30 Day Notice

30 Day 0226 Notice 2021-21590 (1).pdf

Rule 10f-3 (17 CFR 270.10f-3) under the Investment Company Act of 1940, Exemption for the Acquisition of Securities During the Existence of an Underwriting or Selling Syndicate

30 Day Notice

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Federal Register / Vol. 86, No. 190 / Tuesday, October 5, 2021 / Notices
information, or personally identifiable
information be submitted in response to
this RFI. Please note that the United
States Government will not pay for
response preparation, or for the use of
any information contained in the
response.
FOR FURTHER INFORMATION CONTACT: Said
Jahanmir, [email protected], 202–819–
5296.
SUPPLEMENTARY INFORMATION: The
Consolidated and Further Continuing
Appropriations Act 2015 (Pub. L. 113–
235), incorporating the Revitalize
American Manufacturing and
Innovation Act of 2014, revised 42
U.S.C. 6622 to direct NSTC to develop
and to update, in coordination with the
National Economic Council, a strategic
plan to improve government
coordination and to provide long-term
guidance for Federal programs and
activities in support of United States
manufacturing competitiveness,
including advanced manufacturing
research and development (R&D). The
current National Strategic Plan for
Advanced Manufacturing (‘‘Plan’’) was
released on October 5, 2018 (https://
www.manufacturing.gov/news/
announcements/2018/10/strategyamerican-leadership-advancedmanufacturing).
Advanced manufacturing is a family
of activities that (1) depend on the use
and coordination of information,
automation, computation, software,
sensing, and networking, and/or (2)
make use of cutting-edge materials and
emerging capabilities enabled by the
physical and biological sciences, for
example: Nanotechnology, chemistry,
and biology. It involves both new ways
to manufacture existing products, and
the manufacture of new products
emerging from new advanced
technologies.
NSTC has commenced the
development of an updated Plan to be
released in 2022. Pursuant to 42 U.S.C.
6622, OSTP is soliciting public input
through this RFI to obtain
recommendations from a wide range of
stakeholders, including representatives
from diverse manufacturing companies,
academia, other relevant organizations
and institutions, and the general public.
The public input provided in response
to this RFI will inform OSTP and NSTC
as they work with Federal agencies and
other stakeholders to develop an
updated revised Plan.
Questions To Inform Development of
the Plan
OSTP seeks responses to the
following questions to improve
government coordination and to provide

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long-term guidance for Federal
programs and activities in support of
United States manufacturing
competitiveness, including advanced
manufacturing R&D.
1. Which emerging science and
technology areas will be key to the next
generation of advanced manufacturing
for global competitiveness,
sustainability, and environmental
challenges?
2. What should be the near-term and
long-term technology development R&D
priorities for advanced manufacturing,
the anticipated timeframe for achieving
the objectives, and the metrics in
assessing progress toward the
objectives?
3. What are examples of
technological, market, or business
challenges that may best be addressed
by public-private partnerships, and are
likely to attract both participation and
primary funding from industry?
4. How can Federal agencies and
federally funded R&D centers
supporting advanced manufacturing
R&D facilitate the transfer of research
results, intellectual property, and
technology into commercialization and
manufacturing for the benefit of society
and ensure sustainability, national
security, and economic security?
5. How would you assess the state of
the domestic advanced manufacturing
workforce in the U.S? How can Federal
agencies and federally funded R&D
centers develop, align, and strengthen
all levels of advanced manufacturing
education, training, and certification
programs to ensure a high-quality,
equitable, diverse, and inclusive
workforce that meets the needs of the
sector and drives new advanced
manufacturing jobs into the future?
6. How can the Federal government
assist in the development of regional
public-private partnerships to achieve
greater distribution of advanced
manufacturing clusters or technology
hubs, particularly in underserved
regions of the country? What outreach
and engagement strategies are most
useful in promoting development in
underserved regions of the country?
7. How do we assess the adequacy of
the domestic advanced manufacturing
supply chain and industrial base? How
can Federal agencies assist small and
medium sized manufacturing
companies to adopt advanced
technologies and to develop a robust
and resilient manufacturing supply
chain? What steps can these agencies
take to promote the development and
diffusion of technology that augments
worker skills (rather than substituting
for them), and ensures that
manufacturing jobs are good jobs?

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8. Are there useful models (at the
international, national, state and/or
local level) that should be expanded?
9. The current Strategy for American
Leadership in Advanced Manufacturing
(https://www.manufacturing.gov/news/
announcements/2018/10/strategyamerican-leadership-advancedmanufacturing) has three top-level
goals, each with objectives and
priorities: (1) Develop and transition
new manufacturing technologies; (2)
Educate, train, and connect the
manufacturing workforce; and (3)
Expand the capabilities of the domestic
manufacturing supply chains. Are these
goals appropriate for the next 4–5 years?
Are there additional top-level goals to
consider?
10. Is there any additional
information related to advanced
manufacturing in the United States, not
requested above, that you believe
should be considered?
Dated: September 30, 2021.
Stacy Murphy,
Operations Manager.
[FR Doc. 2021–21644 Filed 10–4–21; 8:45 am]
BILLING CODE 3270–FI–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–237, OMB Control No.
3235–0226]

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
Extension:
Rule 10f–3

Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget a
request for extension and approval of
the collections of information discussed
below.
Section 10(f) of the Investment
Company Act of 1940 (15 U.S.C. 80a)
(the ‘‘Act’’) prohibits a registered
investment company (‘‘fund’’) from
purchasing any security during an
underwriting or selling syndicate if the
fund has certain affiliated relationships
with a principal underwriter for the
security. Congress enacted this
provision in 1940 to protect funds and
their shareholders by preventing
underwriters from ‘‘dumping’’

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Federal Register / Vol. 86, No. 190 / Tuesday, October 5, 2021 / Notices

unmarketable securities on affiliated
funds.
Rule 10f–3 (17 CFR 270.10f–3) under
the Act permits a fund to engage in a
securities transaction that otherwise
would violate Section 10(f) if, among
other things: (i) The fund’s directors
have approved procedures for purchases
made in reliance on the rule, regularly
review fund purchases to determine
whether they comply with these
procedures, and approve necessary
changes to the procedures; and (ii) a
written record of each transaction
effected under the rule is maintained for
six years, the first two of which in an
easily accessible place. The written
record must state: (i) From whom the
securities were acquired; (ii) the identity
of the underwriting syndicate’s
members; (iii) the terms of the
transactions; and (iv) the information or
materials on which the fund’s board of
directors has determined that the
purchases were made in compliance
with procedures established by the
board.
Rule 10f–3 also conditionally allows
managed portions of fund portfolios to
purchase securities offered in otherwise
off-limits primary offerings. To qualify
for this exemption, Rule 10f–3 requires
that the subadviser that is advising the
purchaser be contractually prohibited
from providing investment advice to
any other portion of the fund’s portfolio
and consulting with any other of the
fund’s advisers that is a principal
underwriter or affiliated person of a
principal underwriter concerning the
fund’s securities transactions.
These requirements provide a
mechanism for fund boards to oversee
compliance with the rule. The required
recordkeeping facilitates the
Commission staff’s review of Rule 10f–
3 transactions during routine fund
inspections and, when necessary, in
connection with enforcement actions.
The staff estimates that approximately
953 funds engage in at least one Rule
10f–3 transaction each year, for a total
of 953 such transactions.1 Rule 10f–3
requires that the purchasing fund create
a written record of each transaction that
includes, among other things, from
whom the securities were purchased
and the terms of the transaction. The
staff estimates that it takes an average
fund approximately 30 minutes per
transaction and, in the aggregate,
approximately 477 hours 2 for funds to
comply with this portion of the rule.
1 These estimates are based on data from Form
N–CEN filings with the Commission.
2 This estimate is based on the following
calculation: (0.5 hours × 953 = 477 hours).

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The funds also must maintain and
preserve these transactional records in
accordance with the rule’s
recordkeeping requirement, and the staff
estimates that it takes a fund
approximately 20 minutes per
transaction and, in the aggregate,
approximately 318 hours 3 annually for
the funds to comply with this portion of
the rule.
In addition, fund boards must, no less
than quarterly, examine each of these
transactions to ensure that they comply
with the fund’s policies and procedures.
The information or materials upon
which the board relied to come to this
determination also must be maintained
and the staff estimates that it takes a
fund 1 hour per quarter and, in the
aggregate, approximately 3,812 hours 4
annually for the funds to comply with
this rule requirement.
The staff estimates that reviewing and
revising as needed written procedures
for Rule 10f–3 transactions takes, on
average for each fund, two hours of a
compliance attorney’s time per year.5
Thus, annually, in the aggregate, the
staff estimates that funds spend a total
of approximately 1,906 hours 6 on
monitoring and revising Rule 10f–3
procedures.
Based on an analysis of Form N–CEN
filings, the staff estimates that
approximately 146 new funds enter into
subadvisory agreements each year.7 The
staff estimates that it will require
approximately 0.75 hours to draft and
execute additional clauses in
subadvisory contracts in order for new
funds and subadvisers to be able to rely
on the exemptions in Rule 10f–3.8

Assuming that all 146 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
110 burden hours annually for new
funds.9
The staff estimates, therefore, that
Rule 10f–3 imposes an information
collection burden of 6,623 hours.10
The collection of information required
by Rule 10f–3 is necessary to obtain the
benefits of the rule. 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 OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission,
c/o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected]
Dated: September 29, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–21590 Filed 10–4–21; 8:45 am]
BILLING CODE 8011–01–P

3 This

estimate is based on the following
calculations: (20 minutes × 953 transactions =
19,060 minutes; 19,060 minutes/60 = 318 hours).
4 This estimate is based on the following
calculation: (1 hour per quarter × 4 quarters × 953
funds = 3,812 hours).
5 These averages take into account the fact that in
most years, fund attorneys and boards spend little
or no time modifying procedures and in other years,
they spend significant time doing so.
6 This estimate is based on the following
calculation: (953 funds × 2 hours = 1,906 hours).
7 Based on information in Form N–CEN filings,
we estimate that approximately 139 new open-end
funds and 7 new closed-end funds, or a total of 146
new funds enter into new subadvisory agreements
each year (139 + 7 = 146 new funds). We
understand that existing funds may also enter into
new subadvisory agreements, but in many cases
would benefit from having previously drafted Rule
10f–3 clauses in prior or existing subadvisory
contracts.
8 Because such clauses are identical to the clauses
that a fund would need to insert in their
subadvisory contracts to rely on Rules 12d3–1, 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 10f–3 for this contract
change would be 0.75 hours (3 hours ÷ 4 rules =
0.75 hours).

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SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–562, OMB Control No.
3235–0624]

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
Extension:
Regulation R, Rule 701

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
9 These estimates are based on the following
calculations: (0.75 hours × 146 portfolios = 110
burden hours).
10 This estimate is based on the following
calculation: (477 hours + 318 hours + 3,812 hours
+ 1,906 hours + 110 hours = 6,623 total burden
hours).

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