[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Pages 15010-15011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6318]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; 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
(``Commission'') has submitted to the Office of Management and Budget
(``OMB'') a request for extension of the previously approved collection
of information discussed below.
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 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. 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 collection is mandatory and responses to the disclosure
requirement are not kept confidential.
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 Rule 206(4)-
6 also is used by the Commission staff in its examination and oversight
program. Without the information collected under the rule, 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.
Records related to an adviser's proxy voting policies and
procedures and proxy voting history are separately
[[Page 15011]]
required under the Advisers Act recordkeeping rule 204-2 (17 CFR
275.204-2). The standard retention period required for books and
records under rule 204-2 is five years, in an easily accessible place,
the first two years in an appropriate office of the investment adviser.
OMB has previously approved the collection with this retention period.
The public may view the background documentation for this
information collection at the following Web site, http://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, D.C. 20503, or by sending an e-
mail to: [email protected]; and (ii) 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]. Comments must be submitted to OMB
within 30 days of this notice.
Dated: March 14, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-6318 Filed 3-17-11; 8:45 am]
BILLING CODE 8011-01-P