Form 10-D.Supporting Statement.2018

SUPPORTING STATEMENT
FOR THE PAPERWORK REDUCTION ACT INFORMATION COLLECTION
FOR EXCHANGE ACT FORM 10-D

A.

JUSTIFICATION

1.

Circumstances Making the Collection of Information Necessary

On December 22, 2004, the Commission adopted final rules to address comprehensively
the registration, disclosure and reporting requirements for asset-backed securities, or ABS, under
the Securities Act of 1933 (“Securities Act”) and the Securities Exchange Act of 1934
(“Exchange Act”). These rules consolidated and codify the informal framework that has been
developed to address the different nature of ABS. Asset-backed securities are securities that are
backed by a discrete pool of self-liquidating financial assets. Issuers of asset-backed securities
are not exempt form Exchange Act reporting requirements. Asset-backed securities that are
listed on a national securities exchange must be registered pursuant to Section 12 of the
Exchange Act and file reports pursuant to Section 13(a) of the Exchange Act. Even without a
listing, an offering of asset-backed securities pursuant to an effective Securities Act registration
statement triggers a reporting obligation under Section 15(d) of the Exchange Act with respect to
those securities, at least for a period of time.
Form 10-D is the distribution report filed by asset-backed securities issuers pursuant to
Sections 13 and 15(d) of the Exchange Act.
2.

Purpose and Use of the Information Collection

The purpose of the information collection is to provide information to the public
regarding asset-backed securities.
3.

Consideration Given to Information Technology

Form 10-D is filed electronically with the Commission using the Commission’s
Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) System.
4.

Duplication of Information
There is no other source for the information required by Form 10-D.

5.

Reducing the Burden on Small Entities

We believe that there will not be any significant economic impact on a substantial
number of small entities.

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6.

Consequences of Not Conducting Collection

The potential consequences of less frequent disclosure for reporting under the Exchange
Act would be to reduce transparency of the performance of both the asset pool and transaction
parties, which may potentially impede investment decisions and investor monitoring of
transaction performance.
7.

Special Circumstances
Not applicable.

8.

Consultations with Persons Outside the Agency

No comments were received on this request during the 60-day comment period prior to
OMB’s review of this submission.
9.

Payment or Gift to Respondents
Not applicable.

10.

Confidentiality
Not applicable.

11.

Sensitive Questions

No information of a sensitive nature, including social security numbers, will be required
under this collection of information. The information collection collects basic Personally
Identifiable Information (PII) that may include signature of the official signing on behalf of the
entity. However, the agency has determined that the information collection does not constitute a
system of record for purposes of the Privacy Act. Information is not retrieved by a personal
identifier. In accordance with Section 208 of the E-Government Act of 2002, the agency has
conducted a Privacy Impact Assessment (PIA) of the EDGAR system, in connection with this
collection of information. The EDGAR PIA, published on January 29, 2016, is provided as a
supplemental document and is also available at https://www.sec.gov/privacy.
12.

Estimate of Respondent Reporting Burden

For purposes of the Paperwork Reduction Act (“PRA”), we estimate that Form 10-D
takes approximately 37.75 hours per response to comply with the collection of information
requirements and is filed by 8,258 respondents. We derived our burden hour estimates by
estimating the average number of hours it would take an asset-backed issuer to compile the
necessary information and data, prepare and review disclosure, file documents and retain
records. In connection with rule amendments to the form, we occasionally receive PRA
estimates from public commenters about incremental burdens that are used in our burden
estimates. We believe that the actual burdens will likely vary among individual issuers based on

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the nature of their operations. We further estimate that 75% of the collection of information
burden is carried by the issuer internally and that 25% of the burden of preparation is carried by
outside professionals retained by the company. Based on our estimates, we calculated the total
reporting burden to be 229,160 hours ((0.75% x 37.0 total burden hours per response) x 8,258
responses). For administrative convenience, the presentation of the totals related to the
paperwork burden hours have been rounded to the nearest whole number and the cost totals have
been rounded to the nearest dollar. The estimated burden hours are made solely for the purpose
of the Paperwork Reduction Act.
13.

Estimate of Total Annualized Cost Burden

We estimate that 25% of the 37 hours per response (9.25 hours) is prepared by an outside
counsel. We estimate that it will cost $400 per hour ($400 x 9.25 hours per response x 8,258
responses) for a total cost of $30,554,600. We estimate an hourly cost of $400 for outside legal
and accounting services used in connection with public company reporting. This estimate is
based on our consultations with registrants and professional firms who regularly assist registrants
in preparing and filing disclosure documents with the Commission. Our estimates reflect
average burdens, and therefore, some companies may experience costs in excess of our estimates
and some companies may experience costs that are lower than our estimates. For administrative
convenience, the presentation of the totals related to the paperwork burden hours have been
rounded to the nearest whole number and the cost totals have been rounded to the nearest dollar.
The cost estimate is made solely for the purpose of the Paperwork Reduction Act.
14.

Costs to Federal Government
The estimated cost of preparing the form amendments was approximately $50,000.

15.

Reason for Changes in Burden

The decrease in burden of -131,979 hours and the decrease in cost burden ($17,597,200)
is due to an adjustment. The change in burden hours and cost burden is due to a decrease in the
number of Forms 10-D filed with the Commission.
16.

Information Collection Planned for Statistical Purposes
Not applicable.

17.

Approval to Omit OMB Expiration Date

We request authorization to omit the expiration date on the electronic version of the form.
Including the expiration date on the electronic version of the form will result in increased costs
because the need to make changes to the form may not follow the application’s scheduled
version release dates. The OMB control number will be displayed.

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B.

STATISTICAL METHODS
Not applicable.