[Federal Register Volume 63, Number 51 (Tuesday, March 17, 1998)]
[Notices]
[Page 13081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6764]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

    Extension: Rule 206(3)-2 SEC File No. 270-216 OMB Control No. 3235-
0243
    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, DC 20549.
    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 
collections of information discussed below.
    Rule 206(3)-2 permits investment advisers to comply with section 
206(3) of the Investment Advisers Act of 1940 by obtaining a blanket 
consent from a client to enter into agency cross transactions, provided 
that certain disclosures are made to the client. 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 information required by rule 206(3)-2 is used by the Commission 
in connection with its investment adviser inspection program to ensure 
that advisers are in compliance with rule 206(3)-2. The information is 
also used by clients. Without the information collected under the rule, 
the Commission would be less efficient and effective in its inspection 
program and clients would not have information valuable for monitoring 
the adviser's handling of their accounts.
    The Commission estimates that approximately 233 respondents utilize 
the rule annually, necessitating about 122 responses per respondent 
each year, for a total of 28,426 responses. Each response requires 
about .5 hours, for a total of 14,213 hours.
    These collections of information are found at 17 CFR 275.206(3)-2 
and are necessary in order for the investment adviser to obtain the 
benefits of rule 206(3)-2. Commission-registered investment advisers 
are required to maintain and preserve certain information required 
under rule 206(3)-2 for five years. The long-term retention of these 
records is necessary for the Commission's inspection program to 
ascertain compliance with the Investment Advisers Act.
    The estimated average burden hours are made solely for the purposes 
of the Paperwork Reduction Act and are not derived from a comprehensive 
or even representative survey or study of the cost of Commission rules 
and forms.
    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.
    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 3208, New Executive Office 
Building, Washington, D.C. 20503; and (ii) Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, N.W., Washington, 
DC 20549. Comments must be submitted to OMB within 30 days of this 
notice.

    Dated: March 4, 1998.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-6764 Filed 3-16-98; 8:45 am]
BILLING CODE 8010-01-M