Federal Register / Vol. 65, No. 105 / Wednesday, May 31, 2000 / Notices 34757

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission

(‘‘Commission’’) is soliciting comments

on the collections of information

summarized below. The Commission

plans to submit these existing

collections of information to the Office

of Management and Budget for

extension and approval.

Rule 206(4)–3, which is entitled

‘‘Cash Payments for Client

Solicitations,’’ provides restrictions on

cash payments for client solicitations.

The rule requires that an adviser pay all

solicitors’ fees pursuant to a written

agreement. When an adviser will

provide only impersonal advisory

services to the prospective client, the

rule imposes no disclosure

requirements. When the solicitor is

affiliated with the adviser and the

adviser will provide individualized

services, the solicitor must, at the time

of the solicitation, indicate to

prospective clients that he is affiliated

with the adviser. When the solicitor is

not affiliated with the adviser and the

adviser will provide individualized

services, the colitor must, at the time of

the solicitation, provide the prospective

client with a copy of the adviser’s

brochure and a disclosure document

containing information specified in rule

206(4)–3. The information rule 206(4)–

3 requires is necessary to inform

advisory clients about the nature of the

solicitor’s financial interest in the

recommendation so they may consider

the solicitor’s potential bias, and to

protect investors against solicitation

activities being carried out in a manner

inconsistent with the adviser’s fiduciary

duty to clients. Rule 206(4)–3 is

applicable to all registered investment

advisers. The Commission believes that

approximately 1,588 of these advisers

have cash referral fee arrangements. The

rule requires approximately 7.04 burden

hours per year adviser and results in a

total of approximately 11,180 total

burden hours (7.04 × 1,588) for all

advisers.

Rule 206(4)–4, which is entitled

‘‘Financial and Disciplinary Information

that Investment Advisers Must Disclose

to Clients,’’ requires advisers to disclose

certain financial and disciplinary

information to clients. The disclosure

requirements in rule 206(4)–4 are

designed so that clients will have

information about an adviser’s financial

condition and disciplinary events that

may be material to an evaluation of the

adviser’s integrity or ability to meet

contractual commitments to clients. We

estimate that approximately 1,118

advisers are subject to this rule. The rule

requires approximately 7.5 burden

hours per year per adviser and amounts

to approximately 8,385 total burden

hours (7.5 × 1,118) for all advisers.

The estimates of burden hours set

forth above are made solely for the

purposes of the Paperwork Reduction

Act and are not derived from a

comprehensive or even representative

survey or study of the cost of SEC rules

and forms.

Written comments are invited on: (a)

Whether the proposed collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information will have practical utility;

(b) the accuracy of the agency’s estimate

of the burden of the collection of

information; (c) ways to enhance the

quality, utility, and clarity of the

information collected; and (d) ways to

minimize the burden of the collection of

information on respondents, including

through the use of automated collection

techniques or other forms of information

technology. Consideration will be given

to comments and suggestions submitted

in writing within 60 days of this

publication.

Please direct your written comments

to Michael E. Bartell, Associate

Executive Director, Office of

Information Technology, Securities and

Exchange Commission, 450 5th Street,

NW., Washington, DC 20549.

Dated: May 22, 2000.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–13492 Filed 5–30–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Proposed Collection; Comment

Request

Upon Written Request, Copies Available

From: Securities and Exchange Commission,

Office of Filings and Information Services,

Washington, DC 20549.

Extension: Rule 17f–2(a); SEC File No.

270–34; OMB Control No. 3235–0034.

Notice is hereby given that pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission

(‘‘Commission’’) is soliciting comments

on the collection of information

summarized below. The Commission

plans to submit this existing collection

of information to the Office of

Management and Budget for extension

and approval.

• Rule 17f–2(a) Fingerprinting

Requirements for Securities

Professionals

Rule 17f–2(a) requires that securities

professionals be fingerprinted. This

requirement serves to identify security

risk personnel, to allow an employer to

make fully informed employment

decisions, and to deter possible

wrongdoers from seeking employment

in the securities industry. Partners,

directors, officers, and employees of

exchanges, broker, dealers, transfer

agents, and clearing agencies are

included.

It is estimated that approximately

10,000 respondents will submit

fingerprint cards. It is also estimated

that each respondent will submit 55

fingerprint cards. The staff estimates

that the average number of hours

necessary to comply with the Rule 17f–

2(a) is one-half hour. The total burden

is 275,000 hours for respondents, based

upon past submissions. The average cost

per hour is approximately $50.

Therefore, the total cost of compliance

for respondents is $13,750,000.

Written comments are invited on: (a)

Whether the proposed collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information shall have practical utlity;

(b) the accuracy of the agency’s

estimates for the curden of the proposed

collection of information; (c) ways to

enhance the quality, utility, and clarity

of the information to be collected; and

(d) ways to minimize the burden of the

collection of information on

respondends, including through the use

of automated collection techniques or

other forms of information technology.

Consideration will be given to

comments and suggestions submitted in

writing within 60 days of this

publication.

Please direct your written comments

to Michael E. Barrett, Associated

Executive Director, Office of

Information Technology, Secretary and

Exchange Commission. 450 5th Street,

NW, Washington, DC 20549.

Dated: May 23, 2000.

Margarett H. McFarland,

Deputy Secretary.

[FR Doc. 00–13528 Filed 5–23–00; 8:45 am]

BILLING CODE 8010–01–M