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Federal Register / Vol. 86, No. 24 / Monday, February 8, 2021 / Notices
Commission, 100 F Street NE, Washington, DC 205491090.
All submissions should refer to File Number SRNYSEARCA202107. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commissions internet website http www.sec.gov/
rules/sro.shtml. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the 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 Commissions 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 SRNYSEARCA202107 and should be submitted on or before March 1, 2021.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18
J. Matthew DeLesDernier, Assistant Secretary.
FR Doc. 202102475 Filed 2521; 8:45 am BILLING CODE 801101P

SECURITIES AND EXCHANGE
COMMISSION
SEC File No. 270208, OMB Control No.
32350213

jbell on DSKJLSW7X2PROD with NOTICES

Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100
F Street NE, Washington, DC 205492736.
Extension:
Rule 17g1.
18 17

CFR 200.303a12.

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Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995
44 U.S.C. 350l-3520, 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.
Rule 17g1 17 CFR 270.17g1 under the Investment Company Act of 1940
the Act 15 U.S.C. 80a17g governs the fidelity bonding of officers and employees of registered management investment companies funds and their advisers. Rule 17g 1 requires, in part, the following:
Independent Directors Approval The form and amount of the fidelity bond must be approved by a majority of the funds independent directors at least once annually, and the amount of any premium paid by the fund for any joint insured bond, covering multiple funds or certain affiliates, must be approved by a majority of the funds independent directors.
Terms and Provisions of the Bond The amount of the bond may not be less than the minimum amounts of coverage set forth in a schedule based on the funds gross assets. The bond must provide that it shall not be cancelled, terminated, or modified except upon 60-days written notice to the affected party and to the Commission. In the case of a joint insured bond, 60-days written notice must also be given to each fund covered by the bond. A joint insured bond must provide that the fidelity insurance company will provide all funds covered by the bond with a copy of the agreement, a copy of any claim on the bond, and notification of the terms of the settlement of any claim prior to execution of that settlement. Finally, a fund that is insured by a joint bond must enter into an agreement with all other parties insured by the joint bond regarding recovery under the bond.
Filings With the Commission Upon the execution of a fidelity bond or any amendment thereto, a fund must file with the Commission within 10
days: i A copy of the executed bond or any amendment to the bond, ii the independent directors resolution approving the bond, and iii a statement as to the period for which premiums have been paid on the bond.
In the case of a joint insured bond, a fund must also file: i A statement showing the amount the fund would
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have been required to maintain under the rule if it were insured under a single insured bond; and ii the agreement between the fund and all other insured parties regarding recovery under the bond. A fund must also notify the Commission in writing within five days of any claim or settlement on a claim under the fidelity bond.
Notices to Directors A fund must notify by registered mail each member of its board of directors of:
i Any cancellation, termination, or modification of the fidelity bond at least 45 days prior to the effective date; and ii the filing or settlement of any claim under the fidelity bond when notification is filed with the Commission.
Rule 17g1s independent directors annual review requirements, fidelity bond content requirements, joint bond agreement requirement, and the required notices to directors are designed to ensure the safety of fund assets against losses due to the conduct of persons who may obtain access to those assets. These requirements also seek to facilitate oversight of a funds fidelity bond. The rules required filings with the Commission are designed to assist the Commission in monitoring funds compliance with the fidelity bond requirements.
Based on conversations with representatives in the fund industry, the Commission staff estimates that for each of the estimated 2,200 active funds respondents,1 the average annual paperwork burden associated with rule 17g1s requirements is two hours, one hour each for a compliance attorney and the board of directors as a whole. The time spent by a compliance attorney includes time spent filing reports with the Commission for fidelity losses if any as well as paperwork associated with any notices to directors, and managing any updates to the bond and the joint agreement if one exists. The time spent by the board of directors as a whole includes any time spent initially establishing the bond, as well as time spent on annual updates and approvals. The Commission staff therefore estimates the total ongoing paperwork burden hours per year for all funds required by rule 17g1 to be 4,400
hours 2,200 funds 2 hours = 4,400
hours. Commission staff continues to 1 Based on a review of fund filings for the threeyear period from 2018 to 2020, Commission staff estimates there are approximately 2,200 funds registered openand closed-end funds, and business development companies that must comply with the collections of information under rule 17g1, and which collectively submit an estimated 2,597 filings on Form 17G annually.

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