[Federal Register Volume 78, Number 30 (Wednesday, February 13, 2013)]
[Notices]
[Pages 10216-10217]
[FR Doc No: 2013-03273]

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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

Upon Written Request Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.

Extension:
    Rule 17f-4; OMB Control No. 3235-0225, SEC File No. 270-232.

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 350l-3520) (the ``Paperwork Reduction Act''),
the Securities and Exchange Commission (the ``Commission'') is
soliciting comments on the collection of information summarized below.
The Commission plans to submit this existing collection of information
to the Office of Management and Budget for extension and approval.
    Section 17(f) (15 U.S.C. 80a-17(f)) under the Investment Company
Act of 1940 (the ``Act'') \1\ permits registered management investment
companies and their custodians to deposit the securities they own in a
system for the central handling of securities (``securities
depositories''), subject to rules adopted by the Commission.
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    \1\ 15 U.S.C. 80a.
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    Rule 17f-4 (17 CFR 270.17f-4) under the Act specifies the
conditions for the use of securities depositories by funds \2\ and
their custodians.
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    \2\ As amended in 2003, rule 17f-4 permits any registered
investment company, including a unit investment trust or a face-
amount certificate company, to use a security depository. See
Custody of Investment Company Assets With a Securities Depository,
Investment Company Act Release No. 25934 (Feb. 13, 2003) (68 FR 8438
(Feb. 20, 2003)). The term ``fund'' is used in this Notice to mean a
registered investment company.
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    The Commission staff estimates that 140 respondents (including an
estimated 79 active funds that may deal directly with a securities
depository, an estimated 42 custodians, and 19 possible securities
depositories) \3\ are subject to the requirements in rule 17f-4. The
rule is elective, but most, if not all, funds use depository custody
arrangements.\4\
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    \3\ The Commission staff estimates that, as permitted by the
rule, an estimated 2% of all active funds may deal directly with a
securities depository instead of using an intermediary. The number
of custodians is estimated based on information from Morningstar
Direct\SM\. The Commission staff estimates the number of possible
securities depositories by adding the 12 Federal Reserve Banks and 7
active registered clearing agencies. The Commission staff recognizes
that not all of these entities may currently be acting as a
securities depository for fund securities.
    \4\ Based on responses to Item 18 of Form N-SAR (17 CFR
274.101), approximately 98 percent of funds' custodians maintain
some or all fund securities in a securities depository pursuant to
rule 17f-4.
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    Rule 17f-4 contains two general conditions. First, a fund's
custodian must be obligated, at a minimum, to exercise due care in
accordance with reasonable commercial standards in discharging its duty
as a securities intermediary to obtain and thereafter maintain
financial assets.\5\ This obligation does not contain a collection of
information because it does not impose identical reporting,
recordkeeping or disclosure requirements. Funds and custodians may
determine the specific measures the custodian will take to comply with
this obligation.\6\ If the fund deals directly with a depository, the
depository's contract or written rules for its participants must
provide that the depository will meet similar obligations, which is a
collection of information for purposes of the Paperwork Reduction Act.
All funds that deal directly with securities depositories in reliance
on rule 17f-4 should have either modified their contracts with the
relevant securities depository, or negotiated a modification in the
securities depository's written rules when the rule was amended.
Therefore, we estimate there is no ongoing burden associated with this
collection of information.\7\
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    \5\ Rule 17f-4(a)(1). This provision incorporates into the rule
the standard of care provided by section 504(c) of Article 8 of the
Uniform Commercial Code when the parties have not agreed to a
standard. Rule 17f-4 does not impose any substantive obligations
beyond those contained in Article 8. Uniform Commercial Code,
Revised Article 8--Investment Securities (1994 Official Text with
Comments) (``Revised Article 8'').
    \6\ Moreover, the rule does not impose any requirement regarding
evidence of the obligation.
    \7\ The Commission staff assumes that new funds relying on 17f-4
would choose to use a custodian instead of directly dealing with a
securities depository because of the high costs associated with
maintaining an account with a securities depository. Thus new funds
would not be subject to this condition.
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    Second, the custodian must provide, promptly upon request by the
fund, such reports as are available about the internal accounting
controls and financial strength of the custodian.\8\ If a fund deals
directly with a depository, the depository's contract with or written
rules for its participants must provide that the depository will
provide similar financial reports,\9\ which is a collection of
information for purposes of the Paperwork Reduction Act. Custodians and
depositories usually transmit financial reports to funds twice each
year.\10\ The Commission staff estimates that 42 custodians spend
approximately 787 hours (by support staff) annually in transmitting
such reports to funds.\11\ In addition, approximately 79 funds (i.e.,
two percent of all funds) deal directly with a securities depository
and may

request periodic reports from their depository. Commission staff
estimates that depositories spend approximately 18 hours (by support
staff) annually transmitting reports to the 79 funds.\12\ The total
annual burden estimate for compliance with rule 17f-4's reporting
requirement is therefore 805 hours.\13\
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    \8\ Rule 17f-4(a)(2).
    \9\ Rule 17f-4(b)(1)(ii).
    \10\ The estimated 42 custodians would handle requests for
reports from an estimated 3,371 fund clients (approximately 80 fund
clients per custodian) and the depositories from the remaining 79
funds that choose to deal directly with a depository. It is our
understanding based on staff conversations with industry
representatives that custodians and depositories transmit these
reports to clients in the normal course of their activities as a
good business practice regardless of whether they are requested.
Therefore, for purposes of this Paperwork Reduction Act estimate,
the Commission staff assumes that custodians transmit the reports to
all fund clients.
    \11\ (3,371 fund clients x 2 reports) = 6,742 transmissions. The
staff estimates that each transmission would take approximately 7
minutes for a total of approximately 787 hours (7 minutes x 6,742
transmissions).
    \12\ (79 fund clients who may deal directly with a securities
depository x 2 reports) = 158 transmissions. The staff estimates
that each transmission would take approximately 7 minutes for a
total of approximately 18 hours (7 minutes x 158 transmissions).
    \13\ 787 hours for custodians and 18 hours for securities
depositories.
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    If a fund deals directly with a securities depository, rule 17f-4
requires that the fund implement internal control systems reasonably
designed to prevent an unauthorized officer's instructions (by
providing at least for the form, content, and means of giving,
recording, and reviewing all officers' instructions).\14\ All funds
that seek to rely on rule 17f-4 should have already implemented these
internal control systems when the rule was amended. Therefore, there is
no ongoing burden associated with this collection of information
requirement.\15\
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    \14\ Rule 17f-4(b)(2).
    \15\ The Commission staff assumes that new funds relying on 17f-
4 would choose to use a custodian instead of directly dealing with a
securities depository because of the high costs associated with
maintaining an account with a securities depository. Thus new funds
would not be subject to this condition.
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    Based on the foregoing, the Commission staff estimates that the
total annual hour burden of the rule's collection of information
requirement is 805 hours.
    The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act. This estimate is not derived
from a comprehensive or even representative survey or study of the
costs of Commission rules.
    An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless it displays a
currently valid control number.
    Written comments are invited on: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information will have practical
utility; (b) the accuracy of the Commission's estimate of the burden of
the collections of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burdens of the collection of information on respondents,
including through the use of automated collection techniques or other
forms of information technology. Consideration will be given to
comments and suggestions submitted in writing within 60 days of this
publication.
    Please direct your written comments to Thomas Bayer, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an
email to<EMAIL_ADDRESS>
    Dated: February 7, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03273 Filed 2-12-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Notices]
[Page 16465]
[FR Doc No: 2022-06141]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP22-704-000.
    Applicants: Natural Gas Pipeline Company of America LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Filing--Morgan Stanley to be effective 4/1/2022.
    Filed Date: 3/16/22.
    Accession Number: 20220316-5064.
    Comment Date: 5 p.m. ET 3/28/22.

    Docket Numbers: RP22-705-000.
    Applicants: Natural Gas Pipeline Company of America LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Filing--Repsol Energy to be effective 4/1/2022.
    Filed Date: 3/16/22.
    Accession Number: 20220316-5065.
    Comment Date: 5 p.m. ET 3/28/22.

    Docket Numbers: RP22-706-000.
    Applicants: Natural Gas Pipeline Company of America LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreements
Filing--Six One Commodities Vega LLC to be effective 4/1/2022.
    Filed Date: 3/16/22.
    Accession Number: 20220316-5067.
    Comment Date: 5 p.m. ET 3/28/22.

    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    The filings are accessible in the Commission's eLibrary system
(https://elibrary.ferc.gov/idmws/search/fercgensearch.asp) by querying
the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: March 17, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-06141 Filed 3-22-22; 8:45 am]
BILLING CODE 6717-01-P