
[Federal Register: October 23, 2009 (Volume 74, Number 204)]
[
Notices]               
[Page 54865-54866]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23oc09-89]                         

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SECURITIES AND EXCHANGE COMMISSION



[Rule 17i-2; SEC File No. 270-528; OMB Control No. 3235-0592]



 
Proposed Collection; Comment Request



Upon Written Request, Copies Available From: U.S. Securities and 

Exchange Commission, Office of Investor Education and Advocacy, 

Washington, DC 20549-0213.



    Notice is hereby given that pursuant to the Paperwork Reduction Act 

of 1995 \1\ the Securities and Exchange Commission (``Commission'') has 

submitted to the Office of Management and Budget requests for extension 

of the previously approved collections of information discussed below. 

The Code of Federal Regulations citation to this collection of 

information is the following: 17 CFR 240.17i-2.

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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-2, 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 \5\ for SIBHCs and their affiliated broker-

dealers.

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    \2\ Public Law 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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    Rule 17i-2 provides the method by which an IBHC can elect to become 

an SIBHC. In addition, Rule 17i-2 indicates that the IBHC will 

automatically become an SIBHC 45 days after the Commission receives its 

completed Notice of Intention unless the Commission issues an order 

indicating either that it will begin its supervision sooner or that it 

does not believe it to be necessary or appropriate in furtherance of 

Section 17 of the Act for the IBHC to be so supervised. Finally, Rule 

17i-2 sets forth the criteria the Commission would use to make this 

determination. The records required to be created pursuant to Rule 17i-

2 must be preserved for a period of not less than three years.\6\

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    \6\ 17 CFR 240.17i-5(b)(2).

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    The collections of information required by Rule 17i-2 are necessary 

to allow the Commission 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. In addition, these collections are 

needed so that the Commission can adequately supervise the activities 

of these SIBHCs. Finally, these rules enhance the Commission's 

supervision of the SIBHCs' subsidiary broker-dealers through collection 

of additional information and inspections of affiliates of those 

broker-dealers.

    We estimate that three IBHCs will file Notices of Intention with 

the Commission to be supervised by the Commission as SIBHCs. Each IBHC 

that files a Notice of Intention to become supervised by the Commission 

as an SIBHC will require approximately 900 hours to draft the Notice of 

Intention, compile the various documents to be included with the Notice 

of Intention, and work with the Commission staff. Further, each IBHC 

likely will have an attorney review its Notice of Intention, and it 

will take the attorney approximately 100 hours to complete such a 

review. Consequently, we estimate the total one-time burden for all 

three firms to file their Notices of Intention would be approximately 

3,000



[[Page 54866]]



hours.\7\ Rule 17i-2 also requires that an IBHC/SIBHC update its Notice 

of Intention on an ongoing basis.\8\ Each IBHC/SIBHC will require 

approximately two hours each month to update its Notice of Intention, 

as necessary. Thus, we estimate that it will take the three IBHC/

SIBHCs, in the aggregate, about 72 hours each year to update their 

Notices of Intention.\9\ Thus, the total burden relating to Rule 17i-2 

for all SIBHCs would be approximately 3,072 hours in the first 

year,\10\ and approximately 72 hours each year thereafter.

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    \7\ (900 hours + 100 hours) x 3 IBHCs/SIBHCs = 3,000 hours.

    \8\ An IBHC would be required to review and update its Notice of 

Intention to the extent it becomes inaccurate prior to a Commission 

determination, and an SIBHC would be required to update its Notice 

of Intention if it changes a mathematical model used to calculate 

its risk allowances pursuant to Rule 17i-7 after a Commission 

determination was made.

    \9\ (2 hours x 12 months each year) x 3 SIBHCs = 72.

    \10\ (3,000 hours to file the Notices of Intention + 72 hours to 

update them.)

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    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. Consideration will be given to comments and 

suggestions submitted in writing within 60 days of this publication.

    Comments should be directed to Charles Boucher, 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: October 19, 2009.

Florence E. Harmon,

Deputy Secretary.

[FR Doc. E9-25484 Filed 10-22-09; 8:45 am]

BILLING CODE 8011-01-P
