[Federal Register Volume 63, Number 51 (Tuesday, March 17, 1998)]
[Notices]
[Page 13081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6764]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Extension: Rule 206(3)-2 SEC File No. 270-216 OMB Control No. 3235-
0243
Upon Written Request, Copies Available From: Securities and
Exchange Commission, Office of Filings and Information Services,
Washington, DC 20549.
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'') has submitted to the Office of Management
and Budget a request for extension of the previously approved
collections of information discussed below.
Rule 206(3)-2 permits investment advisers to comply with section
206(3) of the Investment Advisers Act of 1940 by obtaining a blanket
consent from a client to enter into agency cross transactions, provided
that certain disclosures are made to the client. 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 information required by rule 206(3)-2 is used by the Commission
in connection with its investment adviser inspection program to ensure
that advisers are in compliance with rule 206(3)-2. The information is
also used by clients. Without the information collected under the rule,
the Commission would be less efficient and effective in its inspection
program and clients would not have information valuable for monitoring
the adviser's handling of their accounts.
The Commission estimates that approximately 233 respondents utilize
the rule annually, necessitating about 122 responses per respondent
each year, for a total of 28,426 responses. Each response requires
about .5 hours, for a total of 14,213 hours.
These collections of information are found at 17 CFR 275.206(3)-2
and are necessary in order for the investment adviser to obtain the
benefits of rule 206(3)-2. Commission-registered investment advisers
are required to maintain and preserve certain information required
under rule 206(3)-2 for five years. The long-term retention of these
records is necessary for the Commission's inspection program to
ascertain compliance with the Investment Advisers Act.
The estimated average burden hours are made solely for the purposes
of the Paperwork Reduction Act and are not derived from a comprehensive
or even representative survey or study of the cost of Commission rules
and forms.
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.
General comments regarding the above information should be directed
to the following persons: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 3208, New Executive Office
Building, Washington, D.C. 20503; and (ii) Michael E. Bartell,
Associate Executive Director, Office of Information Technology,
Securities and Exchange Commission, 450 5th Street, N.W., Washington,
DC 20549. Comments must be submitted to OMB within 30 days of this
notice.
Dated: March 4, 1998.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-6764 Filed 3-16-98; 8:45 am]
BILLING CODE 8010-01-M
