Document ID: SEC-2008-0668-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2008-05-07T04:00Z

[Federal Register: May 7, 2008 (Volume 73, Number 89)]
[Notices]               
[Page 25785-25786]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07my08-128]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; Comment Request

Upon written request, copies available from: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension:
    Rule 206(4)-6; SEC File No. 270-513; OMB Control No. 3235-0571.

    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'') has submitted to the Office of Management and Budget a 
request for extension of the previously approved collection of 
information discussed below.
    The title for the collection of information is ``Rule 206(4)-6'' 
under the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) 
(``Advisers Act'') and the collection has been approved under OMB 
Control No. 3235-0571. The Commission adopted rule 206(4)-6 (17 CFR 
275.206(4)-6), the proxy voting rule, to address an investment 
adviser's fiduciary obligation to clients who have given the adviser 
authority to vote their securities. Under the rule, an investment 
adviser that exercises voting authority over client securities is 
required to: (i) Adopt and implement policies and procedures that are 
reasonably designed to ensure that the adviser votes securities in the 
best interest of clients, including procedures to address any material 
conflict that may arise between the interest of the adviser and the 
client; (ii) disclose to clients how they may obtain information on how 
the adviser has voted with respect to their securities; and (iii) 
describe to clients the advisers proxy voting policies and procedures 
and, on request, furnish a copy of the policies and procedures to the 
requesting client. The rule is designed to assure that advisers that 
vote proxies for their clients vote those proxies in their clients' 
best interest and provide clients with information about how their 
proxies were voted.
    Rule 206(4)-6 contains ``collection of information'' requirements 
within the meaning of the Paperwork Reduction Act. 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 control 
number. The collection is mandatory and responses to the disclosure 
requirement are not kept confidential.

[[Page 25786]]

    The respondents are investment advisers registered with the 
Commission that vote proxies with respect to clients' securities. 
Advisory clients of these investment advisers use the information 
required by the rule to assess investment advisers' proxy voting 
policies and procedures and to monitor the advisers' performance of its 
proxy voting activities. The information required by Rule 206(4)-6 also 
is used by the Commission staff in its examination and oversight 
program. Without the information collected under the rules, advisory 
clients would not have information they need to assess the adviser's 
services and monitor the adviser's handling of their accounts, and the 
Commission would be less efficient and effective in its programs.
    The estimated number of investment advisers subject to the 
collection of information requirements under the rule is 9,166. It is 
estimated that each of these advisers is required to spend on average 
10 hours annually documenting its proxy voting procedures under the 
requirements of the proposed rule, for a total burden of 91,660 hours. 
We further estimate that on average, approximately 101 clients of each 
adviser, would request copies of the underlying policies and 
procedures. We estimate that it would take these advisers 0.1 hours per 
client to deliver copies of the policies and procedures, for a total 
burden of approximately 92,577 hours. Accordingly, we estimate that 
rule 206(4)-6 results in an annual aggregate burden of collection for 
SEC-registered investment advisers by a total of 184,237 hours.
    Records related to an adviser's proxy voting policies and 
procedures and proxy voting history are separately required under the 
Advisers Act recordkeeping rule 204-2 (17 CFR 275.204-2). The standard 
retention period required for books and records under rule 204-2 is 
five years, in an easily accessible place, the first two years in an 
appropriate office of the investment adviser. OMB has previously 
approved the collection with this retention period.
    General comments regarding the above information should be directed 
to the following persons: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503 or e-mail to: Alexander--T.--
Hunt@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief Information 
Officer, 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. Comments must be submitted to OMB within 30 days 
of this notice.

    Dated: April 30, 2008.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-10043 Filed 5-6-08; 8:45 am]

BILLING CODE 8010-01-P