
[Federal Register Volume 80, Number 60 (Monday, March 30, 2015)]
[Notices]
[Page 16719]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07127]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-216, OMB Control No. 3235-0243]


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736.

Extension:
    Rule 206(3)-2.

    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'') has submitted to the Office of 
Management and Budget a request for extension of the previously 
approved collection of information discussed below.
    Rule 206(3)-2, (17 CFR 275.206(3)-2) which is entitled ``Agency 
Cross Transactions for Advisory Clients,'' permits investment advisers 
to comply with section 206(3) of the Investment Advisers Act of 1940 
(the ``Act'') (15 U.S.C. 80b-6(3)) by obtaining a client's blanket 
consent to enter into agency cross transactions (i.e., a transaction in 
which an adviser acts as a broker to both the advisory client and the 
opposite party to the transaction). Rule 206(3)-2 applies to all 
registered investment advisers. In relying on the rule, investment 
advisers must provide certain disclosures to their clients. Advisory 
clients can use the disclosures to monitor agency cross transactions 
that affect their advisory account. The Commission also uses the 
information required by Rule 206(3)-2 in connection with its investment 
adviser inspection program to ensure that advisers are in compliance 
with the rule. Without the information collected under the rule, 
advisory clients would not have information necessary for monitoring 
their adviser's handling of their accounts and the Commission would be 
less efficient and effective in its inspection program.
    The information requirements of the rule consist of the following: 
(1) Prior to obtaining the client's consent, appropriate disclosure 
must be made to the client as to the practice of, and the conflicts of 
interest involved in, agency cross transactions; (2) at or before the 
completion of any such transaction, the client must be furnished with a 
written confirmation containing specified information and offering to 
furnish upon request certain additional information; and (3) at least 
annually, the client must be furnished with a written statement or 
summary as to the total number of transactions during the period 
covered by the consent and the total amount of commissions received by 
the adviser or its affiliated broker-dealer attributable to such 
transactions.
    The Commission estimates that approximately 464 respondents use the 
rule annually, necessitating about 32 responses per respondent each 
year, for a total of 14,848 responses. Each response requires an 
estimated 0.5 hours, for a total of 7,424 hours. The estimated average 
burden hours are made solely for the purposes of the Paperwork 
Reduction Act and are not derived from a comprehensive or 
representative survey or study of the cost of Commission rules and 
forms.
    This collection of information is found at (17 CFR 275.206(3)-2) 
and is necessary in order for the investment adviser to obtain the 
benefits of Rule 206(3)-2. The collection of information requirements 
under the rule is mandatory. Information subject to the disclosure 
requirements of Rule 206(3)-2 does not require submission to the 
Commission; and, accordingly, the disclosure pursuant to the rule is 
not kept confidential.
    Commission-registered investment advisers are required to maintain 
and preserve certain information required under Rule 206(3)-2 for five 
(5) years. The long-term retention of these records is necessary for 
the Commission's inspection program to ascertain compliance with the 
Advisers Act.
    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.
    The public may view the background documentation for this 
information collection at the following Web site, www.reginfo.gov. 
Comments should be directed to: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503, or by sending an email to: 
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or send an email 
to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: March 24, 2015.
Brent J. Fields,
 Secretary.
[FR Doc. 2015-07127 Filed 3-27-15; 8:45 am]
 BILLING CODE 8011-01-P


