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. 


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