Proposed Collection; Comment Request, 13778-13779 [2022-05015]

Download as PDF 13778 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Notices Management and Budget is particularly interested in comments that: 1. Evaluate whether the proposed collection of information is necessary for the proper performance of functions of the agency, including whether the information will have practical utility; 2. Evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; 3. Enhance the quality, utility, and clarity of the information to be collected; and 4. Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submissions of responses. RI 20–123 is used by retirees separated for disability and the survivors of retirees separated for disability to request that Retirement Operations review the computations of disability annuities to include the formula provided in law for individuals who performed service as law enforcement officers, firefighters, nuclear materials couriers, air traffic controllers, Congressional employees, and Capitol and Supreme Court Police. Analysis Agency: Retirement Services, Office of Personnel Management. Title: Request for Case Review for Enhanced Disability Annuity Benefit. OMB Number: 3206–0254. Frequency: On occasion. Affected Public: Individuals or Households. Number of Respondents: 100. Estimated Time per Respondent: 5 minutes. Total Burden Hours: 8. Office of Personnel Management. Kellie Cosgrove Riley, Director, Office of Privacy and Information Management. [FR Doc. 2022–05067 Filed 3–9–22; 8:45 am] khammond on DSKJM1Z7X2PROD with NOTICES BILLING CODE 6325–38–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–401, OMB Control No. 3235–0459] Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange VerDate Sep<11>2014 16:20 Mar 09, 2022 Jkt 256001 Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Extension: Rule 3a–4 The prior 30-day notice was issued in error and this new one allows a new 30 days to comment. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 350l–3520), the Securities and Exchange Commission (the ‘‘Commission’’) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. Rule 3a–4 (17 CFR 270.3a–4) under the Investment Company Act of 1940 (15 U.S.C. 80a) (‘‘Investment Company Act’’ or ‘‘Act’’) provides a nonexclusive safe harbor from the definition of investment company under the Act for certain investment advisory programs. These programs, which include ‘‘wrap fee’’ programs, generally are designed to provide professional portfolio management services on a discretionary basis to clients who are investing less than the minimum investments for individual accounts usually required by the investment adviser but more than the minimum account size of most mutual funds. Under wrap fee and similar programs, a client’s account is typically managed on a discretionary basis according to pre-selected investment objectives. Clients with similar investment objectives often receive the same investment advice and may hold the same or substantially similar securities in their accounts. Because of this similarity of management, some of these investment advisory programs may meet the definition of investment company under the Act. In 1997, the Commission adopted rule 3a–4, which clarifies that programs organized and operated in accordance with the rule are not required to register under the Investment Company Act or comply with the Act’s requirements.1 These programs differ from investment companies because, among other things, they provide individualized investment advice to the client. The rule’s provisions have the effect of ensuring that clients in a program relying on the 1 Status of Investment Advisory Programs Under the Investment Company Act of 1940, Investment Company Act Rel. No. 22579 (Mar. 24, 1997) [62 FR 15098 (Mar. 31, 1997)] (‘‘Adopting Release’’). In addition, there are no registration requirements under section 5 of the Securities Act of 1933 for programs that meet the requirements of rule 3a–4. See 17 CFR 270.3a–4, introductory note. PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 rule receive advice tailored to the client’s needs. For a program to be eligible for the rule’s safe harbor, each client’s account must be managed on the basis of the client’s financial situation and investment objectives and in accordance with any reasonable restrictions the client imposes on managing the account. When an account is opened, the sponsor 2 (or its designee) must obtain information from each client regarding the client’s financial situation and investment objectives, and must allow the client an opportunity to impose reasonable restrictions on managing the account.3 In addition, the sponsor (or its designee) must contact the client annually to determine whether the client’s financial situation or investment objectives have changed and whether the client wishes to impose any reasonable restrictions on the management of the account or reasonably modify existing restrictions. The sponsor (or its designee) must also notify the client quarterly, in writing, to contact the sponsor (or its designee) regarding changes to the client’s financial situation, investment objectives, or restrictions on the account’s management. Additionally, the sponsor (or its designee) must provide each client with a quarterly statement describing all activity in the client’s account during the previous quarter. The sponsor and personnel of the client’s account manager who know about the client’s account and its management must be reasonably available to consult with the client. Each client also must retain certain indicia of ownership of all securities and funds in the account. The Commission staff estimates that 27,979,460 clients participate each year in investment advisory programs relying on rule 3a–4.4 Of that number, the staff 2 For purposes of rule 3a–4, the term ‘‘sponsor’’ refers to any person who receives compensation for sponsoring, organizing or administering the program, or for selecting, or providing advice to clients regarding the selection of, persons responsible for managing the client’s account in the program. 3 Clients specifically must be allowed to designate securities that should not be purchased for the account or that should be sold if held in the account. The rule does not require that a client be able to require particular securities be purchased for the account. 4 These estimates are based on an analysis of the number of individual clients from Form ADV Item 5D(a)(1) and (b)(1) of advisers that report they provide portfolio management to wrap programs as 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 E:\FR\FM\10MRN1.SGM 10MRN1 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Notices khammond on DSKJM1Z7X2PROD with NOTICES 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 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 by April 11, 2022 to (i) MBX.OMB.OIRA.SEC_desk_officer@ omb.eop.gov and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo , 100 F Street NE, Washington, DC 20549, or by sending an email to: PRA_Mailbox@sec.gov. 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 16:20 Mar 09, 2022 Jkt 256001 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: March 4, 2022. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2022–05015 Filed 3–9–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–94363; File No. SR–NYSE– 2021–45] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 2, To Adopt Listing Standards for Subscription Warrants Issued by a Company Organized Solely for the Purpose of Identifying an Acquisition Target March 4, 2022. On August 24, 2021, New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt listing standards for subscription warrants issued by a company organized solely for the purpose of identifying an acquisition target. The proposed rule change was published for comment in the Federal Register on September 10, 2021.3 On September 30, 2021, pursuant to Section 19(b)(2) of the Exchange Act,4 the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.5 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 92876 (September 3, 2021), 86 FR 50748. Comments received on the proposal are available on the Commission’s website at: https://www.sec.gov/ comments/sr-nyse-2021-45/srnyse202145.htm. 4 15 U.S.C. 78s(b)(2). 5 See Securities Exchange Act Release No. 93221, 86 FR 55662 (October 6, 2021). The Commission designated December 9, 2021 as the date by which the Commission shall approve or disapprove, or 2 17 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 13779 On December 8, 2021, the Commission instituted proceedings under Section 19(b)(2)(B) of the Exchange Act 6 to determine whether to approve or disapprove the proposed rule change.7 On March 1, 2022, the Exchange filed Amendment No. 2 to the proposed rule change, which replaced and superseded the proposed rule change as originally filed.8 On March 2, 2022, the Commission published notice of Amendment No. 2 to the proposed rule change.9 Section 19(b)(2) of the Act 10 provides that, after initiating proceedings, the Commission shall issue an order approving or disapproving the proposed rule change not later than 180 days after the date of publication of notice of filing of the proposed rule change. The Commission may extend the period for issuing an order approving or disapproving the proposed rule change, however, by not more than 60 days if the Commission determines that a longer period is appropriate and publishes the reasons for such determination. The proposed rule change was published for comment in the Federal Register on September 10, 2021.11 The 180th day after publication of the proposed rule change is March 9, 2022. The Commission is extending the time period for approving or disapproving the proposed rule change, as modified by Amendment No. 2, for an additional 60 days. The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change, as modified by Amendment No. 2, so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 2, and the issues raised in the comments that have been submitted in connection therewith. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,12 designates May 8, 2022, as the date by which the Commission shall either approve or disapprove the proposed rule change, as modified by Amendment No. 2 (File No. SR–NYSE–2021–45). institute proceedings to determine whether to approve or disapprove, the proposed rule change. 6 15 U.S.C. 78s(b)(2)(B). 7 See Securities Exchange Act Release No. 93741, 86 FR 71111 (Dec. 14, 2021). 8 Amendment No. 2 is available at: https:// www.sec.gov/comments/sr-nyse-2021-45/ srnyse202145-20118274-271197.pdf. On February 17, 2022, the Exchange filed Amendment No. 1 to the proposed rule change. The Exchange withdrew Amendment No. 1 on March 1, 2022. 9 See Securities Exchange Act Release No. 94349. 10 15 U.S.C. 78s(b)(2). 11 See supra note 3. 12 15 U.S.C. 78s(b)(2). E:\FR\FM\10MRN1.SGM 10MRN1

Agencies

[Federal Register Volume 87, Number 47 (Thursday, March 10, 2022)]
[Notices]
[Pages 13778-13779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05015]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-401, OMB Control No. 3235-0459]


Proposed Collection; 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 3a-4

    The prior 30-day notice was issued in error and this new one allows 
a new 30 days to comment.
    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 350l-3520), the Securities and Exchange 
Commission (the ``Commission'') has submitted to the Office of 
Management and Budget a request for extension of the previously 
approved collection of information discussed below.
    Rule 3a-4 (17 CFR 270.3a-4) under the Investment Company Act of 
1940 (15 U.S.C. 80a) (``Investment Company Act'' or ``Act'') provides a 
nonexclusive safe harbor from the definition of investment company 
under the Act for certain investment advisory programs. These programs, 
which include ``wrap fee'' programs, generally are designed to provide 
professional portfolio management services on a discretionary basis to 
clients who are investing less than the minimum investments for 
individual accounts usually required by the investment adviser but more 
than the minimum account size of most mutual funds. Under wrap fee and 
similar programs, a client's account is typically managed on a 
discretionary basis according to pre-selected investment objectives. 
Clients with similar investment objectives often receive the same 
investment advice and may hold the same or substantially similar 
securities in their accounts. Because of this similarity of management, 
some of these investment advisory programs may meet the definition of 
investment company under the Act.
    In 1997, the Commission adopted rule 3a-4, which clarifies that 
programs organized and operated in accordance with the rule are not 
required to register under the Investment Company Act or comply with 
the Act's requirements.\1\ These programs differ from investment 
companies because, among other things, they provide individualized 
investment advice to the client. The rule's provisions have the effect 
of ensuring that clients in a program relying on the rule receive 
advice tailored to the client's needs.
---------------------------------------------------------------------------

    \1\ Status of Investment Advisory Programs Under the Investment 
Company Act of 1940, Investment Company Act Rel. No. 22579 (Mar. 24, 
1997) [62 FR 15098 (Mar. 31, 1997)] (``Adopting Release''). In 
addition, there are no registration requirements under section 5 of 
the Securities Act of 1933 for programs that meet the requirements 
of rule 3a-4. See 17 CFR 270.3a-4, introductory note.
---------------------------------------------------------------------------

    For a program to be eligible for the rule's safe harbor, each 
client's account must be managed on the basis of the client's financial 
situation and investment objectives and in accordance with any 
reasonable restrictions the client imposes on managing the account. 
When an account is opened, the sponsor \2\ (or its designee) must 
obtain information from each client regarding the client's financial 
situation and investment objectives, and must allow the client an 
opportunity to impose reasonable restrictions on managing the 
account.\3\ In addition, the sponsor (or its designee) must contact the 
client annually to determine whether the client's financial situation 
or investment objectives have changed and whether the client wishes to 
impose any reasonable restrictions on the management of the account or 
reasonably modify existing restrictions. The sponsor (or its designee) 
must also notify the client quarterly, in writing, to contact the 
sponsor (or its designee) regarding changes to the client's financial 
situation, investment objectives, or restrictions on the account's 
management.
---------------------------------------------------------------------------

    \2\ For purposes of rule 3a-4, the term ``sponsor'' refers to 
any person who receives compensation for sponsoring, organizing or 
administering the program, or for selecting, or providing advice to 
clients regarding the selection of, persons responsible for managing 
the client's account in the program.
    \3\ Clients specifically must be allowed to designate securities 
that should not be purchased for the account or that should be sold 
if held in the account. The rule does not require that a client be 
able to require particular securities be purchased for the account.
---------------------------------------------------------------------------

    Additionally, the sponsor (or its designee) must provide each 
client with a quarterly statement describing all activity in the 
client's account during the previous quarter. The sponsor and personnel 
of the client's account manager who know about the client's account and 
its management must be reasonably available to consult with the client. 
Each client also must retain certain indicia of ownership of all 
securities and funds in the account.
    The Commission staff estimates that 27,979,460 clients participate 
each year in investment advisory programs relying on rule 3a-4.\4\ Of 
that number, the staff

[[Page 13779]]

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\
---------------------------------------------------------------------------

    \4\ These estimates are based on an analysis of the number of 
individual clients from Form ADV Item 5D(a)(1) and (b)(1) of 
advisers that report they provide portfolio management to wrap 
programs as 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 x 1 hour) + (2,127,147 new clients x 
1.5 hours) + (27,979,460 total clients x (0.25 hours x 4 
statements)) = 57,022,493 hours.
---------------------------------------------------------------------------

    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 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 
by April 11, 2022 to (i) [email protected] and 
(ii) David Bottom, Director/Chief Information Officer, Securities and 
Exchange Commission, c/o John Pezzullo , 100 F Street NE, Washington, 
DC 20549, or by sending an email to: [email protected].
    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: March 4, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-05015 Filed 3-9-22; 8:45 am]
BILLING CODE 8011-01-P
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