Submission for OMB Review; Comment Request, 65548-65549 [E6-18792]

Download as PDF 65548 Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Notices cprice-sewell on PRODPC62 with NOTICES hours each year to maintain its risk management control system. Consequently, the total initial burden for all SIBHCs is approximately 10,800 hours 6 and the continuing annual burden is about 750 hours.7 Thus, the total burden relating to Rule 17i–4 for all SIBHCs is approximately 11,550 hours 8 in the first year, and approximately 750 hours each year thereafter.9 We believe that an IBHC likely will 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 IBHCs 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–4. The records required to be created pursuant to Rule 17i–4 must be preserved for a period of not less than three years.10 The collection of information is mandatory and the information required to be provided to the Commission pursuant to this Rule is deemed confidential pursuant to Section 17(j) of the Exchange Act and Section 552(b)(3)(B) of the Freedom of Information Act,11 notwithstanding any other provision of law. 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. Comments should be directed to: (i) the 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: David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief Information hours × 3 SIBHCs) = 10,800 hours. 7 (250 hours per year × 3 SIBHCs) = 750 hours per year. 8 (3,600 hours × 3 SIBHCs) + (250 hours per year × 3 SIBHCs). 9 (250 hours per year × 3 SIBHCs). 10 17 CFR 240.17i–5(b)(5). 11 5 U.S.C. 552(b)(3)(B). Officer, Securities and Exchange Commission, c/o Shirley Martinson, 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: October 23, 2006. Nancy M. Morris, Secretary. [FR Doc. E6–18790 Filed 11–7–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon written request, copies available from: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. Extension: Rule 17i–2; SEC File No. 270–528; OMB Control No. 3235–0592. 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 collection of information discussed below. Section 231 of the Gramm-LeachBliley Act of 1999 1 (the ‘‘GLBA’’) amended Section 17 of the Securities Exchange Act of 1934 (the ‘‘Act’’ or the ‘‘Exchange Act’’) 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’’).2 In 2004, the Commission promulgated rules, including Rule 17i– 2 (17 CFR 240.17i–2) to create a framework for the Commission to supervise SIBHCs.3 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 4 6 (3,600 VerDate Aug<31>2005 15:11 Nov 07, 2006 Jkt 211001 1 Pub. L. No. 106–102, 113 Stat. 1338 (1999). 15 U.S.C. 78q(i). 3 See Exchange Act Release No. 49831 (Jun. 8, 2004), 69 FR 34472 (Jun. 21, 2004). 4 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). 2 See PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 for SIBHCs and their affiliated brokerdealers. Rule 17i–2 provides the method by which an IBHC can elect to become an SIBHC. In addition, Rule 17i–2 indicates that the IBHC will automatically become an SIBHC 45 days after the Commission receives its completed Notice of Intention unless the Commission issues an order indicating either that it will begin its supervision sooner or that it does not believe it to be necessary or appropriate in furtherance of Section 17 of the Act for the IBHC to be so supervised. Finally, Rule 17i–2 sets forth the criteria the Commission would use to make this determination. The collections of information required by Rule 17i–2 are necessary 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 Section 17 of the Act. In addition, these collections are needed so that the Commission can adequately supervise the activities of these SIBHCs. Finally, these rules enhance the Commission’s supervision of the SIBHCs’ subsidiary broker-dealers through collection of additional information and inspections of affiliates of those broker-dealers. We estimate that three IBHCs will file Notices of Intention with the Commission to be supervised by the Commission as SIBHCs. Each IBHC that files a Notice of Intention to become supervised by the Commission as an SIBHC will require approximately 900 hours to draft the Notice of Intention, compile the various documents to be included with the Notice of Intention, and work with the Commission staff. Further, each IBHC likely will have an attorney review its Notice of Intention and it will take the attorney approximately 100 hours to complete such a review. Consequently, we estimate the total one-time burden for all three firms to file their Notices of Intention would be approximately 3,000 hours.5 Rule 17i–2 also requires that an IBHC/SIBHC update its Notice of Intention on an ongoing basis.6 Each IBHC/SIBHC will require approximately two hours each month to update its Notice of Intention, as necessary. Thus, we estimate that it will take the three 5 (900 hours + 100 hours) × 3 IBHCs/SIBHCs = 3,000 hours. 6 An IBHC would be required to review and update its Notice of Intention to the extent it becomes inaccurate prior to a Commission determination, and an SIBHC would be required to update its Notice of Intention if it changes a mathematical model used to calculate its risk allowances pursuant to Rule 17i–7 after a Commission determination was made. E:\FR\FM\08NON1.SGM 08NON1 Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Notices IBHC/SIBHCs, in the aggregate, about 72 hours each year to update their Notices of Intention.7 Thus, the total burden relating to Rule 17i–2 for all SIBHCs would be approximately 3,072 hours in the first year,8 and approximately 72 hours each year thereafter. The records required to be created pursuant to Rule 17i–2 must be preserved for a period of not less than three years.9 The collection of information is mandatory and the information required to be provided to the Commission pursuant to this Rule is deemed confidential pursuant to section 17(j) of the Exchange Act and Section 552(b)(3)(B) of the Freedom of Information Act,10 notwithstanding any other provision of law. In addition, Exchange Act Rule 17i–2(d)(1) 11 states that all Notices of Intention, amendments, and other documentation and information filed pursuant to Rule 17i–2 will be accorded confidential treatment to the extent permitted by law. 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. Comments should be directed to: (i) the 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 send an e-mail to David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 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. October 23, 2006. Nancy M. Morris, Secretary. [FR Doc. E6–18792 Filed 11–7–06; 8:45 am] cprice-sewell on PRODPC62 with NOTICES BILLING CODE 8011–01–P 7 (2 15:11 Nov 07, 2006 Jkt 211001 Upon written request, copies available from: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. Extension: Rule 17i–6; SEC File No. 270–532; OMB Control No. 3235–0588. 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 collection of information discussed below. Section 231 of the Gramm-LeachBliley Act of 1999 1 (the ‘‘GLBA’’) amended Section 17 of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (the ‘‘Act’’ or the ‘‘Exchange Act’’) to create a regulatory framework under which a holding company of a brokerdealer (‘‘investment bank holding company’’ or ‘‘IBHC’’) may voluntarily be supervised by the Commission as a supervised investment bank holding company (or ‘‘SIBHC’’).2 In 2004, the Commission promulgated rules, including Rule 17i–6, (17 CFR 240.17i– 6) to create a framework for the Commission to supervise SIBHCs.3 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.4 Pursuant to Section 17(i)(3)(A) of the Exchange Act, an SIBHC must make and keep records, furnish copies thereof, and make such reports as the Commission may require by rule.5 Rule 17i–6 requires that an SIBHC file with the Commission certain monthly and quarterly reports and an annual audit report. The collections of information required by Rule 17i–6 are necessary to L. 106–102, 113 Stat. 1338 (1999). 15 U.S.C. 78q(i). 3 See Exchange Act Release No. 49831 (Jun. 8, 2004), 69 FR 34472 (Jun. 21, 2004). 4 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). 5 15 U.S.C. 78q(i)(3)(A). 2 See hours to file the Notices of Intention + 72 hours to update them) = first year cost of 3,072. 9 17 CFR 240.17i–5(b)(2). 10 5 U.S.C. 552(b)(3)(B). 11 17 CFR 240.17i–2(d)(1). VerDate Aug<31>2005 Submission for OMB Review; Comment Request allow the Commission to adequately supervise the activities of these SIBHCs and to effectively determine whether supervision of an IBHC as an SIBHC is necessary or appropriate in furtherance of the purposes of Section 17 of the Act. Rule 17i–6 also enhances the Commission’s supervision of an SIBHCs’ subsidiary broker-dealers through collection of additional information and inspections of affiliates of those broker-dealers. Without these reports, the Commission would be unable to adequately supervise an SIBHC, nor would it be able to determine whether continued supervision of an IBHC as an SIBHC were necessary and appropriate in furtherance of the purposes of Section 17 of the 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 about eight hours each month to prepare and file the monthly reports required by this rule (or approximately 96 hours per year).6 On average, it will take an SIBHC about 16 hours each quarter (or 64 hours each year) 7 to prepare and file the quarterly reports required by this rule. An SIBHC will require about 200 hours to prepare and file the annual audit reports required by this rule. Consequently, the total annual burden of Rule 17i–6 on all SIBHCs is approximately 1,080 hours.8 We believe that an IBHC likely will 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 IBHCs 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–6. The reports and notices required to be filed pursuant to Rule 17i–6 must be 1 Pub. hours × 12 months each year) x 3 SIBHCs = 72. 8 (3,000 SECURITIES AND EXCHANGE COMMISSION 65549 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 hours × 12 months in a year) = 96 hours/year. hours × 4 quarters in a year) = 64 hours/year. 8 (96 hours per year to prepare and file monthly reports + 64 hours each year to prepare and file quarterly reports + 200 hours each year to prepare and file annual audit reports) × 3 SIBHCs = 1,080 hours. 6 (8 7 (16 E:\FR\FM\08NON1.SGM 08NON1

Agencies

[Federal Register Volume 71, Number 216 (Wednesday, November 8, 2006)]
[Notices]
[Pages 65548-65549]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18792]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon written request, copies available from: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.

Extension:
    Rule 17i-2; SEC File No. 270-528; OMB Control No. 3235-0592.

    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 collection of 
information discussed below.
    Section 231 of the Gramm-Leach-Bliley Act of 1999 \1\ (the 
``GLBA'') amended Section 17 of the Securities Exchange Act of 1934 
(the ``Act'' or the ``Exchange Act'') 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'').\2\ In 2004, the Commission promulgated rules, including 
Rule 17i-2 (17 CFR 240.17i-2) to create a framework for the Commission 
to supervise SIBHCs.\3\ 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 
\4\ for SIBHCs and their affiliated broker-dealers.
---------------------------------------------------------------------------

    \1\ Pub. L. No. 106-102, 113 Stat. 1338 (1999).
    \2\ See 15 U.S.C. 78q(i).
    \3\ See Exchange Act Release No. 49831 (Jun. 8, 2004), 69 FR 
34472 (Jun. 21, 2004).
    \4\ 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-2 provides the method by which an IBHC can elect to become 
an SIBHC. In addition, Rule 17i-2 indicates that the IBHC will 
automatically become an SIBHC 45 days after the Commission receives its 
completed Notice of Intention unless the Commission issues an order 
indicating either that it will begin its supervision sooner or that it 
does not believe it to be necessary or appropriate in furtherance of 
Section 17 of the Act for the IBHC to be so supervised. Finally, Rule 
17i-2 sets forth the criteria the Commission would use to make this 
determination.
    The collections of information required by Rule 17i-2 are necessary 
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 Section 17 of the Act. In addition, these collections are 
needed so that the Commission can adequately supervise the activities 
of these SIBHCs. Finally, these rules enhance the Commission's 
supervision of the SIBHCs' subsidiary broker-dealers through collection 
of additional information and inspections of affiliates of those 
broker-dealers.
    We estimate that three IBHCs will file Notices of Intention with 
the Commission to be supervised by the Commission as SIBHCs. Each IBHC 
that files a Notice of Intention to become supervised by the Commission 
as an SIBHC will require approximately 900 hours to draft the Notice of 
Intention, compile the various documents to be included with the Notice 
of Intention, and work with the Commission staff. Further, each IBHC 
likely will have an attorney review its Notice of Intention and it will 
take the attorney approximately 100 hours to complete such a review. 
Consequently, we estimate the total one-time burden for all three firms 
to file their Notices of Intention would be approximately 3,000 
hours.\5 \Rule 17i-2 also requires that an IBHC/SIBHC update its Notice 
of Intention on an ongoing basis.\6\ Each IBHC/SIBHC will require 
approximately two hours each month to update its Notice of Intention, 
as necessary. Thus, we estimate that it will take the three

[[Page 65549]]

IBHC/SIBHCs, in the aggregate, about 72 hours each year to update their 
Notices of Intention.\7\ Thus, the total burden relating to Rule 17i-2 
for all SIBHCs would be approximately 3,072 hours in the first year,\8\ 
and approximately 72 hours each year thereafter.
---------------------------------------------------------------------------

    \5\ (900 hours + 100 hours) x 3 IBHCs/SIBHCs = 3,000 hours.
    \6\ An IBHC would be required to review and update its Notice of 
Intention to the extent it becomes inaccurate prior to a Commission 
determination, and an SIBHC would be required to update its Notice 
of Intention if it changes a mathematical model used to calculate 
its risk allowances pursuant to Rule 17i-7 after a Commission 
determination was made.
    \7\ (2 hours x 12 months each year) x 3 SIBHCs = 72.
    \8\ (3,000 hours to file the Notices of Intention + 72 hours to 
update them) = first year cost of 3,072.
---------------------------------------------------------------------------

    The records required to be created pursuant to Rule 17i-2 must be 
preserved for a period of not less than three years.\9\ The collection 
of information is mandatory and the information required to be provided 
to the Commission pursuant to this Rule is deemed confidential pursuant 
to section 17(j) of the Exchange Act and Section 552(b)(3)(B) of the 
Freedom of Information Act,\10\ notwithstanding any other provision of 
law. In addition, Exchange Act Rule 17i-2(d)(1) \11\ states that all 
Notices of Intention, amendments, and other documentation and 
information filed pursuant to Rule 17i-2 will be accorded confidential 
treatment to the extent permitted by law.
---------------------------------------------------------------------------

    \9\ 17 CFR 240.17i-5(b)(2).
    \10\ 5 U.S.C. 552(b)(3)(B).
    \11\ 17 CFR 240.17i-2(d)(1).
---------------------------------------------------------------------------

    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.
    Comments should be directed to: (i) the 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 send an e-mail to 
David--Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 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.

     October 23, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6-18792 Filed 11-7-06; 8:45 am]
BILLING CODE 8011-01-P