

[Federal Register: June 1, 2006 (Volume 71, Number 105)]
[Notices]               
[Page 31230]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01jn06-111]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Collection; Comment Request

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

Extension: Rule 202(a)(11)-1; SEC File No. 270-471; OMB Control No. 
3235-0532.

    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 collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    The title for the collection of information is ``Certain Broker-
Dealers Deemed Not To Be Investment Advisers.'' Rule 202(a)(11)-1 (17 
CFR 275.202(a)(11)-1) under the Investment Advisers Act of 1940 (15 
U.S.C. 80b-1 et seq.) (``Advisers Act'') addresses the application of 
the Advisers Act to broker-dealers offering accounts charging an asset-
based fee. The rule is intended to clarify when brokers offering these 
programs are subject to the provisions of the Advisers Act. The rule 
requires that all advertisements for brokerage accounts charging an 
asset-based fee and all agreements and contracts governing the 
operation of those accounts contain a certain prominent statement that 
the accounts are brokerage accounts and not advisory accounts. This 
collection of information is necessary so that customers are not 
confused with respect to the services that they are receiving, i.e., to 
prevent customers and prospective customers from mistakenly believing 
that the account is an advisory account subject to the Advisers Act. 
The collection assists customers in making informed decisions regarding 
whether to establish accounts.
    The respondents to this collection of information are all broker-
dealers that are registered with the Commission. The Commission has 
estimated that the average annual burden for ensuring compliance with 
the disclosure element of the rule is 5 minutes per broker-dealer 
taking advantage of the rule. If all of the approximately 6,158 broker-
dealers registered with the Commission took advantage of the rule, the 
total estimated annual burden would be 511 hours (.083 hours x 6,158 
brokers).
    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.
    Please direct your written comments to R. Corey Booth, 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: PRA_Mailbox@sec.gov.

    Dated: May 24, 2006.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-8495 Filed 5-31-06; 8:45 am]

BILLING CODE 8010-01-P
