

[Federal Register: August 25, 2006 (Volume 71, Number 165)]
[Notices]               
[Page 50478-50479]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25au06-134]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

Upon written request, copies available from: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.

Extension:
    Rule 17i-6, SEC File No. 270-532, OMB Control No. 3235-0588.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 \1\ the Securities and Exchange Commission (``Commission'') 
intends to submit to the Office of Management and Budget a request for 
extension of the previously approved collections of information 
discussed below. The Code of Federal Regulation citation to this 
collection of information is the following rule: 17 CFR 240.17i-6.
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    \1\ 44 U.S.C. 3501 et seq.
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    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-6, 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 for SIBHCs and their affiliated broker-
dealers.\5\
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    \2\ Pub. L. 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).
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    Pursuant to Section 17(i)(3)(A) of the Exchange Act, an SIBHC must 
make and keep records, furnish copies thereof, and make such reports as 
the Commission may require by rule.\6\ Rule 17i-6 requires that an 
SIBHC file with the Commission certain monthly and quarterly reports 
and an annual audit report. The reports and notices required to be 
filed pursuant to Rule 17i-6 must be preserved for a period of not less 
than three years.\7\
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    \6\ 15 U.S.C. 78q(i)(3)(A).
    \7\ 17 CFR 240.17i-5(b)(3).
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    The collections of information required by Rule 17i-6 are necessary 
to allow the Commission adequately to supervise the activities of these 
SIBHCs and 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. Rule 17i-6s also enhances the Commission's 
supervision of an SIBHCs' subsidiary broker-dealers through collection 
of additional information and inspections of affiliates of those 
broker-dealers. Without these reports, the Commission would be unable 
to adequately supervise an SIBHC, nor would it be able to determine 
whether continued supervision of an IBHC as an SIBHC were necessary and 
appropriate in furtherance of the purposes of section 17 of the Act.
    We estimate that three IBHCs will file Notices of Intention with 
the Commission to be supervised by the Commission as SIBHCs. An SIBHC 
will require about eight hours each month to prepare and file the 
monthly reports required by this rule (or approximately 96 hours per 
year).\8\ On average, it will take an SIBHC about 16 hours each quarter 
(or 64 hours each year) \9\ to prepare and file the quarterly reports 
required by this rule. An SIBHC will require about 200 hours to prepare 
and file the annual audit reports required by this rule. Consequently, 
the total annual

[[Page 50479]]

burden of Rule 17i-6 on all SIBHCs is approximately 1,080 hours.\10\
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    \8\ (8 hours x 12 months in a year) = 96 hours/year.
    \9\ (16 hours x 4 quarters in a year) = 64 hours/year.
    \10\ (96 hours per year to prepare and file monthly reports + 64 
hours each year to prepare and file quarterly reports + 200 hours 
each year to prepare and file annual audit reports) x 3 SIBHCs = 
1,080 hours.

    We believe that an IBHC likely will upgrade its information 
technology (``IT'') systems in order to more efficiently comply with 
certain of the SIBHC framework rules (including Rules 17i-4, 17i-5, 
17i-6 and 17i-7), and that this would be a one-time cost. Depending on 
the state of development of the IBHC's IT systems, it would cost an 
IBHC between $1 million and $10 million to upgrade its IT systems to 
comply with the SIBHC framework of rules. Thus, on average, it would 
cost each of the three IBHCs about $5.5 million to upgrade their IT 
systems, or approximately $16.5 million in total. It is impossible to 
determine what percentage of the IT systems costs would be attributable 
to each Rule, so we allocated the total estimated upgrade costs equally 
(at 25% for each of the above-mentioned Rules), with $4,125,000 
attributable to Rule 17i-6.
    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.
    Comments should be directed 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. Comments must be submitted within 
60 days of this notice.

    Dated: August 14, 2006.
Nancy M. Morris,
Secretary.
 [FR Doc. E6-14124 Filed 8-24-06; 8:45 am]

BILLING CODE 8010-01-P
