Proposed Collection; Comment Request, 54864-54865 [E9-25486]
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54864
Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices
survey or study of the burdens
associated with our rules and forms.
The Commission staff estimates the
average cost of preserving books and
records required by rule 31a–2, to be
approximately $70,000 annually per
fund. As discussed previously, there are
approximately 4,522 funds currently
operating, for a total cost of preserving
records as required by rule 31a–2 of
$316,540,000 per year.10 Our staff
understands, however, based on
conversations with representatives of
the fund industry, that funds would
already spend approximately half of this
amount ($158,270,000) to preserve these
same books and records, as they are also
necessary to prepare financial
statements, meet various state reporting
requirements, and prepare their annual
federal and state income tax returns.
Therefore, we estimate that the total
annual cost burden for funds as a result
of compliance with rule 31a–2 is
$158,270,000 per year.
These estimates of average costs are
made solely for the purposes of the
Paperwork Reduction Act. The estimate
is not derived from a comprehensive or
even a representative survey or study of
the costs of Commission rules. 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 OMB control
number.
Written comments are invited on: (a)
Whether the collections of information
are necessary for the proper
performance of the functions of the
Commission, including whether the
information has practical utility; (b) the
accuracy of the Commission’s estimate
of the burdens of the collections of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burdens of the collections
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 Charles Boucher, Director/CIO,
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.
10 This estimate is based on the following
calculation: 4,522 funds × $70,000 = $316,540,000.
VerDate Nov<24>2008
15:24 Oct 22, 2009
Jkt 220001
Dated: October 19, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–25487 Filed 10–22–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; 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:
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 1 the Securities and Exchange
Commission (‘‘Commission’’) has
submitted to the Office of Management
and Budget requests for extension of the
previously approved collections of
information discussed below. The Code
of Federal Regulations citation to this
collection of information is the
following: 17 CFR 240.17i–6.
Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’)
amended Section 17 of the Securities
Exchange Act of 1934 to create a
regulatory framework under which a
holding company of a broker-dealer
(‘‘investment bank holding company’’ or
‘‘IBHC’’) may voluntarily be supervised
by the Commission as a supervised
investment bank holding company (or
‘‘SIBHC’’).3 In 2004, the Commission
promulgated rules, including Rule 17i–
6, to create a framework for the
Commission to supervise SIBHCs.4 This
framework includes qualification
criteria for SIBHCs, as well as
recordkeeping and reporting
requirements. Among other things, this
regulatory framework for SIBHCs is
intended to provide a basis for non-U.S.
financial regulators to treat the
Commission as the principal U.S.
consolidated home-country supervisor
for SIBHCs and their affiliated brokerdealers.5
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
1 44
U.S.C. 3501 et seq.
L. No. 106–102, 113 Stat. 1338 (1999).
3 See 15 U.S.C. 78q(i).
4 See Exchange Act Release No. 49831 (Jun. 8,
2004), 69 FR 34472 (Jun. 21, 2004).
5 See H.R. Conf. Rep. No. 106–434, 165 (1999).
See also Exchange Act Release No. 49831, at 6 (Jun.
8, 2004), 69 FR 34472, at 34473 (Jun. 21, 2004).
2 Pub.
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
Commission may require by rule.6 Rule
17i–6 requires that an SIBHC file with
the Commission certain monthly and
quarterly reports and an annual audit
report. The reports and notices required
to be filed pursuant to Rule 17i–6 must
be preserved for a period of not less
than three years.7
The collections of information
required by Rule 17i–6 are necessary to
allow the Commission adequately to
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
SIBHC’s 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 8 hours to prepare and file
each monthly report required by this
rule (or approximately 96 hours per
year).8 On average, it will take an SIBHC
about 16 hours each quarter (or 64 hours
each year) 9 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 984 hours.10
Rule 17i–6 requires that an SIBHC file
certain monthly and quarterly reports
with the Commission, as well as an
annual audit report. The average cost for
an SIBHC to prepare and file the
monthly reports is about $1,424 per
month, and thus approximately $11,392
6 15
U.S.C. 78q(i)(3)(A).
CFR 240.17i–5(b)(3).
8 The SIBHC must file with the Commission a
monthly report within 30 calendar days after the
end of each month that does not coincide with a
fiscal quarter end. Consequently, the SIBHC must
file a monthly report 8 times each year. (8 hours ×
8 months) = 64 hours/year.
9 (16 hours × 4 quarters in a year) = 64 hours/year.
10 (64 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 = 984
hours.
7 17
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23OCN1
Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices
CPrice-Sewell on DSKGBLS3C1PROD with NOTICES
per year.11 On average, an SIBHC will
incur a quarterly cost of $2,848 to
prepare and file the required quarterly
reports, and thus will incur an annual
cost of $11,392 to file these reports.12
Finally, an SIBHC, on average, will
incur an annual cost of $40,400 to
prepare and file an annual audit.13
Thus, the total dollar cost of the ongoing
paperwork burden associated with Rule
17i–6 is approximately $189,552.14
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.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (d)
11 We believe that an SIBHC would have a Senior
Accountant prepare and file these reports.
According to the Securities Industry Financial
Management Association (or ‘‘SIFMA’’), the hourly
cost of a Senior Accountant is $178, as reflected in
the SIFMA’s Report on Management and
Professional Earnings for 2008, and modified to
account for an 1,800-hour work-year and multiplied
by 5.35 to account for bonuses, firm size, employee
benefits and overhead. ($178 × 8 hours) = $1,424.
($1,424 × 8 months) = $11,392.
12 We believe that an SIBHC would have a Senior
Accountant prepare and file these reports. The
hourly cost of a Senior Accountant is $178. ($178
× 16 hours) = $2,848. ($2,848 × 4 quarters) =
$11,392.
13 We believe that an SIBHC would have a Senior
Internal Auditor work with accountants to prepare
and file these reports. According to the SIFMA, the
hourly cost of a Senior Internal Auditor is $202, as
reflected in its Report on Management and
Professional Earnings for 2008, and modified to
account for an 1,800-hour work-year and multiplied
by 5.35 to account for bonuses, firm size, employee
benefits and overhead. ($202 × 200 hours) =
$40,400.
14 (($11,392 + $11,392 + $40,400) × 3 SIBHCs) =
$189,552.
VerDate Nov<24>2008
15:24 Oct 22, 2009
Jkt 220001
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Comments should be directed to
Charles Boucher, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312 or send an
e-mail to: PRA_Mailbox@sec.gov.
Dated: October 19, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–25486 Filed 10–22–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Rule 17i–2; SEC File No. 270–528; OMB
Control No. 3235–0592]
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: U.S. Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of
1995 1 the Securities and Exchange
Commission (‘‘Commission’’) has
submitted to the Office of Management
and Budget requests for extension of the
previously approved collections of
information discussed below. The Code
of Federal Regulations citation to this
collection of information is the
following: 17 CFR 240.17i–2.
Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’)
amended Section 17 of the Securities
Exchange Act of 1934 to create a
regulatory framework under which a
holding company of a broker-dealer
(‘‘investment bank holding company’’ or
‘‘IBHC’’) may voluntarily be supervised
by the Commission as a supervised
investment bank holding company (or
‘‘SIBHC’’).3 In 2004, the Commission
promulgated rules, including Rule 17i–
2, to create a framework for the
Commission to supervise SIBHCs.4 This
framework includes qualification
criteria for SIBHCs, as well as
U.S.C. 3501 et seq.
Law 106–102, 113 Stat. 1338 (1999).
3 See 15 U.S.C. 78q(i).
4 See Exchange Act Release No. 49831 (Jun. 8,
2004), 69 FR 34472 (Jun. 21, 2004).
54865
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 5
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
records required to be created pursuant
to Rule 17i–2 must be preserved for a
period of not less than three years.6
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
1 44
2 Public
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
5 See H.R. Conf. Rep. No. 106–434, 165 (1999).
See also Exchange Act Release No. 49831, at 6 (Jun.
8, 2004), 69 FR 34472, at 34473 (Jun. 21, 2004).
6 17 CFR 240.17i–5(b)(2).
E:\FR\FM\23OCN1.SGM
23OCN1
]]>Agencies
[Federal Register Volume 74, Number 204 (Friday, October 23, 2009)]
[Notices]
[Pages 54864-54865]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-25486]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; 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:
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 \1\ the Securities and Exchange Commission (``Commission'') has
submitted to the Office of Management and Budget requests for extension
of the previously approved collections of information discussed below.
The Code of Federal Regulations citation to this collection of
information is the following: 17 CFR 240.17i-6.
---------------------------------------------------------------------------
\1\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------
Section 231 of the Gramm-Leach-Bliley Act of 1999 \2\ (the
``GLBA'') amended Section 17 of the Securities Exchange Act of 1934 to
create a regulatory framework under which a holding company of a
broker-dealer (``investment bank holding company'' or ``IBHC'') may
voluntarily be supervised by the Commission as a supervised investment
bank holding company (or ``SIBHC'').\3\ In 2004, the Commission
promulgated rules, including Rule 17i-6, to create a framework for the
Commission to supervise SIBHCs.\4\ This framework includes
qualification criteria for SIBHCs, as well as recordkeeping and
reporting requirements. Among other things, this regulatory framework
for SIBHCs is intended to provide a basis for non-U.S. financial
regulators to treat the Commission as the principal U.S. consolidated
home-country supervisor for SIBHCs and their affiliated broker-
dealers.\5\
---------------------------------------------------------------------------
\2\ Pub. L. No. 106-102, 113 Stat. 1338 (1999).
\3\ See 15 U.S.C. 78q(i).
\4\ See Exchange Act Release No. 49831 (Jun. 8, 2004), 69 FR
34472 (Jun. 21, 2004).
\5\ See H.R. Conf. Rep. No. 106-434, 165 (1999). See also
Exchange Act Release No. 49831, at 6 (Jun. 8, 2004), 69 FR 34472, at
34473 (Jun. 21, 2004).
---------------------------------------------------------------------------
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.\6\ Rule 17i-6 requires that an
SIBHC file with the Commission certain monthly and quarterly reports
and an annual audit report. The reports and notices required to be
filed pursuant to Rule 17i-6 must be preserved for a period of not less
than three years.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q(i)(3)(A).
\7\ 17 CFR 240.17i-5(b)(3).
---------------------------------------------------------------------------
The collections of information required by Rule 17i-6 are necessary
to allow the Commission adequately to 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 SIBHC's 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 8 hours to prepare and file each monthly report
required by this rule (or approximately 96 hours per year).\8\ On
average, it will take an SIBHC about 16 hours each quarter (or 64 hours
each year) \9\ 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 984
hours.\10\
---------------------------------------------------------------------------
\8\ The SIBHC must file with the Commission a monthly report
within 30 calendar days after the end of each month that does not
coincide with a fiscal quarter end. Consequently, the SIBHC must
file a monthly report 8 times each year. (8 hours x 8 months) = 64
hours/year.
\9\ (16 hours x 4 quarters in a year) = 64 hours/year.
\10\ (64 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 = 984
hours.
---------------------------------------------------------------------------
Rule 17i-6 requires that an SIBHC file certain monthly and
quarterly reports with the Commission, as well as an annual audit
report. The average cost for an SIBHC to prepare and file the monthly
reports is about $1,424 per month, and thus approximately $11,392
[[Page 54865]]
per year.\11\ On average, an SIBHC will incur a quarterly cost of
$2,848 to prepare and file the required quarterly reports, and thus
will incur an annual cost of $11,392 to file these reports.\12\
Finally, an SIBHC, on average, will incur an annual cost of $40,400 to
prepare and file an annual audit.\13\ Thus, the total dollar cost of
the ongoing paperwork burden associated with Rule 17i-6 is
approximately $189,552.\14\
---------------------------------------------------------------------------
\11\ We believe that an SIBHC would have a Senior Accountant
prepare and file these reports. According to the Securities Industry
Financial Management Association (or ``SIFMA''), the hourly cost of
a Senior Accountant is $178, as reflected in the SIFMA's Report on
Management and Professional Earnings for 2008, and modified to
account for an 1,800-hour work-year and multiplied by 5.35 to
account for bonuses, firm size, employee benefits and overhead.
($178 x 8 hours) = $1,424. ($1,424 x 8 months) = $11,392.
\12\ We believe that an SIBHC would have a Senior Accountant
prepare and file these reports. The hourly cost of a Senior
Accountant is $178. ($178 x 16 hours) = $2,848. ($2,848 x 4
quarters) = $11,392.
\13\ We believe that an SIBHC would have a Senior Internal
Auditor work with accountants to prepare and file these reports.
According to the SIFMA, the hourly cost of a Senior Internal Auditor
is $202, as reflected in its Report on Management and Professional
Earnings for 2008, and modified to account for an 1,800-hour work-
year and multiplied by 5.35 to account for bonuses, firm size,
employee benefits and overhead. ($202 x 200 hours) = $40,400.
\14\ (($11,392 + $11,392 + $40,400) x 3 SIBHCs) = $189,552.
---------------------------------------------------------------------------
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.
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
Comments should be directed to Charles Boucher, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send
an e-mail to: PRA_Mailbox@sec.gov.
Dated: October 19, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25486 Filed 10-22-09; 8:45 am]
BILLING CODE 8011-01-P
