[Federal Register Volume 68, Number 242 (Wednesday, December 17, 2003)]
[Notices]
[Page 70322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31116]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, DC 20549.

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 (``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, 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 (``Advisers Act'') 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 disclosures to monitor agency cross 
transactions.
    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 780 respondents use the 
rule annually, necessitating about 32 responses per respondent each 
year, for a total of 24,960 responses. Each response requires about .5 
hours, for a total of 12,480 hours. The estimated average burden hours 
are made solely for the purposes of the PRA and are not derived from a 
comprehensive or even representative survey or study of the cost of 
Commission rules and forms.
    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. 
Consideration will be given to comments and suggestions submitted in 
writing within sixty (60) days of this publication.
    Please direct your written comments to Kenneth A. Fogash, Acting 
Associate Executive Director/CIO, Office of Information Technology, 
Securities and Exchange Commission, 450 Fifth Street, NW., Washington, 
DC 20549.

    Dated: December 10, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-31116 Filed 12-16-03; 8:45 am]
BILLING CODE 8010-01-P