83 FR 6075 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 29 (February 12, 2018)

Page Range		6075-6076
FR Document		2018-02796
Federal Register, Volume 83 Issue 29 (Monday, February 12, 2018)
[Federal Register Volume 83, Number 29 (Monday, February 12, 2018)]
[Notices]
[Pages 6075-6076]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02796]


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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(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'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this existing collection of information to the Office of 
Management and Budget for extension and approval.
    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), provided that certain disclosures 
are made to the client. 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

[[Page 6076]]

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 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.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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 sixty 60 days of this publication.
    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: PRA_Mailbox@sec.gov.

    Dated: February 7, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-02796 Filed 2-9-18; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 29 / Monday, February 12, 2018 / Notices 6075

higher volumes of orders into the price of the Act 14 and paragraph (f) of Rule personal identifying information from
and volume discovery processes. 19b–4 thereunder.15 At any time within comment submissions. You should
The proposed modification of the 60 days of the filing of the proposed rule submit only information that you wish
Single MPID Investor Tier 1 under change, the Commission summarily may to make available publicly. All
footnote 4 should further incentive temporarily suspend such rule change if submissions should refer to File
Members to send a higher level of orders it appears to the Commission that such Number SR–CboeBZX–2018–007 and
to the Exchange in order to meet the action is necessary or appropriate in the should be submitted on or before March
tier’s decreased criteria. The Exchange public interest, for the protection of 5, 2018.
believes that by decreasing the tier’s investors, or otherwise in furtherance of For the Commission, by the Division of
criteria, although modestly, it will the purposes of the Act. Trading and Markets, pursuant to delegated
encourage those Members who could authority.16
not achieve the tier previously to IV. Solicitation of Comments
Eduardo A. Aleman,
increase their order flow as a means to Interested persons are invited to Assistant Secretary.
receive the tier’s enhanced rebate on an submit written data, views, and
[FR Doc. 2018–02725 Filed 2–9–18; 8:45 am]
MPID basis. Thus, the Exchange arguments concerning the foregoing,
BILLING CODE 8011–01–P
believes that the proposed modification including whether the proposed rule
is reasonable and equitable because it change is consistent with the Act.
should provide Members who viewed Comments may be submitted by any of SECURITIES AND EXCHANGE
the current criteria as too high and did the following methods: COMMISSION
not previously attempt to achieve the Electronic Comments
tier’s criteria with an incentive to add Proposed Collection; Comment
order flow to reach the new lower • Use the Commission’s internet Request
threshold. The proposed modification is comment form (http://www.sec.gov/
non-discriminatory because it applies rules/sro.shtml); or Upon Written Request, Copies Available
and is available to all Members. • Send an email to rule-comments@ From: Securities and Exchange
sec.gov. Please include File Number SR– Commission, Office of FOIA Services,
(B) Self-Regulatory Organization’s CboeBZX–2018–007 on the subject line. 100 F Street NE, Washington, DC
Statement on Burden on Competition 20549–2736.
Paper Comments
The Exchange does not believe that Extension:
the proposed rule change will impose • Send paper comments in triplicate Rule 206(3)–2, SEC File No. 270–216, OMB
any burden on competition not to Secretary, Securities and Exchange Control No. 3235–0243
necessary or appropriate in furtherance Commission, 100 F Street NE,
Notice is hereby given that, pursuant
of the purposes of the Act. The Washington, DC 20549–1090.
to the Paperwork Reduction Act of 1995
Exchange does not believe that the All submissions should refer to File (44 U.S.C. 3501 et seq.), the Securities
proposed change to the its tiered pricing Number SR–CboeBZX–2018–007. This and Exchange Commission (the
structure burdens competition, but file number should be included on the ‘‘Commission’’) is soliciting comments
instead, enhances competition as it is subject line if email is used. To help the on the collection of information
intended to increase the Commission process and review your summarized below. The Commission
competitiveness of BZX by modifying comments more efficiently, please use plans to submit this existing collection
pricing incentives in order to attract only one method. The Commission will of information to the Office of
order flow and incentivize participants post all comments on the Commission’s Management and Budget for extension
to increase their participation on the internet website (http://www.sec.gov/ and approval.
Exchange. The Exchange notes that it rules/sro.shtml). Copies of the Rule 206(3)–2, (17 CFR 275.206(3)–2)
operates in a highly competitive market submission, all subsequent which is entitled ‘‘Agency Cross
in which market participants can amendments, all written statements Transactions for Advisory Clients,’’
readily direct order flow to competing with respect to the proposed rule permits investment advisers to comply
venues if they deem fee structures to be change that are filed with the with section 206(3) of the Investment
unreasonable or excessive. The Commission, and all written Advisers Act of 1940 (the ‘‘Act’’) (15
Exchange does not believe the proposed communications relating to the U.S.C. 80b–6(3)) by obtaining a client’s
amendments would burden intramarket proposed rule change between the blanket consent to enter into agency
competition as they would be available Commission and any person, other than cross transactions (i.e., a transaction in
to all Members uniformly. those that may be withheld from the which an adviser acts as a broker to both
public in accordance with the the advisory client and the opposite
(C) Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be party to the transaction), provided that
Statement on Comments on the available for website viewing and certain disclosures are made to the
Proposed Rule Change Received From printing in the Commission’s Public client. Rule 206(3)–2 applies to all
Members, Participants or Others Reference Room, 100 F Street NE, registered investment advisers. In
The Exchange has not solicited, and Washington, DC 20549, on official relying on the rule, investment advisers
does not intend to solicit, comments on business days between the hours of must provide certain disclosures to their
this proposed rule change. The 10:00 a.m. and 3:00 p.m. Copies of the clients. Advisory clients can use the
Exchange has not received any filing also will be available for disclosures to monitor agency cross
unsolicited written comments from inspection and copying at the principal transactions that affect their advisory
daltland on DSKBBV9HB2PROD with NOTICES

Members or other interested parties. office of the Exchange. All comments account. The Commission also uses the
received will be posted without change. information required by Rule 206(3)–2
III. Date of Effectiveness of the in connection with its investment
Persons submitting comments are
Proposed Rule Change and Timing for adviser inspection program to ensure
cautioned that we do not redact or edit
Commission Action that advisers are in compliance with the
The foregoing rule change has become 14 15 U.S.C. 78s(b)(3)(A).
effective pursuant to Section 19(b)(3)(A) 15 17 CFR 240.19b–4(f). 16 17 CFR 200.30–3(a)(12).

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6076 Federal Register / Vol. 83, No. 29 / Monday, February 12, 2018 / Notices

rule. Without the information collected agency, including whether the Intercontinental Exchange Holdings,
under the rule, advisory clients would information shall have practical utility; Inc. (‘‘ICE Holdings’’), NYSE Holdings
not have information necessary for (b) the accuracy of the agency’s estimate LLC (‘‘NYSE Holdings’’) and NYSE
monitoring their adviser’s handling of of the burden of the proposed collection Group, Inc. (‘‘NYSE Group’’) to make a
their accounts and the Commission of information; (c) ways to enhance the technical change updating the registered
would be less efficient and effective in quality, utility, and clarity of the office and registered agent in the state
its inspection program. information to be collected; and (d) of Delaware. The proposed change is
The information requirements of the ways to minimize the burden of the available on the Exchange’s website at
rule consist of the following: (1) Prior to collection of information on www.nyse.com, at the principal office of
obtaining the client’s consent respondents, including through the use the Exchange, and at the Commission’s
appropriate disclosure must be made to of automated collection techniques or Public Reference Room.
the client as to the practice of, and the other forms of information technology.
conflicts of interest involved in, agency Consideration will be given to II. Self-Regulatory Organization’s
cross transactions; (2) at or before the comments and suggestions submitted in Statement of the Purpose of, and
completion of any such transaction the writing within sixty 60 days of this Statutory Basis for, the Proposed Rule
client must be furnished with a written publication. Change
confirmation containing specified Please direct your written comments In its filing with the Commission, the
information and offering to furnish to Pamela Dyson, Director/Chief self-regulatory organization included
upon request certain additional Information Officer, Securities and statements concerning the purpose of,
information; and (3) at least annually, Exchange Commission, C/O Remi and basis for, the proposed rule change
the client must be furnished with a Pavlik-Simon, 100 F Street NE, and discussed any comments it received
written statement or summary as to the Washington, DC 20549; or send an email on the proposed rule change. The text
total number of transactions during the to: PRA_Mailbox@sec.gov. of those statements may be examined at
period covered by the consent and the Dated: February 7, 2018. the places specified in Item IV below.
total amount of commissions received Eduardo A. Aleman, The Exchange has prepared summaries,
by the adviser or its affiliated broker- set forth in sections A, B, and C below,
Assistant Secretary.
dealer attributable to such transactions.
[FR Doc. 2018–02796 Filed 2–9–18; 8:45 am] of the most significant parts of such
The Commission estimates that
BILLING CODE 8011–01–P statements.
approximately 426 respondents use the
rule annually, necessitating about 50 A. Self-Regulatory Organization’s
responses per respondent each year, for Statement of the Purpose of, and the
a total of 21,300 responses. Each SECURITIES AND EXCHANGE
Statutory Basis for, the Proposed Rule
response requires an estimated 0.5 COMMISSION
Change
hours, for a total of 10,650 hours. The [Release No. 34–82640; File No. SR–NYSE–
estimated average burden hours are 2018–07] 1. Purpose
made solely for the purposes of the The Exchange proposes to amend
Paperwork Reduction Act and are not Self-Regulatory Organizations; New
certain of the governing documents of
derived from a comprehensive or York Stock Exchange LLC; Notice of
its intermediate parent companies ICE
representative survey or study of the Filing and Immediate Effectiveness of
Proposed Change To Amend Certain of Holdings, NYSE Holdings, and NYSE
cost of Commission rules and forms. Group to make a technical change
This collection of information is the Governing Documents of Its
Intermediate Parent Companies updating the registered office and
found at (17 CFR 275.206(3)–2) and is registered agent in the state of
necessary in order for the investment February 6, 2018. Delaware.4
adviser to obtain the benefits of Rule Pursuant to Section 19(b)(1) 1 of the
206(3)–2. The collection of information ICE Holdings and NYSE Group are
Securities Exchange Act of 1934 (the corporations and NYSE Holdings is a
requirements under the rule is ‘‘Act’’),2 and Rule 19b–4 thereunder,3
mandatory. Information subject to the limited liability corporation, all
notice is hereby given that, on January organized under the laws of the State of
disclosure requirements of Rule 206(3)– 29, 2018, New York Stock Exchange
2 does not require submission to the Delaware. As such, they are required to
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed have and maintain a registered office
Commission; and, accordingly, the with the Securities and Exchange
disclosure pursuant to the rule is not and registered agent in Delaware.5 The
Commission (the ‘‘Commission’’) the Exchange proposes to amend certain of
kept confidential. Commission- proposed rule change as described in
registered investment advisers are their governing documents to change
Items I, II, and III below, which Items the registered office and registered
required to maintain and preserve have been prepared by the self-
certain information required under Rule agent.
regulatory organization. The
206(3)–2 for five (5) years. The long- More specifically, the Exchange
Commission is publishing this notice to
term retention of these records is proposes to amend the following
solicit comments on the proposed rule
necessary for the Commission’s provisions in the listed documents
change from interested persons.
inspection program to ascertain
compliance with the Advisers Act. I. Self-Regulatory Organization’s 4 Intercontinental Exchange Inc., the ultimate

An agency may not conduct or Statement of the Terms of Substance of parent of the Exchange, owns 100% of the equity
the Proposed Rule Change interest in ICE Holdings, which in turn owns 100%
sponsor, and a person is not required to
daltland on DSKBBV9HB2PROD with NOTICES

of the equity interest in NYSE Holdings. NYSE
respond to a collection of information The Exchange proposes to amend Holdings owns 100% of the equity interest of NYSE
unless it displays a currently valid certain of the governing documents of Group, which in turn directly owns 100% of the
control number. equity interest of the Exchange and its national
its intermediate parent companies securities exchange affiliates, NYSE Arca, Inc.,
Written comments are invited on: (a)
NYSE American LLC and NYSE National, Inc. ICE
Whether the proposed collection of 1 15 U.S.C. 78s(b)(1). is a publicly traded company listed on the NYSE.
information is necessary for the proper 2 15 U.S.C. 78a. 5 See Del. Code tit 6, § 18–104, and Del. Code tit

performance of the functions of the 3 17 CFR 240.19b–4. 8, §§ 131 and 132.

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Document Created: 2018-11-01 08:43:02
Document Modified: 2018-11-01 08:43:02
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 6075