[Federal Register Volume 80, Number 109 (Monday, June 8, 2015)]
[Notices]
[Pages 32424-32425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13876]
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SECURITIES AND EXCHANGE COMMISSION
[Extension: Rule 206(4)-3; OMB Control No. 3235-0242, SEC File No. 270-
218]
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.
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
[[Page 32425]]
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 4,422 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 31,130 total
burden hours (7.04 x 4,422) 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 Pamela Dyson, 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: June 2, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-13876 Filed 6-5-15; 8:45 am]
BILLING CODE 8011-01-P