Notice2021-27498
Proposed Collection; 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
December 20, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 241 (Monday, December 20, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 241 (Monday, December 20, 2021)]
[Notices]
[Pages 71934-71935]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27498]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-218, OMB Control No. 3235-0242]
Proposed Collection; 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(4)-3
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'') 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.
[[Page 71935]]
Rule 206(4)-3 (17 CFR 275.206(4)-3) under the Investment Advisers
Act of 1940, which is entitled ``Cash Payments for Client
Solicitations,'' provides restrictions on cash payments for client
solicitations. The rule requires that an adviser pay all solicitors'
fees pursuant to a written agreement. When an adviser will provide only
impersonal advisory services to the prospective client, the rule
imposes no disclosure requirements. When the solicitor is affiliated
with the adviser and the adviser will provide individualized advisory
services to the prospective client, the solicitor must, at the time of
the solicitation or referral, indicate to the prospective client that
he is affiliated with the adviser. When the solicitor is not affiliated
with the adviser and the adviser will provide individualized advisory
services to the prospective client, the solicitor must, at the time of
the solicitation or referral, provide the prospective client with a
copy of the adviser's brochure and a disclosure document containing
information specified in rule 206(4)-3.
Amendments to rule 206(4)-3, adopted in 2010 in connection with
rule 206(4)-5, specify that solicitation activities involving a
government entity, as defined in rule 206(4)-5, are subject to the
additional limitations of rule 206(4)-5. In December 2020, the
Commission adopted a single marketing rule which merged certain
existing provisions of rule 206(4)-3 into amendments to rule 206(4)-1.
In light of these 2020 amendments, the Commission has rescinded rule
206(4)-3, effective November 2, 2022. Notwithstanding the rescission of
rule 206(4)-3, the Office of Management and Budget (the ``OMB'') has
requested that the Commission submit documents in connection with the
extension of rule 206(4)-3 for the period covering February 28, 2022 to
November 2, 2022, the effective date of the discontinuance of rule
206(4)-3.
To the extent that the OMB has requested this collection of
information, the information rule 206(4)-3 requires is necessary to
inform advisory clients about the nature of the solicitor's financial
interest in the recommendation so the prospective clients may consider
the solicitor's potential bias, and to protect clients against
solicitation activities being carried out in a manner inconsistent with
the adviser's fiduciary duty to clients. Rule 206(4)-3 is applicable to
all Commission-registered investment advisers. The Commission believes
that approximately 3,829 of these advisers have cash referral fee
arrangements. The rule requires approximately 7.04 burden hours per
year per adviser and results in a total of approximately 26,956 total
burden hours (7.04 x 3,829) for all advisers.
Please direct your written comments within 60 days to David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
C/O John R. Pezzullo, 100 F Street NE, Washington, DC 20549; or send an
email to: <a href="/cdn-cgi/l/email-protection#38686a7967755951545a5740784b5d5b165f574e"><span class="__cf_email__" data-cfemail="a5f5f7e4fae8c4ccc9c7cadde5d6c0c68bc2cad3">[email protected]</span></a>.
Dated: December 1, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-27498 Filed 12-17-21; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 20, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.