Submission for OMB Review; Comment Request, 68902-68904 [E7-23607]

Download as PDF 68902 Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices Dated: Monday, December 4, 2007. Steven W. Williams, Secretary. [FR Doc. 07–5976 Filed 12–4–07; 2:25 pm] BILLING CODE 7710–FW–M SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: NAR Exemptive Request; OMB Control No. 3235–XXXX; SEC File No. 270–573. 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 (‘‘OMB’’) a request for pre-approval of an exemptive request by the National Association of Realtors (‘‘NAR’’) pursuant to the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange Act’’). mstockstill on PROD1PC66 with NOTICES Background NAR has requested an exemption pursuant to Sections 15(a)(2) and 36(a) of the Exchange Act from the brokerdealer registration requirements of Section 15(a)(1) and the reporting and other requirements of the Exchange Act (other than Sections 15(b)(4) and 15(b)(6)), and the rules and regulations thereunder, that apply to a broker or dealer that is not registered with the Commission. Subject to the conditions specified in NAR’s application (‘‘Application’’), the requested exemption would allow any licensed real estate agent or broker who is predominantly engaged in and has substantial experience in the sale of commercial real estate (‘‘Commercial Real Estate Professional’’) and the real estate brokerage firm with which he or she is licensed (‘‘Real Estate Firm’’) (collectively, a ‘‘RE Participant’’) to receive a real estate advisory fee (‘‘Real Estate Advisory Fee’’) from a purchaser of an undivided tenant-in-common interest in real property (‘‘TIC Interest’’) that is offered and sold together with other arrangements that cause it to be deemed to be a security under the federal securities laws (‘‘TIC Security’’). Under NAR’s exemptive request, a Real Estate Advisory Fee could be paid by the purchaser directly or on behalf of VerDate Aug<31>2005 18:57 Dec 05, 2007 Jkt 214001 the purchaser by the sponsor or issuer of the TIC Security, which could, thereby, reduce the commission or other compensation received by a registered broker-dealer involved in the TIC Security transaction. The Real Estate Advisory Fee generally would be paid to the Real Estate Firm with which the Commercial Real Estate Professional is licensed. The Firm would distribute all or a previously agreed upon percentage of the Real Estate Advisory Fee to the Commercial Real Estate Professional that signed a buyer’s agent agreement with the client and to any other Commercial Real Estate Professional or Real Estate Firm that was added to the agreement with the consent of the client. Proposed Collections of Information The requested exemption would contain five collections of information. First, the requested exemption would require a RE Participant to deliver a copy of the executed buyer’s agent agreement to the registered brokerdealer acting as a placement agent (‘‘Lead Placement Agent’’). The purpose of the first collection is to assist in implementing the requested exemption and monitoring for compliance with the exemption’s conditions. The proposed delivery requirement is designed to ensure that the Lead Placement Agent has a copy of the buyer’s agent agreement in order to comply with its recordkeeping obligations discussed below, which would facilitate monitoring for compliance. Without this collection of information, the Commission and applicable selfregulatory organization (‘‘SRO’’) would be unable to monitor the Lead Placement Agent’s compliance. Second, the requested exemption would require any Commercial Real Estate Professional that is to receive, directly or indirectly, a portion of a Real Estate Advisory Fee to not be subject to any ‘‘statutory disqualification,’’ as defined in Section 3(a)(39) of the Exchange Act (other than subparagraph (E) of that section), and to deliver a representation in writing to that effect to the Lead Placement Agent at closing. The purpose of the second collection is to ensure that the Lead Placement Agent has a copy of the statutory disqualification representation in order to comply with its recordkeeping obligations, which would facilitate monitoring for compliance with the conditions of the requested exemption. Without this collection of information, the Commission and applicable SRO would be unable to monitor the Lead Placement Agent’s compliance. PO 00000 Frm 00046 Fmt 4703 Sfmt 4703 Third, the requested exemption would require broker-dealers that sell the TIC Securities as participating brokers (‘‘Selling Broker-Dealers’’) to deliver a representation in writing that the Selling Broker-Dealer performed a suitability analysis to the Lead Placement Agent at closing, or, if the Selling Broker-Dealer is the Lead Placement Agent, to make such a representation in writing at closing. The purpose of the third collection is to ensure that the Lead Placement Agent has a copy of the suitability analysis in order to comply with its recordkeeping obligations, which would facilitate monitoring compliance with the conditions of the requested exemption. Without this collection of information, the Commission and applicable SRO would be unable to monitor the Lead Placement Agent’s compliance and would be unable to ensure that the Selling Broker-Dealer had conducted an appropriate suitability analysis. Fourth, the requested exemption would require a Selling Broker-Dealer that determines that a TIC Security transaction is not suitable to obtain a written affirmation that the customer wants to proceed with the TIC Security transaction notwithstanding the Selling Broker-Dealer’s determination. It also would require the Selling Broker-Dealer to deliver the written affirmation to the Lead Placement Agent at closing or, if the Selling Broker-Dealer is the Lead Placement Agent, to maintain the written affirmation consistent with the record retention provisions of Exchange Act Rule 17a–4. The purpose of the fourth collection is to ensure that the customer is informed if a Selling BrokerDealer determines a transaction is not suitable, and, if the customer wants to proceed with the transaction, that the customer has made such a decision in light of the broker-dealer’s determination. In addition, the proposed delivery requirement is designed to ensure that the Lead Placement Agent has a copy of the customer affirmation in order to comply with its recordkeeping obligations, which would facilitate monitoring for compliance with the conditions of the requested exemption. Without this collection of information, the Commission and applicable SRO would be unable to monitor the Lead Placement Agent’s compliance and would be unable to ensure that the Selling Broker-Dealer had conducted a suitability analysis and informed the client of this determination. Fifth, the requested exemption would require the Lead Placement Agent to maintain a copy of each of the documents that is to be made and/or E:\FR\FM\06DEN1.SGM 06DEN1 Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices delivered at closing, as discussed above (i.e., the buyer’s agent agreement, the statutory disqualification representations, the suitability representation, and, if applicable, the customer’s written affirmation), and the relevant part of the real estate closing documents that evidences the amount of the Real Estate Advisory Fee paid to any RE Participant involved in the TIC Security transaction. The purpose of the fifth collection is to facilitate monitoring for compliance with the conditions of the requested exemption by compelling the Lead Placement Agent to maintain records of all documents that are required to be delivered at closing. Without this collection of information, the Commission and applicable SRO would be unable to monitor the Lead Placement Agent’s compliance. Estimate of Respondent Reporting Burden a. Delivery of the Buyer’s Agent Agreement to the Lead Placement Agent The Commission estimates that approximately 800 RE Participants would rely on the requested exemption and each RE Participant would on average deliver to the Lead Placement Agent a copy of an executed buyer’s agent agreement 6.63 times 1 a year. Based on these estimates, the Commission estimates that this requirement would result in approximately 5,304 disclosures 2 per year. The Commission also estimates that a RE Participant would spend approximately five minutes per disclosure to the Lead Placement Agent. Thus, the estimated total annual reporting and recordkeeping burden for this requirement is 442 hours 3 for the RE Participants. mstockstill on PROD1PC66 with NOTICES b. Delivery of Statutory Disqualification The Commission estimates that approximately 800 Commercial Real Estate Professionals would rely on the requested exemption and each Commercial Real Estate Professional would on average deliver the written statutory disqualification representation 6.63 times 4 a year. Based on these estimates, the Commission anticipates that this requirement would result in 1 The Commission is estimating approximately 5,304 TIC Security transactions would occur under the requested exemption. Accordingly, 5,304 TIC Security transactions/800 RE Participants = 6.63. For purposes of this Statement, the Commission has rounded all of its calculations to two decimal places. 2 6.63 × 800 = 5,304. 3 5,304 TIC Security transactions × five minutes per transaction = 26,520/60 = 442. 4 5,304 TIC Security transactions/800 Commercial Real Estate Professionals = 6.63. VerDate Aug<31>2005 18:57 Dec 05, 2007 Jkt 214001 5,304 disclosures 5 per year. The Commission estimates that approximately 95 percent of Commercial Real Estate Professionals would spend approximately five minutes for each representation to the Lead Placement Agent. The Commission also estimates that approximately five percent of Commercial Real Estate Professionals would spend approximately 30 minutes for their first representation to the Lead Placement Agent, and five minutes for each of the 5.63 subsequent representations. Thus, the estimated total annual reporting and recordkeeping burden for these requirements is 458.67 hours 6 for Commercial Real Estate Professionals. c. Suitability Determination by the Selling Broker-Dealer The Commission estimates that approximately 150 Selling BrokerDealers would either deliver or make a representation at closing and each Selling Broker-Dealer would on average deliver or make such a representation 33.59 times 7 a year. The Commission also estimates that a Selling BrokerDealer would spend approximately five minutes on each disclosure. Thus, the estimated total annual reporting and recordkeeping burden for this requirement is 419.90 hours 8 for Selling Broker-Dealers. d. Customer Affirmation by the Selling Broker-Dealer The Commission estimates that there are approximately 150 Selling BrokerDealers that are potential respondents, those Selling Broker-Dealers would obtain and then deliver or maintain a written affirmation from 265.20 customers who are clients 9 of Commercial Real Estate Participants a year, and each Selling Broker-Dealer would on average obtain and then deliver or maintain such an affirmation × 800 = 5,304. × .95 × 6.63 × 5 = 25,194/60 = 419.90 total burden hours for 95 percent of the Commercial Real Estate Professionals. 800 × .05 × 1 × 30 = 1,200/60 = 20 hours for the first representation by five percent of the Commercial Real Estate Professionals. 800 × .05 × 5.63 × 5 = 1,126/60 = 18.77 hours for the second and third representations by five percent of the Commercial Real Estate Professionals. Thus total burden hours would be 419.90 + 20 + 18.77 = 458.67. 7 The Commission estimates that there would be approximately 5,304 TIC Security transactions a year. Thus, a Selling Broker-Dealer would make or deliver approximately ((5,304 × .95)/150) = 33.59 determinations. 8 (5,304 × .95) × five minutes per transaction = 25,194/60 = 419.90. 9 The Commission estimates that approximately five percent of all proposed TIC Security transactions would be determined to be not suitable. 5,304 × .05 = 265.20. 5 6.63 6 800 PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 68903 1.77 10 times a year. The Commission also estimates that a customer would spend approximately 30 minutes on each disclosure and the Selling BrokerDealer would spend approximately 35 minutes on each disclosure. Thus, the estimated total annual reporting and recordkeeping burden for this proposed requirement is an aggregate of 132.60 hours for customers 11 and 154.70 hours for the Selling Broker-Dealers.12 e. Recordkeeping by the Lead Placement Agent The Commission estimates that approximately 45 Lead Placement Agents would act pursuant to the requested exemption. On average, a Lead Placement Agent would maintain copies of the relevant documents for approximately 117.87 TIC Security transactions 13 a year. The Commission also estimates that a Lead Placement Agent would spend 10 minutes per closing to maintain a copy of these documents. Thus, the estimated total annual reporting and recordkeeping burden for this requirement is 884 hours.14 f. Aggregated Burdens for Entering Data into ROCIS. For purposes of entering the above collections into the OMB ROCIS system, the burdens discussed above have been summarized and aggregated as follows. There are approximately 995 total respondents.15 There are approximately 21 responses for each respondent.16 There are approximately 20,895 total responses.17 Thus, there are approximately .11 hours per response 10 The Commission estimates that there would be approximately 5,304 TIC Security transactions under the requested exemption. The Commission estimates that Selling Broker-Dealers would obtain and then deliver or maintain the customer affirmation in five percent of all transactions under the requested exemption. Thus, a Selling BrokerDealer would obtain approximately ((5,304 × .05)/ 150) = 1.77 affirmations a year. 11 265.20 TIC Security transactions (5,304 × .05) × 30 minutes per transaction = 7956/60 = 132.60. 12 265.20 TIC Security transactions (5,304 × .05) × 35 minutes per transaction = 9282/60 = 154.70. 13 5,304 TIC Security transactions/45 Lead Placement Agents = 117.87. 14 5,304 TIC Security transactions × 10 minutes = 53,040/60 = 884. 15 800 + 150 + 45 = 995. 16 20,895 (total responses)/995 (total respondents) = 21. Although total responses should be 21,216 ((800 × 6.63) + (800 × 6.63) + (150 × 33.59) + (150 × 1.77) + (45 × 117.87)), the number has been reduced to 20,895 to ensure consistency with the other data, specifically the 21 responses per respondent and .11 hours per respondent, being entered into ROCIS. 17 995 (total respondents) × 21 (responses per respondent) = 20,895. E:\FR\FM\06DEN1.SGM 06DEN1 68904 Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices Dated: November 29, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–23607 Filed 12–5–07; 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. mstockstill on PROD1PC66 with NOTICES Extension: Rule 425; OMB Control No. 3235–0521; SEC File No. 270–462. 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 approval. Rule 425 (17 CFR 230.425) under the Securities Act of 1933 (15 U.S.C. 77a et seq.) requires the filing of certain prospectuses and communications under Rule 135 (17 CFR 230.135) and Rule 165 (17 CFR 230.165) in 18 2,359 (total burden hours)/20,895 (total respondents) = 0.11. 19 20,895 (total responses) × .11 (hours per respondent) = 2,298.45. For purposes of entering this number into ROCIS, it has been rounded to 2,298. VerDate Aug<31>2005 18:57 Dec 05, 2007 Jkt 214001 connection with business combination transactions. The purpose of the rule is to permit more oral and written communications with shareholders about tender offers, mergers and other business combination transactions on a more timely basis, so long as the written communications are filed on the date of first use. Approximately 3,700 issuers file communications under Rule 425 at an estimated .25 hours per response for a total of 925 annual burden hours. 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 imposed by 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. Regulation C (17 CFR 230.400 through 230.498) provides standard instructions to guide persons when filing registration statements under the Securities Act of 1933 (15 U.S.C. 77a et seq.). The information collected is intended to ensure the adequacy of information available to investors in the registration of securities. The information provided is mandatory. Regulation C is assigned one burden hour for administrative convenience because it does not directly impose information collection requirements. 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. Written comments regarding the above information should be directed to the following persons: (i) 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 email to Alexander_T._Hunt@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief Information Office, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312; or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: November 29, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–23609 Filed 12–5–07; 8:45 am] Dated: November 30, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–23641 Filed 12–5–07; 8:45 am] BILLING CODE 8011–01–P for each respondent.18 There are approximately 2,298 total burden hours for all respondents.19 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) 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: Alexander_T._Hunt@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 within 30 days of this notice. BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request [Release No. IC–28069] Upon written request, copies available from: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Regulation C; OMB Control No. 3235–0074; SEC File No. 270–68. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 U.S.C. 3501 et seq.) the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget the request for extension of the previously approved collection of information discussed below. PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 Notice of Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940 November 30, 2007. The following is a notice of applications for deregistration under section 8(f) of the Investment Company Act of 1940 for the month of November, 2007. A copy of each application may be obtained for a fee at the SEC’s Public Reference Branch (tel. 202–551–5850). An order granting each application will be issued unless the SEC orders a hearing. Interested persons may request a hearing on any application by writing to the SEC’s Secretary at the address below and serving the relevant applicant with a copy of the request, E:\FR\FM\06DEN1.SGM 06DEN1

Agencies

[Federal Register Volume 72, Number 234 (Thursday, December 6, 2007)]
[Notices]
[Pages 68902-68904]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23607]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213.

Extension:
    NAR Exemptive Request; OMB Control No. 3235-XXXX; SEC File No. 
270-573.

    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 (``OMB'') a request for pre-approval of an exemptive request 
by the National Association of Realtors[reg] (``NAR'') pursuant to the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange 
Act'').

Background

    NAR has requested an exemption pursuant to Sections 15(a)(2) and 
36(a) of the Exchange Act from the broker-dealer registration 
requirements of Section 15(a)(1) and the reporting and other 
requirements of the Exchange Act (other than Sections 15(b)(4) and 
15(b)(6)), and the rules and regulations thereunder, that apply to a 
broker or dealer that is not registered with the Commission. Subject to 
the conditions specified in NAR's application (``Application''), the 
requested exemption would allow any licensed real estate agent or 
broker who is predominantly engaged in and has substantial experience 
in the sale of commercial real estate (``Commercial Real Estate 
Professional'') and the real estate brokerage firm with which he or she 
is licensed (``Real Estate Firm'') (collectively, a ``RE Participant'') 
to receive a real estate advisory fee (``Real Estate Advisory Fee'') 
from a purchaser of an undivided tenant-in-common interest in real 
property (``TIC Interest'') that is offered and sold together with 
other arrangements that cause it to be deemed to be a security under 
the federal securities laws (``TIC Security'').
    Under NAR's exemptive request, a Real Estate Advisory Fee could be 
paid by the purchaser directly or on behalf of the purchaser by the 
sponsor or issuer of the TIC Security, which could, thereby, reduce the 
commission or other compensation received by a registered broker-dealer 
involved in the TIC Security transaction. The Real Estate Advisory Fee 
generally would be paid to the Real Estate Firm with which the 
Commercial Real Estate Professional is licensed. The Firm would 
distribute all or a previously agreed upon percentage of the Real 
Estate Advisory Fee to the Commercial Real Estate Professional that 
signed a buyer's agent agreement with the client and to any other 
Commercial Real Estate Professional or Real Estate Firm that was added 
to the agreement with the consent of the client.

Proposed Collections of Information

    The requested exemption would contain five collections of 
information. First, the requested exemption would require a RE 
Participant to deliver a copy of the executed buyer's agent agreement 
to the registered broker-dealer acting as a placement agent (``Lead 
Placement Agent''). The purpose of the first collection is to assist in 
implementing the requested exemption and monitoring for compliance with 
the exemption's conditions. The proposed delivery requirement is 
designed to ensure that the Lead Placement Agent has a copy of the 
buyer's agent agreement in order to comply with its recordkeeping 
obligations discussed below, which would facilitate monitoring for 
compliance. Without this collection of information, the Commission and 
applicable self-regulatory organization (``SRO'') would be unable to 
monitor the Lead Placement Agent's compliance.
    Second, the requested exemption would require any Commercial Real 
Estate Professional that is to receive, directly or indirectly, a 
portion of a Real Estate Advisory Fee to not be subject to any 
``statutory disqualification,'' as defined in Section 3(a)(39) of the 
Exchange Act (other than subparagraph (E) of that section), and to 
deliver a representation in writing to that effect to the Lead 
Placement Agent at closing. The purpose of the second collection is to 
ensure that the Lead Placement Agent has a copy of the statutory 
disqualification representation in order to comply with its 
recordkeeping obligations, which would facilitate monitoring for 
compliance with the conditions of the requested exemption. Without this 
collection of information, the Commission and applicable SRO would be 
unable to monitor the Lead Placement Agent's compliance.
    Third, the requested exemption would require broker-dealers that 
sell the TIC Securities as participating brokers (``Selling Broker-
Dealers'') to deliver a representation in writing that the Selling 
Broker-Dealer performed a suitability analysis to the Lead Placement 
Agent at closing, or, if the Selling Broker-Dealer is the Lead 
Placement Agent, to make such a representation in writing at closing. 
The purpose of the third collection is to ensure that the Lead 
Placement Agent has a copy of the suitability analysis in order to 
comply with its recordkeeping obligations, which would facilitate 
monitoring compliance with the conditions of the requested exemption. 
Without this collection of information, the Commission and applicable 
SRO would be unable to monitor the Lead Placement Agent's compliance 
and would be unable to ensure that the Selling Broker-Dealer had 
conducted an appropriate suitability analysis.
    Fourth, the requested exemption would require a Selling Broker-
Dealer that determines that a TIC Security transaction is not suitable 
to obtain a written affirmation that the customer wants to proceed with 
the TIC Security transaction notwithstanding the Selling Broker-
Dealer's determination. It also would require the Selling Broker-Dealer 
to deliver the written affirmation to the Lead Placement Agent at 
closing or, if the Selling Broker-Dealer is the Lead Placement Agent, 
to maintain the written affirmation consistent with the record 
retention provisions of Exchange Act Rule 17a-4. The purpose of the 
fourth collection is to ensure that the customer is informed if a 
Selling Broker-Dealer determines a transaction is not suitable, and, if 
the customer wants to proceed with the transaction, that the customer 
has made such a decision in light of the broker-dealer's determination. 
In addition, the proposed delivery requirement is designed to ensure 
that the Lead Placement Agent has a copy of the customer affirmation in 
order to comply with its recordkeeping obligations, which would 
facilitate monitoring for compliance with the conditions of the 
requested exemption. Without this collection of information, the 
Commission and applicable SRO would be unable to monitor the Lead 
Placement Agent's compliance and would be unable to ensure that the 
Selling Broker-Dealer had conducted a suitability analysis and informed 
the client of this determination.
    Fifth, the requested exemption would require the Lead Placement 
Agent to maintain a copy of each of the documents that is to be made 
and/or

[[Page 68903]]

delivered at closing, as discussed above (i.e., the buyer's agent 
agreement, the statutory disqualification representations, the 
suitability representation, and, if applicable, the customer's written 
affirmation), and the relevant part of the real estate closing 
documents that evidences the amount of the Real Estate Advisory Fee 
paid to any RE Participant involved in the TIC Security transaction. 
The purpose of the fifth collection is to facilitate monitoring for 
compliance with the conditions of the requested exemption by compelling 
the Lead Placement Agent to maintain records of all documents that are 
required to be delivered at closing. Without this collection of 
information, the Commission and applicable SRO would be unable to 
monitor the Lead Placement Agent's compliance.

Estimate of Respondent Reporting Burden

a. Delivery of the Buyer's Agent Agreement to the Lead Placement Agent

    The Commission estimates that approximately 800 RE Participants 
would rely on the requested exemption and each RE Participant would on 
average deliver to the Lead Placement Agent a copy of an executed 
buyer's agent agreement 6.63 times \1\ a year. Based on these 
estimates, the Commission estimates that this requirement would result 
in approximately 5,304 disclosures \2\ per year. The Commission also 
estimates that a RE Participant would spend approximately five minutes 
per disclosure to the Lead Placement Agent. Thus, the estimated total 
annual reporting and recordkeeping burden for this requirement is 442 
hours \3\ for the RE Participants.
---------------------------------------------------------------------------

    \1\ The Commission is estimating approximately 5,304 TIC 
Security transactions would occur under the requested exemption. 
Accordingly, 5,304 TIC Security transactions/800 RE Participants = 
6.63. For purposes of this Statement, the Commission has rounded all 
of its calculations to two decimal places.
    \2\ 6.63 x 800 = 5,304.
    \3\ 5,304 TIC Security transactions x five minutes per 
transaction = 26,520/60 = 442.
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b. Delivery of Statutory Disqualification

    The Commission estimates that approximately 800 Commercial Real 
Estate Professionals would rely on the requested exemption and each 
Commercial Real Estate Professional would on average deliver the 
written statutory disqualification representation 6.63 times \4\ a 
year. Based on these estimates, the Commission anticipates that this 
requirement would result in 5,304 disclosures \5\ per year. The 
Commission estimates that approximately 95 percent of Commercial Real 
Estate Professionals would spend approximately five minutes for each 
representation to the Lead Placement Agent. The Commission also 
estimates that approximately five percent of Commercial Real Estate 
Professionals would spend approximately 30 minutes for their first 
representation to the Lead Placement Agent, and five minutes for each 
of the 5.63 subsequent representations. Thus, the estimated total 
annual reporting and recordkeeping burden for these requirements is 
458.67 hours \6\ for Commercial Real Estate Professionals.
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    \4\ 5,304 TIC Security transactions/800 Commercial Real Estate 
Professionals = 6.63.
    \5\ 6.63 x 800 = 5,304.
    \6\ 800 x .95 x 6.63 x 5 = 25,194/60 = 419.90 total burden hours 
for 95 percent of the Commercial Real Estate Professionals. 800 x 
.05 x 1 x 30 = 1,200/60 = 20 hours for the first representation by 
five percent of the Commercial Real Estate Professionals. 800 x .05 
x 5.63 x 5 = 1,126/60 = 18.77 hours for the second and third 
representations by five percent of the Commercial Real Estate 
Professionals. Thus total burden hours would be 419.90 + 20 + 18.77 
= 458.67.
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c. Suitability Determination by the Selling Broker-Dealer

    The Commission estimates that approximately 150 Selling Broker-
Dealers would either deliver or make a representation at closing and 
each Selling Broker-Dealer would on average deliver or make such a 
representation 33.59 times \7\ a year. The Commission also estimates 
that a Selling Broker-Dealer would spend approximately five minutes on 
each disclosure. Thus, the estimated total annual reporting and 
recordkeeping burden for this requirement is 419.90 hours \8\ for 
Selling Broker-Dealers.
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    \7\ The Commission estimates that there would be approximately 
5,304 TIC Security transactions a year. Thus, a Selling Broker-
Dealer would make or deliver approximately ((5,304 x .95)/150) = 
33.59 determinations.
    \8\ (5,304 x .95) x five minutes per transaction = 25,194/60 = 
419.90.
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d. Customer Affirmation by the Selling Broker-Dealer

    The Commission estimates that there are approximately 150 Selling 
Broker-Dealers that are potential respondents, those Selling Broker-
Dealers would obtain and then deliver or maintain a written affirmation 
from 265.20 customers who are clients \9\ of Commercial Real Estate 
Participants a year, and each Selling Broker-Dealer would on average 
obtain and then deliver or maintain such an affirmation 1.77 \10\ times 
a year. The Commission also estimates that a customer would spend 
approximately 30 minutes on each disclosure and the Selling Broker-
Dealer would spend approximately 35 minutes on each disclosure. Thus, 
the estimated total annual reporting and recordkeeping burden for this 
proposed requirement is an aggregate of 132.60 hours for customers \11\ 
and 154.70 hours for the Selling Broker-Dealers.\12\
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    \9\ The Commission estimates that approximately five percent of 
all proposed TIC Security transactions would be determined to be not 
suitable. 5,304 x .05 = 265.20.
    \10\ The Commission estimates that there would be approximately 
5,304 TIC Security transactions under the requested exemption. The 
Commission estimates that Selling Broker-Dealers would obtain and 
then deliver or maintain the customer affirmation in five percent of 
all transactions under the requested exemption. Thus, a Selling 
Broker-Dealer would obtain approximately ((5,304 x .05)/150) = 1.77 
affirmations a year.
    \11\ 265.20 TIC Security transactions (5,304 x .05) x 30 minutes 
per transaction = 7956/60 = 132.60.
    \12\ 265.20 TIC Security transactions (5,304 x .05) x 35 minutes 
per transaction = 9282/60 = 154.70.
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e. Recordkeeping by the Lead Placement Agent

    The Commission estimates that approximately 45 Lead Placement 
Agents would act pursuant to the requested exemption. On average, a 
Lead Placement Agent would maintain copies of the relevant documents 
for approximately 117.87 TIC Security transactions \13\ a year. The 
Commission also estimates that a Lead Placement Agent would spend 10 
minutes per closing to maintain a copy of these documents. Thus, the 
estimated total annual reporting and recordkeeping burden for this 
requirement is 884 hours.\14\
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    \13\ 5,304 TIC Security transactions/45 Lead Placement Agents = 
117.87.
    \14\ 5,304 TIC Security transactions x 10 minutes = 53,040/60 = 
884.
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f. Aggregated Burdens for Entering Data into ROCIS.

    For purposes of entering the above collections into the OMB ROCIS 
system, the burdens discussed above have been summarized and aggregated 
as follows. There are approximately 995 total respondents.\15\ There 
are approximately 21 responses for each respondent.\16\ There are 
approximately 20,895 total responses.\17\ Thus, there are approximately 
.11 hours per response

[[Page 68904]]

for each respondent.\18\ There are approximately 2,298 total burden 
hours for all respondents.\19\
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    \15\ 800 + 150 + 45 = 995.
    \16\ 20,895 (total responses)/995 (total respondents) = 21. 
Although total responses should be 21,216 ((800 x 6.63) + (800 x 
6.63) + (150 x 33.59) + (150 x 1.77) + (45 x 117.87)), the number 
has been reduced to 20,895 to ensure consistency with the other 
data, specifically the 21 responses per respondent and .11 hours per 
respondent, being entered into ROCIS.
    \17\ 995 (total respondents) x 21 (responses per respondent) = 
20,895.
    \18\ 2,359 (total burden hours)/20,895 (total respondents) = 
0.11.
    \19\ 20,895 (total responses) x .11 (hours per respondent) = 
2,298.45. For purposes of entering this number into ROCIS, it has 
been rounded to 2,298.
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    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) 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: Alexander--
T.--Hunt@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 within 30 
days of this notice.

    Dated: November 29, 2007.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-23607 Filed 12-5-07; 8:45 am]
BILLING CODE 8011-01-P