

[Federal Register: October 30, 2007 (Volume 72, Number 209)]
[Notices]               
[Page 61410]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30oc07-73]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

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

Extension: Rule 206(4)-3, SEC File No. 270-218, OMB Control No. 
3235-0242.

    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'') 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 for extension and approval.
    Rule 206(4)-3 (17 CFR 275.206(4)-3), which is entitled ``Cash 
Payments for Client Solicitations,'' provides restrictions on cash 
payments for client solicitations. The rule requires that an adviser 
pay all solicitors' fees pursuant to a written agreement. When an 
adviser will provide only impersonal advisory services to the 
prospective client, the rule imposes no disclosure requirements. When 
the solicitor is affiliated with the adviser and the adviser will 
provide individualized services, the solicitor must, at the time of the 
solicitation, indicate to prospective clients that he is affiliated 
with the adviser. When the solicitor is not affiliated with the adviser 
and the adviser will provide individualized services, the solicitor 
must, at the time of the solicitation, provide the prospective client 
with a copy of the adviser's brochure and a disclosure document 
containing information specified in rule 206(4)-3. The information rule 
206(4)-3 requires is necessary to inform advisory clients about the 
nature of the solicitor's financial interest in the recommendation so 
they may consider the solicitor's potential bias, and to protect 
investors against solicitation activities being carried out in a manner 
inconsistent with the adviser's fiduciary duty to clients. Rule 206(4)-
3 is applicable to all Commission registered investment advisers. The 
Commission believes that approximately 2,163 of these advisers have 
cash referral fee arrangements. The rule requires approximately 7.04 
burden hours per year per adviser and results in a total of 
approximately 15,228 total burden hours (7.04 x 2,163) for all 
advisers.
    Written comments are invited on: (a) Whether the proposed 
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, VA, 22312; or 
send an e-mail to: PRA_Mailbox@sec.gov.

    Dated: October 24, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. E7-21283 Filed 10-29-07; 8:45 am]

BILLING CODE 8011-01-P
