[Federal Register Volume 88, Number 58 (Monday, March 27, 2023)]
[Notices]
[Pages 18192-18193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06173]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-513, OMB Control No. 3235-0571]


Proposed Collection; Comment Request; Extension: Rule 206(4)-6

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 
(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.
    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 written policies and procedures 
that are reasonably designed to ensure that the adviser votes client 
securities in the best interest of clients, including procedures to 
address any material conflict that may arise between the interests of 
the adviser and the client; (ii) disclose to clients how they may 
obtain information from the adviser on how the adviser has voted with 
respect to their securities; and (iii) describe to clients the 
adviser's 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 
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 their proxy voting activities. The 
information required by Adviser's Act rule 204-2, a recordkeeping rule, 
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

[[Page 18193]]

is 14,003. 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 rule, for a total burden of 
140,030 hours. We further estimate that on average, approximately 350 
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 491,050 hours. Accordingly, we estimate that rule 
206(4)-6 results in an annual aggregate burden of collection for SEC-
registered investment advisers of a total of 630,135 hours.
    Written comments are invited on: (a) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission'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 by May 26, 2023.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Acting 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o John Pezzullo, 100 F Street NE, Washington, DC 20549 or send an 
email to: [email protected].

    Dated: March 21, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-06173 Filed 3-24-23; 8:45 am]
BILLING CODE 8011-01-P


