[Federal Register Volume 78, Number 233 (Wednesday, December 4, 2013)]
[Notices]
[Page 72932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-28977]
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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(3)-3T; OMB Control No. 3235-0630, SEC File No. 270-571.
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'') is soliciting comments on the
collections of information summarized below. The Commission plans to
submit these existing collections of information to the Office of
Management and Budget (``OMB'') for extension and approval.
Temporary rule 206(3)-3T (17 CFR 275.206(3)-3T) under the
Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) is entitled:
``Temporary rule for principal trades with certain advisory clients.''
The temporary rule provides investment advisers who are registered with
the Commission as broker-dealers an alternative means to meet the
requirements of section 206(3) of the Advisers Act (15 U.S.C. 80b-6(3))
when they act in a principal capacity in transactions with certain of
their advisory clients.
Temporary rule 206(3)-3T permits investment advisers also
registered as broker-dealers to satisfy the Advisers Act's principal
trading restrictions by: (i) Providing written, prospective disclosure
regarding the conflicts arising from principal trades; (ii) obtaining
written, revocable consent from the client prospectively authorizing
the adviser to enter into principal transactions; (iii) making oral or
written disclosure and obtaining the client's consent before each
principal transaction; (iv) sending to the client confirmation
statements disclosing the capacity in which the adviser has acted; and
(v) delivering to the client an annual report itemizing the principal
transactions.
Providing the information required by rule 206(3)-3T is necessary
for investment advisers also registered as broker-dealers to obtain the
benefit of the alternative means of complying with section 206(3) of
the Advisers Act. Disclosures under the rule provide important investor
protections when advisers engage in principal trades. Clients of
advisers will primarily use the information to monitor principal trades
in their accounts.
The Commission staff estimates that approximately 278 investment
advisers make use of rule 206(3)-3T, including an estimated 11 advisers
(on an annual basis) also registered as broker-dealers who do not offer
non-discretionary services, but whom the Commission staff estimates
will choose to do so and rely on rule 206(3)-3T. The Commission staff
estimates that these advisers spend, in the aggregate, approximately
139,358 hours annually in complying with the requirements of the rule,
including both initial and annual burdens. The aggregate hour burden,
expressed on a per-eligible-adviser basis, is therefore approximately
501 hours per eligible adviser (139,358 hours divided by the estimated
278 advisers that will rely on rule 206(3)-3T).
Written comments are invited on: (a) Whether the collections of
information are necessary for the proper performance of the functions
of the Commission, including whether the information has practical
utility; (b) The accuracy of the Commission's estimate of the burdens
of the collections of information; (c) Ways to enhance the quality,
utility, and clarity of the information collected; and (d) Ways to
minimize the burdens of the collections 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. An agency may not conduct or sponsor a collection of
information unless it displays a currently valid OMB control 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 control number.
Please direct your written comments to Thomas Bayer, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Remi
Pavlik-Simon, 100 F St. NE., Washington, DC 20549; or send an email to:
[email protected].
Dated: November 27, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-28977 Filed 12-3-13; 8:45 am]
BILLING CODE 8011-01-P