
[Federal Register: February 27, 2008 (Volume 73, Number 39)]
[Notices]               
[Page 10499-10500]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27fe08-85]                         

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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)-6; SEC File No. 270-513; OMB Control No. 3235-0571

    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 collections of 
information summarized below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget for extension and approval.
    The title for the collection of information is ``Rule 206(4)-6'' 
under the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) 
(``Advisers Act'') and the collection has been approved under OMB 
Control No. 3235-0571. The Commission adopted rule 206(4)-6 (17 CFR 
275.206(4)-6), the proxy voting rule, to address an investment 
adviser's fiduciary obligation to clients who have given the adviser 
authority to vote their securities. Under the rule, an investment 
adviser that exercises voting authority over client securities is 
required to: (i) Adopt and implement policies and procedures that are 
reasonably designed to ensure that the adviser votes securities in the 
best interest of clients, including procedures to address any material 
conflict that may arise between the interest of the adviser and the 
client; (ii) disclose to clients how they may obtain information on how 
the adviser has voted with respect to their securities; and (iii) 
describe to clients the advisers' proxy voting policies and procedures 
and, on request, furnish a copy of the policies and procedures to the 
requesting client. The rule is designed to assure that advisers that 
vote proxies for their clients vote those proxies in their clients' 
best interest and provide

[[Page 10500]]

clients with information about how their proxies were voted.
    Rule 206(4)-6 contains ``collection of information'' requirements 
within the meaning of the Paperwork Reduction Act. The respondents are 
investment advisers registered with the Commission that vote proxies 
with respect to clients' securities. Advisory clients of these 
investment advisers use the information required by the rule to assess 
investment advisers' proxy voting policies and procedures and to 
monitor the advisers' performance of its proxy voting activities. The 
information also is used by the Commission staff in its examination and 
oversight program. Without the information collected under the rules, 
advisory clients would not have information they need to assess the 
adviser's services and monitor the adviser's handling of their 
accounts, and the Commission would be less efficient and effective in 
its programs.
    The estimated number of investment advisers subject to the 
collection of information requirements under the rule is 9,166. It is 
estimated that each of these advisers is required to spend on average 
10 hours annually documenting its proxy voting procedures under the 
requirements of the proposed rule, for a total burden of 91,660 hours. 
We further estimate that on average, approximately 101 clients of each 
adviser, would request copies of the underlying policies and 
procedures. We estimate that it would take these advisers 0.1 hours per 
client to deliver copies of the policies and procedures, for a total 
burden of approximately 92,577 hours. Accordingly, we estimate that 
rule 206(4)-6 results in an annual aggregate burden of collection for 
SEC-registered investment advisers by a total of 184,237 hours.
    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: February 19, 2008.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-3623 Filed 2-26-08; 8:45 am]

BILLING CODE 8011-01-P
