Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices 54861 

1 ((One new OTC derivatives dealer × 2,000 hours 

to establish and document its internal risk 

management control system) + (One new OTC 

derivatives dealer × 200 hours to maintain an 

internal risk management control system × (3 years/ 

2)) + (Four registered OTC derivatives dealers × 200 

hours to maintain an internal risk management 

control system × 3 years))/3 years = 1,567 hours. 

2The $258 per hour salary figure for a 

Compliance Manager is from SIFMA’s Management 

& Professional Earnings in the Securities Industry 

2008, modified by Commission staff to account for 

an 1800-hour work-year and multiplied by 5.35 to 

account for bonuses, firm size, employee benefits 

and overhead. 

3 1,567 hours × $258 = $404,200. 

1 44 U.S.C. 3501 et seq. 2Public Law No. 106–102, 113 Stat. 1338 (1999). 

3See 15 U.S.C. 78q(i). 4See Exchange Act Release No. 49831 (Jun. 8, 

2004), 69 FR 34472 (Jun. 21, 2004). 5See H.R. Conf. Rep. No. 106–434, 165 (1999). 

See also Exchange Act Release No. 49831, at 6 (Jun. 

8, 2004), 69 FR 34472, at 34473 (Jun. 21, 2004). 

6 (1 SIBHC/every 10 years) × (24 hours to draft + 

8 hours to review) = 3.2 hours. 

The staff estimates that the average 

amount of time a new OTC derivatives 

dealer will spend establishing and 

documenting its risk management 

control system is 2,000 hours and that, 

on average, a registered OTC derivatives 

dealer will spend approximately 200 

hours each year to maintain (e.g., 

reviewing and updating) its risk 

management control system. Currently, 

four firms are registered with the 

Commission as OTC derivatives dealers. 

The staff estimates that approximately 

one additional OTC derivatives dealer 

may become registered within the next 

three years. Accordingly, the staff 

estimates that the total annualized 

burden associated with Rule 15c3–4 for 

five OTC derivatives dealers will be 

approximately 1,567 hours annually.1

The staff believes that the cost of 

complying with Rule 15c3–4 will be 

approximately $258 per hour.2 This per 

hour cost is based upon the annual 

average hourly salary for a compliance 

manager, who would generally be 

responsible for initially establishing, 

documenting, and maintaining an OTC 

derivatives dealer’s internal risk 

management control system. 

Accordingly, the total annualized cost 

for all affected OTC derivatives dealers 

is estimated to be $404,200.3

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. 

Comments should be directed to 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312 or send an 

e-mail to: PRA_Mailbox@sec.gov. 

Dated: October 19, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25482 Filed 10–22–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: U.S. Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 17i–3, SEC File No. 270–529, OMB 

Control No. 3235–0593. 

Notice is hereby given that pursuant to the 

Paperwork Reduction Act of 1995 1 the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the Office 

of Management and Budget requests for 

extension of the previously approved 

collections of information discussed below. 

The Code of Federal Regulations citation to 

this collection of information is the 

following: 17 CFR 240.17i–3. 

Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’) 

amended Section 17 of the Securities 

Exchange Act of 1934 to create a 

regulatory framework under which a 

holding company of a broker-dealer 

(‘‘investment bank holding company’’ or 

‘‘IBHC’’) may voluntarily be supervised 

by the Commission as a supervised 

investment bank holding company (or 

‘‘SIBHC’’).3 In 2004, the Commission 

promulgated rules, including Rule 17i– 

3, to create a framework for the 

Commission to supervise SIBHCs.4 This 

framework includes qualification 

criteria for SIBHCs, as well as 

recordkeeping and reporting 

requirements. Among other things, this 

regulatory framework for SIBHCs is 

intended to provide a basis for non-U.S. 

financial regulators to treat the 

Commission as the principal U.S. 

consolidated, home-country supervisor 

for SIBHCs and their affiliated brokerdealers.5

Rule 17i–3 permits an SIBHC to 

withdraw from Commission supervision 

by filing a notice of withdrawal with the 

Commission. The Rule requires that an 

SIBHC include in its notice of 

withdrawal a statement that it is in 

compliance with Rule 17i–2(c) 

regarding amendments to its Notice of 

Intention to help to assure that the 

Commission has updated information 

when considering the SIBHC’s 

withdrawal request. 

The collection of information required 

by Rule 17i–3 is necessary to enable the 

Commission to evaluate whether it is 

necessary and appropriate in the 

furtherance of Section 17 of the 

Exchange Act for the Commission to 

allow an SIBHC to withdraw from 

supervision. Without this information, 

the Commission would be unable to 

make this evaluation. 

We estimate, for Paperwork Reduction 

Act purposes only, that one SIBHC may 

wish to withdraw from Commission 

supervision as an SIBHC over a ten-year 

period. Each SIBHC that withdraws 

from Commission supervision as an 

SIBHC will require approximately 24 

hours to draft a withdrawal notice and 

submit it to the Commission. An SIBHC 

likely would have an attorney perform 

this task. Further, an SIBHC likely will 

have a senior attorney or executive 

officer review the notice of withdrawal 

before submitting it to the Commission, 

which will take approximately eight 

hours. Thus, we estimate that the 

annual, aggregate burden of 

withdrawing from Commission 

supervision as an SIBHC will be 

approximately 3.2 hours each year.6

Written comments are invited on: (a) 

Whether the 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. 

Comments should be directed to 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312 or send an 

e-mail to: PRA_Mailbox@sec.gov. 


CPrice-Sewell on DSKGBLS3C1PROD with NOTICES
54862 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices 

1 44 U.S.C. 3501 et seq. 

2Public Law No. 106–102, 113 Stat. 1338 (1999). 

3See 15 U.S.C. 78q(i). 

4See Exchange Act Release No. 49831 (Jun. 8, 

2004), 69 FR 34472 (Jun. 21, 2004). 

5See H.R. Conf. Rep. No. 106–434, 165 (1999). 

See also Exchange Act Release No. 49831, at 6 (Jun. 

8, 2004), 69 FR 34472, at 34473 (Jun. 21, 2004). 

6 17 CFR 240.15c3–4. 

7 17 CFR 240.17i–5(b)(5). 

8 (3,600 hours × 3 SIBHCs) = 10,800 hours. 9 (250 hours per year × 3 SIBHCs) = 750 hours per 

year. 10 (3,600 hours × 3 SIBHCs) + (250 hours per year 

× 3 SIBHCs.) 

11 (250 hours per year × 3 SIBHCs). 

October 19, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25483 Filed 10–22–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: U.S. Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 17i–4, SEC File No. 270–530, OMB 

Control No. 3235–0594. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 

1995 1 the Securities and Exchange 

Commission (‘‘Commission’’) has 

submitted to the Office of Management 

and Budget requests for extension of the 

previously approved collections of 

information discussed below. The Code 

of Federal Regulations citation to this 

collection of information is the 

following: 17 CFR 240.17i–4. 

Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’) 

amended Section 17 of the Securities 

Exchange Act of 1934 to create a 

regulatory framework under which a 

holding company of a broker-dealer 

(‘‘investment bank holding company’’ or 

‘‘IBHC’’) may voluntarily be supervised 

by the Commission as a supervised 

investment bank holding company (or 

‘‘SIBHC’’).3 In 2004, the Commission 

promulgated rules, including Rule 17i– 

4, to create a framework for the 

Commission to supervise SIBHCs.4 This 

framework includes qualification 

criteria for SIBHCs, as well as 

recordkeeping and reporting 

requirements. Among other things, this 

regulatory framework for SIBHCs is 

intended to provide a basis for non-U.S. 

financial regulators to treat the 

Commission as the principal U.S. 

consolidated, home-country supervisor 

for SIBHCs and their affiliated brokerdealers.5

Rule 17i–4 requires an SIBHC to 

comply with present Exchange Act Rule 

15c3–4 6 as though it were a brokerdealer, which requires that the firm 

establish, document and maintain a 

system of internal risk management 

controls to assist it in managing the 

risks associated with its business 

activities (including market, credit, 

operational, funding, and legal risks). In 

addition, Rule 17i–4 requires that an 

SIBHC establish, document, and 

maintain procedures for the detection 

and prevention of money laundering 

and terrorist financing as part of its 

internal risk management control 

system. Finally, Rule 17i–4 requires that 

an SIBHC periodically review its 

internal risk management control 

system for integrity of the risk 

measurement, monitoring, and 

management process, and 

accountability, at the appropriate 

organizational level, for defining the 

permitted scope of activity and level of 

risk. The records required to be created 

pursuant to Rule 17i–4 must be 

preserved for a period of not less than 

three years.7

The collection of information required 

pursuant to Rule 17i–4 is needed so that 

the Commission can adequately 

supervise the activities of these SIBHCs, 

and to allow the Commission to 

effectively determine whether 

supervision of an IBHC as an SIBHC is 

necessary or appropriate in furtherance 

of the purposes of Section 17 of the Act. 

Without this information, the 

Commission would be unable to 

adequately supervise the SIBHC as 

provided for under the Exchange Act. 

We estimate that three IBHCs will file 

Notices of Intention with the 

Commission to be supervised by the 

Commission as SIBHCs. An SIBHC will 

require, on average, about 3,600 hours to 

assess its present structure, businesses, 

and controls, and establish and 

document its risk management control 

system. In addition, an SIBHC will 

require, on average, approximately 250 

hours each year to maintain its risk 

management control system. 

Consequently, the total initial burden 

for all SIBHCs is approximately 10,800 

hours 8 and the continuing annual 

burden is about 750 hours.9 Thus, the 

total burden relating to Rule 17i–4 for 

all SIBHCs is approximately 11,550 

hours 10 in the first year, and 

approximately 750 hours each year 

thereafter.11

We believe that an IBHC likely would 

upgrade its information technology 

(‘‘IT’’) systems in order to more 

efficiently comply with certain of the 

SIBHC framework rules (including 

Rules 17i–4, 17i–5, 17i–6 and 17i–7), 

and that this would be a one-time cost. 

Depending on the state of development 

of the IBHC’s IT systems, it would cost 

an IBHC between $1 million and $10 

million to upgrade its IT systems to 

comply with the SIBHC framework of 

rules. Thus, on average, it would cost 

each of the three SIBHCs about $5.5 

million to upgrade their IT systems, or 

approximately $16.5 million in total. It 

is impossible to determine what 

percentage of the IT systems costs 

would be attributable to each Rule, so 

we allocated the total estimated upgrade 

costs equally (at 25% for each of the 

above-mentioned Rules), with 

$4,125,000 attributable to Rule 17i–5. 

Written comments are invited on: (a) 

Whether the 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. 

Comments should be directed to 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312 or send an 

e-mail to: PRA_Mailbox@sec.gov. 

October 19, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25485 Filed 10–22–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 31a–2; SEC File No. 270–174; OMB 

Control No. 3235–0179. 


CPrice-Sewell on DSKGBLS3C1PROD with NOTICES