Rule 17g-4 30 Day Notice 2021-Submission for OMB Review; Comment Request, 4312 [2022-01547]

Download as PDF 4312 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Notices lotter on DSK11XQN23PROD with NOTICES1 estimates that 2,127,147 are new clients and 25,852,313 are continuing clients.5 The staff estimates that each year the investment advisory program sponsors’ staff engage in 1.5 hours per new client and 1 hour per continuing client to prepare, conduct and/or review interviews regarding the client’s financial situation and investment objectives as required by the rule.6 Furthermore, the staff estimates that each year the investment advisory program sponsors’ staff spends 1 hour per client each year to prepare and mail quarterly client account statements, including notices to update information.7 Based on the estimates above, the Commission estimates that the total annual burden of the rule’s paperwork requirements is 57,022,493 hours.8 The estimate of average burden hours is 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 and forms. 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. The public may view the background documentation for this information collection at the following website, www.reginfo.gov. 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 email to: Lindsay.M.Abate@omb.eop.gov; and (ii) David Bottom, c/o John R. Pezzullo, Director/Chief Information Officer, indicated in Form ADV Item 5I(2)(b) and (c), and the number of individual clients of advisers that identify as internet advisers in Form ADV Item 2A(11). From analysis comparing reported individual client assets in Form ADV Item 5D(a)(3) and 5D(b)(3) to reported wrap portfolio manager assets in Form ADV Item 5I(2)(b) and (c), we discount the estimated number of individual clients of non-internet advisers providing portfolio management to wrap programs by 10%. 5 These estimates are based on the number of new clients expected due to average year-over-year growth in individual clients from Form ADV Item 5D(a)(1) and (b)(1) (about 8%) and an assumed rate of yearly client turnover of 10%. 6 These estimates are based upon consultation with investment advisers that operate investment advisory programs that rely on rule 3a–4. 7 The staff bases this estimate in part on the fact that, by business necessity, computer records already will be available that contain the information in the quarterly reports. 8 This estimate is based on the following calculation: (25,852,313 continuing clients × 1 hour) + (2,127,147 new clients × 1.5 hours) + (27,979,460 total clients × (0.25 hours × 4 statements)) = 57,022,493 hours. VerDate Sep<11>2014 17:53 Jan 26, 2022 Jkt 256001 Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549 or send an email to: PRA_Mailbox@ sec.gov. Comments must be submitted to OMB within 30 days of this notice to www.reginfo.gov/public/do/PRAMain. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Dated: January 21, 2022. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2022–01555 Filed 1–26–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [OMB Control No. 3235–0627] Rule 17g–4 30 Day Notice 2021— Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Extension: Rule 17g–4 Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for approval of extension of the previously approved collection of information provided for in Rule 17g–4 (17 CFR 240.17g–4) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange Act’’). The Credit Rating Agency Reform Act of 2006 added a new section 15E, ‘‘Registration of Nationally Recognized Statistical Rating Organizations,’’ 1 to the Exchange Act. Pursuant to the authority granted under section 15E of the Exchange Act, the Commission adopted Rule 17g–4, which requires that a nationally recognized statistical rating organization (‘‘NRSRO’’) establish, maintain, and enforce written policies and procedures to prevent the misuse of material nonpublic information, including policies and procedures reasonably designed to prevent: (a) The inappropriate dissemination of material nonpublic information obtained in connection with the performance of credit rating services; (b) a person within the NRSRO from trading on 1 15 PO 00000 U.S.C. 78o–7. Frm 00122 Fmt 4703 Sfmt 4703 material nonpublic information; and (c) the inappropriate dissemination of a pending credit rating action.2 There are 9 credit rating agencies registered with the Commission as NRSROs under section 15E of the Exchange Act, which have already established the policies and procedures required by Rule 17g–4. Based on staff experience, an NRSRO is estimated to spend an average of approximately 10 hours per year reviewing its policies and procedures regarding material nonpublic information and updating them (if necessary), resulting in an average industry-wide annual hour burden of approximately 90 hours.3 An agency may not conduct or sponsor a collection of information unless it displays a currently valid OMB control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid OMB control number. The public may view background documentation for this information collection at the following website: >www.reginfo.gov<. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to (i) >www.reginfo.gov/public/ do/PRAMain< and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/ o John R. Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending an email to: PRA_Mailbox@sec.gov. Dated: January 21, 2022. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2022–01547 Filed 1–26–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–489, OMB Control No. 3235–0541] Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 2 See 17 CFR 240.17g–4; Release No. 34–55231 (Feb. 2, 2007), 72 FR 6378 (Feb. 9, 2007); Release No. 34–55857 (June 5, 2007), 72 FR 33564 (June 18, 2007). 3 9 currently registered NRSROs × 10 hours = 90 hours. E:\FR\FM\27JAN1.SGM 27JAN1

Agencies

[Federal Register Volume 87, Number 18 (Thursday, January 27, 2022)]
[Notices]
[Page 4312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01547]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0627]


Rule 17g-4 30 Day Notice 2021--Submission for OMB Review; Comment 
Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rule 17g-4

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rule 17g-
4 (17 CFR 240.17g-4) under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) (``Exchange Act'').
    The Credit Rating Agency Reform Act of 2006 added a new section 
15E, ``Registration of Nationally Recognized Statistical Rating 
Organizations,'' \1\ to the Exchange Act. Pursuant to the authority 
granted under section 15E of the Exchange Act, the Commission adopted 
Rule 17g-4, which requires that a nationally recognized statistical 
rating organization (``NRSRO'') establish, maintain, and enforce 
written policies and procedures to prevent the misuse of material 
nonpublic information, including policies and procedures reasonably 
designed to prevent: (a) The inappropriate dissemination of material 
nonpublic information obtained in connection with the performance of 
credit rating services; (b) a person within the NRSRO from trading on 
material nonpublic information; and (c) the inappropriate dissemination 
of a pending credit rating action.\2\
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    \1\ 15 U.S.C. 78o-7.
    \2\ See 17 CFR 240.17g-4; Release No. 34-55231 (Feb. 2, 2007), 
72 FR 6378 (Feb. 9, 2007); Release No. 34-55857 (June 5, 2007), 72 
FR 33564 (June 18, 2007).
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    There are 9 credit rating agencies registered with the Commission 
as NRSROs under section 15E of the Exchange Act, which have already 
established the policies and procedures required by Rule 17g-4. Based 
on staff experience, an NRSRO is estimated to spend an average of 
approximately 10 hours per year reviewing its policies and procedures 
regarding material nonpublic information and updating them (if 
necessary), resulting in an average industry-wide annual hour burden of 
approximately 90 hours.\3\
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    \3\ 9 currently registered NRSROs x 10 hours = 90 hours.
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    An agency may not conduct or sponsor a collection of information 
unless it displays a currently valid OMB control number. No person 
shall be subject to any penalty for failing to comply with a collection 
of information subject to the PRA that does not display a valid OMB 
control number.
    The public may view background documentation for this information 
collection at the following website: >www.reginfo.gov<. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) >www.reginfo.gov/public/do/PRAMain< and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o John R. Pezzullo, 100 F Street NE, Washington, DC 20549, or by 
sending an email to: [email protected].

    Dated: January 21, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-01547 Filed 1-26-22; 8:45 am]
BILLING CODE 8011-01-P
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