82 FR 11962 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 37 (February 27, 2017)

[Federal Register Volume 82, Number 37 (Monday, February 27, 2017)]
[Notices]
[Page 11962]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03773]


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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 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 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 is 10,942. 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 109,420 hours. We 
further estimate that on average, approximately 292 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 
319,506 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 428,926 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. An agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control 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 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 21, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03773 Filed 2-24-17; 8:45 am]
 BILLING CODE 8011-01-P