[Federal Register Volume 74, Number 204 (Friday, October 23, 2009)]
[Notices]
[Pages 54865-54866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25484]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Rule 17i-2; SEC File No. 270-528; OMB Control No. 3235-0592]


Proposed Collection; Comment Request

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

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 \1\ the Securities and Exchange Commission (``Commission'') has 
submitted to the Office of Management and Budget requests for extension 
of the previously approved collections of information discussed below. 
The Code of Federal Regulations citation to this collection of 
information is the following: 17 CFR 240.17i-2.
---------------------------------------------------------------------------

    \1\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------

    Section 231 of the Gramm-Leach-Bliley Act of 1999 \2\ (the 
``GLBA'') amended Section 17 of the Securities Exchange Act of 1934 to 
create a regulatory framework under which a holding company of a 
broker-dealer (``investment bank holding company'' or ``IBHC'') may 
voluntarily be supervised by the Commission as a supervised investment 
bank holding company (or ``SIBHC'').\3\ In 2004, the Commission 
promulgated rules, including Rule 17i-2, to create a framework for the 
Commission to supervise SIBHCs.\4\ This framework includes 
qualification criteria for SIBHCs, as well as recordkeeping and 
reporting requirements. Among other things, this regulatory framework 
for SIBHCs is intended to provide a basis for non-U.S. financial 
regulators to treat the Commission as the principal U.S. consolidated, 
home-country supervisor \5\ for SIBHCs and their affiliated broker-
dealers.
---------------------------------------------------------------------------

    \2\ Public Law 106-102, 113 Stat. 1338 (1999).
    \3\ See 15 U.S.C. 78q(i).
    \4\ See Exchange Act Release No. 49831 (Jun. 8, 2004), 69 FR 
34472 (Jun. 21, 2004).
    \5\ See H.R. Conf. Rep. No. 106-434, 165 (1999). See also 
Exchange Act Release No. 49831, at 6 (Jun. 8, 2004), 69 FR 34472, at 
34473 (Jun. 21, 2004).
---------------------------------------------------------------------------

    Rule 17i-2 provides the method by which an IBHC can elect to become 
an SIBHC. In addition, Rule 17i-2 indicates that the IBHC will 
automatically become an SIBHC 45 days after the Commission receives its 
completed Notice of Intention unless the Commission issues an order 
indicating either that it will begin its supervision sooner or that it 
does not believe it to be necessary or appropriate in furtherance of 
Section 17 of the Act for the IBHC to be so supervised. Finally, Rule 
17i-2 sets forth the criteria the Commission would use to make this 
determination. The records required to be created pursuant to Rule 17i-
2 must be preserved for a period of not less than three years.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 240.17i-5(b)(2).
---------------------------------------------------------------------------

    The collections of information required by Rule 17i-2 are necessary 
to allow the Commission to effectively determine whether supervision of 
an IBHC as an SIBHC is necessary or appropriate in furtherance of the 
purposes of Section 17 of the Act. In addition, these collections are 
needed so that the Commission can adequately supervise the activities 
of these SIBHCs. Finally, these rules enhance the Commission's 
supervision of the SIBHCs' subsidiary broker-dealers through collection 
of additional information and inspections of affiliates of those 
broker-dealers.
    We estimate that three IBHCs will file Notices of Intention with 
the Commission to be supervised by the Commission as SIBHCs. Each IBHC 
that files a Notice of Intention to become supervised by the Commission 
as an SIBHC will require approximately 900 hours to draft the Notice of 
Intention, compile the various documents to be included with the Notice 
of Intention, and work with the Commission staff. Further, each IBHC 
likely will have an attorney review its Notice of Intention, and it 
will take the attorney approximately 100 hours to complete such a 
review. Consequently, we estimate the total one-time burden for all 
three firms to file their Notices of Intention would be approximately 
3,000

[[Page 54866]]

hours.\7\ Rule 17i-2 also requires that an IBHC/SIBHC update its Notice 
of Intention on an ongoing basis.\8\ Each IBHC/SIBHC will require 
approximately two hours each month to update its Notice of Intention, 
as necessary. Thus, we estimate that it will take the three IBHC/
SIBHCs, in the aggregate, about 72 hours each year to update their 
Notices of Intention.\9\ Thus, the total burden relating to Rule 17i-2 
for all SIBHCs would be approximately 3,072 hours in the first 
year,\10\ and approximately 72 hours each year thereafter.
---------------------------------------------------------------------------

    \7\ (900 hours + 100 hours) x 3 IBHCs/SIBHCs = 3,000 hours.
    \8\ An IBHC would be required to review and update its Notice of 
Intention to the extent it becomes inaccurate prior to a Commission 
determination, and an SIBHC would be required to update its Notice 
of Intention if it changes a mathematical model used to calculate 
its risk allowances pursuant to Rule 17i-7 after a Commission 
determination was made.
    \9\ (2 hours x 12 months each year) x 3 SIBHCs = 72.
    \10\ (3,000 hours to file the Notices of Intention + 72 hours to 
update them.)
---------------------------------------------------------------------------

    Written comments are invited on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
collection of information; (c) ways to enhance the quality, utility, 
and clarity of the information 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 60 days of this publication.
    Comments should be directed to Charles Boucher, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send 
an e-mail to: [email protected].

    Dated: October 19, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25484 Filed 10-22-09; 8:45 am]
BILLING CODE 8011-01-P