[Federal Register Volume 73, Number 16 (Thursday, January 24, 2008)]
[Notices]
[Pages 4291-4292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1159]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension: Rule 206(3)-3T; SEC File No. 270-571; OMB Control No. 
3235-0630.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 350 et seq.), the Securities and Exchange Commission 
(the ``Commission'') has submitted to the Office of Management and 
Budget (``OMB'') a request for extension and approval of the 
collections of information discussed below.
    Temporary rule 206(3)-3T (17 CFR 275.206(3)-3T) under the 
Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) is entitled: 
``Temporary rule for principal trades with certain advisory clients.'' 
The temporary rule provides investment advisers who are registered with 
the Commission as broker-dealers an alternative means to meet the 
requirements of section 206(3) of the Advisers Act (15 U.S.C. 80b-6(3)) 
when they act in a principal capacity in transactions with certain of 
their advisory clients. The temporary rule, and its attendant paperwork 
burdens, will expire and no longer be effective on December 31, 2009.
    Temporary rule 206(3)-3T permits dually-registered advisers to 
satisfy the Advisers Act's principal trading restrictions by: (i) 
Providing written, prospective disclosure regarding the conflicts 
arising from principal trades; (ii) obtaining written, revocable 
consent from the client prospectively authorizing the adviser to enter 
into principal transactions; (iii) making oral or written disclosure 
and obtaining the client's consent before each principal transaction; 
(iv) sending to the client confirmation statements disclosing the 
capacity in which the adviser has acted; and (v) delivering to the 
client an annual report itemizing the principal transactions.
    The Commission staff estimates that approximately 380 investment 
advisers make use of rule 206(3)-3T, and that on average an investment 
adviser spends approximately 1,301 hours annually in complying with the 
requirements of the rule. The Commission staff therefore estimates the 
total annual burden of the rule's paperwork requirements to be 
approximately 494,440 hours.
    Rule 206(3)-3T does not require recordkeeping or record retention. 
The collection of information requirements under the rule are required 
to obtain a benefit. The information collected pursuant to the rule is 
not required to be filed with the Commission, but rather takes the form 
of disclosures to, and responses from, clients. Accordingly, these 
filings are not kept confidential. To the extent advisers include any 
of the information required by the rule in a filing, such as Form ADV, 
the information will not be kept confidential. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of

[[Page 4292]]

information unless it displays a currently valid control number.
    Please direct general comments regarding the above information to 
the following persons: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Management and Budget, Room 10102, New Executive 
Office Building, Washington, DC 20503 or e-mail to: [email protected]; and (ii) R. Corey Booth, Director/Chief Information 
Officer, Securities and Exchange Commission, C/O Shirley Martinson, 
6432 General Green Way, Alexandria, VA 22312; or send an e-mail to: 
[email protected]. Comments must be submitted to OMB within 30 days 
of this notice.

    Dated: January 14, 2008.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-1159 Filed 1-23-08; 8:45 am]
BILLING CODE 8011-01-P