54864 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices 

10This estimate is based on the following 

calculation: 4,522 funds × $70,000 = $316,540,000. 

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

2Pub. L. 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 15 U.S.C. 78q(i)(3)(A). 

7 17 CFR 240.17i–5(b)(3). 

8The SIBHC must file with the Commission a 

monthly report within 30 calendar days after the 

end of each month that does not coincide with a 

fiscal quarter end. Consequently, the SIBHC must 

file a monthly report 8 times each year. (8 hours × 

8 months) = 64 hours/year. 

9 (16 hours × 4 quarters in a year) = 64 hours/year. 

10 (64 hours per year to prepare and file monthly 

reports + 64 hours each year to prepare and file 

quarterly reports + 200 hours each year to prepare 

and file annual audit reports) × 3 SIBHCs = 984 

hours. 

survey or study of the burdens 

associated with our rules and forms. 

The Commission staff estimates the 

average cost of preserving books and 

records required by rule 31a–2, to be 

approximately $70,000 annually per 

fund. As discussed previously, there are 

approximately 4,522 funds currently 

operating, for a total cost of preserving 

records as required by rule 31a–2 of 

$316,540,000 per year.10 Our staff 

understands, however, based on 

conversations with representatives of 

the fund industry, that funds would 

already spend approximately half of this 

amount ($158,270,000) to preserve these 

same books and records, as they are also 

necessary to prepare financial 

statements, meet various state reporting 

requirements, and prepare their annual 

federal and state income tax returns. 

Therefore, we estimate that the total 

annual cost burden for funds as a result 

of compliance with rule 31a–2 is 

$158,270,000 per year. 

These estimates of average costs are 

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. 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. 

Written comments are invited on: (a) 

Whether the collections of information 

are necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information has practical utility; (b) the 

accuracy of the Commission’s estimate 

of the burdens of the collections of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burdens of the collections 

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 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. 

Dated: October 19, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25487 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–6; SEC File No. 270–532; OMB 

Control No. 3235–0588. 

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–6. 

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– 

6, 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

Pursuant to Section 17(i)(3)(A) of the 

Exchange Act, an SIBHC must make and 

keep records, furnish copies thereof, 

and make such reports as the 

Commission may require by rule.6 Rule 

17i–6 requires that an SIBHC file with 

the Commission certain monthly and 

quarterly reports and an annual audit 

report. The reports and notices required 

to be filed pursuant to Rule 17i–6 must 

be preserved for a period of not less 

than three years.7

The collections of information 

required by Rule 17i–6 are necessary to 

allow the Commission adequately to 

supervise the activities of these SIBHCs 

and 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. 

Rule 17i–6 also enhances the 

Commission’s supervision of an 

SIBHC’s subsidiary broker-dealers 

through collection of additional 

information and inspections of affiliates 

of those broker-dealers. Without these 

reports, the Commission would be 

unable to adequately supervise an 

SIBHC, nor would it be able to 

determine whether continued 

supervision of an IBHC as an SIBHC 

were necessary and appropriate in 

furtherance of the purposes of Section 

17 of the 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 about 8 hours to prepare and file 

each monthly report required by this 

rule (or approximately 96 hours per 

year).8 On average, it will take an SIBHC 

about 16 hours each quarter (or 64 hours 

each year) 9 to prepare and file the 

quarterly reports required by this rule. 

An SIBHC will require about 200 hours 

to prepare and file the annual audit 

reports required by this rule. 

Consequently, the total annual burden 

of Rule 17i–6 on all SIBHCs is 

approximately 984 hours.10

Rule 17i–6 requires that an SIBHC file 

certain monthly and quarterly reports 

with the Commission, as well as an 

annual audit report. The average cost for 

an SIBHC to prepare and file the 

monthly reports is about $1,424 per 

month, and thus approximately $11,392 


CPrice-Sewell on DSKGBLS3C1PROD with NOTICES
Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices 54865 

11We believe that an SIBHC would have a Senior 

Accountant prepare and file these reports. 

According to the Securities Industry Financial 

Management Association (or ‘‘SIFMA’’), the hourly 

cost of a Senior Accountant is $178, as reflected in 

the SIFMA’s Report on Management and 

Professional Earnings for 2008, and modified to 

account for an 1,800-hour work-year and multiplied 

by 5.35 to account for bonuses, firm size, employee 

benefits and overhead. ($178 × 8 hours) = $1,424. 

($1,424 × 8 months) = $11,392. 

12We believe that an SIBHC would have a Senior 

Accountant prepare and file these reports. The 

hourly cost of a Senior Accountant is $178. ($178 

× 16 hours) = $2,848. ($2,848 × 4 quarters) = 

$11,392. 

13We believe that an SIBHC would have a Senior 

Internal Auditor work with accountants to prepare 

and file these reports. According to the SIFMA, the 

hourly cost of a Senior Internal Auditor is $202, as 

reflected in its Report on Management and 

Professional Earnings for 2008, and modified to 

account for an 1,800-hour work-year and multiplied 

by 5.35 to account for bonuses, firm size, employee 

benefits and overhead. ($202 × 200 hours) = 

$40,400. 

14 (($11,392 + $11,392 + $40,400) × 3 SIBHCs) = 

$189,552. 

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

2Public Law 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 240.17i–5(b)(2). 

per year.11 On average, an SIBHC will 

incur a quarterly cost of $2,848 to 

prepare and file the required quarterly 

reports, and thus will incur an annual 

cost of $11,392 to file these reports.12

Finally, an SIBHC, on average, will 

incur an annual cost of $40,400 to 

prepare and file an annual audit.13

Thus, the total dollar cost of the ongoing 

paperwork burden associated with Rule 

17i–6 is approximately $189,552.14

We believe that an IBHC likely will 

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 IBHCs 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–6. 

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. 

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. E9–25486 Filed 10–22–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Rule 17i–2; SEC File No. 270–528; OMB 

Control No. 3235–0592] 

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. 

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–2. 

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– 

2, 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 5

for SIBHCs and their affiliated brokerdealers. 

Rule 17i–2 provides the method by 

which an IBHC can elect to become an 

SIBHC. In addition, Rule 17i–2 indicates 

that the IBHC will automatically become 

an SIBHC 45 days after the Commission 

receives its completed Notice of 

Intention unless the Commission issues 

an order indicating either that it will 

begin its supervision sooner or that it 

does not believe it to be necessary or 

appropriate in furtherance of Section 17 

of the Act for the IBHC to be so 

supervised. Finally, Rule 17i–2 sets 

forth the criteria the Commission would 

use to make this determination. The 

records required to be created pursuant 

to Rule 17i–2 must be preserved for a 

period of not less than three years.6

The collections of information 

required by Rule 17i–2 are necessary 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. In 

addition, these collections are needed so 

that the Commission can adequately 

supervise the activities of these SIBHCs. 

Finally, these rules enhance the 

Commission’s supervision of the 

SIBHCs’ subsidiary broker-dealers 

through collection of additional 

information and inspections of affiliates 

of those broker-dealers. 

We estimate that three IBHCs will file 

Notices of Intention with the 

Commission to be supervised by the 

Commission as SIBHCs. Each IBHC that 

files a Notice of Intention to become 

supervised by the Commission as an 

SIBHC will require approximately 900 

hours to draft the Notice of Intention, 

compile the various documents to be 

included with the Notice of Intention, 

and work with the Commission staff. 

Further, each IBHC likely will have an 

attorney review its Notice of Intention, 

and it will take the attorney 

approximately 100 hours to complete 

such a review. Consequently, we 

estimate the total one-time burden for 

all three firms to file their Notices of 

Intention would be approximately 3,000 


CPrice-Sewell on DSKGBLS3C1PROD with NOTICES