[Federal Register Volume 76, Number 46 (Wednesday, March 9, 2011)]
[Pages 13002-13003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5283]



Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 

    Rule 206(3)-3T; SEC File No. 270-571; OMB Control No. 3235-0630.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 350 et seq.), the Securities and Exchange Commission 
(the ``Commission'') has submitted to the Office of Management and 
Budget (``OMB'') a request for extension and approval of the 
collections of information discussed below.
    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 
    The Commission staff estimates that approximately 380 investment 
advisers make use of rule 206(3)-3T, including an estimated 24 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 
378,992 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 
997 hours per eligible adviser (378,992 hours divided by the estimated 
380 advisers that will rely on rule 206(3)-3T).

[[Page 13003]]

    The information collected pursuant to the rule is not required to 
be filed with the Commission, but rather takes the form of disclosures 
to, and responses from, clients. Accordingly, these filings are not 
kept confidential. To the extent advisers include any of the 
information required by the rule in a filing, such as Form ADV, the 
information will not be kept confidential. 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.
    The public may view the background documentation for this 
information collection at the following Web site, http://www.reginfo.gov. Comments should be directed to: (i) Desk Officer for 
the Securities and Exchange Commission, Office of Information and 
Regulatory Affairs, Office of Management and Budget, Room 10102, New 
Executive Office Building, Washington, DC 20503, or by sending an e-
mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an 
e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB 
within 30 days of this notice.

    Dated: March 1, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5283 Filed 3-8-11; 8:45 am]