[Federal Register Volume 80, Number 15 (Friday, January 23, 2015)]
[Notices]
[Pages 3671-3672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01078]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; 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 206(3)-2; SEC File No. 270-216, OMB Control No. 3235-0243.
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
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(3)-2, (17 CFR 275.206(3)-2) which is entitled ``Agency
Cross Transactions for Advisory Clients,'' permits investment advisers
to comply with section 206(3) of the Investment Advisers Act of 1940
(the ``Act'') (15 U.S.C. 80b-6(3)) by obtaining a client's blanket
consent to enter into agency cross transactions (i.e., a transaction in
which an adviser acts as a broker to both the advisory client and the
opposite party to the transaction), provided that certain disclosures
are made to the client. Rule 206(3)-2 applies to all registered
investment advisers. In relying on the rule, investment advisers must
provide certain disclosures to their clients. Advisory clients can use
the disclosures to monitor agency cross transactions that affect their
advisory account. The Commission also uses the information required by
Rule 206(3)-2 in connection with its investment adviser inspection
program to ensure that advisers are in compliance with the rule.
Without the information collected under the rule, advisory clients
would not have information necessary for monitoring their adviser's
handling of their accounts and the Commission would be less efficient
and effective in its inspection program.
[[Page 3672]]
The information requirements of the rule consist of the following:
(1) Prior to obtaining the client's consent appropriate disclosure must
be made to the client as to the practice of, and the conflicts of
interest involved in, agency cross transactions; (2) at or before the
completion of any such transaction the client must be furnished with a
written confirmation containing specified information and offering to
furnish upon request certain additional information; and (3) at least
annually, the client must be furnished with a written statement or
summary as to the total number of transactions during the period
covered by the consent and the total amount of commissions received by
the adviser or its affiliated broker-dealer attributable to such
transactions.
The Commission estimates that approximately 464 respondents use the
rule annually, necessitating about 32 responses per respondent each
year, for a total of 14,848 responses. Each response requires an
estimated 0.5 hours, for a total of 7,424 hours. The estimated average
burden hours are made solely for the purposes of the Paperwork
Reduction Act and are not derived from a comprehensive or
representative survey or study of the cost of Commission rules and
forms.
This collection of information is found at (17 CFR 275.206(3)-2)
and is necessary in order for the investment adviser to obtain the
benefits of Rule 206(3)-2. The collection of information requirements
under the rule is mandatory. Information subject to the disclosure
requirements of Rule 206(3)-2 does not require submission to the
Commission; and, accordingly, the disclosure pursuant to the rule is
not kept confidential. Commission-registered investment advisers are
required to maintain and preserve certain information required under
Rule 206(3)-2 for five (5) years. The long-term retention of these
records is necessary for the Commission's inspection program to
ascertain compliance with the Advisers Act.
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.
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 shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information to be
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 sixty 60 days of this publication.
Please direct your written comments to Pamela Dyson, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
C/O Remi Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send
an email to: [email protected].
Dated: January 16, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-01078 Filed 1-22-15; 8:45 am]
BILLING CODE 8011-01-P