Submission for OMB Review; Comment Request, 1663-1664 [2010-303]

Download as PDF Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices 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,8 notwithstanding any other provision of law. In addition, paragraph 17i–8(c) specifies that the notices and reports filed in accordance with Rule 17i–8 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: January 6, 2010. Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–302 Filed 1–11–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. WReier-Aviles on DSKGBLS3C1PROD with NOTICES Extension: Rule 17Ad–13; SEC File No. 270–263; OMB Control No. 3235–0275. 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 a request for approval of extension of the existing collection of information provided for Rule 17Ad–13 (17 CFR 240.17Ad–13) under the Securities 85 U.S.C. 552(b)(3)(B). VerDate Nov<24>2008 15:14 Jan 11, 2010 Jkt 220001 Exchange Act of 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange Act’’). Rule 17Ad–13 requires approximately 150 registered transfer agents to obtain an annual report on the adequacy of internal accounting controls. In addition, transfer agents must maintain copies of any reports prepared pursuant to Rule 17Ad–13 plus any documents prepared to notify the Commission and appropriate regulatory agencies in the event that the transfer agent is required to take any corrective action. These recordkeeping requirements assist the Commission and other regulatory agencies with monitoring transfer agents and ensuring compliance with the rule. Small transfer agents are exempt from Rule 17Ad–13. The staff estimates that the average number of hours necessary for each transfer agent to comply with Rule 17Ad–13 is 120 hours annually. The total burden is 18,000 hours annually for transfer agents, based upon past submissions. The staff estimates that the average cost per hour is approximately $60. Therefore, the total cost of compliance for transfer agents is $1,080,000. The retention period for the recordkeeping requirement under Rule 17Ad–13 is three years following the date of a report prepared pursuant to the rule. The recordkeeping requirement under Rule 17Ad–13 is mandatory to assist the Commission and other regulatory agencies with monitoring transfer agents and ensuring compliance with the rule. This rule does not involve the collection of confidential information. Please note that 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: (i) 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. PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 1663 Dated: January 6, 2010. Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–304 Filed 1–11–10; 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–5; SEC File No. 270–531; OMB Control No. 3235–0590. 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 collections of information discussed below. The Code of Federal Regulations citation to this collection of information is the following rule: 17 CFR 240.17i–5. Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’) amended Section 17 of the Securities Exchange Act of 1934 (15 U.S.C. 78q) (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– 5, 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 would be required to make and keep records, 1 44 U.S.C. 3501 et seq. L. 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. E:\FR\FM\12JAN1.SGM 12JAN1 1664 Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices furnish copies thereof, and make such reports as the Commission may require by rule.6 Rule 17i–5 requires that an SIBHC make and keep current certain records relating to its business. In addition, it requires that an SIBHC preserve those and other records for at least three years. The collections of information required pursuant to Rule 17i–5 are necessary so that the Commission can adequately supervise the activities of these SIBHCs. In addition, these collections of information are needed 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 the Act. Rule 17i– 5 also enhances the Commission’s supervision of the SIBHCs’ subsidiary broker-dealers through collection of additional information and inspections of affiliates of those broker-dealers. Without this information and documentation, 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. In addition to the one firm currently supervised by the Commission as a SIBHC, we estimate that 2 IBHCs will file Notices of Intention with the Commission to be supervised by the Commission as SIBHCs; for a total of three firms. An SIBHC will generally require about 40 hours to create and document a contingency plan regarding funding and liquidity of the affiliate group at a cost of $9,200 per SIBHC.7 An SIBHC will require, on average, approximately 64 hours each quarter to create a record regarding stress tests, or approximately 256 hours each year and a cost of $49,920.8 Further, an SIBHC will establish approximately 20 new counterparty arrangements each year, and will take, on average, about 30 minutes to create a record regarding the basis for credit risk weights for each WReier-Aviles on DSKGBLS3C1PROD with NOTICES 6 15 U.S.C. 78q(i)(3)(A). 7 We believe that an SIBHC would have a Senior Treasury Manager create this record. According to the Securities Industry and Financial Markets Association (‘‘SIFMA’’), the hourly cost of a Senior Treasury Manager is $230, as reflected in the SIFMA’s Report on Management and Professional Earnings for 2008 (‘‘SIFMA’s Report on Professional Earnings), and modified to account for an 1,800hour work-year and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead. ($230 × 40 hours) = $9,200. 8 We believe that an SIBHC would have a Floor Supervisor, or equivalent, create this record with an hourly cost of $195, as reflected in SIFMA’s Report on Professional Earnings’’). ($195 × 256) = $49,920. VerDate Nov<24>2008 15:14 Jan 11, 2010 Jkt 220001 such counterparty for a cost of $1,410.9 Finally, an SIBHC will generally require about 24 hours per year to maintain the specified records for a cost of $4,632.10 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–5. 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. 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 9 On average, each firm presently maintains relationships with approximately 1,000 counterparties. Further, firms generally already maintain documentation regarding their credit decisions, including their determination of credit risk weights, for those counterparties. We believe that an SIBHC would have an Intermediate Accountant create this record, which according to SIFMA’s Report on Professional Earnings receives an hourly rate of $141. ($141 × ((30 minutes × 20 counterparties)/60 minutes) = $1,410. 10 We believe that an SIBHC would have a Programmer Analyst perform this task and according to SIFMA’s Report on Professional Earnings, a Programmer Analyst receives an hourly rate of $193. ($193 × 24) = $4,632. 11 5 U.S.C. 552(b)(3)(B). PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 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: January 6, 2010. Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–303 Filed 1–11–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61292; File No. SR– NYSEAmex-2009–93] Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 452— NYSE Amex Equities and Section 723 of the NYSE Amex Company Guide Regarding Broker Discretionary Voting for Election of Directors and on Material Amendments to Investment Advisory Contracts January 5, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on December 23, 2009, NYSE Amex LLC (‘‘Exchange’’ or ‘‘NYSE Amex’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 452—NYSE Amex Equities and Section 723 of the NYSE Amex Company Guide (the ‘‘Company Guide’’). The text of the proposed rule change is available at the Exchange, at the Commission’s Public Reference Room, on the Commission’s Web site at https:// www.sec.gov, and on the Exchange’s Web site at https://www.nyse.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, 1 15 2 17 E:\FR\FM\12JAN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 12JAN1

Agencies

[Federal Register Volume 75, Number 7 (Tuesday, January 12, 2010)]
[Notices]
[Pages 1663-1664]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-303]


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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-5; SEC File No. 270-531; OMB Control No. 3235-0590.

    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 collections of information 
discussed below. The Code of Federal Regulations citation to this 
collection of information is the following rule: 17 CFR 240.17i-5.
---------------------------------------------------------------------------

    \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 (15 
U.S.C. 78q) (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-5, 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. 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 would 
be required to make and keep records,

[[Page 1664]]

furnish copies thereof, and make such reports as the Commission may 
require by rule.\6\ Rule 17i-5 requires that an SIBHC make and keep 
current certain records relating to its business. In addition, it 
requires that an SIBHC preserve those and other records for at least 
three years.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q(i)(3)(A).
---------------------------------------------------------------------------

    The collections of information required pursuant to Rule 17i-5 are 
necessary so that the Commission can adequately supervise the 
activities of these SIBHCs. In addition, these collections of 
information are needed 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 the Act. Rule 17i-5 also 
enhances the Commission's supervision of the SIBHCs' subsidiary broker-
dealers through collection of additional information and inspections of 
affiliates of those broker-dealers. Without this information and 
documentation, 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.
    In addition to the one firm currently supervised by the Commission 
as a SIBHC, we estimate that 2 IBHCs will file Notices of Intention 
with the Commission to be supervised by the Commission as SIBHCs; for a 
total of three firms. An SIBHC will generally require about 40 hours to 
create and document a contingency plan regarding funding and liquidity 
of the affiliate group at a cost of $9,200 per SIBHC.\7\ An SIBHC will 
require, on average, approximately 64 hours each quarter to create a 
record regarding stress tests, or approximately 256 hours each year and 
a cost of $49,920.\8\ Further, an SIBHC will establish approximately 20 
new counterparty arrangements each year, and will take, on average, 
about 30 minutes to create a record regarding the basis for credit risk 
weights for each such counterparty for a cost of $1,410.\9\ Finally, an 
SIBHC will generally require about 24 hours per year to maintain the 
specified records for a cost of $4,632.\10\
---------------------------------------------------------------------------

    \7\ We believe that an SIBHC would have a Senior Treasury 
Manager create this record. According to the Securities Industry and 
Financial Markets Association (``SIFMA''), the hourly cost of a 
Senior Treasury Manager is $230, as reflected in the SIFMA's Report 
on Management and Professional Earnings for 2008 (``SIFMA's Report 
on Professional Earnings), 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. ($230 x 40 hours) = $9,200.
    \8\ We believe that an SIBHC would have a Floor Supervisor, or 
equivalent, create this record with an hourly cost of $195, as 
reflected in SIFMA's Report on Professional Earnings''). ($195 x 
256) = $49,920.
    \9\ On average, each firm presently maintains relationships with 
approximately 1,000 counterparties. Further, firms generally already 
maintain documentation regarding their credit decisions, including 
their determination of credit risk weights, for those 
counterparties. We believe that an SIBHC would have an Intermediate 
Accountant create this record, which according to SIFMA's Report on 
Professional Earnings receives an hourly rate of $141. ($141 x ((30 
minutes x 20 counterparties)/60 minutes) = $1,410.
    \10\ We believe that an SIBHC would have a Programmer Analyst 
perform this task and according to SIFMA's Report on Professional 
Earnings, a Programmer Analyst receives an hourly rate of $193. 
($193 x 24) = $4,632.
---------------------------------------------------------------------------

    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-5.
    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.
---------------------------------------------------------------------------

    \11\ 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: January 6, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-303 Filed 1-11-10; 8:45 am]
BILLING CODE 8011-01-P
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