[Federal Register Volume 76, Number 8 (Wednesday, January 12, 2011)]
[Notices]
[Pages 2155-2156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-448]
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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(4)-6; SEC File No. 270-513; OMB Control No. 3235-0571.
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 policies and procedures that are
reasonably designed to ensure that the adviser votes securities in the
best interest of clients, including procedures to address any material
conflict that may arise between the interest of the adviser and the
client; (ii) disclose to clients how they may obtain information 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
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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 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 is 10,207. 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 102,070 hours. We
further estimate that on average, approximately 121 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
123,505 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 225,575 hours.
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.
Please direct your written comments to Thomas Bayer, Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an
e-mail to: [email protected].
Dated: January 5, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-448 Filed 1-11-11; 8:45 am]
BILLING CODE 8011-01-P