81 FR 8110 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 31 (February 17, 2016)

Page Range		8110-8111
FR Document		2016-03112
Federal Register, Volume 81 Issue 31 (Wednesday, February 17, 2016)
[Federal Register Volume 81, Number 31 (Wednesday, February 17, 2016)]
[Notices]
[Pages 8110-8111]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-03112]


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SECURITIES AND EXCHANGE COMMISSION


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.

Extension: Rule 15a-6,
    SEC File No. 270-0329, OMB Control No. 3235-0371.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the existing 
collection of information provided for in Rule 15a-6, (17 CFR 240.15a-
6), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). 
The Commission plans to submit this existing collection of information 
to the Office of Management and Budget (``OMB'') for extension and 
approval.
    Rule 15a-6 provides conditional exemptions from the requirement to 
register as a broker-dealer pursuant to Section 15 of the Exchange Act 
(15 U.S.C. 78o) for foreign broker-dealers that engage in certain 
specified activities involving U.S. persons. In particular, Rule 15a-
6(a)(3) provides an exemption from broker-dealer registration for 
foreign broker-dealers that solicit and effect transactions with or for 
U.S. institutional investors or major U.S. institutional investors 
through a registered broker-dealer, provided that the U.S. broker-
dealer, among other things, obtains certain information about, and 
consents to service of process from, the personnel of the foreign 
broker-dealer involved in such transactions, and maintains certain 
records in connection therewith.
    These requirements are intended to ensure (a) that the registered 
broker-dealer will receive notice of the identity of, and has reviewed 
the background of, foreign personnel who will contact U.S. investors, 
(b) that the foreign broker-dealer and its personnel effectively may be 
served with process in the event enforcement action is necessary, and 
(c) that the Commission has ready access to information concerning 
these persons and their U.S. securities activities. Commission staff 
estimates that approximately 2,000 U.S. registered

[[Page 8111]]

broker-dealers will spend an average of two hours of clerical staff 
time and one hour of managerial staff time per year obtaining the 
information required by the rule, resulting in a total aggregate burden 
of 6,000 hours per year for complying with the rule. Assuming an hourly 
cost of $63 \1\ for a compliance clerk and $283 \2\ for a compliance 
manager, the resultant total internal labor cost of compliance for the 
respondents is $818,000 per year (2,000 entities x ((2 hours/entity x 
$63/hour) + (1 hour per entity x $283/hour)) = $818,000).
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    \1\ The hourly rate used for a compliance clerk was from SIFMA's 
Office Salaries in the Securities Industry 2013, modified by 
Commission staff to account for an 1,800 hour work-year and 
multiplied by 2.93 to account for bonuses, firm size, employee 
benefits and overhead.
    \2\ The hourly rate used for a compliance manager was from 
SIFMA's Management & Professional Earnings in the Securities 
Industry 2013, modified by Commission staff to account for an 1,800 
hour work-year and multiplied by 5.35 to account for bonuses, firm 
size, employee benefits and overhead.
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    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 
estimates of the burden of the proposed 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.
    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: 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: [email protected].

    Dated: February 10, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-03112 Filed 2-16-16; 8:45 am]
BILLING CODE 8011-01-P
8110 Federal Register / Vol. 81, No. 31 / Wednesday, February 17, 2016 / Notices

proposed rule change so that it has the adviser’s chief compliance officer or Dated: February 10, 2016.
sufficient time to consider the proposed another person designated in the code of Brent J. Fields,
rule change, as amended by Partial ethics, of any violations of the code. Secretary.
Amendment No.1, comment letters, and Finally, the Code of Ethics Rule requires [FR Doc. 2016–03111 Filed 2–16–16; 8:45 am]
FINRA’s submission. Accordingly, the the adviser to provide each supervised BILLING CODE 8011–01–P
Commission, pursuant to Exchange Act person with a copy of the code and any
section 19(b)(2), designates April 8, amendments, and require the
2016, as the date by which the supervised persons to acknowledge, in SECURITIES AND EXCHANGE
Commission shall approve or writing, their receipt of these copies. COMMISSION
disapprove the proposed rule change. The purposes of the information
collection requirements are to: (i) Proposed Collection; Comment
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Ensure that advisers maintain codes of Request
authority.12 ethics applicable to their supervised Upon Written Request, Copies Available
Brent J. Fields, persons; (ii) provide advisers with From: Securities and Exchange
Secretary. information about the personal Commission, Office of FOIA Services,
[FR Doc. 2016–03127 Filed 2–16–16; 8:45 am] securities transactions of their access 100 F Street NE., Washington, DC
BILLING CODE 8011–01–P persons for purposes of monitoring such 20549–2736.
transactions; (iii) provide advisory Extension: Rule 15a–6,
clients with information with which to SEC File No. 270–0329, OMB Control No.
SECURITIES AND EXCHANGE evaluate advisers’ codes of ethics; and 3235–0371.
COMMISSION (iv) assist the Commission’s Notice is hereby given that pursuant
examination staff in assessing the to the Paperwork Reduction Act of 1995
Proposed Collection; Comment adequacy of advisers’ codes of ethics (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Request and assessing personal trading activity Securities and Exchange Commission
by advisers’ supervised persons. (‘‘Commission’’) is soliciting comments
Upon Written Request, Copies Available
From: Securities and Exchange The respondents to this information on the existing collection of information
Commission, Office of FOIA Services, collection are investment advisers provided for in Rule 15a–6, (17 CFR
100 F Street NE., Washington, DC registered with the Commission. The 240.15a–6), under the Securities
20549–2736. Commission has estimated that Exchange Act of 1934 (15 U.S.C. 78a et
Extension: Rule 204A–1, compliance with rule 204A–1 imposes a seq.). The Commission plans to submit
burden of approximately 118 hours per this existing collection of information to
SEC File No. 270–536, OMB Control No.
3235–0596.
adviser annually for an estimated total the Office of Management and Budget
annual burden of 1,418,703 hours. (‘‘OMB’’) for extension and approval.
Notice is hereby given that, pursuant An agency may not conduct or Rule 15a–6 provides conditional
to the Paperwork Reduction Act of 1995 sponsor a collection of information exemptions from the requirement to
(44 U.S.C. 3501 et seq.), the Securities unless it displays a currently valid OMB register as a broker-dealer pursuant to
and Exchange Commission (the control number. No person shall be Section 15 of the Exchange Act (15
‘‘Commission’’) is soliciting comments subject to any penalty for failing to U.S.C. 78o) for foreign broker-dealers
on the collections of information comply with a collection of information that engage in certain specified
summarized below. The Commission subject to the PRA that does not display activities involving U.S. persons. In
plans to submit these existing a valid OMB control number. particular, Rule 15a–6(a)(3) provides an
collections of information to the Office exemption from broker-dealer
of Management and Budget for Written comments are invited on: (a) registration for foreign broker-dealers
extension and approval. Whether the proposed collection of that solicit and effect transactions with
The title for the collection of information is necessary for the proper or for U.S. institutional investors or
information is ‘‘Rule 204A–1 (17 CFR performance of the functions of the major U.S. institutional investors
275.204A–1) under the Investment agency, including whether the through a registered broker-dealer,
Advisers Act of 1940’’ (15 U.S.C. 80b– information will have practical utility; provided that the U.S. broker-dealer,
1 et seq.) Rule 204A–1 (the ‘‘Code of (b) the accuracy of the agency’s estimate among other things, obtains certain
Ethics Rule’’) requires investment of the burden of the collection of information about, and consents to
advisers registered with the Commission information; (c) ways to enhance the service of process from, the personnel of
to (i) set forth standards of conduct quality, utility, and clarity of the the foreign broker-dealer involved in
expected of advisory personnel information collected; and (d) ways to such transactions, and maintains certain
(including compliance with the federal minimize the burden of the collection of records in connection therewith.
securities laws); (ii) safeguard material information on respondents, including These requirements are intended to
nonpublic information about client through the use of automated collection ensure (a) that the registered broker-
transactions; and (iii) require the techniques or other forms of information dealer will receive notice of the identity
adviser’s ‘‘access persons’’ to report technology. Consideration will be given of, and has reviewed the background of,
their personal securities transactions, to comments and suggestions submitted foreign personnel who will contact U.S.
including transactions in any mutual in writing within 60 days of this investors, (b) that the foreign broker-
asabaliauskas on DSK5VPTVN1PROD with NOTICES

fund managed by the adviser. The Code publication. dealer and its personnel effectively may
of Ethics Rule requires access persons to Please direct your written comments be served with process in the event
obtain the adviser’s approval before to Pamela Dyson, Director/Chief enforcement action is necessary, and (c)
investing in an initial public offering or Information Officer, Securities and that the Commission has ready access to
private placement. The Code of Ethics Exchange Commission, C/O Remi information concerning these persons
Rule also requires prompt reporting, to Pavlik-Simon, 100 F Street NE., and their U.S. securities activities.
Washington, DC 20549; or send an email Commission staff estimates that
12 17 CFR 200.30–3(a)(57). to: PRA_Mailbox@sec.gov. approximately 2,000 U.S. registered

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Federal Register / Vol. 81, No. 31 / Wednesday, February 17, 2016 / Notices 8111

broker-dealers will spend an average of SECURITIES AND EXCHANGE per year. With an estimated 266 1
two hours of clerical staff time and one COMMISSION broker-dealers significantly involved in
hour of managerial staff time per year order routing practices, the total
obtaining the information required by Proposed Collection; Comment industry-wide burden per year to
the rule, resulting in a total aggregate Request comply with the quarterly reporting
burden of 6,000 hours per year for Upon Written Request, Copies Available requirement in Rule 606 is estimated to
complying with the rule. Assuming an From: Securities and Exchange be 42,560 hours (160 × 266).
hourly cost of $63 1 for a compliance Commission, Office of FOIA Services, Rule 606 also requires broker-dealers
clerk and $283 2 for a compliance 100 F Street NE., Washington, DC to respond to individual customer
manager, the resultant total internal 20549–2736. requests for information on orders
labor cost of compliance for the Extension: handled by the broker-dealer for that
respondents is $818,000 per year (2,000 Rule 606 of Regulation NMS, SEC File No. customer. Clearing brokers generally
entities × ((2 hours/entity × $63/hour) + 270–489, OMB Control No. 3235–0541. bear the burden of responding to these
(1 hour per entity × $283/hour)) = Notice is hereby given that, pursuant requests. The Commission staff
$818,000). to the Paperwork Reduction Act of 1995 estimates that an average clearing broker
Written comments are invited on: (a) (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the incurs an annual burden of 400 hours
Whether the proposed collection of Securities and Exchange Commission (2000 responses × 0.2 hours/response) to
information is necessary for the proper (‘‘Commission’’) is soliciting comments prepare, disseminate, and retain
performance of the functions of the on the existing collection of information responses to customers required by Rule
Commission, including whether the provided for in Rule 606 of Regulation 606. With an estimated 185 clearing
NMS (‘‘Rule 606’’) (17 CFR 242.606),
information shall have practical utility; brokers subject to Rule 606, the total
under the Securities Exchange Act of
(b) the accuracy of the Commission’s industry-wide burden per year to
1934 (15 U.S.C. 78a et seq.). The
estimates of the burden of the proposed Commission plans to submit this comply with the customer response
collection of information; (c) ways to existing collection of information to the requirement in Rule 606 is estimated to
enhance the quality, utility, and clarity Office of Management and Budget be 74,000 hours (185 × 400).
of the information collected; and (d) (‘‘OMB’’) for extension and approval. Written comments are invited on: (a)
ways to minimize the burden of the Rule 606 (formerly known as Rule Whether the proposed collection of
collection of information on 11Ac1–6) requires broker-dealers to information is necessary for the proper
respondents, including through the use prepare and disseminate quarterly order performance of the functions of the
of automated collection techniques or routing reports. Much of the information Commission, including whether the
other forms of information technology. needed to generate these reports already information will have practical utility;
Consideration will be given to should be collected by broker-dealers in (b) the accuracy of the Commission’s
comments and suggestions submitted in connection with their periodic estimate of the burden of the collection
writing within 60 days of this evaluations of their order routing
of information; (c) ways to enhance the
publication. practices. Broker-dealers must conduct
quality, utility, and clarity of the
such evaluations to fulfill the duty of
An agency may not conduct or best execution that they owe their information collected; and (d) ways to
sponsor, and a person is not required to customers. minimize the burden of the collection of
respond to, a collection of information The collection of information information on respondents, including
under the PRA unless it displays a obligations of Rule 606 apply to broker- through the use of automated collection
currently valid OMB control number. dealers that route non-directed customer techniques or other forms of information
Please direct your written comments orders in covered securities. The technology. Consideration will be given
to: Pamela Dyson, Director/Chief Commission estimates that out of the to comments and suggestions submitted
Information Officer, Securities and currently 4,240 broker-dealers that are in writing within 60 days of this
Exchange Commission, c/o Remi Pavlik- subject to the collection of information publication.
Simon, 100 F Street NE., Washington, obligations of Rule 606, clearing brokers An agency may not conduct or
DC 20549, or send an email to: PRA_ bear a substantial portion of the burden sponsor, and a person is not required to
Mailbox@sec.gov. of complying with the reporting and respond to, a collection of information
recordkeeping requirements of Rule 606
Dated: February 10, 2016. under the PRA unless it displays a
on behalf of small to mid-sized
currently valid OMB control number.
Brent J. Fields, introducing firms. There currently are
Secretary. approximately 185 clearing brokers. In Comments should be directed to
[FR Doc. 2016–03112 Filed 2–16–16; 8:45 am] addition, there are approximately 81 Pamela Dyson, Director/Chief
introducing brokers that receive funds Information Officer, Securities and
BILLING CODE 8011–01–P
or securities from their customers. Exchange Commission, c/o Remi Pavlik-
Because at least some of these firms also Simon, 100 F Street NE., Washington,
1 The hourly rate used for a compliance clerk was may have greater involvement in DC 20549, or send an email to: PRA_
from SIFMA’s Office Salaries in the Securities determining where customer orders are Mailbox@sec.gov.
routed for execution, they have been
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Industry 2013, modified by Commission staff to
account for an 1,800 hour work-year and multiplied
Dated: February 10, 2016.
included, along with clearing brokers, in
by 2.93 to account for bonuses, firm size, employee Brent J. Fields,
estimating the total burden of Rule 606.
benefits and overhead. Secretary.
2 The hourly rate used for a compliance manager
The Commission staff estimates that
each firm significantly involved in order [FR Doc. 2016–03113 Filed 2–16–16; 8:45 am]
was from SIFMA’s Management & Professional
Earnings in the Securities Industry 2013, modified
routing practices incurs an average BILLING CODE 8011–01–P
by Commission staff to account for an 1,800 hour burden of 40 hours to prepare and 1 185 clearing brokers + 81 introducing brokers =
work-year and multiplied by 5.35 to account for disseminate a quarterly report required
266.
bonuses, firm size, employee benefits and overhead. by Rule 606, or a burden of 160 hours

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Document Created: 2016-02-17 01:16:41
Document Modified: 2016-02-17 01:16:41
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 8110