30 Day Notice

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Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices

inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CboeBZX–2019–083, and
should be submitted on or before
October 21, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.34
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–21094 Filed 9–27–19; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.

khammond on DSKJM1Z7X2PROD with NOTICES

Extension:
Rule 12d3–1, SEC File No. 270–504, OMB
Control No. 3235–0561.

Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Section 12(d)(3) of the Investment
Company Act of 1940 (15 U.S.C. 80a)
generally prohibits registered
investment companies (‘‘funds’’), and
companies controlled by funds, from
purchasing securities issued by a
registered investment adviser, broker,
dealer, or underwriter (‘‘securitiesrelated businesses’’). Rule 12d3–1
(‘‘Exemption of acquisitions of
securities issued by persons engaged in
securities related businesses’’ (17 CFR
270.12d3–1)) permits a fund to invest
up to five percent of its assets in
securities of an issuer deriving more
than fifteen percent of its gross revenues
from securities-related businesses, but a
fund may not rely on rule 12d3–1 to
acquire securities of its own investment
adviser or any affiliated person of its
own investment adviser.
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A fund may, however, rely on an
exemption in rule 12d3–1 to acquire
securities issued by its subadvisers in
circumstances in which the subadviser
would have little ability to take
advantage of the fund, because it is not
in a position to direct the fund’s
securities purchases. The exemption in
rule 12d3–1 is available if (i) the
subadviser is not, and is not an affiliated
person of, an investment adviser that
provides advice with respect to the
portion of the fund that is acquiring the
securities, and (ii) the advisory contracts
of the subadviser, and any subadviser
that is advising the purchasing portion
of the fund, prohibit them from
consulting with each other concerning
securities transactions of the fund, and
limit their responsibility in providing
advice to providing advice with respect
to discrete portions of the fund’s
portfolio.
Based on an analysis of fund filings,
the staff estimates that approximately
216 fund portfolios enter into
subadvisory agreements each year.1
Based on discussions with industry
representatives, the staff estimates that
it will require approximately 3 attorney
hours to draft and execute additional
clauses in new subadvisory contracts in
order for funds and subadvisers to be
able to rely on the exemptions in rule
12d3–1. Because these additional
clauses are identical to the clauses that
a fund would need to insert in their
subadvisory contracts to rely on rules
10f–3, 17a–10, and 17e–1 and because
we believe that funds that use one such
rule generally use all of these rules, we
apportion this 3 hour time burden
equally to all four rules. Therefore, we
estimate that the burden allocated to
rule 12d3–1 for this contract change
would be 0.75 hours.2 Assuming that all
216 funds that enter into new
subadvisory contracts each year make
the modification to their contract
required by the rule, we estimate that
the rule’s contract modification
requirement will result in 182 burden
hours annually.3
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. The estimate
is not derived from a comprehensive or
even a representative survey or study of
1 Based on data from Morningstar Direct, as of
December 31, 2018, there are 12,459 registered
funds (open-end funds, closed-end funds, and
exchange-traded funds), 4,615 of which have
subadvisory relationships (approximately 37%).
583 new funds were established in 2018. 583 new
funds × 37% = 216 funds.
2 This estimate is based on the following
calculation (3 hours ÷ 4 rules = .75 hours).
3 This estimate is based on the following
calculation: (0.75 hours × 216 portfolios = 182
burden hours).

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the costs of Commission rules.
Complying with this collection of
information requirement is necessary to
obtain the benefit of relying on rule
12d3–1. Responses will not be kept
confidential. 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.
The public may view the background
documentation for this information
collection at the following website,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to:
[email protected]; and (ii)
Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
[email protected]. Comments must be
submitted to OMB within 30 days of
this notice.
Dated: September 24, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–21084 Filed 9–27–19; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87092; File No. SR–
CboeBZX–2019–082]

Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend the
Fees Applicable to Physical
Connectivity
September 24, 2019.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that, on
September 10, 2019, Cboe BZX
Exchange, Inc. (the ‘‘Exchange’’ or
‘‘BZX’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
1 15
2 17

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U.S.C. 78s(b)(1).
CFR 240.19b–4.

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