

[Federal Register: November 9, 2007 (Volume 72, Number 217)]
[Notices]               
[Page 63632-63633]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09no07-98]                         

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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(3)-3T, SEC File No. 270-571, OMB Control No. 
3235-0630.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 350l 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.
    Temporary rule 206(3)-3T (17 CFR 275.206(3)-3T) under the 
Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) is entitled: 
``Temporary rule for principal trades with certain advisory clients.'' 
The temporary rule provides investment advisers who are registered with 
the Commission as broker-dealers an alternative means to meet the 
requirements of section 206(3) of the Advisers Act (15 U.S.C. 80b-6(3)) 
when they act in a principal capacity in transactions with certain of 
their advisory clients. The temporary rule, and its attendant paperwork 
burdens, will expire and no longer be effective on December 31, 2009.
    Temporary rule 206(3)-3T permits dually-registered advisers to 
satisfy the Advisers Act's principal trading restrictions by: (i) 
Providing written, prospective disclosure regarding the conflicts 
arising from principal trades; (ii) obtaining written, revocable 
consent from the client prospectively authorizing the adviser to enter 
into principal transactions; (iii) making oral or written disclosure 
and obtaining the client's consent before each principal transaction; 
(iv) sending to the client confirmation statements disclosing the 
capacity in which the adviser has acted; and (v) delivering to the 
client an annual report itemizing the principal transactions.
    Providing the information required by rule 206(3)-3T is necessary 
for dually-registered advisers to obtain the benefit of the alternative 
means of complying with section 206(3) of the Advisers Act. Disclosures 
under the rule provide important investor protections when advisers 
engage in principal trades. Clients of advisers will primarily use the 
information to monitor principal trades in their accounts.
    The Commission staff estimates that approximately 380 investment 
advisers make use of rule 206(3)-3T, and that on average an investment 
adviser spends approximately 1,301 hours annually in complying with the 
requirements of the rule. The Commission staff therefore estimates the 
total annual burden of the rule's paperwork requirements to be 494,440 
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,

[[Page 63633]]

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: November 5, 2007.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-22006 Filed 11-8-07; 8:45 am]

BILLING CODE 8011-01-P
