Submission for OMB Review; Comment Request, 65549-65550 [E6-18794]

Download as PDF 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 65550 Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Notices 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, paragraph 17i–6(h) specifies that all reports and statements filed by an SIBHC in accordance with Rule 17i–6 shall be accorded confidential treatment. 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 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. E6–18794 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. cprice-sewell on PRODPC62 with NOTICES Extension: Rule 17i–3; SEC File No. 270–529; OMB Control No. 3235–0593. 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 9 17 CFR 240.17i–5(b)(3). 10 5 U.S.C. 552(b)(3)(B). VerDate Aug<31>2005 15:11 Nov 07, 2006 Jkt 211001 approved collection of information discussed below. The Code of Federal Regulation citation to this collection of information is the following rule: 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 ‘‘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– 3, (17 CFR 240.17i–3.) 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 Rule 17i–3 permits an SIBHC to withdraw from Commission supervision by filing a notice of withdrawal with the Commission. The Rule requires that an SIBHC include in its notice of withdrawal a statement that it is in compliance with Rule 17i–2(c) regarding amendments to its Notice of Intention to help to assure that the Commission has updated information when considering the SIBHC’s withdrawal request. The collection of information required by Rule 17i–3 is necessary to enable the Commission to evaluate whether it is necessary and appropriate in the furtherance of Section 17 of the Exchange Act for the Commission to allow an SIBHC to withdraw from supervision. Without this information, the Commission would be unable to make this evaluation. We estimate, for Paperwork Reduction Act purposes only, that one SIBHC may wish to withdraw from Commission supervision as an SIBHC over a ten-year period. Each SIBHC that withdraws from Commission supervision as an SIBHC will require approximately 24 hours to draft a withdrawal notice and submit it to the Commission. An SIBHC likely would have an attorney perform 1 Pub. 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). 2 See PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 this task. Further, an SIBHC likely will have a senior attorney or executive 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.5 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,6 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 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. E6–18795 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–5; SEC File No. 270–531; OMB Control No. 3235–0590. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) the Securities 5 (1 SIBHC/every 10 years) × (24 hours to draft + 8 hours to review) = 3.2 hours. 6 5 U.S.C. 552(b)(3)(B). E:\FR\FM\08NON1.SGM 08NON1

Agencies

[Federal Register Volume 71, Number 216 (Wednesday, November 8, 2006)]
[Notices]
[Pages 65549-65550]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18794]


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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-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-Leach-Bliley 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 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-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 broker-
dealers.\4\
---------------------------------------------------------------------------

    \1\ Pub. L. 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).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q(i)(3)(A).
---------------------------------------------------------------------------

    The collections of information required by Rule 17i-6 are necessary 
to 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\
---------------------------------------------------------------------------

    \6\ (8 hours x 12 months in a year) = 96 hours/year.
    \7\ (16 hours x 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) x 3 SIBHCs = 
1,080 hours.
---------------------------------------------------------------------------

    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

[[Page 65550]]

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, paragraph 17i-6(h) specifies that all reports and 
statements filed by an SIBHC in accordance with Rule 17i-6 shall be 
accorded confidential treatment.
---------------------------------------------------------------------------

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

    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 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. E6-18794 Filed 11-7-06; 8:45 am]
BILLING CODE 8011-01-P