Federal Register / Vol. 62, No. 73 / Wednesday, April 16, 1997 / Notices 18669

25Rule 3a4–1 provides an exclusion from the

definition of ‘‘broker’’ for certain persons associated

with issuers of securities. Self-distributed

investment companies operate without NASD

membership pursuant to this rule. Rule 3a4–

1(a)(4)(iii) prohibits ‘‘oral solicitations’’ of

‘‘potential purchasers.’’ Investment company

personnel may respond, however, ‘‘to inquiries of

a potential purchaser in a communication initiated

by the potential purchaser in a communication

initiated by the potential purchaser’’ as long as the

response is limited to information contained in the

investment company’s prospectus.

26Rule 204–3 does not require a disclosure

statement for a ‘‘contract for impersonal advisory

services’’ involving a payment of less than $200.

Impersonal advisory services include (1) general

information or recommendations not tailored for a

specific client, and 92) statistical information that

does not make a recommendation regarding a

particular security. Neither the Division of

Investment Management nor the Office of

Compliance Inspections and Examinations is aware

of any instances in which impersonal advisory

services have been sold to consumers through

unsolicited telemarketing.

27The Commission finds that such laws and rules

provide protection from deceptive and other

abusive telemarketing acts and practices by persons

described in Section 3(d)(2) of the Telemarketing

Act substantially similar to that provided by the

FTC Rules. See Section 3(d)(1)(B)(i) of the

Telemarketing Act, 15 U.S.C. 6102(d)(1)(B)(i)

(1996).

28With respect to those FTC Rules that involve

areas already extensively regulated by existing

securities laws or regulations, or activities

inapplicable to securities transactions, the

Commission finds that the promulgation of

substantially similar rules is not necessary or

appropriate in the public interest. See Section

3(d)(1)(B)(ii) of the Telemarketing Act, 15 U.S.C.

6102(d)(1)(B)(ii) (1996).

4. Investment Companies and

Investment Advisers

Most investment company securities

are sold through registered brokerdealers that are required by the

Exchange Act to be members of the

NASD and are subject to NASD rules.

Separate rulemaking under the

Investment Company Act of 1940

covering the telemarketing of

investment company securities by

NASD members would be largely

duplicative of the NASD Rule and

would not provide additional

protections to consumers.

A small minority of investment

companies are ‘‘self-distributed’’ (i.e.,

the investment company sells its share

to the public directly and not through a

registered broker-dealer). The sale of

these companies’ securities are not

covered by NASD rules. Under

Exchange Act Rule 3a4–1, however,

unsolicited telemarketing by selfdistributed investment companies

generally is prohibited.25 Because

telemarketing by self-distributed

investment companies is already

restricted by Rule 3a4–1, additional

rulemaking appears unnecessary.

Investment advisers infrequently

employ telemarketing to obtain advisory

clients. Unlike the sale of a single

security or other products and services,

the service provided by an investment

adviser typically involves an ongoing

personal relationship that cannot easily

be established over the telephone.

Moreover, the Advisers Act and

Commission rules thereunder provide

procedural safeguards that have the

effect of deterring abusive telemarketing

by advisers. For example, Rule 204–3

generally requires a registered

investment adviser to provide to a

prospective client a written disclosure

statement containing specified

information concerning its personnel,

investment strategies and methods, the

services provided and the fees charged

(1) At least 48 hours before entering into

an investment advisory contract, or (2)

At the time the contract is entered into,

if the client has the right to terminate

the contract without penalty within five

business days.26

Unsolicited telemarketing is not,

however, prohibited by the Advisers Act

or the rules thereunder. Although the

Commission does not believe that

specific rules are warranted at this time,

it will monitor the implementation and

effectiveness of the NASD Rule and

consider whether similar rules are

necessary to deter the development of

abusive telemarketing practices by the

investment advisory industry.

C. Conclusion

The Commission finds that the NASD

Rule and MSRB Rule, together with the

Exchange Act and the Advisers Act, the

rules thereunder, and the other rules of

the SROs, satisfy the requirements of the

Telemarketing Act, because the

applicable provisions of such laws and

rules are substantially similar to the

FTC Rules,27 except for those FTC Rules

that involve areas already extensively

regulated by existing securities laws or

regulations or activities inapplicable to

securities transactions.28 Accordingly,

the Commission has determined that no

additional rulemaking is required by it

under the Telemarketing Act.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–9712 Filed 4–15–97; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. PE–97–20]

Petitions for Exemption; Summary of

Petitions Received; Dispositions of

Petitions Issued

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Notice of petitions for

exemption received and of dispositions

of prior petitions.

SUMMARY: Pursuant to FAA’s rulemaking

provisions governing the application,

processing, and disposition of petitions

for exemption (14 CFR Part 11), this

notice contains a summary of certain

petitions seeking relief from specified

requirements of the Federal Aviation

Regulations (14 CFR Chapter I),

dispositions of certain petitions

previously received, and corrections.

The purpose of this notice is to improve

the public’s awareness of, and

participation in, this aspect of FAA’s

regulatory activities. Neither publication

of this notice nor the inclusion or

omission of information in the summary

is intended to affect the legal status of

any petition or its final disposition.

DATES: Comments on petitions received

must identify the petition docket

number involved and must be received

on or before April 24, 1997.

ADDRESSES: Send comments on any

petition in triplicate to: Federal

Aviation Administration, Office of the

Chief Counsel, Attn: Rule docket (AGC–

200), Petition Docket No. 28890, 800

Independence Avenue, SW.,

Washington, D.C. 20591.

Comments may also be sent

electronically to the following internet

address: 9–NPRM–CMNTS@faa.dot.gov.

The petition, any comments received,

and a copy of any final disposition are

filed in the assigned regulatory docket

and are available for examination in the

Rules Docket (AGC–200), Room 915G,

FAA Headquarters Building (FOB 10A),

800 Independence Avenue, SW.,

Washington, D.C. 20591; telephone

(202) 267–3132.

FOR FURTHER INFORMATION CONTACT: Fred

Haynes (202) 267–3939 or Angela

Anderson (202) 267–9681 Office of

Rulemaking (ARM–1), Federal Aviation

Administration, 800 Independence

Avenue, SW., Washington, DC 20591.

This notice is published pursuant to

paragraphs (c), (e), and (g) of § 11.27 of

Part 11 of the Federal Aviation

Regulations (14 CFR Part 11).
18670 Federal Register / Vol. 62, No. 73 / Wednesday, April 16, 1997 / Notices

Issued in Washington, D.C., on April 11,

1997.

Donald P. Byrne,

Assistant Chief Counsel for Regulations.

Petition for Exemption

Docket No.: 28890.

Petitioner: Frontier Flying Service,

Inc.

Sections of the FAR Affected: 14 CFR

121.591 et seq.

Description of Relief Sought: To

permit the petitioner to utilize ATPcertificated pilots to dispatch flights for

a period of 60 days.

[FR Doc. 97–9821 Filed 4–15–97; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF THE TREASURY

Submission for OMB Review;

Comment Request

April 9, 1997.

The Department of Treasury has

submitted the following public

information collection requirement(s) to

OMB for review and clearance under the

Paperwork Reduction Act of 1995, Pub.

L. 104–13. Copies of the submission(s)

may be obtained by calling the Treasury

Bureau Clearance Officer listed.

Comments regarding this information

collection should be addressed to the

OMB reviewer listed and to the

Treasury Department Clearance Officer,

Department of the Treasury, Room 2110,

1425 New York Avenue, NW.,

Washington, DC 20220.

Bureau of Alcohol, Tobacco and

Firearms (BATF)

OMB Number: 1512–0006.

Form Number: ATF F 3310.4.

Type of Review: Extension.

Title: Report of Multiple Sales or

Other Disposition of Pistols and

Revolvers.

Description: This form is used by ATF

to develop investigative leads and

patterns of criminal activity. It identifies

possible handgun traffickers in the

illegal market. Its use along the border

identifies possible international

traffickers.

Respondents: Business or other forprofit, Federal Government, State, Local

or Tribal Government.

Estimated Number of Respondents/

Recordkeepers: 10,000.

Estimated Burden Hours Per

Respondent/Recordkeeper: 12 minutes.

Frequency of Response: On occasion.

Estimated Total Reporting Burden:

8,000 hours.

OMB Number: 1512–0019.

Form Number: ATF F 6A (5330.3C).

Type of Review: Extension.

Title: Release and Receipt of Imported

Firearms, Ammunition and Implements

of War.

Description: This information

collection is needed to verify

importation of firearms, ammunition

and implements of war. ATF Form 6A

is completed by Federal firearms

licensees, active duty military members,

nonresident U.S. citizens returning to

the U.S. and aliens immigrating to the

United States.

Respondents: Individuals or

households.

Estimated Number of Respondents:

20,000.

Estimated Burden Hours Per

Respondent: 12 minutes.

Frequency of Response: On occasion.

Estimated Total Reporting Burden:

8,000 hours.

OMB Number: 1512–0030.

Form Number: ATF F 5300.11.

Type of Review: Extension.

Title: Annual Firearms Manufacturing

and Exportation Report.

Description: ATF collects this data for

the purpose of: ATF law enforcement

witness qualifications; Congressional

investigations in aid of legislation;

disclosure to interested members in

accordance with a court order;

furnishing info to other Federal

agencies; ATF inspections of

manufacturers ensuring that the

requirements of the National Firearms

Act (NFA) are met.

Respondents: Business or other forprofit, Federal Government, State, Local

or Tribal Government.

Estimated Number of Respondents/

Recordkeepers: 1,500.

Estimated Burden Hours Per

Respondent/Recordkeeper: 45 minutes.

Frequency of Response: On occasion.

Estimated Total Reporting/

Recordkeeping Burden: 1,125 hours.

OMB Number: 1512–0038.

Form Number: ATF F 5030.6.

Type of Review: Extension.

Title: Authorization to Furnish

Financial Information and Certificates of

Compliance.

Description: The Right to Financial

Privacy Act of 1978 limits access to

records held by financial institutions

and provides for certain procedures to

gain access to the information. ATF F

5030.6 serves as both a customer

authorization for ATF to receive

information and as the required

certification to the financial institution.

Respondents: Business or other forprofit.

Estimated Number of Respondents:

2,000.

Estimated Burden Hours Per

Respondent: 15 minutes.

Frequency of Response: On occasion.

Estimated Total Reporting Burden:

500 hours.

OMB Number: 1512–0046.

Form Number: ATF F 27-G, ATF REC

5520/2.

Type of Review: Extension.

Title: Applications—Volatile FruitFlavor Concentrate Plants.

Description: Persons who wish to

establish premises to manufacture,

volatile fruit-flavor concentrates are

required to file an application so

requesting. ATF uses the application

information to identify persons

responsible for such manufacture, since

these products contain ethyl alcohol

and have potential for use as alcoholic

beverages with consequent loss of

revenue. The application constitutes

registry of a still, a statutory

requirement.

Respondents: Business or other forprofit.

Estimated Number of Recordkeepers:

10.

Estimated Burden Hours Per

Recordkeepers: 3 hours.

Frequency of Response: On occasion.

Estimated Total Recordkeeping

Burden: 30 hours.

OMB Number: 1512–0059.

Form Number: ATF F 5120.29.

Type of Review: Extension.

Title: Bonded Wineries—Formula and

Process for Wine, Letterhead

Applications and Notices Relating to

Formula Wine.

Description: ATF F 5120.29 is used to

determine the classification of wines for

labeling and consumer protection. The

form describes the person filing, type of

product to be made and restrictions to

the labeling and manufacture. The form

is also used to audit a product.

Respondents: Business or other forprofit.

Estimated Number of Respondents:

600.

Estimated Burden Hours Per

Respondent: 2 hours.

Frequency of Response: On occasion.

Estimated Total Reporting Burden:

1,200 hours.

OMB Number: 1512–0082.

Form Number: ATF F 1582–A

(5120.24).

Type of Review: Extension.

Title: Drawback on Wines Exported.

Description: When proprietors export

wines that have been produced,

packaged, manufactured, or bottled in

the U.S. they file a claim for drawback

or refund for the taxes that have already

been paid on the wine. This form

notifies ATF that the wine was in fact

exported and helps to protect the

revenue and prevent fraudulent claims.