83 FR 17689 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 78 (April 23, 2018)

Page Range		17689-17690
FR Document		2018-08403
Federal Register, Volume 83 Issue 78 (Monday, April 23, 2018)
[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)]
[Notices]
[Pages 17689-17690]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08403]


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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 FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rule 206(3)-2; SEC File No. 270-216, OMB Control No. 3235-0243

    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'') has submitted to the Office of 
Management and Budget a request for extension of the previously 
approved collection of information discussed below.
    Rule 206(3)-2, (17 CFR 275.206(3)-2,) which is entitled ``Agency 
Cross Transactions for Advisory Clients,'' permits investment advisers 
to comply with section 206(3) of the Investment Advisers Act of 1940 
(the ``Act'') (15 U.S.C. 80b-6(3)) by obtaining a client's blanket 
consent to enter into agency cross transactions (i.e., a transaction in 
which an adviser acts as a broker to both the advisory client and the 
opposite party to the transaction). Rule 206(3)-2, applies to all 
registered investment advisers. In relying on the rule, investment 
advisers must provide certain disclosures to their clients. Advisory 
clients can use the disclosures to monitor agency cross transactions 
that affect their advisory account. The Commission also uses the 
information required by Rule 206(3)-2, in connection with its 
investment adviser inspection program to ensure that advisers are in 
compliance with the rule. Without the information collected under the 
rule, advisory clients would not have information necessary for 
monitoring their adviser's handling of their accounts and the 
Commission would be less efficient and effective in its inspection 
program.
    The information requirements of the rule consist of the following: 
(1) Prior to obtaining the client's consent, appropriate disclosure 
must be made to the client as to the practice of, and the conflicts of 
interest involved in, agency cross transactions; (2) at or before the 
completion of any such transaction, the client must be furnished with a 
written confirmation containing specified information and offering to 
furnish upon request certain additional information; and (3) at least 
annually, the client must be furnished with a written statement or 
summary as to the total number of transactions during the period 
covered by the consent and the total amount of commissions received by 
the adviser or its affiliated broker-dealer attributable to such 
transactions.
    The Commission estimates that approximately 426 respondents use the 
rule annually, necessitating about 50 responses per respondent each 
year, for a total of 21,300 responses. Each response requires an 
estimated 0.5 hours, for a total of 10,650 hours. The estimated average 
burden hours are made solely for the purposes of the Paperwork 
Reduction Act and are not derived from a comprehensive or 
representative survey or study of the cost of Commission rules and 
forms.
    This collection of information is found at (17 CFR 275.206(3)-2) 
and is necessary in order for the investment adviser to obtain the 
benefits of Rule 206(3)-2, The collection of information requirements 
under the rule is mandatory. Information subject to the disclosure 
requirements of Rule 206(3)-2 does not require submission to the 
Commission; and, accordingly, the disclosure pursuant to the rule is 
not kept confidential.
    Commission-registered investment advisers are required to maintain 
and preserve certain information required under Rule 206(3)-2 for five 
(5) years. The long-term retention of these records

[[Page 17690]]

is necessary for the Commission's inspection program to ascertain 
compliance with the Advisers 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 public may view the background documentation for this 
information collection at the following website, 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, DC 20503, or by sending an email to: 
[email protected]; and (ii) 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]. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: April 18, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08403 Filed 4-20-18; 8:45 am]
 BILLING CODE 8011-01-P
17690 Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Notices

is necessary for the Commission’s I. Self-Regulatory Organization’s in Nasdaq’s Options Rules as market
inspection program to ascertain Statement of the Terms of Substance of participants transacting on the
compliance with the Advisers Act. the Proposed Rule Change Exchange’s equity and options markets
An agency may not conduct or The Exchange proposes to delete the are already governed by the CAT Rules
sponsor, and a person is not required to rules related to the Consolidated Audit in General 7.
respond to a collection of information Trail (‘‘CAT Rules’’) currently under 2. Statutory Basis
unless it displays a currently valid Chapter IX, Sections 8 and 9 of Nasdaq’s
control number. Options Rules, as further described The Exchange believes that its
The public may view the background below. proposal is consistent with Section 6(b)
documentation for this information The text of the proposed rule change of the Act,5 in general, and furthers the
collection at the following website, is available on the Exchange’s website at objectives of Section 6(b)(5) of the Act,6
www.reginfo.gov. Comments should be http://nasdaq.cchwallstreet.com, at the in particular, in that it is designed to
directed to: (i) Desk Officer for the principal office of the Exchange, and at promote just and equitable principles of
Securities and Exchange Commission, the Commission’s Public Reference trade, to remove impediments to and
Office of Information and Regulatory Room. perfect the mechanism of a free and
Affairs, Office of Management and II. Self-Regulatory Organization’s open market and a national market
Budget, Room 10102, New Executive Statement of the Purpose of, and system, and, in general to protect
Office Building, Washington, DC 20503, Statutory Basis for, the Proposed Rule investors and the public interest by
or by sending an email to: Shagufta_ Change removing the duplicative CAT Rules
Ahmed@omb.eop.gov; and (ii) Pamela from Nasdaq’s Options Rules. As
In its filing with the Commission, the discussed above, Exchange members are
Dyson, Director/Chief Information Exchange included statements
Officer, Securities and Exchange already governed by the CAT Rules in
concerning the purpose of and basis for General 7 of the rulebook’s shell
Commission, c/o Remi Pavlik-Simon, the proposed rule change and discussed
100 F Street NE, Washington, DC 20549 structure. The Exchange believes that
any comments it received on the the proposed changes will make the
or send an email to: PRA_Mailbox@ proposed rule change. The text of these Exchange’s rulebook easier to read and
sec.gov. Comments must be submitted to statements may be examined at the eliminate any potential confusion to the
OMB within 30 days of this notice. places specified in Item IV below. The benefit of its members and investors.
Dated: April 18, 2018. Exchange has prepared summaries, set
forth in sections A, B, and C below, of B. Self-Regulatory Organization’s
Eduardo A. Aleman,
the most significant aspects of such Statement on Burden on Competition
Assistant Secretary.
statements.
[FR Doc. 2018–08403 Filed 4–20–18; 8:45 am] The Exchange does not believe that
BILLING CODE 8011–01–P A. Self-Regulatory Organization’s the proposed rule change will impose
Statement of the Purpose of, and any burden on competition not
Statutory Basis for, the Proposed Rule necessary or appropriate in furtherance
SECURITIES AND EXCHANGE Change of the purposes of the Act. The
COMMISSION proposed changes as discussed above do
1. Purpose
not impose a burden on competition
The purpose of the proposed rule because they are non-substantive and
[Release No. 34–83054; File No. SR–
change is to delete the CAT Rules are intended to clarify the Exchange’s
NASDAQ–2018–027]
currently under Nasdaq’s Options Rules, rulebook in order to eliminate any
Self-Regulatory Organizations; The Chapter IX, Sections 8 and 9 because potential confusion.
Nasdaq Stock Market LLC; Notice of these rules are already located in
General 7, entitled ‘‘Consolidated Audit C. Self-Regulatory Organization’s
Filing and Immediate Effectiveness of Statement on Comments on the
a Proposed Rule Change To Delete Trail Compliance,’’ under the ‘‘General
Equity and Options Rules’’ in the Proposed Rule Change Received From
Duplicative Rules Related to the Members, Participants, or Others
Consolidated Audit Trail From Its Exchange’s rulebook’s shell structure.3
Rulebook Given that the CAT Rules contained in No written comments were either
General 7 are non-product specific and solicited or received.
April 17, 2018. are identical to the CAT Rules in
Nasdaq’s Options Rules,4 the Exchange III. Date of Effectiveness of the
Pursuant to Section 19(b)(1) of the
proposes to delete the duplicative rules Proposed Rule Change and Timing for
Securities Exchange Act of 1934
Commission Action
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 3 The Exchange added a shell structure to its
notice is hereby given that on April 5, rulebook with the purpose of improving efficiency Because the foregoing proposed rule
2018, The Nasdaq Stock Market LLC and readability and to align its rules closer to those change does not: (i) Significantly affect
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the of its five sister exchanges: Nasdaq BX, Inc.; Nasdaq
PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC;
the protection of investors or the public
Securities and Exchange Commission and Nasdaq MRX, LLC (‘‘Affiliated Exchanges’’). interest; (ii) impose any significant
(‘‘Commission’’) the proposed rule See Securities Exchange Act Release No. 82175 burden on competition; and (iii) become
change as described in Items I and II (November 29, 2017), 82 FR 57494 (December 5, operative for 30 days from the date on
below, which Items have been prepared 2017) (SR–NASDAQ–2017–125).
4 As part of its continued effort to promote
which it was filed, or such shorter time
amozie on DSK30RV082PROD with NOTICES

by the Exchange. The Commission is efficiency and conformity of its rules with those of as the Commission may designate, it has
publishing this notice to solicit the Affiliated Exchanges, the Exchange recently become effective pursuant to Section
comments on the proposed rule change relocated the CAT Rules previously under the 6800 19(b)(3)(A)(iii) of the Act 7 and
from interested persons. Series of Nasdaq’s Equity Rules to General 7
because the CAT Rules apply across all markets and 5 15 U.S.C. 78f(b).
to all products. See Securities Exchange Act Release 6 15
1 15 U.S.C. 78s(b)(1). U.S.C. 78f(b)(5).
No. 82604 (January 30, 2018), 83 FR 5154 (February
2 17 CFR 240.19b–4. 7 15 U.S.C. 78s(b)(3)(A)(iii).
5, 2018) (SR–NASDAQ–2018–007).

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Document Created: 2018-04-21 00:33:06
Document Modified: 2018-04-21 00:33:06
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		83 FR 17689