[Federal Register Volume 63, Number 3 (Tuesday, January 6, 1998)]
[Notices]
[Page 582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-160]


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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 206(3)-2
SEC File No. 270-216
OMB Control No. 3235-0243.

    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 publishing the following summary of 
collections for public comment.
    Rule 206(3)-2 permits investment advisers to comply with section 
206(3) of the Investment Advisers Act of 1940 by obtaining a blanket 
consent from a client to enter into agency cross transactions, provided 
that certain disclosures are made to the client. The information 
requirements of the rule consist of the following: (1) Prior to 
obtaining the client's consent appropriate disclosure must be made to 
the client as to the practice of, and the conflicts of interest 
involved in, agency cross transactions; (2) at or before the completion 
of any such transaction the client must be furnished with a written 
confirmation containing specified information and offering to furnish 
upon request certain additional information; and (3) at least annually, 
the client must be furnished with a written statement or summary as to 
the total number of transactions during the period covered by the 
consent and the total amount of commissions received by the adviser or 
its affiliated broker-dealer attributable to such transactions.
    The information required by rule 206(3)-2 is used by the Commission 
in connection with its investment adviser inspection program to ensure 
that advisers are in compliance with rule 206(3)-2. The information is 
also used by clients. Without the information collected under the rule, 
the Commission would be less efficient and effective in its inspection 
program and clients would not have information valuable for monitoring 
the adviser's handling of their accounts.
    The Commission estimates that approximately 233 respondents utilize 
the rule annually, necessitating about 122 responses per respondent 
each year, for a total of 28,426 responses. Each response requires 
about .5 hours, for a total of 14,213 hours.
    The estimated average burden hours 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 Commission 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 shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden 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 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.
    Direct your written comments to Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 5th Street, N.W., Washington, DC 20549.

    Dated: December 23, 1997.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-160 Filed 1-5-98; 8:45 am]
BILLING CODE 8010-01-M