Proposed Collection; Comment Request, 61410 [E7-21283]
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61410
Federal Register / Vol. 72, No. 209 / Tuesday, October 30, 2007 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
sroberts on PROD1PC70 with NOTICES
Extension: Rule 206(4)–7, SEC File No. 270–
523, OMB Control No. 3235–0585.
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.
The title for the collection of
information is ‘‘Investment Advisers Act
rule 206(4)–7 (17 CFR 275.206(4)–7),
Compliance procedures and practices.’’
Rule 206(4)–7 requires each investment
adviser registered with the Commission
to (i) adopt and implement internal
compliance policies and procedures, (ii)
review those policies and procedures
annually, (iii) designate a chief
compliance officer, and (iv) maintain
certain compliance records. The rule is
designed to protect investors by
fostering better compliance with the
securities laws. The collection of
information under rule 206(4)–7 is
necessary to assure that investment
advisers maintain comprehensive
internal programs that promote the
advisers’ compliance with the Advisers
Act. The information collected under
this rule may also assist Commission
staff in assessing investment advisers’
compliance programs.
This collection of information is
mandatory. The information collected
pursuant to the rule 206(4)–7 is
reviewed by the Commission’s
examination staff. It will be accorded
the same level of confidentiality
accorded to other responses provided to
the Commission in the context of its
examination and oversight program.
The respondents are investment
advisers registered with the
Commission. Our latest data indicate
that there were 10,817 advisers
registered with the Commission as of
September 30, 2007. The Commission
has estimated that compliance with rule
206(4)–7 imposes a burden of
approximately 80 hours per respondent.
Based on this figure, the Commission
estimates a total annual burden of
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20:46 Oct 29, 2007
Jkt 214001
865,360 hours for this documentation of
information.
Written comments are invited on: (a)
Whether the documentation 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. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to 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 email to: PRA_Mailbox@sec.gov.
Dated: October 24, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. E7–21282 Filed 10–29–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension: Rule 206(4)–3, SEC File No. 270–
218, OMB Control No. 3235–0242.
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 206(4)–3 (17 CFR 275.206(4)–3),
which is entitled ‘‘Cash Payments for
Client Solicitations,’’ provides
restrictions on cash payments for client
solicitations. The rule requires that an
adviser pay all solicitors’ fees pursuant
to a written agreement. When an adviser
will provide only impersonal advisory
services to the prospective client, the
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Frm 00087
Fmt 4703
Sfmt 4703
rule imposes no disclosure
requirements. When the solicitor is
affiliated with the adviser and the
adviser will provide individualized
services, the solicitor must, at the time
of the solicitation, indicate to
prospective clients that he is affiliated
with the adviser. When the solicitor is
not affiliated with the adviser and the
adviser will provide individualized
services, the solicitor must, at the time
of the solicitation, provide the
prospective client with a copy of the
adviser’s brochure and a disclosure
document containing information
specified in rule 206(4)–3. The
information rule 206(4)–3 requires is
necessary to inform advisory clients
about the nature of the solicitor’s
financial interest in the
recommendation so they may consider
the solicitor’s potential bias, and to
protect investors against solicitation
activities being carried out in a manner
inconsistent with the adviser’s fiduciary
duty to clients. Rule 206(4)–3 is
applicable to all Commission registered
investment advisers. The Commission
believes that approximately 2,163 of
these advisers have cash referral fee
arrangements. The rule requires
approximately 7.04 burden hours per
year per adviser and results in a total of
approximately 15,228 total burden
hours (7.04 × 2,163) for all advisers.
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 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. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to 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 email to: PRA_Mailbox@sec.gov.
Dated: October 24, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. E7–21283 Filed 10–29–07; 8:45 am]
BILLING CODE 8011–01–P
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[Federal Register Volume 72, Number 209 (Tuesday, October 30, 2007)]
[Notices]
[Page 61410]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21283]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension: Rule 206(4)-3, SEC File No. 270-218, OMB Control No.
3235-0242.
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 206(4)-3 (17 CFR 275.206(4)-3), which is entitled ``Cash
Payments for Client Solicitations,'' provides restrictions on cash
payments for client solicitations. The rule requires that an adviser
pay all solicitors' fees pursuant to a written agreement. When an
adviser will provide only impersonal advisory services to the
prospective client, the rule imposes no disclosure requirements. When
the solicitor is affiliated with the adviser and the adviser will
provide individualized services, the solicitor must, at the time of the
solicitation, indicate to prospective clients that he is affiliated
with the adviser. When the solicitor is not affiliated with the adviser
and the adviser will provide individualized services, the solicitor
must, at the time of the solicitation, provide the prospective client
with a copy of the adviser's brochure and a disclosure document
containing information specified in rule 206(4)-3. The information rule
206(4)-3 requires is necessary to inform advisory clients about the
nature of the solicitor's financial interest in the recommendation so
they may consider the solicitor's potential bias, and to protect
investors against solicitation activities being carried out in a manner
inconsistent with the adviser's fiduciary duty to clients. Rule 206(4)-
3 is applicable to all Commission registered investment advisers. The
Commission believes that approximately 2,163 of these advisers have
cash referral fee arrangements. The rule requires approximately 7.04
burden hours per year per adviser and results in a total of
approximately 15,228 total burden hours (7.04 x 2,163) for all
advisers.
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 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. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
Please direct your written comments to 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.
Dated: October 24, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. E7-21283 Filed 10-29-07; 8:45 am]
BILLING CODE 8011-01-P
