[Federal Register Volume 88, Number 148 (Thursday, August 3, 2023)]
[Notices]
[Pages 51390-51391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16542]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-513, OMB Control No. 3235-0571]
Submission for OMB Review; Comment Request; Extension: Rule
206(4)-6
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
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'') has submitted to the Office of Management and Budget
(``OMB'') a request for extension of the previously approved collection
of information discussed below.
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 policies and procedures that are
reasonably designed to ensure that the adviser votes securities in the
best interest of clients, including procedures to address any material
conflict that may arise between the interest of the adviser and the
client; (ii) disclose to clients how they may obtain information 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. An agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid control
number. The collection is mandatory and responses to the disclosure
requirement are not kept confidential.
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 Advisers 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 14,003. 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 140,030 hours. We
further estimate that on average, approximately 350 clients of each
adviser would
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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 490,105
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 630,135 hours.
Records related to an adviser's proxy voting policies and
procedures and proxy voting history are separately required under the
Advisers Act recordkeeping rule 204-2 (17 CFR 275.204-2). The standard
retention period required for books and records under rule 204-2 is
five years, in an easily accessible place, the first two years in an
appropriate office of the investment adviser. OMB has previously
approved the collection with this retention period.
The public may view background documentation for this information
collection at the following website: www.reginfo.gov. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
by September 5, 2023 to (i) [email protected]
and (ii) David Bottom, Director/Chief Information Officer, Securities
and Exchange Commission, c/o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an email to: [email protected].
Dated: July 31, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-16542 Filed 8-2-23; 8:45 am]
BILLING CODE 8011-01-P