Notice2021-24131
Submission for OMB Review; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 5, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 212 (Friday, November 5, 2021)</title>
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[Federal Register Volume 86, Number 212 (Friday, November 5, 2021)]
[Notices]
[Pages 61345-61346]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24131]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-216, OMB Control No. 3235-0243]
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 206(3)-2
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'') has submitted to the Office of
Management and Budget a request for extension of the previously
approved collection of information discussed below.
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). 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 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 378 respondents use the
rule annually, necessitating about 50 responses per respondent each
year, for a total of 18,900 responses. Each response requires an
estimated 0.5 hours, for a total of 9,450 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.
[[Page 61346]]
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
Advisers 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 public may view background documentation for this information
collection at the following website: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to (i) ><a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>< and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John R. Pezzullo, 100 F Street NE, Washington, DC 20549, or by
sending an email to: <a href="/cdn-cgi/l/email-protection#7a2a283b25371b13161815023a091f19541d150c"><span class="__cf_email__" data-cfemail="8fdfddced0c2eee6e3ede0f7cffceaeca1e8e0f9">[email protected]</span></a>.
Dated: November 1, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-24131 Filed 11-4-21; 8:45 am]
BILLING CODE 8011-01-P
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