Submission for OMB Review; Comment Request, 1003 [2010-3]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 75, Number 4 (Thursday, January 7, 2010)]
[Notices]
[Page 1003]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3]



[[Page 1003]]

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

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 \1\ 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. The Code of Federal Regulation citation to this 
collection of information is the following: 17 CFR 240.17i-2.
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    \1\ 44 U.S.C. 3501 et seq.
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    Section 231 of the Gramm-Leach-Bliley Act of 1999 \2\ (the 
``GLBA'') amended Section 17 of the Securities Exchange Act of 1934 (17 
USC 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'').\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 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 broker-dealers.
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    \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).
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    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 Exchange Act for the IBHC to be so supervised. 
Finally, Rule 17i-2 sets forth the criteria the Commission would use to 
make this determination.
    The collections of information required by Rule 17i-2 are necessary 
to allow the Commission to effectively determine whether supervision of 
an IBHC as an SIBHC is necessary or appropriate in furtherance of the 
purposes of Section 17 of the Exchange Act. In addition, these 
collections are needed so that the Commission can adequately supervise 
the activities of these SIBHCs. Finally, these rules enhance the 
Commission's supervision of the SIBHCs' subsidiary broker-dealers 
through collection of additional information and inspections of 
affiliates of those broker-dealers.
    We estimate that three IBHCs will file Notices of Intention with 
the Commission to be supervised by the Commission as SIBHCs. Each IBHC 
that files a Notice of Intention to become supervised by the Commission 
as an SIBHC will require approximately 900 hours to draft the Notice of 
Intention, compile the various documents to be included with the Notice 
of Intention, and work with the Commission staff. Further, each IBHC 
likely will have an attorney review its Notice of Intention, and it 
will take the attorney approximately 100 hours to complete such a 
review. Consequently, we estimate the total one-time burden for all 
three firms to file their Notices of Intention would be approximately 
3,000 hours.\6\ Rule 17i-2 also requires that an IBHC/SIBHC update its 
Notice of Intention on an ongoing basis.\7\ Each IBHC/SIBHC will 
require approximately two hours each month to update its Notice of 
Intention, as necessary. Thus, we estimate that it will take the three 
IBHC/SIBHCs, in the aggregate, about 72 hours each year to update their 
Notices of Intention.\8\ Thus, the total burden relating to Rule 17i-2 
for all SIBHCs would be approximately 3,072 hours in the first year,\9\ 
and approximately 72 hours each year thereafter.
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    \6\ (900 hours + 100 hours) x 3 IBHCs/SIBHCs = 3,000 hours.
    \7\ An IBHC would be required to review and update its Notice of 
Intention to the extent it becomes inaccurate prior to a Commission 
determination, and an SIBHC would be required to update its Notice 
of Intention if it changes a mathematical model used to calculate 
its risk allowances pursuant to Rule 17i-7 after a Commission 
determination was made.
    \8\ (2 hours x 12 months each year) x 3 SIBHCs = 72.
    \9\ (3,000 hours to file the Notices of Intention + 72 hours to 
update them) = first year cost of 3,072.
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    The records required to be created pursuant to Rule 17i-2 must be 
preserved for a period of not less than three years.\10\ The collection 
of information is mandatory and the information required to be provided 
to the Commission pursuant to this Rule is deemed confidential pursuant 
to Section 17(j) of the Exchange Act and Section 552(b)(3)(B) of the 
Freedom of Information Act,\11\ notwithstanding any other provision of 
law. In addition, Exchange Act Rule 17i-2(d)(1) \12\ 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.
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    \10\ 17 CFR 240.17i-5(b)(2).
    \11\ 5 U.S.C. 552(b)(3)(B).
    \12\ 17 CFR 240.17i-2(d)(1).
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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: Shagufta_Ahmed@comb.eop.gov; and (ii) 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. Comments must be submitted to OMB 
within 30 days of this notice.

    Dated: December 30, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-3 Filed 1-6-10; 8:45 am]
BILLING CODE 8011-01-P