
[Federal Register Volume 78, Number 233 (Wednesday, December 4, 2013)]
[Notices]
[Page 72932]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-28977]


=======================================================================
-----------------------------------------------------------------------

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; OMB Control No. 3235-0630, SEC File No. 270-571.

    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 (``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.
    Temporary rule 206(3)-3T permits investment advisers also 
registered as broker-dealers 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 investment advisers also registered as broker-dealers 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 278 investment 
advisers make use of rule 206(3)-3T, including an estimated 11 advisers 
(on an annual basis) also registered as broker-dealers who do not offer 
non-discretionary services, but whom the Commission staff estimates 
will choose to do so and rely on rule 206(3)-3T. The Commission staff 
estimates that these advisers spend, in the aggregate, approximately 
139,358 hours annually in complying with the requirements of the rule, 
including both initial and annual burdens. The aggregate hour burden, 
expressed on a per-eligible-adviser basis, is therefore approximately 
501 hours per eligible adviser (139,358 hours divided by the estimated 
278 advisers that will rely on rule 206(3)-3T).
    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, 
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. An agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid OMB control number.
    Please direct your written comments to Thomas Bayer, Director/Chief 
Information Officer, Securities and Exchange Commission, C/O Remi 
Pavlik-Simon, 100 F St. NE., Washington, DC 20549; or send an email to: 
PRA_Mailbox@sec.gov.

    Dated: November 27, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-28977 Filed 12-3-13; 8:45 am]
BILLING CODE 8011-01-P


