[Federal Register Volume 77, Number 89 (Tuesday, May 8, 2012)]
[Notices]
[Page 27102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11004]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 206(4)-3; SEC File No. 270-218; OMB Control No. 3235-0242.
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'') 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 206(4)-3 (17 CFR 275.206(4)-3) under the Investment Advisers
Act of 1940, which is entitled ``Cash Payments for Client
Solicitations,'' provides restrictions on cash payments for client
solicitations. The rule requires that an adviser pay all solicitors'
fees pursuant to a written agreement. When an adviser will provide only
impersonal advisory services to the prospective client, the rule
imposes no disclosure requirements. When the solicitor is affiliated
with the adviser and the adviser will provide individualized advisory
services to the prospective client, the solicitor must, at the time of
the solicitation or referral, indicate to the prospective client that
he is affiliated with the adviser. When the solicitor is not affiliated
with the adviser and the adviser will provide individualized advisory
services to the prospective client, the solicitor must, at the time of
the solicitation or referral, provide the prospective client with a
copy of the adviser's brochure and a disclosure document containing
information specified in rule 206(4)-3. Amendments to rule 206(4)-3,
adopted in 2010 in connection with rule 206(4)-5, specify that
solicitation activities involving a government entity, as defined in
rule 206(4)-5, are subject to the additional limitations of rule
206(4)-5. The information rule 206(4)-3 requires is necessary to inform
advisory clients about the nature of the solicitor's financial interest
in the recommendation so the prospective clients may consider the
solicitor's potential bias, and to protect clients against solicitation
activities being carried out in a manner inconsistent with the
adviser's fiduciary duty to clients. Rule 206(4)-3 is applicable to all
Commission-registered investment advisers. The Commission believes that
approximately 4,159 of these advisers have cash referral fee
arrangements. The rule requires approximately 7.04 burden hours per
year per adviser and results in a total of approximately 29,279 total
burden hours (7.04 x 4,159) for all advisers.
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information collected; and (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication. The Commission may not conduct or sponsor a
collection of information unless it displays a currently valid OMB
number. No person shall be subject to any penalty for failing to comply
with a collection of information subject to the PRA that does not
display a valid OMB number.
Please direct your written comments to Thomas Bayer, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA, 22312; or send an
email to: [email protected].
Dated: May 2, 2012.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-11004 Filed 5-7-12; 8:45 am]
BILLING CODE 8011-01-P