[Federal Register Volume 85, Number 85 (Friday, May 1, 2020)]
[Notices]
[Pages 25486-25487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09297]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-513, OMB Control No. 3235-0571]
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 206(4)-6
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
(the ``Commission'') is soliciting comments on the collections of
information summarized below. The Commission plans to submit these
existing collections of information to the Office of Management and
Budget (``OMB'') for extension and approval.
The title for the collection of information is ``Rule 206(4)-6''
under the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.)
(``Advisers Act'') and the collection has been approved under OMB
Control No. 3235-0571. The Commission adopted rule 206(4)-6 (17 CFR
275.206(4)-6), the proxy voting rule, to address an investment
adviser's fiduciary obligation to clients who have given the adviser
authority to vote their securities. Under the rule, an investment
adviser that exercises voting authority over client securities is
required to: (i) Adopt and implement written policies and procedures
that are reasonably designed to ensure that the adviser votes client
securities in the best interest of clients, including procedures to
address any material conflict that may arise between the interests of
the adviser and the client; (ii) disclose to clients how they may
obtain information from the adviser on how the adviser has voted with
respect to their securities; and (iii) describe to clients the
adviser's proxy voting policies and procedures and, on request, furnish
a copy of the policies and procedures to the requesting client. The
rule is designed to assure that advisers that vote proxies for their
clients vote those proxies in their clients' best interest and provide
clients with information about how their proxies were voted.
Rule 206(4)-6 contains ``collection of information'' requirements
within the meaning of the Paperwork Reduction Act. The respondents are
investment advisers registered with the Commission that vote proxies
with respect to clients' securities. Advisory clients of these
investment advisers use the information required by the rule to assess
investment advisers' proxy voting policies and procedures and to
monitor the advisers' performance of their proxy voting activities. The
information required by Adviser's Act rule 204-2, a recordkeeping rule,
also is used by the Commission staff in its examination and oversight
program. Without the information collected under the rules, advisory
clients would not have information they need to assess the adviser's
services and monitor the adviser's handling of their accounts, and the
Commission would be less efficient and effective in its programs.
The estimated number of investment advisers subject to the
collection of information requirements under the rule is 12,265. It is
estimated that each of these advisers is required to spend on average
10 hours annually documenting its proxy voting procedures under the
requirements of the rule, for a total burden of 122,650 hours. We
further estimate that on average, approximately 279 clients of each
adviser would request copies of the underlying policies and procedures.
We estimate that it would take these advisers 0.1 hours per client to
deliver copies of the policies and procedures, for a total burden of
[[Page 25487]]
342,194 hours. Accordingly, we estimate that rule 206(4)-6 results in
an annual aggregate burden of collection for SEC-registered investment
advisers of a total of 464,844 hours.
Written comments are invited on: (a) Whether the collections of
information are necessary for the proper performance of the functions
of the Commission, including whether the information has practical
utility; (b) the accuracy of the Commission's estimate of the burdens
of the collections of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burdens of the collections 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. An agency may not conduct or sponsor a collection of
information unless it displays a currently valid OMB control number. No
person shall be subject to any penalty for failing to comply with a
collection of information subject to the PRA that does not display a
valid OMB control number.
Please direct your written comments to David Bottom, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Cynthia
Roscoe, 100 F Street NE, Washington, DC 20549; or send an email to:
[email protected].
Dated: April 28, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-09297 Filed 4-30-20; 8:45 am]
BILLING CODE 8011-01-P