9454 Federal Register / Vol. 75, No. 40 / Tuesday, March 2, 2010 / Notices 

2For 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. 3Clients 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. 

4The sponsor also must provide a means by 

which clients can contact the sponsor (or its 

designee). 

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.4

The program 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 requirement that the sponsor (or 

its designee) obtain information about 

each new client’s financial situation and 

investment objectives when their 

account is opened is designed to ensure 

that the investment adviser has 

sufficient information regarding the 

client’s unique needs and goals to 

enable the portfolio manager to provide 

individualized investment advice. The 

sponsor is required to contact clients 

annually and provide them with 

quarterly notices to ensure that the 

sponsor has current information about 

the client’s financial status, investment 

objectives, and restrictions on 

management of the account. 

Maintaining current information enables 

the portfolio manager to evaluate each 

client’s portfolio in light of the client’s 

changing needs and circumstances. The 

requirement that clients be provided 

with quarterly statements of account 

activity is designed to ensure each client 

receives an individualized report, which 

the Commission believes is a key 

element of individualized advisory 

services. 

The Commission staff estimates that 

3,109,671 clients participate each year 

in investment advisory programs relying 

on rule 3a–4. Of that number, the staff 

estimates that 220,805 are new clients 

and 2,888,866 are continuing clients. 

The staff estimates that each year 

investment advisory program sponsors 

staff engage in 1.5 hours per new client 

and 0.75 hours per continuing client to 

prepare, conduct and/or review 

interviews regarding the client’s 

financial situation and investment 

objectives as required by the rule. 

Furthermore, the staff estimates that 

each year investment advisory program 

staff spends 1 hour per client to prepare 

and mail quarterly client account 

statements, including notices to update 

information. Based on the estimates 

above, the Commission estimates that 

the total annual burden of the rule’s 

paperwork requirements is 5,607,528 

hours. 

The total annual hour burden of 

5,607,528 hours represents an increase 

of 1,158,112.5 hours from the prior 

estimate of 4,449,415.5 hours. This 

increase principally results from an 

increase in the number of continuing 

clients, but also reflects an increase in 

the estimated burden hours associated 

with several of the collections of 

information required under the rule. 

The increase in estimated burden hours 

per collection of information results 

from an increase in burden hours 

reported by representatives of 

investment advisers that rely on rule 

3a–4 that Commission staff surveyed. 

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. 

Compliance with the collection of 

information requirements of the rule is 

necessary to obtain the benefit of relying 

on the rule’s safe harbor. Nevertheless, 

rule 3a–4 is a nonexclusive safe harbor, 

and a program that does not comply 

with the rule’s collection of information 

requirements does not necessarily meet 

the Investment Company Act’s 

definition of investment company. 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. 

Please direct general comments 

regarding the above information to the 

following persons: (i) Desk Officer for 

the Securities and Exchange 

Commission, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503 

or send an e-mail to Shagufta Ahmed at 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Charles Boucher, Director/CIO, 

Securities and Exchange Commission, 

C/O Shirley Martinson, 6432 General 

Green Way, Alexandria, VA 22312; or 

send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: February 19, 2010. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–4237 Filed 3–1–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, March 4, 2010 at 2 p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Aguilar, as duty 

officer, voted to consider the items 

listed for the Closed Meeting in a closed 

session. 

The subject matter of the Closed 

Meeting scheduled for Thursday, March 

4, 2010 will be: 

Institution and settlement of 

injunctive actions; institution and 

settlement of administrative 

proceedings; and other matters relating 

to enforcement proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 40 / Tuesday, March 2, 2010 / Notices 9455 

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

2 17 CFR 240.19b–4. 3See BATS Rule 1.5(n). 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: February 25, 2010. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–4333 Filed 2–26–10; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

U.S. Biomedical Corp., (f/k/a United 

Textiles & Toys, Inc.), U.S. 

Environmental Solutions, Inc. (n/k/a 

EnviroResolutions, Inc.), USA Bridge 

Construction of N.Y., Inc., USA 

Broadband, Inc., USA Uranium Corp., 

and Utopia Marketing, Inc. (n/k/a 

Daytonabrands, Inc.); Order of 

Suspension of Trading 

February 26, 2010. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of U.S. 

Biomedical Corp. (f/k/a United Textiles 

& Toys, Inc.) because it has not filed any 

periodic reports since the period ended 

December 31, 2002. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of U.S. 

Environmental Solutions, Inc. (n/k/a 

EnviroResolutions, Inc.) because it has 

not filed any periodic reports since the 

period ended March 31, 1996. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of USA Bridge 

Construction of N.Y., Inc. because it has 

not filed any periodic reports since the 

period ended September 30, 1998. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of USA 

Broadband, Inc. because it has not filed 

any periodic reports since the period 

ended December 31, 2003. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of USA 

Uranium Corp. because it has not filed 

any periodic reports since the period 

ended February 29, 2008. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Utopia 

Marketing, Inc. (n/k/a Daytonabrands, 

Inc.) because it has not filed any 

periodic reports since the period ended 

September 30, 2000. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

companies. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of the above-listed companies 

is suspended for the period from 9:30 

a.m. EST on February 26, 2010, through 

11:59 p.m. EST on March 11, 2010. 

By the Commission. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2010–4375 Filed 2–26–10; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61574; File No. SR–BATS– 

2010–003] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change To Amend 

BATS Rule 5.5, Entitled ‘‘Information 

Barrier Procedures,’’ and To Add New 

BATS Rule 12.13, Entitled ‘‘Trading 

Ahead of Research Reports’’ 

February 23, 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 February 

11, 2010, BATS Exchange, Inc. (‘‘BATS’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by BATS. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons and is 

approving the proposed rule change on 

an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing to amend 

BATS Rule 5.5, entitled ‘‘Information 

Barrier Procedures,’’ to modify the 

Exchange’s rule regarding information 

barrier procedures required of certain 

Exchange Members. The Exchange is 

also proposing to add new Exchange 

Rule 12.13, entitled ‘‘Trading Ahead of 

Research Reports.’’ 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

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 III below. The 

Exchange has prepared summaries, set 

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

the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to eliminate 

the requirements of BATS Rule 5.5 that 

require a Member 3 that trades for its 

own account or that has a specialist or 

market maker operation on another 

market (defined in BATS Rule 5.5(a) as 

a ‘‘specialist’’) to establish and maintain 

certain specifically prescribed 

information barrier procedures and to 

file such procedures with the Exchange. 

At the same time, the Exchange 

proposes to amend BATS Rule 5.5 to 

more closely mirror the rules of other 

self-regulatory organizations that create 

certain obligations for all Member firms 

related to the prevention of the misuse 

of material, non-public information. 

Finally, the Exchange proposes to add 

new BATS Rule 12.13, which: (i) 

Prohibits Members from trading ahead 

of research reports, and (ii) requires 

each Member to establish, maintain and 

enforce procedures regarding the flow of 

information between research 

department personnel and trading 

department personnel. 

(i) All Members Must Maintain Policies 

Concerning the Misuse of Material NonPublic Information 

Presently, the Exchange requires that 

each Member establish, maintain and 

enforce written policies and procedures 

reasonably designed to prevent the 

misuse of material, non-public 

information, which includes review of 

employee and proprietary trading, 

memorialization and documentation of 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES