

[Federal Register: January 2, 2008 (Volume 73, Number 1)]
[Notices]               
[Page 216]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02ja08-88]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; 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'') has submitted to the Office of Management 
and Budget a request for extension of the previously approved 
collection of information discussed below.
    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.
    The disclosure requirements of rule 206(4)-3 do not require 
recordkeeping or record retention. The collections of information 
requirements under the rules are mandatory. Information subject to the 
disclosure requirements of rule 206(4)-3 is not submitted to the 
Commission. Accordingly, the disclosures pursuant to the rule are not 
kept confidential. 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.
    Please direct general comments regarding the above information to 
the following persons: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Management and Budget, Room 10102, New Executive 
Office Building, Washington, DC 20503 or e-mail to: 
Alexander_T._Hunt@omb.eop.gov; and (ii) 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. Comments must be submitted to OMB within 30 days 

of this notice.

    Dated: December 20, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. E7-25434 Filed 12-31-07; 8:45 am]

BILLING CODE 8011-01-P
