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Federal Register / Vol. 75, No. 4 / Thursday, January 7, 2010 / Notices
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.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
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.
Section 231 of the Gramm-LeachBliley 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 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
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.
VerDate Nov<24>2008
14:42 Jan 06, 2010
Jkt 220001
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.
The records required to be created
pursuant to Rule 17i–2 must be
preserved for a period of not less than
hours + 100 hours) × 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 × 12 months each year) × 3 SIBHCs =
72.
9 (3,000 hours to file the Notices of Intention + 72
hours to update them) = first year cost of 3,072.
6 (900
PO 00000
Frm 00036
Fmt 4703
Sfmt 4703
1003
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.
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 email 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
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–4, SEC File No. 270–530,
OMB Control No. 3235–0594.
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 request for extension of the
10 17
CFR 240.17i–5(b)(2).
U.S.C. 552(b)(3)(B).
12 17 CFR 240.17i–2(d)(1).
1 44 U.S.C. 3501 et seq.
11 5
E:\FR\FM\07JAN1.SGM
07JAN1
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
1004
Federal Register / Vol. 75, No. 4 / Thursday, January 7, 2010 / Notices
previously approved collection of
information discussed below. The Code
of Federal Regulation citation to this
collection of information is the
following rule: 17 CFR 240.17i–4.
Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’)
amended Section 17 of the Securities
Exchange Act of 1934 (17 USC 78a et
seq.) (‘‘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–
4, 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
Rule 17i–4 requires an SIBHC to
comply with present Exchange Act Rule
15c3–4 6 as though it were a brokerdealer, which requires that the firm
establish, document and maintain a
system of internal risk management
controls to assist it in managing the
risks associated with its business
activities (including market, credit,
operational, funding, and legal risks). In
addition, Rule 17i–4 requires that an
SIBHC establish, document, and
maintain procedures for the detection
and prevention of money laundering
and terrorist financing as part of its
internal risk management control
system. Finally, Rule 17i–4 requires that
an SIBHC periodically review its
internal risk management control
system for integrity of the risk
measurement, monitoring, and
management process, and
accountability, at the appropriate
organizational level, for defining the
permitted scope of activity and level of
risk.
The collection of information required
pursuant to Rule 17i–4 is needed so that
the Commission can adequately
supervise the activities of these SIBHCs,
Law 106–102, 113 Stat. 1338 (1999).
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).
6 17 CFR 240.15c3–4.
and 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. Without this information,
the Commission would be unable to
adequately supervise the SIBHC as
provided for under the Exchange 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, on average, about 3,600 hours to
assess its present structure, businesses,
and controls, and establish and
document its risk management control
system. In addition, an SIBHC will
require, on average, approximately 250
hours each year to maintain its risk
management control system.
Consequently, the total initial burden
for all SIBHCs is approximately 10,800
hours 7 and the continuing annual
burden is about 750 hours.8 Thus, the
total burden relating to Rule 17i–4 for
all SIBHCs is approximately 11,550
hours 9 in the first year, and
approximately 750 hours each year
thereafter.10
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–4.
The records required to be created
pursuant to Rule 17i–4 must be
preserved for a period of not less than
three years.11 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
2 Public
3 See
VerDate Nov<24>2008
14:42 Jan 06, 2010
Jkt 220001
hours × 3 SIBHCs) = 10,800 hours.
hours per year × 3 SIBHCs) = 750 hours per
7 (3,600
8 (250
year.
9 (3,600 hours × 3 SIBHCs) + (250 hours per year
× 3 SIBHCs).
10 (250 hours per year × 3 SIBHCs).
11 17 CFR 240.17i–5(b)(5).
PO 00000
Frm 00037
Fmt 4703
Sfmt 4703
Section 552(b)(3)(B) of the Freedom of
Information Act,12 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)
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 email 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. 2010–4 Filed 1–6–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: US Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
E×tension: 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 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 rule: 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 (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
12 5
U.S.C. 552(b)(3)(B).
U.S.C. 3501 et seq.
2 Public Law 106–102, 113 Stat. 1338 (1999).
1 44
E:\FR\FM\07JAN1.SGM
07JAN1
]]>Agencies
[Federal Register Volume 75, Number 4 (Thursday, January 7, 2010)]
[Notices]
[Pages 1003-1004]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4]
-----------------------------------------------------------------------
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-4, SEC File No. 270-530, OMB Control No. 3235-
0594.
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 request for extension
of the
[[Page 1004]]
previously approved collection of information discussed below. The Code
of Federal Regulation citation to this collection of information is the
following rule: 17 CFR 240.17i-4.
---------------------------------------------------------------------------
\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 (17
USC 78a et seq.) (``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-4, 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\ Public 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).
\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).
---------------------------------------------------------------------------
Rule 17i-4 requires an SIBHC to comply with present Exchange Act
Rule 15c3-4 \6\ as though it were a broker-dealer, which requires that
the firm establish, document and maintain a system of internal risk
management controls to assist it in managing the risks associated with
its business activities (including market, credit, operational,
funding, and legal risks). In addition, Rule 17i-4 requires that an
SIBHC establish, document, and maintain procedures for the detection
and prevention of money laundering and terrorist financing as part of
its internal risk management control system. Finally, Rule 17i-4
requires that an SIBHC periodically review its internal risk management
control system for integrity of the risk measurement, monitoring, and
management process, and accountability, at the appropriate
organizational level, for defining the permitted scope of activity and
level of risk.
---------------------------------------------------------------------------
\6\ 17 CFR 240.15c3-4.
---------------------------------------------------------------------------
The collection of information required pursuant to Rule 17i-4 is
needed so that the Commission can adequately supervise the activities
of these SIBHCs, and 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.
Without this information, the Commission would be unable to adequately
supervise the SIBHC as provided for under the Exchange 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, on average, about 3,600 hours to assess its present
structure, businesses, and controls, and establish and document its
risk management control system. In addition, an SIBHC will require, on
average, approximately 250 hours each year to maintain its risk
management control system. Consequently, the total initial burden for
all SIBHCs is approximately 10,800 hours \7\ and the continuing annual
burden is about 750 hours.\8\ Thus, the total burden relating to Rule
17i-4 for all SIBHCs is approximately 11,550 hours \9\ in the first
year, and approximately 750 hours each year thereafter.\10\
---------------------------------------------------------------------------
\7\ (3,600 hours x 3 SIBHCs) = 10,800 hours.
\8\ (250 hours per year x 3 SIBHCs) = 750 hours per year.
\9\ (3,600 hours x 3 SIBHCs) + (250 hours per year x 3 SIBHCs).
\10\ (250 hours per year x 3 SIBHCs).
---------------------------------------------------------------------------
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-4.
The records required to be created pursuant to Rule 17i-4 must be
preserved for a period of not less than three years.\11\ 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,\12\ notwithstanding any other provision of
law.
---------------------------------------------------------------------------
\11\ 17 CFR 240.17i-5(b)(5).
\12\ 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) 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. 2010-4 Filed 1-6-10; 8:45 am]
BILLING CODE 8011-01-P
