
[Federal Register Volume 80, Number 109 (Monday, June 8, 2015)]
[Notices]
[Pages 32424-32425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13876]


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SECURITIES AND EXCHANGE COMMISSION

[Extension: Rule 206(4)-3; OMB Control No. 3235-0242, SEC File No. 270-
218]


Proposed Collection; Comment Request

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

    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'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for extension and approval.
    Rule 206(4)-3 (17 CFR 275.206(4)-3) under the Investment Advisers 
Act of 1940, which is entitled ``Cash Payments for Client 
Solicitations,'' provides

[[Page 32425]]

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 advisory services to the 
prospective client, the solicitor must, at the time of the solicitation 
or referral, indicate to the prospective client that he is affiliated 
with the adviser. When the solicitor is not affiliated with the adviser 
and the adviser will provide individualized advisory services to the 
prospective client, the solicitor must, at the time of the solicitation 
or referral, provide the prospective client with a copy of the 
adviser's brochure and a disclosure document containing information 
specified in rule 206(4)-3. Amendments to rule 206(4)-3, adopted in 
2010 in connection with rule 206(4)-5, specify that solicitation 
activities involving a government entity, as defined in rule 206(4)-5, 
are subject to the additional limitations of rule 206(4)-5. 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 the prospective clients may consider the solicitor's 
potential bias, and to protect clients 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 4,422 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 31,130 total 
burden hours (7.04 x 4,422) for all advisers.
    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. The Commission may not conduct or sponsor a 
collection of information unless it displays a currently valid OMB 
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 number.
    Please direct your written comments to 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.

    Dated: June 2, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-13876 Filed 6-5-15; 8:45 am]
 BILLING CODE 8011-01-P


