement Portfolio will not exceed
the Expense Cap. The Expense Cap for each proposed Substitution will
remain in place for a period of two years following the implementation
of the proposed Substitution (the ``Substitution Date''), except that
for those proposed Substitutions for which the sum of the current
management fee and rule 12b-1 fees of the Replacement Portfolio is
greater than that of the corresponding Existing Portfolio, the Expense
Cap for that proposed Substitution will extend for the life of the
affected Contracts following the Substitution Date. Any amounts waived
or reimbursed by Park Avenue pursuant to any Expense Cap will not be
subject to Park Avenue's recoupment rights.
    10. The Section 26 Applicants represent that as of the Substitution
Date, the Separate Accounts will redeem shares of the Existing
Portfolios for cash and/or in-kind. Redemption requests and purchase
orders will be placed simultaneously so that Contract values will
remain fully invested at all times.
    11. Each Substitution will be effected at the relative net asset
values of the respective shares of the Replacement Portfolios in
conformity with section 22(c) of the 1940 Act and rule 22c-1 thereunder
without the imposition of any transfer or similar charges by the
Section 26 Applicants. The Substitutions will be effected without
change in the amount or value of any Contracts held by affected
Contract owners.\6\
---------------------------------------------------------------------------

    \6\ The Section 26 Applicants state that, because the
Substitutions will occur at relative net asset value, and the fees
and charges under the Contracts will not change as a result of the
Substitutions, the benefits offered by the guarantees under the
Contracts will be the same immediately before and after the
Substitutions. The Section 26 Applicants also state that what effect
the Substitutions may have on the value of the benefits offered by
the Contract guarantees would depend, among other things, on the
relative future performance of the Existing Portfolios and
Replacement Portfolios, which Applicants cannot predict.
Nevertheless, the Section 26 Applicants note that at the time of the
Substitutions, the Contracts will offer a comparable variety of
investment options with as broad a range of risk/return
characteristics.
---------------------------------------------------------------------------

    12. Contract owners will not incur any fees or charges as a result
of the proposed Substitutions. The obligations of the Section 26
Applicants, and the rights of the affected Contract owners, under the
Contracts of affected Contract owners will not be altered in any way.
Guardian and/or its affiliates (other than the Trust) will pay all
expenses and transaction costs of the Substitutions, including legal
and accounting expenses, any applicable brokerage expenses and other
fees and expenses. No fees or charges will be assessed to the affected
Contract owners to effect the Substitutions. The proposed Substitutions
will not cause the Contract fees and charges currently being paid by
Contract owners to be greater after the proposed Substitution than
before the proposed Substitution. In addition, the Substitutions will
in no way alter the tax treatment of affected Contract owners in
connection with their Contracts, and no tax liability will arise for
Contract owners as a result of the Substitutions.
    13. From the date of the Pre-Substitution Notice (defined below)
through 30 days following the Substitution Date, subject to the terms
of certain Living Benefit Riders, Contract owners may make at least one
transfer of Contract value from the subaccount investing in an Existing
Portfolio (before the Substitution) or the Replacement Portfolio (after
the Substitution) to any other available subaccount under the Contract
without charge and without imposing any transfer limitations. Further,
on the Substitution Date, Contract values attributable to investments
in each Existing Portfolio will be transferred to the corresponding
Replacement Portfolio without charge and without being subject to any
transfer limitations. Moreover, except with respect to market timing
policies and procedures and the terms of the Living Benefit Riders,
Guardian will not exercise any rights reserved under the Contracts to
impose restrictions on transfers between the subaccounts under the
Contracts for a period beginning at least 30 days, including
limitations on the future number of transfers, before the Substitution
Date through at least 30 days following the Substitution Date.
    14. At least 30 days prior to the Substitution Date, Contract
owners will be notified via prospectus supplements that the Section 26
Applicants received or expect to receive Commission approval of the
applicable proposed Substitutions and of the anticipated Substitution
Date (the ``Pre-Substitution Notice''). Pre-Substitution Notices sent
to Contract owners will be filed with the Commission pursuant to rule
497 under the 1933 Act. The Pre-Substitution Notice will advise
Contract owners that from the date of the Pre-Substitution Notice
through the date 30 days after the Substitutions, subject to the terms
of certain Living Benefit Riders, Contract owners may make at least one
transfer of Contract value from the subaccounts investing in the
Existing Portfolios (before the Substitutions) or the Replacement
Portfolios (after the Substitutions) to any other available subaccount
without charge and without

imposing any transfer limitations. Among other information, the Pre-
Substitution Notice will inform affected Contract owners that, except
with respect to market timing policies and procedures and limitations
imposed by Living Benefit Riders, Guardian will not exercise any rights
reserved under the Contracts to impose additional restrictions on
transfers out of a Replacement Portfolio subaccount from the date of
the Pre-Substitution Notice, including limitations on the future number
of transfers, until at least 30 days after the Substitution Date.
Additionally, all affected Contract owners will be sent prospectuses of
the applicable Replacement Portfolios at least 30 days before the
Substitution Date.
    15. In addition to the Supplements distributed to the Contract
owners, within five business days after the Substitution Date, Contract
owners whose assets are allocated to a Replacement Portfolio as part of
the proposed Substitutions will be sent a written notice (each, a
``Confirmation'') informing them that the Substitutions were carried
out as previously notified. The Confirmation also will restate the
information set forth in the Pre-Substitution Notice. The Confirmation
will also reflect the values of the Contract owner's positions in the
Existing Portfolio before the Substitution and the Replacement
Portfolio after the Substitution.

Legal Analysis

    1. The Section 26 Applicants request that the Commission issue an
order pursuant to section 26(c) of the 1940 Act approving the proposed
Substitutions. Section 26(c) prohibits any depositor or trustee of a
unit investment trust that invests exclusively in the securities of a
single issuer from substituting the securities of another issuer
without the approval of the Commission. Section 26(c) provides that
such approval shall be granted by order from the Commission if the
evidence establishes that the substitution is consistent with the
protection of investors and the purposes of the Act.
    2. The Section 26 Applicants submit that the Substitutions meet the
standards set forth in section 26(c) and that, if implemented, the
Substitutions would not raise any of the concerns that Congress
intended to address when the 1940 Act was amended to include this
provision. The Section 26 Applicants state that each Substitution
protects the Contract owners who have Contract value allocated to an
Existing Portfolio by providing Replacement Portfolios with
substantially similar investment objectives, strategies, and risks, and
providing Contract owners with investment options that have net annual
operating expenses that will not exceed the Expense Cap.
    3. Guardian has reserved the right under the Contracts to
substitute shares of another underlying fund for one of the current
funds offered as an investment option under the Contracts. The
Contracts and the Contracts' prospectuses disclose this right.
    4. The Section 26 Applicants submit that the ultimate effect of the
proposed Substitutions will be to simplify the investment line-ups that
are available to Contract owners while reducing expenses and continuing
to provide Contract owners with a wide array of investment options. The
Section 26 Applicants state that the proposed Substitutions will not
reduce in any manner the nature or quality of the available investment
options and the proposed Substitutions also will permit Guardian to
present information to its Contract owners in a simpler and more
concise manner. The Section 26 Applicants also state it is anticipated
that after the proposed Substitutions, Contract owners will be provided
with disclosure documents that contain a simpler presentation of the
available investment options under the Contracts. The Section 26
Applicants also assert that the proposed Substitutions are not of the
type that section 26 was designed to prevent because they will not
result in costly forced redemption, nor will they affect other aspects
of the Contracts. In addition, the proposed Substitutions will not
adversely affect any features or riders under the Contracts.
Accordingly, no Contract owner will involuntarily lose his or her
features or riders as a result of any proposed Substitution. Moreover,
Applicants will offer Contract owners the opportunity to transfer
amounts out of the affected subaccounts without any cost or other
penalty (other than those necessary to implement policies and
procedures designed to detect and deter disruptive transfers and other
``market timing'' activities and administer the terms of the Living
Benefit Riders) that may otherwise have been imposed for a period
beginning on the date of the Pre-Substitution Notice (which supplement
will be delivered to the Contract owners at least 30 days before the
Substitution Date) and ending no earlier than 30 days after the
Substitution Date. The proposed Substitutions are also unlike the type
of substitution that section 26(c) was designed to prevent in that the
Substitutions have no impact on other aspects of the Contracts.
    5. The Section 17 Applicants request an order under section 17(b)
exempting them from the provisions of section 17(a) to the extent
necessary to permit the Section 17 Applicants to carry out some or all
of the proposed Substitutions. The Section 17 Applicants state that
because the proposed Substitutions may be effected, in whole or in
part, by means of in-kind redemptions and purchases, the proposed
Substitutions may be deemed to involve one or more purchases or sales
of securities or property between affiliated persons.
    6. Section 17(a)(1) of the 1940 Act, in relevant part, prohibits
any affiliated person of a registered investment company, or any
affiliated person of such person, acting as principal, from knowingly
selling any security or other property to that company. Section
17(a)(2) of the 1940 Act generally prohibits the persons described
above, acting as principals, from knowingly purchasing any security or
other property from the registered investment company.
    7. The Section 17 Applicants state that the proposed transactions
may involve a transfer of portfolio securities by the Existing
Portfolios to the Separate Accounts. Immediately thereafter, the
Separate Accounts would purchase shares of the Replacement Portfolios
with the portfolio securities received from the Existing Portfolios.
Accordingly, the Section 17 Applicants provide that to the extent that
Guardian, the Separate Accounts, the Trust, Park Avenue, or the
Replacement Portfolios, are deemed to be affiliated persons of one
another under section 2(a)(3) or section 2(a)(9) of the 1940 Act, it is
conceivable that this aspect of the proposed Substitutions could be
viewed as being prohibited by section 17(a). Accordingly, the Section
17 Applicants have determined to seek relief from section 17(a).
    8. The Section 17 Applicants submit that the terms of the proposed
in-kind purchases of shares of the Replacement Portfolios by the
Separate Accounts, including the consideration to be paid and received,
as described in the Application, are reasonable and fair and do not
involve overreaching on the part of any person concerned. The Section
17 Applicants submit that the terms of the proposed in-kind
transactions, including the consideration to be paid by each Existing
Portfolio and received by each Replacement Portfolio involved, are
reasonable, fair and do not involve overreaching principally because
the transactions will conform with all but one of the conditions
enumerated in rule 17a-7 under the 1940 Act.

    9. The proposed transactions will take place at relative net asset
value in conformity with the requirements of section 22(c) of the 1940
Act and rule 22c-1 thereunder without the imposition of any transfer or
similar charges by the Applicants. The Substitutions will be effected
without change in the amount or value of any Contract held by the
affected Contract owners. The Substitutions will in no way alter the
tax treatment of affected Contract owners in connection with their
Contracts, and no tax liability will arise for Contract owners as a
result of the Substitutions. The fees and charges under the Contracts
will not increase because of the Substitutions. Even though Guardian,
the Separate Accounts, the Trust, Park Avenue, and the Replacement
Portfolios may not rely on rule 17a-7, the Section 17 Applicants
believe that the rule's conditions outline the type of safeguards that
result in transactions that are fair and reasonable to registered
investment company participants and preclude overreaching in connection
with an investment company by its affiliated persons.
    10. The Section 17 Applicants also submit that the proposed in-kind
purchases by the Separate Accounts are consistent with the policies of
the Trust and the Replacement Portfolios, as provided in the Trust's
current registration statement and reports filed under the 1940 Act.
Finally, the Section 17 Applicants submit that the proposed
Substitutions are consistent with the general purposes of the 1940 Act.

Applicants' Conditions

    The Section 26 Applicants agree that any order granting the
requested relief will be subject to the following conditions:
    1. The Substitutions will not be effected unless Guardian
determines that: (i) The Contracts allow the substitution of shares of
registered open-end investment companies in the manner contemplated by
the application; (ii) the Substitutions can be consummated as described
in the application under applicable insurance laws; and (iii) any
regulatory requirements in each jurisdiction where the Contracts are
qualified for sale have been complied with to the extent necessary to
complete the Substitutions.
    2. After the Substitution Date, Park Avenue will not change a
Replacement Portfolio's sub-adviser, add a new sub-adviser, or
otherwise rely on the Manager of Managers Order or any replacement
order from the Commission with respect to any Replacement Portfolio
without first obtaining shareholder approval of the change in sub-
adviser, the new sub-adviser, or the Replacement Portfolio's ability to
rely on the Manager of Managers Order, or any replacement order from
the Commission, at a shareholder meeting, the record date for which
shall be after the proposed Substitution has been effected.
    3. Guardian or an affiliate thereof (other than the Trust) will pay
all expenses and transaction costs of the Substitutions, including
legal and accounting expenses, any applicable brokerage expenses and
other fees and expenses. No fees or charges will be assessed to the
affected Contract owners to effect the Substitutions. The proposed
Substitutions will not cause the Contract fees and charges currently
being paid by Contract owners to be greater after the proposed
Substitution than before the proposed Substitution.
    4. The Substitutions will be effected at the relative net asset
values of the respective shares of the Replacement Portfolios in
conformity with section 22(c) of the 1940 Act and rule 22c-1 thereunder
without the imposition of any transfer or similar charges by the
Applicants. The Substitutions will be effected without change in the
amount or value of any Contracts held by affected Contract owners.
    5. The Substitutions will in no way alter the tax treatment of
affected Contract owners in connection with their Contracts, and no tax
liability will arise for Contract owners as a result of the
Substitutions.
    6. The obligations of the Section 26 Applicants and the rights of
the affected Contract owners, under the Contracts of affected Contract
owners will not be altered in any way.
    7. Affected Contract owners will be permitted to transfer Contract
value from the subaccount investing in the Existing Portfolio (before
the Substitution Date) or the Replacement Portfolio (after the
Substitution Date) to any other available investment option under the
Contract without charge for a period beginning at least 30 days before
the Substitution Date through at least 30 days following the
Substitution Date. Contract owners with Living Benefit Riders, as
applicable, may transfer Contract value from the subaccounts investing
in the Existing Portfolios (before the Substitutions) or the
Replacement Portfolios (after the Substitutions) to any other available
investment option available under their respective riders without
charge and without imposing any transfer limitations. Except as
described in any market timing/short-term trading provisions of the
relevant prospectus, the Applicants will not exercise any rights
reserved under the Contracts to impose restrictions on transfers
between the subaccounts under the Contracts, transfers, including
limitations on the future number of transfers, for a period beginning
at least 30 days before the Substitution Date through at least 30 days
following the Substitution Date.
    8. All affected Contract owners will be notified via the Pre-
Substitution Notice, at least 30 days before the Substitution Date,
about: (i) The intended Substitution of Existing Portfolios with the
Replacement Portfolios; (ii) the intended Substitution Date; and (iii)
information with respect to transfers as set forth in Condition 7
above. In addition, the Section 26 Applicants will also deliver to
affected Contract owners, at least 30 days before the Substitution
Date, a prospectus for each applicable Replacement Portfolio.
    9. The Section 26 Applicants will deliver to each affected Contract
owner within five business days of the Substitution Date a written
confirmation which will include: (i) A confirmation that the
Substitutions were carried out as previously notified; (ii) a
restatement of the information set forth in the Pre-Substitution
Notice; and (iii) values of the Contract owner's positions in the
Existing Portfolio before the Substitution and the Replacement
Portfolio after the Substitution.
    10. Guardian will cause Park Avenue, as the investment adviser of
each Replacement Portfolio, to enter into a written contract with the
Replacement Portfolio whereby, for the applicable time period, the net
annual operating expenses of the Replacement Portfolio will not exceed,
on an annualized basis, the net annual operating expense of any
corresponding Existing Portfolio for the last fiscal year preceding the
date of this Application. The written contract will remain in place for
a period of two years following the Substitution Date, except that for
those proposed Substitutions for which the sum of the current
management fee and rule 12b-1 Fee of the Replacement Portfolio is
greater than that of the corresponding Existing Portfolio, the written
agreement will extend for the life of the affected Contracts following
the Substitution Date. Park Avenue will reimburse expenses to the
extent necessary under each written agreement on the last business day
of each month. Any amounts waived or reimbursed by Park Avenue pursuant
to this condition will not be subject to recoupment rights. In
addition, the Section 26 Applicants will not increase the Contract fees
and charges that would otherwise be assessed under the terms of the

Contracts for affected Contract owners for a period of at least two
years following the Substitution Date.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15975 Filed 7-26-19; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 176 (Tuesday, September 11, 2018)]
[Notices]
[Pages 46010-46011]
[FR Doc No: 2018-19711]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. 2018-70]

Petition for Exemption; Summary of Petition Received; Compass
Airlines LLC

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Title 14 of the Code of Federal
Regulations. The purpose of this notice is to improve the public's
awareness of, and participation in, the FAA's exemption process.
Neither publication of this notice nor the inclusion or omission of
information in the summary is intended to affect the legal status of
the petition or its final disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before October 1, 2018.

ADDRESSES: Send comments identified by docket number FAA-2018-0603
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140,
West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building

Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: 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 http://www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
http://www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Clarence Garden<PHONE_NUMBER>, Office
of Rulemaking, Federal Aviation Administration, 800 Independence Avenue
SW, Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on September 5, 2018.
Lirio Liu,
Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2018-0603.
    Petitioner: Compass Airlines LLC.
    Section(s) of 14 CFR Affected: Sec. Sec.  121.407(a)(1)(ii) and
121.439(a)(b).
    Description of Relief Sought: Compass Airlines LLC is seeking
relief from 14 CFR 121.407(a)(1)(ii) to allow the use of a modified
full flight simulator representing an Embraer 190 type airplane in
conjunction with an Embraer 175 Integrated Procedures Trainer to
provide training, checking and currency for pilots operating Embraer
175 type airplanes. Compass Airlines LLC is also seeking relief from
Sec. Sec.  121.439(a)(b) to allow a modified full flight simulator
representing an Embraer 190 type airplane to be used to meet the
recency of experience requirements for an Embraer 175 type airplane.

[FR Doc. 2018-19711 Filed 9-10-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 80, Number 196 (Friday, October 9, 2015)]
[Notices]
[Pages 61269-61271]
[FR Doc No: 2015-25798]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2013-0009]

Request for Approval of a New Information Collection

AGENCY: National Highway Traffic Safety Administration, DOT.

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: In compliance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.), this notice announces that the Information
Collection Request (ICR) abstracted below is being forwarded to the
Office of Management and Budget (OMB) for review and comments.

DATES: Written comments should be submitted on or before November 9,
2015.

ADDRESSES: Send comments to the Office of Information and Regulatory
Affairs, Office of Management and Budget, 725 17th Street NW.,
Washington, DC 20503, Attention: NHTSA Desk Officer.

FOR FURTHER INFORMATION CONTACT: For additional information or access
to background documents, contact Elizabeth Mazzae, Applied Crash
Avoidance Research Division, Vehicle Research and Test Center, NHTSA,
10820 State Route 347--Bldg. 60, East Liberty, Ohio 43319; Telephone
(937) 666-4511; Facsimile:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Before a Federal agency can collect certain
information from the public, it must receive approval from the Office
of Management and Budget (OMB). In compliance with these requirements,
this notice announces that the following information collection request
has been forwarded to OMB. In the April 30, 2015, Federal Register,\1\
NHTSA published a 60-day notice requesting public comment on the
proposed collection of information. We received two comments.
---------------------------------------------------------------------------

    \1\ 80 FR 24314 (April 30, 2015).
---------------------------------------------------------------------------

    First, the Alliance of Automobile Manufacturers (the ``Alliance'')

expressed concern with NHTSA's ``continued focus on simulator
research'' as a basis for our driver distraction guidance.
Specifically, the Alliance stated ``that the study method proposed will
not yield the meaningful and reliable metrics that will assist in
saving lives and preventing crashes. Instead, such metrics and
acceptance criteria should be developed using naturalistic driving
data.'' The Alliance qualified that this advice would not preclude the
use of simulators for conducting development tests, but such tests and
any auditory-vocal distraction metrics should be validated and
calibrated against real-world data before putting forth
recommendations. The Alliance also noted studies on auditory-vocal
distraction it believes NHTSA should consider in formulating
guidelines.
    The objectives of the current work, to develop a low-cost,
standardized test protocol and task acceptance criteria for evaluating
the distraction potential of tasks performed with integrated systems,
cannot be accomplished through naturalistic research. To achieve the
greatest degree of repeatability and experimental control, the test
protocol will use driving simulator and visual occlusion testing.
    As the Alliance suggests, NHTSA will be conducting an on-road
component to its research supporting the development of driver
distraction guidelines for auditory-vocal interfaces that will be
discussed in a Federal Register information collection request notice
at a later date. NHTSA will pull from many sources in formulating its
auditory-vocal guidelines. This will include analyzing data from NHTSA
research studies as well as other relevant studies in this area of
research.
    Second, American Honda Motor Company, Inc. (Honda) commented that
the quality of the NHTSA's driver distraction measurement research
would be enhanced if Honda's ``Pedal Tracking and Detection Response
Task'' (PT-DRT) method was included in this NHTSA research. Honda
proposed that NHTSA collect objective data using the PT-DRT method as
part of the current research. Honda also indicated that they would like
NHTSA to adopt the PT-DRT method as an acceptable alternative to the
currently allowed task acceptance protocol in NHTSA's Driver
Distraction Guidelines.
    NHTSA intends to conduct this research using a method that builds
on the protocol developed for NHTSA's Visual-Manual Driver Distraction
Guidelines and incorporates the extensively researched Detection
Response Task (DRT). NHTSA intends for our Guidelines test protocol to
be complementary and integrated, to the extent possible, to achieve an
assessment that is both robust and efficient to conduct.
    NHTSA believes that the scientific basis for the DRT method being
standardized by ISO is strong. Furthermore, the results of research by
ISO member organizations have been robust. The DRT will provide an easy
to implement, reliable, and well-vetted method for comparing
distraction effects of secondary tasks with that of a reference task
(i.e., radio tuning).
    NHTSA has received briefings and demonstrations of the PT-DRT
method by Honda and has been impressed with their scientific, reasoned
approach and willingness to share information with NHTSA. However, we
feel it is most efficient and cost-effective for us at this point to
move forward with investigating the incorporation of the well-vetted
DRT into our driving simulator based method and not to add a second,
new test method to the planned research. NHTSA wishes to clarify that
the research will determine the test methods that we will use in
evaluating auditory-vocal secondary tasks performed by drivers, vehicle
manufacturers may use whatever method they desire to assess their own
vehicles.
    OMB Control Number: To be issued at time of approval.
    Title: Driver Distraction Measurement Research.
    Form Numbers: None.
    Type of Review: New information collection.
    Abstract: NHTSA seeks to collect information from the public as
part of a multi-study research effort that supports the development of
measurement techniques for auditory-vocal interactions involving in-
vehicle and portable devices used by motor vehicle drivers. Driving
experiments will be conducted using driving simulator and visual
occlusion apparatus research tools. Study participants will perform
specific secondary tasks while driving and their performance and
behavior (e.g., eye glance locations and durations) will be recorded.
    Information will be collected during participant recruitment to
assess individuals' suitability for participation. Participants will
complete a brief set of questions to assess the incidence and severity
of any simulator-related discomfort. In the event a participant
indicates they experienced severe discomfort, that participant's
performance may be removed from the study and study staff will ensure
that the person is well enough safely drive home or will arrange for
another means of transportation.
    Respondents: Web-based and print newspaper advertisements will be
used to obtain respondents who are licensed drivers aged 18-70 years.
Study participants must have no health conditions that may adversely
affect driving performance, have average or better vision and hearing,
and not require assistive devices to safely operate a vehicle. Criteria
for participation also include driving at least 3,000 miles annually
and experience using a cell phone while driving.
    Estimated Number of Respondents: It is estimated that a total of
1,200 individuals will complete the first set of screening questions
and 1,000 of those 1,200 will also complete the second set of screening
questions. Of the 1,000, it is estimated that 500 individuals will meet
criteria for participation. From those 500, approximately 300
individuals will be chosen to produce a balance of age and genders.
    Estimated Time per Response: Completion of the screening questions
is estimated to take approximately 5 minutes for the first set and 10
minutes for the second set. The simulator discomfort questionnaire is
estimated to take 2 minutes per participant.
    Total Estimated Burden: 278 total hours.
    Frequency of Collection: The data collections described will be
performed once to obtain the target number of 300 valid test
participants.
    NHTSA estimates the burden of this collection of information as
follows:

                                         Table 1--Estimated Burden Hours
----------------------------------------------------------------------------------------------------------------
          Question set                   N               H               C             Cost            Time
----------------------------------------------------------------------------------------------------------------
Screening, Part 1...............            1200          0.0833          $79.00       $7,896.84             100
Screening, Part 2...............            1000          0.1677           79.00       13,248.30             168
Simulator Sickness..............             300          0.0333           48.00          479.52              10
                                 -------------------------------------------------------------------------------

    Total.......................  ..............  ..............  ..............       21,624.66             278
----------------------------------------------------------------------------------------------------------------

    Authority:  The Paperwork Reduction Act of 1995; 44 U.S.C.
Chapter 35, as amended; and 49 CFR 1.95.

Nathaniel Beuse,
Associate Administrator, Vehicle Safety Research.
[FR Doc. 2015-25798 Filed 10-8-15; 8:45 am]
BILLING CODE 4910-59-P