[Federal Register Volume 68, Number 192 (Friday, October 3, 2003)]
[Notices]
[Pages 57492-57493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25248]


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SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meetings

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Pub. L. 94-409, that the Securities and 
Exchange Commission will hold the following meeting during the week of 
October 6, 2003:

    A Closed Meeting will be held on Tuesday, October 7, 2003 at 2 
p.m., and an Open Meeting will be held on Wednesday, October 8, 2003 
at 9:30 a.m., in Room 1C30, the William O. Douglas Room.

    Commissioner Atkins, as duty officer, determined that no earlier 
notice thereof was possible.
    Commissioners, Counsel to the Commissioners, the Secretary to the 
Commission, and recording secretaries will attend the Closed Meeting. 
Certain staff members who have an interest in the matters may also be 
present.
    The General Counsel of the Commission, or his designee, has 
certified that, in his opinion, one or more of the exemptions set forth 
in 5 U.S.C. 552b(c)(3), (5), (7), (9)(B) and (10) and 17 CFR 
200.402(a)(3), (5), (7), (9)(ii) and (10), permit consideration of the

[[Page 57493]]

scheduled matters at the Closed Meeting.
    The subject matter of the Closed Meeting scheduled for Tuesday, 
October 7, 2003 will be:

Institution and settlement of administrative proceedings of an 
enforcement nature;
Institution and settlement of injunctive actions;
Formal orders of investigation;
Adjudicatory matters; and
Post-argument discussion.

    The subject matter of the Open Meeting scheduled for Wednesday, 
October 8, 2003 will be:

    1. The Commission will consider whether to propose amendments to 
certain Rules, Schedules and Forms under the Securities Exchange Act 
of 1934 and the Investment Company Act of 1940 that would require 
companies, under certain circumstances, to include in their proxy 
materials security holder nominees for election as director.
    For further information, please contact Lillian Cummins Brown at 
(202) 942-2900.
    2. The Commission will consider whether to propose rule 
amendments and new rules under the Securities Exchange Act of 1934 
(the ``Exchange Act'') that would establish two separate voluntary 
regulatory frameworks for the Commission to supervise broker-dealers 
and their affiliates on a consolidated basis.
    One proposal would establish an alternative method to compute 
certain net capital charges for broker-dealers that are part of a 
holding company that manages risks on a group-wide basis and whose 
holding company consents to group-wide Commission supervision. The 
broker-dealer's holding company and its affiliates, if subject to 
Commission supervision, would be referred to as a ``consolidated 
supervised entity'' or ``CSE.'' The alternative method the broker-
dealer would be allowed to use to compute certain market and credit 
risk capital charges would involve the use of internal mathematical 
models that the broker-dealer uses to measure its risk. The CSE 
would be required to comply with rules regarding its group-wide 
internal risk management control system and would have to 
periodically provide the Commission with consolidated computations 
of allowable capital and risk allowances (or other capital 
assessment) consistent with the Basel Standards. Commission 
supervision of the CSE would include recordkeeping, reporting, and 
examination requirements. Modifications to some of these 
requirements would be available for functionally regulated 
affiliates.
    The other proposal would implement Section 17(i) of the Exchange 
Act, which created a new structure for consolidated supervision of 
holding companies of broker-dealers, or ``investment bank holding 
companies'' (``IBHCs'') and their affiliates. Pursuant to the Act, 
an IBHC that meets certain, specified criteria may voluntarily 
register with the Commission as a supervised investment bank holding 
company (``SIBHC'') and be subject to supervision on a group-wide 
basis. Pursuant to the proposed rules, registration as an SIBHC is 
limited to IBHCs that are not affiliated with certain types of banks 
and that have a substantial presence in the securities markets. The 
proposed rules would provide an IBHC with an application process to 
become supervised by the Commission as an SIBHC, and would establish 
regulatory requirements for those SIBHCs. Commission supervision of 
an SIBHC would include recordkeeping, reporting and examination 
requirements. Further, the SIBHC also would be required to comply 
with rules regarding its group-wide internal risk management control 
system and would have to periodically provide the Commission with a 
consolidated computations of allowable capital and risk allowances 
(or other capital assessment) consistent with Basel Standards.
    The proposals would also include technical and conforming 
amendments to the risk assessment rules (Exchange Act Rules 17h-1T 
and 17h-2T). In addition, the SIBHC proposal would adjust the audit 
requirements for OTC derivative dealers to allow accountants to use 
agreed-upon procedures when conducting audits of risk management 
control systems.
    For further information, please contact Lourdes Gonzalez or 
Linda Stamp Sundberg at (202) 942-0073 or Bonnie Gauch (202) 942-
0765 or Rose Russo Wells as (202) 942-0143.

    At times, changes in Commission priorities require alterations in 
the scheduling of meeting items. For further information and to 
ascertain what, if any, matters have been added, deleted or postponed, 
please contact: The Office of the Secretary at (202) 942-7070.

    Dated: September 30, 2003.
Jonathan G. Katz,
Secretary.
[FR Doc. 03-25248 Filed 10-1-03; 11:27 am]
BILLING CODE 8010-01-M