Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 76499 

1 15 U.S.C. 80b–4(b). 

2 Designation of NASD Regulation, Inc., to 

Establish and Maintain the Investment Adviser 

Registration Depository; Approval of IARD Fees, 

Investment Advisers Act Release No. 1888 (July 28, 

2000) [65 FR 47807 (Aug. 3, 2000)]. FINRA was 

formerly known as NASD. 

3Electronic Filing by Investment Advisers; 

Amendments to Form ADV, Investment Advisers 

Act Release No. 1897 (Sept. 12, 2000) [65 FR 57438 

(Sept. 22, 2000)]. 

4The IARD system is used by both advisers 

registering or registered with the SEC and advisers 

registered or registering with one or more state 

securities authorities. NASAA represents the state 

securities administrators in setting IARD filing fees 

for state-registered advisers. 

5NASD letter dated September 9, 2005, available 

at http://www.sec.gov/rules/other/ 

nasdlet090905.pdf. 

6Approval of Investment Adviser Registration 

Depository Filing Fees, Investment Advisers Act 

Release No. 2439 (Oct. 7, 2005) [70 FR 59789 (Oct. 

13, 2005)]. 

7NASD letter dated October 13, 2006 and FINRA 

letters dated October 10, 2008 and July 8, 2009 

available at http://www.sec.gov/rules/other/2006/ 

nasdletter101306-iardfee.pdf, http://www.sec.gov/ 

rules/other/2008/finraletter101008-iardfees.pdf, 

and http://www.sec.gov/rules/other/2009/ 

finraletter070809-iardfees.pdf, respectively. 

8Approval of Investment Adviser Registration 

Depository Filing Fees, Investment Advisers Act 

Release No. 2564 (Oct. 26, 2006), Investment 

Advisers Act Release No. 2806 (Oct. 30, 2008) [73 

FR 65900 (Nov. 5. 2008)], and Investment Advisers 

Act Release No. 2909 (July 31, 2009) [74 FR 39352 

(Aug. 6, 2009)]. 

Environmental Impacts of the 

Alternatives to the Proposed Action 

As an alternative to the proposed 

action, the staff considered denial of the 

proposed action (i.e., the ‘‘no-action’’ 

alternative). Denial of the application 

would result in no change in current 

environmental impacts. The 

environmental impacts of the proposed 

action and the ‘‘no-action’’ alternative 

action are similar. 

Alternative Use of Resources 

The action does not involve the use of 

any different resources than those 

previously considered in the Final 

Environmental Statement, NUREG–75/ 

097, dated October 1975, for DBNPS. 

Agencies and Persons Consulted 

In accordance with its stated policy, 

on October 22, 2010, the staff consulted 

with the Ohio State official, Ms. Carol 

O’Claire of the Ohio Emergency 

Management Agency, regarding the 

environmental impact of the proposed 

action. The State official had no 

comments. 

Finding of No Significant Impact 

On the basis of the environmental 

assessment, the NRC concludes that the 

proposed action will not have a 

significant effect on the quality of the 

human environment. Accordingly, the 

NRC has determined not to prepare an 

environmental impact statement for the 

proposed action. 

For further details with respect to the 

proposed action, see the licensee’s letter 

dated April 15, 2009. Documents may 

be examined, and/or copied for a fee, at 

the NRC’s Public Document Room 

(PDR), located at One White Flint North, 

Public File Area O1 F21, 11555 

Rockville Pike (first floor), Rockville, 

Maryland. Publicly available records 

will be accessible electronically from 

the Agencywide Documents Access and 

Management System (ADAMS) Public 

Electronic Reading Room on the Internet 

at the NRC Web site, http:// 

www.nrc.gov/reading-rm/adams.html. 

Persons who do not have access to 

ADAMS or who encounter problems in 

accessing the documents located in 

ADAMS should contact the NRC PDR 

Reference staff by telephone at 1–800– 

397–4209 or 301–415–4737, or send an 

e-mail to pdr.resource@nrc.gov. 

Dated at Rockville, Maryland, this 29th day 

of November 2010. 

For the Nuclear Regulatory Commission. 

Michael Mahoney, 

Project Manager, Plant Licensing Branch III– 

2, Division of Operating Reactor Licensing, 

Office of Nuclear Reactor Regulation. 

[FR Doc. 2010–30862 Filed 12–7–10; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. IA–3119; File No. S7–38–10] 

Approval of Investment Adviser 

Registration Depository Filing Fees 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Notice of intent to charge 

revised IARD filing fees for advisers 

registering with or registered with the 

Commission. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’ or ‘‘SEC’’) is 

revising Investment Adviser 

Registration Depository annual and 

initial filing fees that will be charged 

beginning January 1, 2011. 

Hearing or Notification of Hearing: An 

order approving the IARD filing fees 

will be issued unless the Commission 

orders a hearing. Interested persons may 

request a hearing by writing to the 

Commission’s Secretary. Hearing 

requests should be received by the SEC 

by 5:30 p.m. on December 21, 2010. 

Hearing requests should state the nature 

of the writer’s interest, the reason for the 

request, and the issues contested. 

Persons may request notification of a 

hearing by writing to the Commission’s 

Secretary. 

ADDRESSES: Elizabeth M. Murphy, 

Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

FOR FURTHER INFORMATION CONTACT: 

Keith Kanyan, IARD System Manager, at 

202–551–6737, or Iarules@sec.gov, 

Office of Investment Adviser 

Regulation, Division of Investment 

Management, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–8549. 

SUPPLEMENTARY INFORMATION: Section 

204(b) of the Investment Advisers Act of 

1940 (‘‘Advisers Act’’) authorizes the 

Commission to require investment 

advisers to file applications and other 

documents through an entity designated 

by the Commission, and to pay 

reasonable costs associated with such 

filings.1 In 2000, the Commission 

designated the Financial Industry 

Regulatory Authority Regulation, Inc. 

(‘‘FINRA’’) as the operator of the 

Investment Adviser Registration 

Depository (‘‘IARD’’) system. At the 

same time, the Commission approved, 

as reasonable, filing fees.2 The 

Commission later required advisers 

registered or registering with the SEC to 

file Form ADV through the IARD.3 Over 

11,000 advisers currently use the IARD 

system to register with the SEC and 

make state notice filings electronically 

through the Internet. 

Commission staff, representatives of 

the North American Securities 

Administrators Association, Inc. 

(‘‘NASAA’’),4 and representatives of 

FINRA periodically hold discussions on 

IARD system finances. In the early years 

of operations, SEC-associated IARD 

revenues exceeded projections while 

SEC-associated IARD expenses were 

lower than estimated, resulting in a 

surplus. In 2005, FINRA wrote a letter 

to SEC staff recommending a waiver of 

annual fees for a one-year period.5 The 

Commission concluded that this was 

appropriate and waived annual fees.6 In 

2006, 2008, and 2009 FINRA wrote to 

the staff again, recommending a twoyear, a nine-month, and a five-month 

waiver, respectively, of all fees to 

continue to reduce the surplus.7 The 

Commission agreed and issued orders 

waiving all IARD fees.8 At the 

conclusion of the 2009 waiver, FINRA 

wrote to the staff again, recommending 

reduced levels of fees be charged in 


jlentini on DSKJ8SOYB1PROD with NOTICES
76500 Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 

9FINRA letter dated September 29, 2009, 

available at http://www.sec.gov/rules/other/2009/ 

finraletter092909-iardfees.pdf. 

10Approval of Investment Adviser Registration 

Depository Filing Fees, Investment Advisers Act 

Release No. 2959 (Dec. 10, 2009) [74 FR 66710 (Dec. 

16, 2009)]. 

11FINRA letter dated November 12, 2010 

available at http://www.sec.gov/rules/other/2010/ 

finraletter111210-iardfees.pdf. 

12The revised fee level for advisers in the largest 

category would newly include advisers that report 

assets under management of exactly $100 million 

(not just over $100 million). We are making this 

revision to track the new mid-sized adviser category 

for advisers reporting assets under management of 

$25 million up to, but not including, $100 million. 

See section 410 of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act (Pub. L. 111– 

203, 124 Stat. 1376 (2010). 

13The threshold, for most advisers, to be eligible 

for SEC registration will be increased from $25 

million to $100 million in assets under 

management. The Dodd-Frank Wall Street Reform 

and Consumer Protection Act (Pub. L. 111–203, 124 

Stat. 1376 (2010). 

14The fee levels for advisers with assets under 

management under $100 million are not changed as 

the number of advisers in these categories are 

expected to fall as a result of the Dodd-Frank Wall 

Street Reform and Consumer Protection Act. 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3For a complete description of Phlx XL II, see 

Securities Exchange Act Release No. 59995 (May 

28, 2009), 74 FR 26750 (June 3, 2009) (SR–Phlx– 

2009–32). The instant proposed fees will apply only 

to option orders entered into, and routed by, the 

Phlx XL II system. 

4See Securities Exchange Act Release No. 59995 

(May 28, 2009), 74 FR 26750 (June 3, 2009) (SR– 

Phlx–2009–32). 

2010.9 The Commission concluded this 

was appropriate and issued an order 

reducing the level of fees charged for 

one year.10 As a result of the four 

waivers and reduced fee levels, the 

surplus was reduced from $9 million in 

2005 to a level of approximately $3 

million. 

FINRA has again written to 

Commission staff, recommending 

revised annual and initial IARD filing 

fees commence on January 1, 2011.11

The new recommended fee levels would 

increase the fee for advisers with assets 

under management of $100 million or 

higher, but would not change the fee 

levels for advisers with assets under 

management under $100 million.12 The 

recommended annual filing fees due 

beginning January 1, 2011 are $40 for 

advisers with assets under management 

under $25 million; $150 for advisers 

with assets under management from $25 

million to $100 million; and $225 for 

advisers with assets under management 

of $100 million or higher. The 

recommended initial IARD filing fees 

due beginning January 1, 2011 are $40 

for advisers with assets under 

management under $25 million; $150 

for advisers with assets under 

management from $25 million to $100 

million; and $225 for advisers with 

assets under management of $100 

million or higher. Based on projections 

of expected revenues and expenses and 

taking into account an expected 

reduction in the number of advisers 

registered or reporting to the SEC as a 

result of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act,13

the Commission believes these revised 

fee levels would be reasonable, as the 

Commission projects that they will 

provide adequate funding to cover IARD 

system expenditures.14 This reduction 

in fees is expected to reduce aggregate 

filing fees that SEC-registered advisers 

would incur by approximately $2 

million annually compared to the filing 

fees that would be collected based on 

the fee levels established in 2000. The 

revised filing fees will apply to all 

annual updating amendments filed by 

SEC-registered advisers beginning 

January 1, 2011 and to all initial 

applications for registration filed by 

advisers applying for SEC registration 

beginning January 1, 2011. The 

Commission will reassess the fee levels 

and issue orders, if necessary, to adjust 

these levels. 

By the Commission. 

Dated: December 2, 2010. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–30701 Filed 12–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63412; File No. SR–Phlx– 

2010–164] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

December 2, 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 November 

24, 2010, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by the Exchange. 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 [sic] to amend its fees 

governing pricing for Exchange 

members using the Phlx XL II system,3

for routing certain equity and index 

option Customer orders to away markets 

for execution. 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative for trades settling on or 

after December 1, 2010. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of the Exchange, at the 

Commission’s Public Reference Room, 

and on the Commission’s Web site at 

http://www.sec.gov. 

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 

Exchange included statements 

concerning the purpose of, and basis for, 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to recoup costs that the 

Exchange incurs for routing and 

executing certain Customer orders in 

equity and index options to away 

markets. 

In May 2009, the Exchange adopted 

Rule 1080(m)(iii)(A) to establish Nasdaq 

Options Services LLC (‘‘NOS’’), a 

member of the Exchange, as the 

Exchange’s exclusive order router.4 NOS 

is currently utilized by the Phlx XL II 

system solely to route orders in options 

listed and open for trading on the Phlx 

XL II system to destination markets. 

Currently, the Exchange’s Fee 

Schedule includes Routing Fees for both 

Customer and Professional orders. The 

Exchange proposes to establish a 

Routing Fee of $0.24 per contract in 

Customer option orders that are routed 

to the Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’). This would 

apply to orders greater than 99 contracts 


jlentini on DSKJ8SOYB1PROD with NOTICES