Proposed Collection; Comment Request, 50107-50108 [E6-14021]
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Federal Register / Vol. 71, No. 164 / Thursday, August 24, 2006 / Notices
officer review the notice of withdrawal
before submitting it to the Commission,
which will take approximately eight
hours. Thus, we estimate that the
annual, aggregate burden of
withdrawing from Commission
supervision as an SIBHC will be
approximately 3.2 hours each year.6
Written comments are invited on: (a)
Whether the 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.
Comments should be directed to R.
Corey Booth, Director/Chief Information
Officer, Securities and Exchange
Commission, C/O Shirley Martinson,
6432 General Green Way, Alexandria,
Virginia 22312 or send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted within 60 days of this
notice.
Dated: August 14, 2006.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–14020 Filed 8–23–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Filings and
Information Services; Washington, DC
20549.
rmajette on PROD1PC67 with NOTICES1
Extension: Rule 17i–4; SEC File No. 270–530;
OMB Control No. 3235–0594.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of
1995 1 the Securities and Exchange
Commission (‘‘Commission’’) intends to
submit to the Office of Management and
Budget a request for extension of the
previously approved collection of
information discussed below. The Code
of Federal Regulation citation to this
collection of information is the
following rule: 17 CFR 240.17i–4.
SIBHC/every 10 years) × (24 hours to draft +
8 hours to review) = 3.2 hours.
1 44 U.S.C. 3501 et seq.
6 (1
VerDate Aug<31>2005
15:15 Aug 23, 2006
Jkt 208001
Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’)
amended Section 17 of the Securities
Exchange Act of 1934 to create a
regulatory framework under which a
holding company of a broker-dealer
(‘‘investment bank holding company’’ or
‘‘IBHC’’) may voluntarily be supervised
by the Commission as a supervised
investment bank holding company (or
‘‘SIBHC’’).3 In 2004, the Commission
promulgated rules, including Rule 17i–
4, to create a framework for the
Commission to supervise SIBHCs.4 This
framework includes qualification
criteria for SIBHCs, as well as
recordkeeping and reporting
requirements. Among other things, this
regulatory framework for SIBHCs is
intended to provide a basis for non-U.S.
financial regulators to treat the
Commission as the principal U.S.
consolidated, home-country supervisor
for SIBHCs and their affiliated brokerdealers.5
Rule 17i–4 requires an SIBHC to
comply with present Exchange Act Rule
15c3–4 6 as though it were a brokerdealer, which requires that the firm
establish, document and maintain a
system of internal risk management
controls to assist it in managing the
risks associated with its business
activities (including market, credit,
operational, funding, and legal risks). In
addition, Rule 17i–4 requires that an
SIBHC establish, document, and
maintain procedures for the detection
and prevention of money laundering
and terrorist financing as part of its
internal risk management control
system. Finally, Rule 17i–4 requires that
an SIBHC periodically review its
internal risk management control
system for integrity of the risk
measurement, monitoring, and
management process, and
accountability, at the appropriate
organizational level, for defining the
permitted scope of activity and level of
risk. The records required to be created
pursuant to Rule 17i–4 must be
preserved for a period of not less than
three years.7
The collection of information required
pursuant to Rule 17i–4 is needed so that
the Commission can adequately
supervise the activities of these SIBHCs,
and to allow the Commission to
2 Pub.
L. 106–102, 113 Stat. 1338 (1999).
15 U.S.C. 78q(i).
4 See Exchange Act Release No. 49831 (Jun. 8,
2004), 69 FR 34472 (Jun. 21, 2004).
5 See—H.R. Conf. Rep. No. 106–434, 165 (1999).
See also—Exchange Act Release No. 49831, at 6
(Jun. 8, 2004), 69 FR 34472, at 34473 (Jun. 21,
2004).
6 17 CFR 240.15c3–4.
7 17 CFR 240.17i–5(b)(5).
3 See
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
50107
effectively determine whether
supervision of an IBHC as an SIBHC is
necessary or appropriate in furtherance
of the purposes of § 17 of the Act.
Without this information, the
Commission would be unable to
adequately supervise the SIBHC as
provided for under the Exchange Act.
We estimate that three IBHCs will file
Notices of Intention with the
Commission to be supervised by the
Commission as SIBHCs. An SIBHC will
require, on average, about 3,600 hours to
assess its present structure, businesses,
and controls, and establish and
document its risk management control
system. In addition, an SIBHC will
require, on average, approximately 250
hours each year to maintain its risk
management control system.
Consequently, the total initial burden
for all SIBHCs is approximately 10,800
hours 8 and the continuing annual
burden is about 750 hours.9 Thus, the
total burden relating to Rule 17i–4 for
all SIBHCs is approximately 11,550
hours 10 in the first year, and
approximately 750 hours each year
thereafter.11
We believe that an IBHC likely would
upgrade its information technology
(‘‘IT’’) systems in order to more
efficiently comply with certain of the
SIBHC framework rules (including
Rules 17i–4, 17i–5, 17i–6 and 17i–7),
and that this would be a one-time cost.
Depending on the state of development
of the IBHC’s IT systems, it would cost
an IBHC between $1 million and $10
million to upgrade its IT systems to
comply with the SIBHC framework of
rules. Thus, on average, it would cost
each of the three SIBHCs about $5.5
million to upgrade their IT systems, or
approximately $16.5 million in total. It
is impossible to determine what
percentage of the IT systems costs
would be attributable to each Rule, so
we allocated the total estimated upgrade
costs equally (at 25% for each of the
above-mentioned Rules), with
$4,125,000 attributable to Rule 17i–5.
Written comments are invited on: (a)
Whether the 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)
hours × 3 SIBHCs) = 10,800 hours.
hours per year × 3 SIBHCs) = 750 hours per
8 (3,600
9 (250
year.
10 (3,600 hours × 3 SIBHCs) + (250 hours per year
× 3 SIBHCs).
11 (250 hours per year × 3 SIBHCs).
E:\FR\FM\24AUN1.SGM
24AUN1
50108
Federal Register / Vol. 71, No. 164 / Thursday, August 24, 2006 / Notices
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.
Comments should be directed to: R.
Corey Booth, Director/Chief Information
Officer, Securities and Exchange
Commission, C/O Shirley Martinson,
6432 General Green Way, Alexandria,
Virginia 22312 or send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted within 60 days of this
notice.
Dated: August 15, 2006.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–14021 Filed 8–23–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549.
rmajette on PROD1PC67 with NOTICES1
Extension: Rule 15c3–1; SEC File No. 270–
197; OMB Control No. 3235–0200.
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 15c3–1 (17 CFR 240.15c3–1)
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) requires
brokers and dealers to have at all times
sufficient liquid assets to meet their
current liabilities, particularly the
claims of customers. The rule facilitates
monitoring the financial condition of
brokers and dealers by the Commission
and the various self-regulatory
organizations. It is estimated that
approximately 6,100 active brokerdealer respondents registered with the
Commission incur an aggregate burden
of 88,181 hours per year to comply with
this rule. Finally, the estimated cost for
the annual hour burden for Rule 15c3–
1 is approximately $22.7 million.
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
VerDate Aug<31>2005
15:15 Aug 23, 2006
Jkt 208001
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 60 days of this
publication.
Comments should be directed to: R.
Corey Booth, Director/Chief Information
Officer, Securities and Exchange
Commission, C/O Shirley Martinson,
6432 General Green Way, Alexandria,
Virginia 22312 or send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 60 days of
this notice.
Dated: August 16, 2006.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–14022 Filed 8–23–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549.
Extension: Rule 17Ad–15; SEC File No. 270–
360; OMB Control No. 3235–0409.
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 17Ad–15—Signature Guarantees
Rule 17Ad–15 (17 CFR 240.17Ad–15)
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) (the ‘‘Act’’)
requires approximately 760 transfer
agents to establish written standards for
the acceptance or rejection of guarantees
of securities transfers from eligible
guarantor institutions. Transfer agents
are required to establish procedures to
ensure that those standards are used by
the transfer agent to determine whether
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
to accept or reject guarantees from
eligible guarantor institutions. Transfer
agents must maintain, for a period of
three years following the date of a
rejection of transfer, a record of all
transfers rejected, along with the reason
for the rejection, identification of the
guarantor, and whether the guarantor
failed to meet the transfer agent’s
guarantee standard. These
recordkeeping requirements assist the
Commission and other regulatory
agencies with monitoring transfer agents
and ensuring compliance with the rule.
There are approximately 760
registered transfer agents. The staff
estimates that every transfer agent will
spend about 40 hours annually to
comply with Rule 17Ad–15. The total
annual burden for all transfer agents is
30,400 hours. The average cost per hour
is approximately $50. Therefore, the
total cost of compliance for all transfer
agents is $1,520,000.
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
estimates 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 60 days of this
publication.
Comments should be direct to: R.
Corey Booth, Director/Chief Information
Officer, Securities and Exchange
Commission, C/O Shirley Martinson,
6432 General Green Way, Alexandria,
Virginia 22312 or by sending an e-mail
to: PRA_Mailbox@sec.gov. Comments
must be submitted to OMB within 60
days of this notice.
Dated: August 16, 2006.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–14023 Filed 8–23–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Filings and
E:\FR\FM\24AUN1.SGM
24AUN1
]]>Agencies
[Federal Register Volume 71, Number 164 (Thursday, August 24, 2006)]
[Notices]
[Pages 50107-50108]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14021]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Filings and Information Services; Washington, DC
20549.
Extension: Rule 17i-4; SEC File No. 270-530; OMB Control No. 3235-
0594.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 \1\ the Securities and Exchange Commission (``Commission'')
intends to submit to the Office of Management and Budget a request for
extension of the previously approved collection of information
discussed below. The Code of Federal Regulation citation to this
collection of information is the following rule: 17 CFR 240.17i-4.
---------------------------------------------------------------------------
\1\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------
Section 231 of the Gramm-Leach-Bliley Act of 1999 \2\ (the
``GLBA'') amended Section 17 of the Securities Exchange Act of 1934 to
create a regulatory framework under which a holding company of a
broker-dealer (``investment bank holding company'' or ``IBHC'') may
voluntarily be supervised by the Commission as a supervised investment
bank holding company (or ``SIBHC'').\3\ In 2004, the Commission
promulgated rules, including Rule 17i-4, to create a framework for the
Commission to supervise SIBHCs.\4\ This framework includes
qualification criteria for SIBHCs, as well as recordkeeping and
reporting requirements. Among other things, this regulatory framework
for SIBHCs is intended to provide a basis for non-U.S. financial
regulators to treat the Commission as the principal U.S. consolidated,
home-country supervisor for SIBHCs and their affiliated broker-
dealers.\5\
---------------------------------------------------------------------------
\2\ Pub. L. 106-102, 113 Stat. 1338 (1999).
\3\ See 15 U.S.C. 78q(i).
\4\ See Exchange Act Release No. 49831 (Jun. 8, 2004), 69 FR
34472 (Jun. 21, 2004).
\5\ See--H.R. Conf. Rep. No. 106-434, 165 (1999). See also--
Exchange Act Release No. 49831, at 6 (Jun. 8, 2004), 69 FR 34472, at
34473 (Jun. 21, 2004).
---------------------------------------------------------------------------
Rule 17i-4 requires an SIBHC to comply with present Exchange Act
Rule 15c3-4 \6\ as though it were a broker-dealer, which requires that
the firm establish, document and maintain a system of internal risk
management controls to assist it in managing the risks associated with
its business activities (including market, credit, operational,
funding, and legal risks). In addition, Rule 17i-4 requires that an
SIBHC establish, document, and maintain procedures for the detection
and prevention of money laundering and terrorist financing as part of
its internal risk management control system. Finally, Rule 17i-4
requires that an SIBHC periodically review its internal risk management
control system for integrity of the risk measurement, monitoring, and
management process, and accountability, at the appropriate
organizational level, for defining the permitted scope of activity and
level of risk. The records required to be created pursuant to Rule 17i-
4 must be preserved for a period of not less than three years.\7\
---------------------------------------------------------------------------
\6\ 17 CFR 240.15c3-4.
\7\ 17 CFR 240.17i-5(b)(5).
---------------------------------------------------------------------------
The collection of information required pursuant to Rule 17i-4 is
needed so that the Commission can adequately supervise the activities
of these SIBHCs, and to allow the Commission to effectively determine
whether supervision of an IBHC as an SIBHC is necessary or appropriate
in furtherance of the purposes of Sec. 17 of the Act. Without this
information, the Commission would be unable to adequately supervise the
SIBHC as provided for under the Exchange Act.
We estimate that three IBHCs will file Notices of Intention with
the Commission to be supervised by the Commission as SIBHCs. An SIBHC
will require, on average, about 3,600 hours to assess its present
structure, businesses, and controls, and establish and document its
risk management control system. In addition, an SIBHC will require, on
average, approximately 250 hours each year to maintain its risk
management control system. Consequently, the total initial burden for
all SIBHCs is approximately 10,800 hours \8\ and the continuing annual
burden is about 750 hours.\9\ Thus, the total burden relating to Rule
17i-4 for all SIBHCs is approximately 11,550 hours \10\ in the first
year, and approximately 750 hours each year thereafter.\11\
---------------------------------------------------------------------------
\8\ (3,600 hours x 3 SIBHCs) = 10,800 hours.
\9\ (250 hours per year x 3 SIBHCs) = 750 hours per year.
\10\ (3,600 hours x 3 SIBHCs) + (250 hours per year x 3 SIBHCs).
\11\ (250 hours per year x 3 SIBHCs).
---------------------------------------------------------------------------
We believe that an IBHC likely would upgrade its information
technology (``IT'') systems in order to more efficiently comply with
certain of the SIBHC framework rules (including Rules 17i-4, 17i-5,
17i-6 and 17i-7), and that this would be a one-time cost. Depending on
the state of development of the IBHC's IT systems, it would cost an
IBHC between $1 million and $10 million to upgrade its IT systems to
comply with the SIBHC framework of rules. Thus, on average, it would
cost each of the three SIBHCs about $5.5 million to upgrade their IT
systems, or approximately $16.5 million in total. It is impossible to
determine what percentage of the IT systems costs would be attributable
to each Rule, so we allocated the total estimated upgrade costs equally
(at 25% for each of the above-mentioned Rules), with $4,125,000
attributable to Rule 17i-5.
Written comments are invited on: (a) Whether the 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)
[[Page 50108]]
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.
Comments should be directed to: R. Corey Booth, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send
an e-mail to: PRA--Mailbox@sec.gov. Comments must be submitted within
60 days of this notice.
Dated: August 15, 2006.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-14021 Filed 8-23-06; 8:45 am]
BILLING CODE 8010-01-P
