30 Day Notice

Federal Register / Vol. 87, No. 150 / Friday, August 5, 2022 / Notices
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 website 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 the
filing also will be available for
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–CBOE–2022–040, and
should be submitted on or before
August 26, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–16763 Filed 8–4–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–217, OMB Control No.
3235–0241]

lotter on DSK11XQN23PROD with NOTICES1

Submission for OMB Review;
Comment Request: Extension: Rule
206(4)–2
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
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
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension and
revision of the previously approved
collection of information discussed
below.
The title for the collection of
information is ‘‘Rule 206(4)–2 under the
Investment Advisers Act of 1940—
Custody of Funds or Securities of
Clients by Investment Advisers.’’ Rule
206(4)–2 (17 CFR 275.206(4)–2) under
the Investment Advisers Act of 1940 (15
U.S.C. 80b–1 et seq.) governs the
custody of funds or securities of clients
19 17

CFR 200.30–3(a)(12), (59).

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by Commission-registered investment
advisers. Rule 206(4)–2 requires each
registered investment adviser that has
custody of client funds or securities to
maintain those client funds or securities
with a broker-dealer, bank or other
‘‘qualified custodian.’’ 1 The rule
requires the adviser to promptly notify
clients as to the place and manner of
custody, after opening an account for
the client and following any changes.2
If an adviser sends account statements
to its clients, it must insert a legend in
the notice and in subsequent account
statements sent to those clients urging
them to compare the account statements
from the custodian with those from the
adviser.3 The adviser also must have a
reasonable basis, after due inquiry, for
believing that the qualified custodian
maintaining client funds and securities
sends account statements directly to the
advisory clients at least quarterly,
identifying the amount of funds and of
each security in the account at the end
of the period and setting forth all
transactions in the account during that
period.4 The client funds and securities
of which an adviser has custody must
undergo an annual surprise examination
by an independent public accountant to
verify client assets pursuant to a written
agreement with the accountant that
specifies certain duties.5 Unless client
assets are maintained by an
independent custodian (i.e., a custodian
that is not the adviser itself or a related
person), the adviser also is required to
obtain or receive a written report of the
internal controls relating to the custody
of those assets from an independent
public accountant that is registered with
and subject to regular inspection by the
Public Company Accounting Oversight
Board (‘‘PCAOB’’).6
The rule exempts advisers from the
rule with respect to clients that are
registered investment companies.
Advisers to limited partnerships,
limited liability companies and other
pooled investment vehicles are excepted
from the account statement delivery and
deemed to comply with the annual
surprise examination requirement if the
limited partnerships, limited liability
companies or pooled investment
vehicles are subject to annual audit by
an independent public accountant
registered with, and subject to regular
inspection by the PCAOB, and the
audited financial statements are
1 Rule

206(4)–2(a)(1).
206(4)–2(a)(2).
3 Rule 206(4)–2(a)(2).
4 Rule 206(4)–2(a)(3).
5 Rule 206(4)–2(a)(4).
6 Rule 206(4)–2(a)(6).
2 Rule

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distributed to investors in the pools.7
The rule also provides an exception to
the surprise examination requirement
for advisers that have custody solely
because they have authority to deduct
advisory fees from client accounts,8 and
advisers that have custody solely
because a related person holds the
adviser’s client assets (or has any
authority to obtain possession of them)
and the related person is operationally
independent of the adviser.9
Advisory clients use this information
to confirm proper handling of their
accounts. The Commission’s staff uses
the information obtained through these
collections in its enforcement,
regulatory and examination programs.
Without the information collected under
the rule, the Commission would be less
efficient and effective in its programs
and clients would not have information
valuable for monitoring an adviser’s
handling of their accounts.
The respondents to this information
collection are investment advisers
registered with the Commission and
have custody of clients’ funds or
securities. We estimate that 8,057
advisers would be subject to the
information collection burden under
rule 206(4)–2. The number of responses
under rule 206(4)–2 will vary
considerably depending on the number
of clients for which an adviser has
custody of funds or securities, and the
number of investors in pooled
investment vehicles that the adviser
manages. It is estimated that the average
number of responses annually for each
respondent would be 6,830, and an
average time of 0.00524 hour per
response. The annual aggregate burden
for all respondents to the requirements
of rule 206(4)–2 is estimated to be
288,202 hours.
This collection of information is
found at 17 CFR 275.206(4)–2 and is
mandatory. Responses to the collection
of information are not kept confidential.
Commission-registered investment
advisers are required to maintain and
preserve certain information required
under rule 206(4)–2 for five years. The
long-term retention of these records is
necessary for the Commission’s
examination program to ascertain
compliance with the Investment
Advisers Act.
The estimated average burden hours
are made solely for the purposes of
Paperwork Reduction Act and are not
derived from a comprehensive or even
representative survey or study of the
cost of Commission rules and forms. An
7 Rule

206(4)–2(b)(4).
206(4)–2(b)(3).
9 Rule 206(4)–2(b)(6).
8 Rule

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Federal Register / Vol. 87, No. 150 / Friday, August 5, 2022 / Notices

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 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 by September 6, 2022.
To (i) MBX.OMB.OIRA.SEC_desk_
[email protected] and (ii) David
Bottom, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o John Pezzullo, 100 F
Street NE, Washington, DC 20549, or by
sending an email to: PRA_Mailbox@
sec.gov.
Date: August 1, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–16848 Filed 8–4–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–504, OMB Control No.
3235–0561]

lotter on DSK11XQN23PROD with NOTICES1

Submission for OMB Review;
Comment Request: Extension: Rule
12d3–1
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
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.
Rule 12d3–1 (17 CFR 270.12d3–1)
under the Investment Company Act of
1940 (15 U.S.C. 80a–1 et seq.)
(‘‘Investment Company Act’’) 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 (subject to certain
limitations), notwithstanding the
general prohibition in Section 12(d)(3)
of the Investment Company Act of a
registered investment company (‘‘fund’’)

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and companies controlled by the fund
purchasing securities issued by a
registered investment adviser, broker,
dealer, or underwriter (‘‘securitiesrelated businesses’’).
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. This 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.1
Based on an analysis of fund filings,
Commission staff estimates that
approximately 285 funds enter into such
new subadvisory agreements each year,
and 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 (17 CFR 270.10f–3),
17a–10 (17 CFR 270.17a–10), and 17e–
1 (17 CFR 270.17e–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. Assuming that all
285 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 214 burden
hours annually, with an associated time
cost of approximately $90,950.
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
the costs of Commission rules.
Complying with this collection of
information requirement is necessary to
1 See

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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 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 by September 6, 2022 to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].
Dated: August 1, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–16847 Filed 8–4–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[TM–270–650; OMB Control No. 3235–0700]

Proposed Collection; Comment
Request; Extension: Rule 18a–4
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 18a–4 (17 CFR
240.18a–4), under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 18a–4 establishes segregation
requirements for cleared and noncleared security-based swap
transactions, which applies to nonbroker-dealer security-based swap
dealers (‘‘SBSDs’’) (i.e., bank SBSDs and
nonbank stand-alone SBSDs), as well as
notification requirements for non-

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