Advisory Committee on Smaller Public Companies, 59790-59791 [05-20569]

Download as PDF 59790 Federal Register / Vol. 70, No. 197 / Thursday, October 13, 2005 / Notices categories. In 2000, the filing fees were set based on estimates that nearly half of SEC-registered advisers were in the smallest fee category. As of the end of the 2004 fiscal year, however, fully half of SEC-registered advisers were in the highest fee category. Furthermore, IARD expenses associated with SEC filings (SEC-associated IARD expenses) have been less than was projected in 2000. As a result, SEC-associated IARD revenues have exceeded SEC-associated IARD expenses, generating a surplus. As of June 30, 2005, the cumulative surplus of SEC-associated IARD revenues over SEC-associated IARD expenses was approximately $8.5 million (SECassociated surplus). Following discussions among Commission staff, representatives of the North American Securities Administrators Association, Inc. (NASAA) on behalf of the State securities authorities,4 and NASD, NASD wrote our staff a letter that ‘‘recommends that the annual IARD fee for SEC-registered advisers be waived for a one-year period from November 1, 2005 to October 31, 2006.’’ 5 Advisers registered with us pay their IARD annual fees when they file their annual updating amendment to Form ADV, due within 90 days of their fiscal year end. In light of the SEC-associated surplus, we have determined to waive for one year annual filing fees for all SECregistered advisers. This action is expected to waive approximately $3.9 million in IARD system fees. The fee waiver will apply to all annual updating amendments filed by SEC-registered advisers from November 1, 2005 through October 31, 2006. Based on current projections of expected SECassociated IARD revenues and SECassociated IARD expenses in the next several years, the Commission believes that the current surplus exceeds the amount of surplus needed for system enhancements. Accordingly, the Commission believes that a one-year waiver of IARD annual updating amendment filing fees is appropriate. 4 The IARD system is used by both advisers registering or registered with the SEC and advisers registered or registering with one or more State securities authorities. NASAA represents the State securities administrators in setting IARD filing fees for State-registered advisers. State-registered advisers pay their annual system renewal fees in December each year, regardless of their fiscal year. 5 A copy of the letter is available on our website. NASD has not suggested changes to the initial IARD filing fees, which are intended to cover the costs associated with entitling new registrants on the IARD system. NASD represents that the costs per adviser have not changed substantially. We are not changing or waiving these IARD initial set-up fees, which remain $150 for advisers with assets under management under $25 million; $800 for advisers with assets under management between $25 million and $100 million; and $1,100 for advisers with assets under management over $100 million. VerDate Aug<31>2005 16:14 Oct 12, 2005 Jkt 208001 In addition, we note that NASD’s letter further ‘‘recommends that annual IARD fees for SEC-registered advisers be reduced 30% beginning November 1, 2006.’’ 6 In this regard, current projections of fee revenues and system expenses cause us to believe that a reduction in annual filing fees will be necessary to more closely align the IARD filing fees with the costs of those filings. Under Advisers Act section 203A(d), the Commission may require advisers to pay filing fees that reflect the reasonable costs associated with filings made by SEC-registered advisers through the IARD. Accordingly, we plan to issue shortly a notice soliciting comment on the appropriate level of IARD filing fees for the period after the expiration of the one-year waiver. Among the alternatives on which we plan to seek comment are a percentage fee reduction for annual updating amendments filed by SECregistered advisers beginning November 1, 2006 and a second one-year waiver of annual updating amendment fees. It is therefore ordered, pursuant to sections 203A(d) and 206(A) of the Investment Advisers Act of 1940, that: For annual updating amendments to Form ADV filed from November 1, 2005 through October 31, 2006, the fee otherwise due from SEC-registered advisers is waived. By the Commission. Dated: October 7, 2005. J. Lynn Taylor, Assistant Secretary. [FR Doc. E5–5599 Filed 10–12–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release Nos. 33–8623; 34–52575, File No. 265–23] Advisory Committee on Smaller Public Companies Securities and Exchange Commission. ACTION: Notice of Meeting of SEC Advisory Committee on Smaller Public Companies. AGENCY: The Securities and Exchange Commission Advisory Committee on Smaller Public Companies is providing notice that it will hold a public meeting on Monday and Tuesday, October 24 & 25, 2005, in Multi-Purpose Room L006 of the Commission’s headquarters, 100 F 6 We note that NASAA has announced a one-year waiver of annual filing fees and a subsequent reduction of 30% in annual filing fees for State registered advisers. PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 Street, NE., Washington, DC 20549, beginning at 9 a.m. on each day. The meeting is expected to last until approximately 4 p.m. on each day, with a lunch break from approximately noon to 1 p.m. The meeting will be audio webcast on the Commission’s Web site at https://www.sec.gov. The agenda for the meeting includes consideration of proposals of the Advisory Committee’s four subcommittees on possible recommendations for changes to the current securities regulatory system for smaller companies. The public is invited to submit written statements for the meeting. DATES: Written statements should be received on or before October 17, 2005. ADDRESSES: Written statements may be submitted by any of the following methods: Electronic Statements • Use the Commission’s Internet submission form (https://www.sec.gov/ info/smallbus/acspc.shtml); or • Send an e-mail message to rulecomments@sec.gov. Please include File Number 265–23 on the subject line; or Paper Statements • Send paper statements in triplicate to Jonathan G. Katz, Committee Management Officer, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File No. 265–23. This file number should be included on the subject line if e-mail is used. To help us process and review your statement more efficiently, please use only one method. The Commission staff will post all statements on the Advisory Committee’s Web site (https:// www.sec.gov./info/smallbus/ acspc.shtml). Statements also will be available for public inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Room 1580, Washington, DC 20549. All statements received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. FOR FURTHER INFORMATION CONTACT: Kevin M. O’Neill, Special Counsel, at (202) 551–3260, Office of Small Business Policy, Division of Corporation Finance, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–3628. SUPPLEMENTARY INFORMATION: In accordance with section 10(a) of the Federal Advisory Committee Act, 5 U.S.C.-App. 1, § 10(a), and the E:\FR\FM\13OCN1.SGM 13OCN1 Federal Register / Vol. 70, No. 197 / Thursday, October 13, 2005 / Notices 59791 regulations thereunder, Gerald J. Laporte, Designated Federal Officer of the Committee, has ordered publication of this notice. Rule 1 Rule 7 Definitions Equities Trading Definitions Dated: October 7, 2005. Jonathan G. Katz, Committee Management Officer. [FR Doc. 05–20569 Filed 10–7–05; 3:55 pm] Rule 1.1 (a)–(aaa)—No change. (bbb) The term ‘‘Designated Market Maker’’ shall mean a registered Market Maker that participates in the Directed Order Process. (ccc) The term ‘‘Lead Market Maker’’ shall mean a registered Market Maker that is the exclusive Designated Market Maker in listings for which the Corporation is the primary market. * * * * * Designated Market Maker Performance Standards Rule 7.24 [Reserved]. (a) Designated Market Makers will be required to maintain minimum performance standards the levels of which may be determined from time to time by the Corporation. Such levels will vary depending on the price, liquidity, and volatility of the security in which the Designated Market Maker is registered. The performance measurements will include (i) percent of time at the NBBO; (ii) percent of executions better than the NBBO; (iii) average displayed size; (iv) average quoted spread; and (v) in the event the security is a derivative security, the ability of the Designated Market Maker to transact in underlying markets. (b) Designated Market Makers that are Lead Market Makers will be held to higher performance standards in the securities in which they are registered as Lead Market Maker than Designated Market Makers that are not Lead Market Makers. (c) Market Makers that are not Designated Market Makers will not be required to maintain the minimum performance standards as described in paragraph (a) above. * * * * * BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52566; File No. SR-PCX– 2005–56] Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto Relating to the Directed Order Process Rule 7 October 5, 2005. Rule 7.22 (a)–(b)—No change. (c) The Corporation may limit the number of Designated Market Makers in a security upon prior written notice to ETP Holders. (d) Designated Market Makers and Lead Market Makers shall be selected by the Corporation. Such selection shall be based on, but is not limited to, the following: experience with making markets in equities; adequacy of capital; willingness to promote the Exchange as a marketplace; issuer preference; operational capacity; support personnel; and history of adherence to Exchange rules and securities laws. [(c)] (e) Voluntary Termination of Security Registration. A Market Maker may voluntarily terminate its registration in a security by providing the Corporation with a one-day written notice of such termination. A Market Maker that fails to give advanced written notice of termination to the Corporation may be subject to formal disciplinary action pursuant to Rule 10. [(d)] (f) The Corporation may suspend or terminate any registration of a Market Maker in a security or securities under this Rule whenever, in the Corporation’s judgment, the interests of a fair and orderly market are best served by such action. [(e)] (g) An ETP Holder may seek review of any action taken by the Corporation pursuant to this Rule, including the denial of the application for, or the termination or suspension of, a Market Maker’s registration in a security or securities, in accordance with Rule 10.13. * * * * * Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b-4 thereunder,2 notice is hereby given that on April 21, 2005, the Pacific Exchange, Inc. (‘‘PCX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the PCX. On October 4, 2005, the PCX filed Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The PCX proposes to modify its Directed Order Process as part of its continuing efforts to enhance participation on the Archipelago Exchange (‘‘ArcaEx’’) facility. In conjunction with these modifications, the Exchange proposes two new classifications of Market Makers, Designated Market Makers (‘‘DMMs’’) and Lead Market Makers (‘‘LMMs’’). Only DMMs and LMMs will be eligible to participate in the Directed Order Process as Market Makers. The text of the proposed rule change, as amended, appears below. Additions are in italics. Deleted items are in brackets. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4 3 Amendment No. 1, which replaced and superceded the original filing in its entirety, is incorporated in this notice. 2 17 VerDate Aug<31>2005 16:14 Oct 12, 2005 Jkt 208001 Equities Trading Registration of Market Makers in a Security PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 Rule 7 Equities Trading Registration of Odd Lot Dealers Rule 7.25 (a)—No change. (b) Market Makers Registered in a Security. For each security in which a Market Maker is registered, the Market Maker may become an Odd Lot Dealer in that security. For each security in which a Market Maker is registered as Lead Market Maker, the Lead Market Maker must also register as an Odd Lot Dealer in that security. Rule 7.25 (c)–(e)—No change. * * * * * Rule 7 Equities Trading Orders and Modifiers Rule 7.31 (a)–(h)—No change. (i) Directed Order. (1) Any market or limit order to buy or sell which has been directed to a particular Designated Market Maker by the User. Users must be permissioned by Designated Market Makers to send a Directed Order to that Designated Market Maker. [(2) The Corporation shall suspend the Directed Order Process for a security E:\FR\FM\13OCN1.SGM 13OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 197 (Thursday, October 13, 2005)]
[Notices]
[Pages 59790-59791]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-20569]


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SECURITIES AND EXCHANGE COMMISSION

[Release Nos. 33-8623; 34-52575, File No. 265-23]


Advisory Committee on Smaller Public Companies

AGENCY: Securities and Exchange Commission.

ACTION: Notice of Meeting of SEC Advisory Committee on Smaller Public 
Companies.

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    The Securities and Exchange Commission Advisory Committee on 
Smaller Public Companies is providing notice that it will hold a public 
meeting on Monday and Tuesday, October 24 & 25, 2005, in Multi-Purpose 
Room L006 of the Commission's headquarters, 100 F Street, NE., 
Washington, DC 20549, beginning at 9 a.m. on each day. The meeting is 
expected to last until approximately 4 p.m. on each day, with a lunch 
break from approximately noon to 1 p.m. The meeting will be audio 
webcast on the Commission's Web site at https://www.sec.gov.
    The agenda for the meeting includes consideration of proposals of 
the Advisory Committee's four subcommittees on possible recommendations 
for changes to the current securities regulatory system for smaller 
companies. The public is invited to submit written statements for the 
meeting.

DATES: Written statements should be received on or before October 17, 
2005.

ADDRESSES: Written statements may be submitted by any of the following 
methods:

Electronic Statements

     Use the Commission's Internet submission form (https://
www.sec.gov/info/smallbus/acspc.shtml); or
     Send an e-mail message to rule-comments@sec.gov. Please 
include File Number 265-23 on the subject line; or

Paper Statements

     Send paper statements in triplicate to Jonathan G. Katz, 
Committee Management Officer, Securities and Exchange Commission, 100 F 
Street, NE., Washington, DC 20549-9303.
    All submissions should refer to File No. 265-23. This file number 
should be included on the subject line if e-mail is used. To help us 
process and review your statement more efficiently, please use only one 
method. The Commission staff will post all statements on the Advisory 
Committee's Web site (https://www.sec.gov./info/smallbus/acspc.shtml).
    Statements also will be available for public inspection and copying 
in the Commission's Public Reference Room, 100 F Street, NE., Room 
1580, Washington, DC 20549. All statements received will be posted 
without change; we do not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly.

FOR FURTHER INFORMATION CONTACT: Kevin M. O'Neill, Special Counsel, at 
(202) 551-3260, Office of Small Business Policy, Division of 
Corporation Finance, Securities and Exchange Commission, 100 F Street, 
NE., Washington, DC 20549-3628.

SUPPLEMENTARY INFORMATION: In accordance with section 10(a) of the 
Federal Advisory Committee Act, 5 U.S.C.-App. 1, Sec.  10(a), and the

[[Page 59791]]

regulations thereunder, Gerald J. Laporte, Designated Federal Officer 
of the Committee, has ordered publication of this notice.

    Dated: October 7, 2005.
Jonathan G. Katz,
Committee Management Officer.
[FR Doc. 05-20569 Filed 10-7-05; 3:55 pm]
BILLING CODE 8010-01-P

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