Document ID: SEC-2009-0969-0001
Agency: sec
Document Type: Notice
Title: Proposed Collection; Comment Request
Posted Date: 2009-07-15T04:00Z

[Federal Register: July 15, 2009 (Volume 74, Number 134)]
[Notices]               
[Page 34379-34380]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jy09-129]                         

=======================================================================
-----------------------------------------------------------------------

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 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 (the ``Commission'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this existing collection of information to the Office of 
Management and Budget for extension and approval.
    Rule 206(3)-2, (17 CFR 275.206(3)-2) which is entitled ``Agency 
Cross Transactions for Advisory Clients,'' permits investment advisers 
to comply with section 206(3) of the Investment Advisers Act of 1940 
(the ``Act'') (15 U.S.C. 80b-6(3)) by obtaining a client's blanket 
consent to enter into agency cross transactions (i.e., a transaction in 
which an adviser acts as a broker to both the advisory client and the 
opposite party to the transaction), provided that certain disclosures 
are made to the client. Rule 206(3)-2 applies to all registered 
investment advisers. In relying on the rule, investment advisers must 
provide certain disclosures to their clients. Advisory clients can use 
the

[[Page 34380]]

disclosures to monitor agency cross transactions that affect their 
advisory account. The Commission also uses the information required by 
Rule 206(3)-2 in connection with its investment adviser inspection 
program to ensure that advisers are in compliance with the rule. 
Without the information collected under the rule, advisory clients 
would not have information necessary for monitoring their adviser's 
handling of their accounts and the Commission would be less efficient 
and effective in its inspection program.
    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 Commission estimates that approximately 631 respondents use the 
rule annually, necessitating about 32 responses per respondent each 
year, for a total of 20,192 responses. Each response requires an 
estimated 0.5 hours, for a total of 10,096 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 
representative survey or study of the cost of Commission rules and 
forms.
    This collection of information is found at (17 CFR 275.206(3)-2) 
and is necessary in order for the investment adviser to obtain the 
benefits of Rule 206(3)-2. The collection of information requirements 
under the rule is mandatory. Information subject to the disclosure 
requirements of Rule 206(3)-2 does not require submission to the 
Commission; and, accordingly, the disclosure pursuant to the rule is 
not kept confidential. Commission-registered investment advisers are 
required to maintain and preserve certain information required under 
Rule 206(3)-2 for five (5) years. The long-term retention of these 
records is necessary for the Commission's inspection program to 
ascertain compliance with the 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.
    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.
    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. Comments must be submitted to OMB within 60 days of 
this notice.

    Dated: July 9, 2009.
Elizabeth M. Murphy,
Secretary.
 [FR Doc. E9-16712 Filed 7-14-09; 8:45 am]

BILLING CODE 8010-01-P