Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Rules and Regulations 82241 

64 IARD data as of November 1, 2010. 

65See 5 U.S.C. 603(c). 

66See 2007 Principal Trade Rule Release, Section 

II.B.7 (noting commenters that objected to this 

condition as disadvantaging small broker-dealers 

(or affiliated but separate investment advisers and 

broker-dealers)). 

both investment advisers and brokerdealers) could rely on rule 206(3)–3T.64

We did not receive any comments on 

these estimates. 

D. Reporting, Recordkeeping, and Other 

Compliance Requirements 

The provisions of rule 206(3)–3T 

impose certain reporting or 

recordkeeping requirements, and our 

amendment will extend the imposition 

of these requirements for an additional 

two years. The two-year extension will 

not alter these requirements. 

Rule 206(3)–3T is designed to provide 

an alternative means of compliance with 

the requirements of section 206(3) of the 

Advisers Act. Investment advisers 

taking advantage of the rule with respect 

to non-discretionary advisory accounts 

are required to make certain disclosures 

to clients on a prospective, transactionby-transaction and annual basis. 

Specifically, rule 206(3)–3T permits 

an adviser, with respect to a nondiscretionary advisory account, to 

comply with section 206(3) of the 

Advisers Act by, among other things: 

(i) Making certain written disclosures; 

(ii) obtaining written, revocable consent 

from the client prospectively 

authorizing the adviser to enter into 

principal trades; (iii) making oral or 

written disclosure and obtaining the 

client’s consent orally or in writing 

prior to the execution of each principal 

transaction; (iv) sending to the client 

confirmation statements for each 

principal trade that disclose the 

capacity in which the adviser has acted 

and indicating that the client consented 

to the transaction; and (v) delivering to 

the client an annual report itemizing the 

principal transactions. Advisers are 

already required to communicate the 

content of many of the disclosures 

pursuant to their fiduciary obligations to 

clients. Other disclosures are already 

required by rules applicable to brokerdealers. 

Our amendment will only extend the 

rule for two years in its current form. 

Advisers currently relying on the rule 

already should be making the 

disclosures described above. 

E. Agency Action To Minimize Effect on 

Small Entities 

The Regulatory Flexibility Act directs 

us to consider significant alternatives 

that would accomplish our stated 

objective, while minimizing any 

significant adverse impact on small 

entities.65 Alternatives in this category 

would include: (i) Establishing different 

compliance or reporting standards or 

timetables that take into account the 

resources available to small entities; 

(ii) clarifying, consolidating, or 

simplifying compliance requirements 

under the rule for small entities; (iii) 

using performance rather than design 

standards; and (iv) exempting small 

entities from coverage of the rule, or any 

part of the rule. 

We believe that special compliance or 

reporting requirements or timetables for 

small entities, or an exemption from 

coverage for small entities, may create 

the risk that the investors who are 

advised by and effect securities 

transactions through such small entities 

would not receive adequate disclosure. 

Moreover, different disclosure 

requirements could create investor 

confusion if it creates the impression 

that small investment advisers have 

different conflicts of interest with their 

advisory clients in connection with 

principal trading than larger investment 

advisers. We believe, therefore, that it is 

important for the disclosure protections 

required by the rule to be provided to 

advisory clients by all advisers, not just 

those that are not considered small 

entities. Further consolidation or 

simplification of the rule for investment 

advisers that are small entities would be 

inconsistent with the Commission’s 

goals of fostering investor protection. 

We have endeavored through rule 

206(3)–3T to minimize the regulatory 

burden on all investment advisers 

eligible to rely on the rule, including 

small entities, while meeting our 

regulatory objectives. It was our goal to 

ensure that eligible small entities may 

benefit from the Commission’s approach 

to the new rule to the same degree as 

other eligible advisers. The condition 

that advisers seeking to rely on the rule 

must also be registered as broker-dealers 

and that each account with respect to 

which an adviser seeks to rely on the 

rule must be a brokerage account subject 

to the Exchange Act, and the rules 

thereunder, and the rules of the selfregulatory organization(s) of which it is 

a member, reflect what we believe is an 

important element of our balancing 

between easing regulatory burdens (by 

affording advisers an alternative means 

of compliance with section 206(3) of the 

Act) and meeting our investor 

protection objectives.66 Finally, we do 

not consider using performance rather 

than design standards to be consistent 

with our statutory mandate of investor 

protection in the present context. 

VIII. Statutory Authority 

The Commission is amending rule 

206(3)–3T pursuant to sections 206A 

and 211(a) of the Advisers Act. 

List of Subjects in 17 CFR Part 275 

Investment advisers, Reporting and 

recordkeeping requirements. 

Text of Rule Amendment 

■ For the reasons set out in the 

preamble, Title 17, Chapter II of the 

Code of Federal Regulations is amended 

as follows. 

PART 275—RULES AND 

REGULATIONS, INVESTMENT 

ADVISERS ACT OF 1940 

■ 1. The authority citation for part 275 

continues to read in part as follows: 

Authority: 15 U.S.C. 80b–2(a)(11)(G), 80b– 

2(a)(17), 80b–3, 80b–4, 80b–4a, 80b–6(4), 

80b–6a, and 80b–11, unless otherwise noted. 

* * * * * 

§ 275.206(3)–3T [Amended] 

■ 2. In § 275.206(3)–3T, amend 

paragraph (d) by removing the words 

‘‘December 31, 2010’’ and adding in their 

place ‘‘December 31, 2012’’. 

Dated: December 28, 2010. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–33077 Filed 12–28–10; 4:15 pm] 

BILLING CODE 8011–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

19 CFR Part 141 

[USCBP–2008–0062; CBP Dec. 10–33] 

RIN 1515–AD61 (Formerly 1505–AB96) 

Technical Correction: Completion of 

Entry and Entry Summary— 

Declaration of Value 

AGENCY: Customs and Border Protection, 

Department of Homeland Security. 

ACTION: Final rule. 

SUMMARY: Customs and Border 

Protection (CBP) periodically reviews its 

regulations to ensure that they are 

current, correct, and consistent. As a 

result of this review process, CBP has 

determined that a correction to part 141 

of title 19 of the CBP Regulations (19 

CFR part 141) is necessary to reflect that 

the underlying statutory authority for 

§ 141.61(g) has expired and that this 

regulation is no longer necessary. 


srobinson on DSKHWCL6B1PROD with RULES
82242 Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Rules and Regulations 

Accordingly, part 141 of the CBP 

regulations is amended by removing the 

obsolete regulation. 

DATES: The final rule is effective 

December 30, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Robert Shervette, Trade and Commercial 

Regulations Branch, Regulations and 

Rulings, Office of International Trade, 

(202) 325–0274. 

SUPPLEMENTARY INFORMATION: 

Background 

It is the policy of Customs and Border 

Protection (CBP) to periodically review 

title 19 of the Code of Federal 

Regulations (19 CFR) to ensure that it is 

accurate and up-to-date so that the 

importing and general public is aware of 

CBP requirements and procedures 

regarding import-related activities. As 

part of this review policy, CBP has 

determined that a correction to 19 CFR 

part 141 is necessary. 

Section 141.61 of the CBP regulations 

(19 CFR 141.61) prescribes the manner 

by which entry and entry summary 

documentation must be completed. 

Within § 141.61, paragraph (g) requires 

an importer to indicate on the CBP Form 

7501 the manner by which the declared 

transaction value on imported 

merchandise was determined. This 

requirement is authorized by § 15422(a) 

of the Food, Conservative, and Energy 

Act of 2008 (the ‘‘Act’’), Public Law 110– 

234, 122 Stat. 1547 (19 U.S.C. 1484 

note), in which Congress required CBP 

to collect for a one-year period 

beginning August 20, 2008, and ending 

August 19, 2009, from importers 

information on whether the transaction 

value of imported merchandise is 

determined on the basis of the price 

paid by the buyer in the first or earlier 

sale occurring prior to introduction of 

the merchandise into the United States. 

On August 25, 2008, CBP published 

an interim rule as CBP Dec. 08–31 in the 

Federal Register (73 FR 49939) 

implementing the Act’s first sale 

declaration requirement that for a 

specified time period importers were 

required to declare, at the time of entry, 

the transaction value method employed. 

As the statutory authority for the 

importer declaration requirement 

expired on August 19, 2009, this 

document amends 19 CFR 141.61 by 

removing paragraph (g). 

Inapplicability of Notice and Delayed 

Effective Date Requirements 

Because the technical corrections set 

forth in this document merely conform 

to existing law, CBP finds that good 

cause exists for dispensing with notice 

and public procedure as unnecessary 

under 5 U.S.C. 553(b)(B). For this same 

reason, pursuant to 5 U.S.C. 553(d)(3), 

CBP finds that good cause exists for 

dispensing with the requirement for a 

delayed effective date. 

Regulatory Flexibility Act 

Because this document is not subject 

to the notice and public procedure 

requirements of 5 U.S.C. 553, it is not 

subject to the provisions of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.). 

Executive Order 12866 

These amendments do not meet the 

criteria for a ‘‘significant regulatory 

action’’ as specified in Executive Order 

12866. 

Signing Authority 

This document is limited to technical 

corrections of the CBP regulations. 

Accordingly, it is being signed under 

the authority of 19 CFR 0.1(b)(1). 

List of Subjects in 19 CFR Part 141 

Customs duties and inspection, Entry 

of merchandise, Reporting and 

recordkeeping requirements. 

Amendments to the Regulations 

■ For the reasons set forth above, part 

141 of the CBP regulations (19 CFR part 

141) is amended as set forth below. 

PART 141—ENTRY OF MERCHANDISE 

■ 1. The general authority for part 141 

continues to read as follows, and the 

specific authority for § 141.61 is 

removed: 

Authority: 19 U.S.C. 66, 1448, 1484, 1624. 

* * * * * 

■ 2. Section 141.61 is amended by 

removing paragraph (g). 

Dated: December 23, 2010. 

Alan Bersin, 

Commissioner, U.S. Customs and Border 

Protection. 

[FR Doc. 2010–32912 Filed 12–29–10; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF STATE 

22 CFR Part 40 

[Public Notice: 7285] 

Visas: Waiver for Ineligible 

Nonimmigrants Under the Immigration 

and Nationality Act 

AGENCY: State Department. 

ACTION: Final rule. 

SUMMARY: This rule incorporates a 

revision to the Immigration and 

Nationality Act made in section 5503(1) 

of the Intelligence Reform and 

Terrorism Prevention Act of 2004 

relative to the grounds of 

inadmissibility under the Immigration 

and Nationality Act (INA) for which 

consular officers or the Secretary of 

State may recommend that the Secretary 

of Homeland Security exercise 

discretionary waiver authority in the 

case of an applicant for a nonimmigrant 

visa. 

DATES: This rule is effective December 

30, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Lauren A. Prosnik, Legislation and 

Regulations Division, Visa Services, 

Department of State, 2401 E Street, NW., 

Room L–603D, Washington, DC 20520– 

0106, (202) 663–2951. 

SUPPLEMENTARY INFORMATION: 

Why is the Department promulgating 

this rule? 

The Intelligence Reform and 

Terrorism Prevention Act of 2004, 

Public Law 108–458, at Subtitle E, 

section 5501(a)(2), amended INA 

212(d)(3)(A), replacing a bar against a 

waiver for an alien who is ineligible for 

a nonimmigrant visa under INA 

212(a)(3)(E) with a bar against a waiver 

for an alien who is ineligible for a 

nonimmigrant visa under clauses (i) or 

(ii) of INA 212(a)(3)(E). The same 

legislation also amended INA 

212(a)(3)(E) to add clause (iii), to which 

the waiver bar does not apply. This rule 

amends 22 CFR Part 40 to conform to 

these amended provisions. 

Regulatory Findings 

Administrative Procedure Act 

This regulation involves a foreign 

affairs function of the United States and, 

therefore, in accordance with 5 U.S.C. 

553(a)(1), is not subject to the rule 

making procedures set forth at 5 U.S.C. 

553. 

Regulatory Flexibility Act/Executive 

Order 13272: Small Business 

Because this final rule is exempt from 

notice and comment rulemaking under 

5 U.S.C. 553, it is exempt from the 

regulatory flexibility analysis 

requirements set forth at sections 603 

and 604 of the Regulatory Flexibility 

Act (5 U.S.C. 603 and 604). Nonetheless, 

consistent with section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 

605(b)), the Department certifies that 

this rule will not have a significant 

economic impact on a substantial 

number of small entities. This regulates 

individual aliens who are ineligible 

under INA 212(a)(3)(E)(i) and 

212(a)(3)(E)(ii) and does not affect any 


srobinson on DSKHWCL6B1PROD with RULES