Temporary rule for principal trades with certain advisory clients, rule 206(3)-3T

Forms and Documents

Document Name	Status

No forms / supporting documents in this ICR. Check IC Document Collections.

IC Document Collections

IC ID	Document Title	Status
182044	Temporary rule for principal trades with certain advisory clients, rule 206(3)-3T	New

ICR Details

OMB Control No: 3235-0630	ICR Reference No: 200709-3235-019
Status: Historical Inactive	Previous ICR Reference No:
Agency/Subagency: SEC	Agency Tracking No: 270-571
Title: Temporary rule for principal trades with certain advisory clients, rule 206(3)-3T
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 09/21/2007
OIRA Conclusion Action: Preapproved	Conclusion Date: 09/19/2007
	Date Received in OIRA: 09/19/2007
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2008	6 Months From Approved
Responses	19,000	0	0
Time Burden (Hours)	494,440	0	0
Cost Burden (Dollars)	13,050,300	0	0

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Abstract: Temporary rule 206(3)-3T provides investment advisers who are registered with the Commission as broker-dealers relief by establishing an optional, alternative means for them to meet the requirements of section 206(3) of the Advisers Act when they act in a principal capacity in transactions with certain of their advisory clients. The Commission also adopted temporary rule 206(3)-3T to enable fee-based brokerage customers to make an informed choice between fee-based advisory accounts and commission-based brokerage accounts, while continuing to have access to certain securities held in the principal accounts of certain advisory firms. The temporary rule, and its attendant paperwork burdens, will expire and no longer be effective on December 31, 2009

Emergency Justfication: This temporary collection of information encompasses certain new disclosures and the creation of new records of investment advisers, prompted by a recent court decision invalidating rule 202(a)(11)-1 under the Investment Advisers Act of 1940, which provided that fee-based brokerage accounts were not advisory accounts and were thus not subject to the Advisers Act. See Financial Planning Association v. SEC, 482 F.3d 481 (D.C. Cir. 2007). As a result of the court's decision, which takes effect on October 1, fee-based brokerage customers must decide whether they will convert an estimated one million accounts (holding $300 billion) to fee-based accounts that are subject to the Advisers Act or to commission-based brokerage accounts

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Authorizing Statute(s): US Code: 15 USC 80b-6A Name of Law: Investment Advisers Act of 1940
   US Code: 15 USC 80b-11(a) Name of Law: Investment Advisers Act of 1940
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AJ96	Final or interim final rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Temporary rule for principal trades with certain advisory clients, rule 206(3)-3T

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	19,000	0	0	19,000	0	0
Annual Time Burden (Hours)	494,440	0	0	494,440	0	0
Annual Cost Burden (Dollars)	13,050,300	0	0	13,050,300	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Temporary rule 206(3)-3T provides investment advisers who are registered with the Commission as broker-dealers relief by establishing an optional, alternative means for them to meet the requirements of section 206(3) of the Advisers Act when they act in a principal capacity in transactions with certain of their advisory clients. The Commission also adopted temporary rule 206(3)-3T to enable fee-based brokerage customers to make an informed choice between fee-based advisory accounts and commission-based brokerage accounts, while continuing to have access to certain securities held in the principal accounts of certain advisory firms. The temporary rule, and its attendant paperwork burdens, will expire and no longer be effective on December 31, 2009

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 09/19/2007

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