fee-based accounts are advisory accounts subject to the fiduciary duty
and other requirements of the Advisers Act, unless converted to
commission-based brokerage accounts. To maintain investor choice and
protect the interests of investors holding an estimated $300 billion in
approximately one million fee-based brokerage accounts, we are adopting
rule 206(3)-3T.

B. Summary of Temporary Rule

    Rule 206(3)-3T permits an adviser, with respect to a non-
discretionary advisory account, to comply with section 206(3) by: (i)
Making certain written disclosures; (ii) obtaining written, revocable
consent from the client prospectively authorizing the adviser to enter
into principal trades; (iii) making oral or written disclosure of the
capacity in which the adviser may act and obtaining the client's
consent orally or in writing prior to the execution of each principal
transaction; (iv) sending to the client confirmation statements
disclosing the capacity in which the adviser has acted and indicating
that the adviser disclosed to the client that it may act in a principal
capacity and that the client authorized the transaction; and (v)
delivering to the client an annual report itemizing the principal
transactions. These conditions are designed to require an adviser to
fully apprise the client of the conflicts of interest involved in these
transactions, inform the client of the circumstances in which the
adviser may effect a trade on a principal basis, and provide the client
with meaningful opportunities to revoke prospective consent or refuse
to authorize a particular transaction.
    To avoid disruption that would otherwise occur to customers who
currently hold fee-based brokerage accounts, we are adopting rule
206(3)-3T on an interim final basis so that it will be available when
the Court's decision takes effect on October 1, 2007.\100\ For reasons
explained below, we are adopting the rule on a temporary basis so that
it will expire on December 31, 2009.
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    \100\ See supra note 5 and accompanying text.

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C. Benefits

    As discussed above, the principal benefit of rule 206(3)-3T is that
it maintains investor choice and protects the interests of investors
holding an estimated $300 billion in one million fee-based brokerage
accounts. It is our understanding that investors favor having the
choice of advisory accounts with access to the inventory of a
diversified broker-dealer but that meeting the requirements set out in
section 206(3) is not feasible for advisers affiliated with broker-
dealers or advisers that also are registered as broker-dealers. By
complying with what we believe to be relatively straightforward
procedural requirements, investment advisers can avoid what they have
indicated to us is a critical impediment to their providing access to
certain securities which they hold in their own accounts--namely,
written trade-by-trade disclosure. These advisers have communicated to
us that the trade-by-trade written disclosure requirement is so
impracticable in today's markets that it effectively stands in the way
of their being able to give clients access to certain securities that
might most cheaply or quickly be traded with a client on a principal
basis. In fact, with respect to some securities, for which the risks
might be relatively low (such as investment-grade debt securities),
absent principal trading, clients may not have access to them at all.
For other securities, execution may be improved where the adviser or
affiliated broker-dealer can provide the best execution of the
transaction.
    A resulting second benefit of the rule is that non-discretionary
advisory clients of dually registered firms will have easier access to
a wider range of securities. This in turn will likely increase
liquidity in the markets for these securities and promote capital
formation in these areas.
    A third benefit of the rule is that it provides the protections of
the sales practice rules of the Exchange Act and the relevant self-
regulatory organizations because an adviser relying on the rule must
also be a registered broker-dealer. As a result, clients will have the
benefit of the fiduciary duties imposed on the investment adviser by
the Advisers Act and of the Commission's rules and regulations under
the Exchange Act as well as those of the SROs.
    Another benefit of Rule 206(3)-3T is that it provides a lower cost
alternative for an adviser to engage in principal transactions. As
discussed above, in the absence of this rule our view has been that an
adviser must provide written disclosure and obtain consent for each
specific principal transaction. Rule 206(3)-3T permits an adviser to
comply with section 206(3) by, among other things, providing oral
disclosure prior to the execution of each principal transaction. As
discussed above, we understand traditional compliance is difficult and
costly. This alternative means of compliance should be, consistent with
the protection of investors, less costly and less burdensome.

D. Costs

    Prospective Disclosure and Consent: Pursuant to paragraph (a)(3) of
the rule, an investment adviser must provide written, prospective
disclosure to the client explaining: (i) The circumstances under which
the investment adviser directly or indirectly may engage in principal
transactions; (ii) the nature and significance of conflicts with its
client's interests as a result of the transactions; and (iii) how the
investment adviser addresses those conflicts. Pursuant to paragraph
(a)(8) of the rule, the written, prospective disclosure must include a
conspicuous, plain English statement that a client's written,
prospective consent may be revoked without penalty at any time by
written notice to the investment adviser from the client. And, for the
adviser to be able to rely on rule 206(3)-3T with respect to an
account, the client must have executed a written, revocable consent
after receiving such written, prospective disclosure. The principal
costs associated with this requirement include: (i) Preparation of the
prospective disclosure and consent solicitation; (ii) distribution of
the disclosure and consent solicitation to clients; and (iii) ongoing
management of information, including revocations of consent and grants
of consent that occur subsequent to the account opening process.
    We estimate that the costs of preparing the prospective disclosure
and consent solicitation will be borne upfront. Once these items have
been generated by eligible advisers, such advisers will be able to
include them in other materials already required to be delivered to
clients. For purposes of the Paperwork Reduction Act, we have estimated
the number of hours and costs the average adviser would spend in the
initial preparation of their prospective disclosure and consent
solicitation.\101\ Based on those estimates, we estimate that advisers
would incur costs of approximately $1,480 on average per adviser,
including a conflicts review process, drafting efforts and consultation
with clients, and legal consultation.\102\ Assuming there are 380
eligible advisers (i.e., advisers that also are registered broker-
dealers) that will prepare the prospective disclosure and consent
solicitation, we estimate that the total costs will be $562,400.\103\
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    \101\ See section V.B of this Release. We estimate the following
burdens and/or costs: (i) For drafting the required prospective
disclosure, approximately 5 hours on average per eligible adviser,
of which we estimate there are 380, for a total of 1,900 hours; and
(ii) for utilizing outside legal professionals in the preparation of
the prospective disclosure, approximately $1,200 on average per
eligible adviser, for a total of $456,000.
    \102\ We expect that the internal preparation function will most
likely be performed by compliance professionals. Data from the
SIFMA's Report on Office Salaries in the Securities Industry 2006
(``Industry's Salary Report''), modified to account for an 1,800-
hour work-year and multiplied by 2.93 to account for bonuses, firm
size, employee benefits and overhead, suggest that the cost for a
Compliance Clerk is approximately $56 per hour. $56 per hour x 5
hours on average per adviser = $280 on average per adviser of
internal costs for preparation of the prospective disclosure. $280
on average per adviser of internal costs + $1,200 on average per
adviser of costs for external consultants = $1,480 on average per
adviser.
    \103\ $1,480 on average per adviser in costs for preparation of
the prospective disclosure x 380 advisers = $562,400 in total costs
for preparation of the prospective disclosure.
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    For purposes of the Paperwork Reduction Act, we have estimated the
number of hours and costs the average adviser would spend on the
distribution of their prospective disclosure and consent solicitation
as 210 hours and $3,143.\104\ We expect that the costs of distribution
of the prospective disclosure and solicitation consent to existing non-
discretionary advisory clients and fee-based brokerage accountholders
converting their accounts to non-discretionary advisory accounts will
include duplication charges, postage and other mailing related
expenses. We estimate that these costs will be approximately $5.60 on
average per client, for a total of $4,458,720.\105\
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    \104\ See section V.B of this Release. We estimate the following
burdens and/or costs: (i) For printing the prospective disclosure
(including a disclosure and consent form and, if necessary, a
revised Form ADV brochure and account agreement), approximately
$1.50 on average per eligible account, of which we estimate there
are approximately 796,200, for a total of $1,194,300 (which, if
divided by the estimated 380 eligible advisers, equals a total cost
for printing of approximately $3,143 on average per adviser); (ii)
for distributing the prospective disclosure, approximately 0.1 hours
on average per eligible account, for a total of 79,620 hours (which,
if divided by the estimated 380 eligible advisers, equals a total
burden of 210 hours on average per adviser).
    \105\ We expect that the distribution function for the
prospective written disclosure and consent solicitation will most
likely be performed by a general clerk. Data from the Industry's
Salary Report, modified to account for an 1,800-hour work-year and
multiplied by 2.93 to account for bonuses, firm size, employee
benefits and overhead, suggest that cost for a General Clerk is
approximately $41 per hour. $41 per hour x 0.1 hours on average for
distribution per account = approximately $4.10 on average per
account for distribution. $1.50 on average printing cost per account
+ $4.10 on average distribution cost per account = $5.60 on average
per account. $5.60 on average per account x 796,200 accounts to
which we expect the disclosure to be distributed = a total printing
and distribution cost for the prospective disclosure and consent
solicitation of $4,458,720 (which, if divided by the estimated 380
eligible advisers, equals a total cost for distribution of
approximately $11,733 on average per eligible adviser).

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    For purposes of the Paperwork Reduction Act, we have estimated the
number of hours the average accountholder would spend on reviewing the
written disclosure document and, if it wishes, returning an executed
consent.\106\ We estimate that the costs corresponding to this hour
burden will be approximately $0.50 on average per eligible
accountholder. Assuming that there are 796,200 eligible accountholders
who will receive the written disclosure document and 716,580 that will
provide consent during the transitional solicitation, we estimate that
the total cost to clients will be $398,100.\107\
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    \106\ See section V.B of this Release. We estimate that the
burden per client account that will return an executed consent
(eligible accountholder), of which we estimate that there will be
approximately 716,580, will be 0.05 hours (3 minutes) on average,
for a total burden of 35,829 hours. We do not believe there will be
a significant difference in burden between those clients that
consent and those that do not.
    \107\ $0.50 on average for each accountholder who receives a
written prospective disclosure document x 796,200 eligible
accountholders = $398,100. We do not believe there will be a
significant difference in burden between those accountholders that
consent and those that do not.
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    For purposes of the Paperwork Reduction Act, we have estimated the
number of hours the average adviser would spend in ongoing maintenance
of prospective disclosure and consent solicitation efforts.\108\ Based
on those estimates, we estimate that the average cost of updating the
written prospective disclosure, maintaining records on prospective
consents provided, and processing consent revocations and consents
granted subsequent to the initial solicitation will be approximately
$5,600 on average per eligible adviser per year.\109\ We estimate that
the annual cost for all eligible advisers to keep consent information
up to date will be $2,128,000.\110\
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    \108\ See section V.B of this Release. We estimate that the
burden per eligible adviser of ongoing maintenance of the
prospective disclosure and consent solicitation efforts will be
approximately 100 hours on average per year, for a total of 38,000
hours.
    \109\ We expect that this function will most likely be performed
by compliance professionals at $56 per hour. See Industry's Salary
Report. 100 hours on average per adviser per year x $56 per hour =
$5,600 on average per adviser per year.
    \110\ $5,600 on average per adviser per year x 380 eligible
advisers = $2,128,000.
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    Based on the discussion above, we estimate the costs relating to
paragraph (a)(3) of rule 206(3)-3T to be on average approximately: (i)
$13,213 per adviser in one-time costs; \111\ (ii) $5,600 per adviser in
ongoing costs; and (iii) $0.50 per client account in costs. As such, we
estimate the total costs associated with the prospective written
disclosure and consent requirement of the rule to be $7,547,040.\112\
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    \111\ $1,480 on average per adviser in costs for preparation of
the prospective disclosure and consent solicitation + $11,733 on
average per adviser in costs for printing and distributing the
prospective disclosure and consent solicitation = total one-time
costs for preparation, printing and distribution of the prospective
disclosure and consent solicitation of $13,213 on average per
adviser.
    \112\ ($13,213 average one time cost per adviser x 380 eligible
advisers) + ($5,600 average ongoing costs per adviser x 380 eligible
advisers) + ($0.50 average costs per accountholder x 796,200
accountholders who will review the written disclosure) = $5,020,940
+ $2,128,000 + $398,100 = $7,547,040 total cost of compliance with
paragraph (a)(3) of rule 206(3)-3T.
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    Trade-by-Trade Disclosure and Consent: Pursuant to paragraph (a)(4)
of the rule, an investment adviser, prior to the execution of each
principal transaction, must inform the advisory client, orally or in
writing, of the capacity in which it may act with respect to such
transaction. Also pursuant to paragraph (a)(4) of the rule, an
investment adviser, prior to the execution of each principal
transaction, must obtain oral or written consent from the advisory
client to act as principal for its own account with respect to such
transaction. Further, investment advisers likely will want to document
for their own evidentiary purposes the receipt of trade-by-trade
consent by their representatives.
    As noted in our Paperwork Reduction Act analysis, section 206(3) of
the Advisers Act already requires written trade-by-trade disclosure in
connection with principal trades. We believe that complying with this
requirement of rule 206(3)-3T provides an alternative method of
compliance that is likely to be less costly than compliance with
section 206(3). To the extent that advisers are not currently engaging
in principal trades with non-discretionary advisory accountholders (and
thus are not preparing and providing written disclosure regarding
conflicts of interest associated with principal trading in particular
securities), advisers electing to rely on the rule will need to begin
to prepare such tailored disclosure and communicate it to clients.
    We estimate that the costs of preparing and communicating trade-by-
trade disclosures to clients and obtaining their consents could
include: (i) Preparing disclosure relating to the conflicts associated
with executing that transaction on a principal basis; and (ii)
communicating that disclosure to clients. For purposes of the Paperwork
Reduction Act, we have estimated the number of hours advisers would
spend on providing trade-by-trade disclosure and consent
solicitation.\113\ Based on those estimates, we estimate that the cost
of preparing each trade-by-trade disclosure will be approximately $0.47
on average.\114\ For purposes of the Paperwork Reduction Act analysis,
we have estimated that eligible clients engage in an average of
approximately 50 trades per year, all of which we have conservatively
assumed are principal trades. We further estimate that communicating
the disclosure to clients orally will be at most a minimal cost (note
that system programming costs are discussed separately under the
subsection entitled ``Related Costs'' below). As such, we estimate the
total annual cost for compliance with paragraph (a)(4) of rule 206(3)-
3T to be approximately $16,662,240.\115\
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    \113\ See section V.B of this Release. We estimate that based on
discussions with industry representatives that there will be
approximately 50 trades (which we conservatively assume will be
principal trades) on average made per year per eligible account. We
estimate a burden of 0.0083 hours (30 seconds) on average per trade
for communication of the requisite disclosure to an eligible
accountholder, of which we estimate there will be 716,580, for an
estimated total burden of approximately 297,381 hours per year. The
burden for the average adviser would thus be 297,381 total hours per
year / 380 eligible advisers = approximately 783 hours on average
per adviser per year.
    \114\ We expect that this function will most likely be performed
by compliance professionals at $56 per hour (see Industry's Salary
Report) and that the preparation and communication of trade-by-trade
disclosure will comprise an average burden of approximately 0.0083
hours (30 seconds) per trade. 0.0083 hours on average per trade x
$56 per hour = approximately $0.47 on average per trade.
    \115\ 783 hours on average per adviser per year x $56 per hour =
$43,848 on average per adviser per year. $43,848 on average per
eligible adviser per year x 380 eligible advisers = $16,662,240
total costs per year.
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    Trade-by-Trade Confirmations: Pursuant to paragraph (a)(5) of the
rule, an investment adviser must deliver to its client a written
confirmation at or before completion of each principal transaction that
includes, in addition to the information required by rule 10b-10 under
the Exchange Act [17 CFR 240.10b-10], a conspicuous, plain English
statement that the investment adviser: (i) Informed the advisory client
that it may be acting in a principal capacity in connection with the

transaction and the client authorized the transaction; and (ii) owned
the security sold to the advisory client (or bought the security from
the client for its own account). As noted above in the Paperwork
Reduction Act section of this Release, the majority of the information
that this provision requires to be delivered to clients is already
required to be assembled and communicated to clients pursuant to
requirements under the Exchange Act. We expect that the costs
associated with conforming trade confirmations to the requirements of
paragraph (a)(5) of rule 206(3)-3T will stem principally from
programming computer systems that generate confirmations to ensure that
all the required information is contained in the confirmations. Costs
associated with programming are described under the subsection entitled
``Related Costs'' below.
    Principal Transactions Report: Pursuant to paragraph (a)(6) of the
rule, the investment adviser must deliver to each client, no less
frequently than annually, written disclosure containing a list of all
transactions that were executed in the account in reliance upon the
rule, and the date and price of such transactions. This report will
require advisers to aggregate and distribute information that should
already be available to the adviser or its broker-dealer affiliate
executing the client's transactions.
    As noted in the Paperwork Reduction Act section of this Release, we
estimate that other than the actual aggregation and delivery of this
statement, the burden of this collection will not be substantial
because the information required to be contained in the statement is
already collected and maintained by investment advisers and/or broker-
dealers executing trades for their clients. Advisers and broker-dealers
already send periodic or annual statements to clients. Thus, to comply,
advisers will need to add information they already maintain to
documents they already prepare and send. We expect that there will be a
one-time cost associated with this requirement relating to programming
computer systems to generate the report, aggregating information that
is already available and maintained by advisers or their broker-dealer
affiliates. Costs associated with programming are described under the
subsection entitled ``Related Costs'' below.
    Related Costs: We expect that the bulk of the costs of compliance
with rule 206(3)-3T relate to: (i) The initial distribution of
prospective disclosure and collection of consents (described above);
(ii) systems programming costs to ensure that trade confirmations
contain all of the information required by paragraph (a)(4) of the
rule; and (iii) systems programming costs to aggregate already-
collected information to generate compliant principal transactions
reports. For purposes of the Paperwork Reduction Act, we have estimated
the cost an average adviser would incur on programming their computer
systems, regardless of the size of their non-discretionary advisory
account programs, to prepare compliant confirmations and principal
transaction reports and to be able to track both prospective and trade-
by-trade consents. For purposes of the Paperwork Reduction Act
analysis, we have estimated the number of hours the average adviser
would spend on programming computer systems to facilitate compliance
with the rule.\116\ Based on those estimates, we estimate the costs of
programming, generating and delivering compliant confirmations and
principal trade reports to be approximately $34,201 on average per
eligible adviser,\117\ for a total of $12,996,289.\118\
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    \116\ See section V.B of this Release. We estimate the following
burdens and costs: (i) For programming computer systems to generate
trade confirmations compliant with rule 206(3)-3T, approximately
$20,000 on average per eligible adviser, of which we estimate there
are approximately 380, for a total of $7,600,000; (ii) for the
internal burden associated with programming computer systems
relating to principal trade reports compliant with rule 206(3)-3T,
approximately five hours on average per eligible adviser, for a
total of 1,900 hours; (iii) for assistance of outside professionals
to assist in programming computer systems to generate principal
trade reports, approximately $10,000 on average per eligible
adviser, for a total of $3,800,000; and (iv) for generation and
delivery of annual principal trade reports each year, approximately
0.05 hours (three minutes) on average per eligible account, of which
we estimate there are approximately 716,580, for a total of 35,829
hours total per year.
    \117\ We expect that the internal programming function most
likely will be performed by computer programmers. Data from the
Industry's Salary Report, modified to account for an 1,800-hour
work-year and multiplied by 2.93 to account for bonuses, firm size,
employee benefits and overhead, suggest that cost for a Sr. Computer
Operator is approximately $67 per hour. Five hours on average per
adviser x $67 per hour = $335 on average per adviser (or, across all
380 eligible advisers, $127,300). We expect that the generation and
delivery of annual principal trade reports will most likely be
performed by general clerks at $41 per hour. $41 per hour x 35,829
total hours per year = $1,468,989 (or, if divided among all 380
eligible advisers, approximately $3,866 on average per adviser per
year). $20,000 on average per adviser for programming to generate
compliant trade confirmations + $335 on average per adviser for
internal programming costs in connection with developing an annual
principal trades report + $10,000 on average per adviser for outside
computing assistance in developing the annual principal trade report
+ $3,866 on average per adviser for generation and delivery of
annual principal trade reports per year = approximately $34,201 on
average per adviser in connection with compliance with the
confirmation and principal trade report requirements.
    \118\ $7,600,000 for programming to generate compliant trade
confirmations + $127,300 for internal programming costs in
connection with developing an annual principal trades report +
$3,800,000 for outside computing assistance in developing the annual
principal trade report + $1,468,989 for generation and delivery of
annual principal trade reports per year = $12,996,289 total costs in
connection with compliance with the confirmation and principal trade
report requirements.
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    For those advisers that are converting fee-based brokerage accounts
to non-discretionary advisory accounts, we are providing transition
relief, described in section IV of this Release, that is designed,
among other things, to avoid disruptions to clients and minimize costs
to advisers.
    Total Costs: The total overall costs, including estimated costs for
all eligible advisers and eligible accounts, relating to compliance
with rule 206(3)-3T are $37,205,569.\119\
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    \119\ $7,547,040 total costs in connection with compliance with
the prospective disclosure and consent requirements of the rule +
$16,662,240 total costs in connection with compliance with the
trade-by-trade disclosure and consent requirements of the rule +
$12,996,289 total costs in connection with compliance with the
confirmation and principal trade report requirements of the rule =
$37,205,569 total costs in connection with compliance with the rule.
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E. Request for Comment

    [cir] We solicit quantitative data to assist with our assessment of
the benefits and costs of rule 206(3)-3T.
    [cir] What, if any, additional costs are involved in complying with
the rule? What are the types of costs, and what are the amounts? Should
the rule be modified in any way to mitigate costs? If so, how?
    [cir] Does the rule's requirement that a report be provided to each
client, at

least annually, of the transactions undertaken with the client in
reliance on the rule result in a meaningful identification of an
adviser's trading patterns with its clients that will enable the client
to evaluate more effectively than it would simply with prospective
disclosure and trade-by-trade disclosure prior to the execution of a
principal transaction whether it should continue to consent, or revoke
its consent, to principal trading in reliance on the rule?
    [cir] What will the effect of the rule be on the availability of
account services and securities to clients who do not consent to
principal transactions?
    [cir] Have we accurately estimated the costs of compliance with the
rule?
    [cir] We assumed that firms already collect much of the information
that the rule would require for the principal trading reports. Are we
correct? We solicit comments on the extent to which firms already
aggregate the information that the rule will require to be disclosed in
the principal trading reports.

VII. Promotion of Efficiency, Competition and Capital Formation

    Section 202(c) of the Advisers Act mandates that the Commission,
when engaging in rulemaking that requires it to consider or determine
whether an action is necessary or appropriate in the public interest,
consider, in addition to the protection of investors, whether the
action will promote efficiency, competition, and capital
formation.\120\
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    \120\ 15 U.S.C. 80b-2(c).
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    Rule 206(3)-3T permits an investment adviser, with respect to a
non-discretionary advisory account, to comply with section 206(3) by:
(i) Making certain written disclosures; (ii) obtaining written,
revocable consent from the client prospectively authorizing the adviser
to enter into principal trades; (iii) making oral or written disclosure
and obtaining the client's consent orally or in writing prior to the
execution of each principal transaction; (iv) sending to the client
confirmation statements for each principal trade that disclose the
capacity in which the adviser has acted and indicating that the client
consented to the transaction; and (v) delivering to the client an
annual report itemizing the principal transactions.
    Rule 206(3)-3T may increase efficiency by providing an alternative
means of compliance with section 206(3) of the Advisers Act that we
believe will be less costly and less burdensome. As discussed above, by
permitting oral trade-by-trade disclosure, advisers may be more willing
to engage in principal trades with advisory clients. As a result,
advisers may provide access to certain securities the adviser or its
affiliate has in inventory. Clients might want access to securities an
adviser, or an affiliated broker-dealer, has in inventory, despite the
conflicts inherent in principal trading, if those securities are scarce
or hard to acquire. Firms have argued that purchasing such securities
from, or selling them to, an adviser could lead to faster or less
expensive execution, advantages a client may deem to outweigh the risks
presented by principal trading with an adviser.\121\
---------------------------------------------------------------------------

    \121\ See, e.g., SIFMA Letter.
---------------------------------------------------------------------------

    We expect that rule 206(3)-3T will promote competition because it
preserves investor choice for different types of advisory accounts. As
a practical matter, advisers did not frequently engage in principal
trades. By relying on the rule, advisers that are also registered
broker-dealers will be able to offer advisory clients access to their
(and their affiliates') inventory. Advisers that are not also
registered as broker-dealers may seek to market their services without
principal trades and their associated costs and benefits. We are not
able to predict with certainty the effect of the rule on them, but it
is possible that some advisers may elect to register as broker-dealers
in order to rely on rule 206(3)-3T.
    We believe that if rule 206(3)-3T has any effect on capital
formation it is likely to be positive, although indirect. We understand
that most investment advisers will not trade with non-discretionary
advisory client accounts on a principal basis so long as they must
provide trade-by-trade written disclosure. Providing an alternative to
the traditional requirements of trade-by-trade written disclosure might
serve to broaden the potential universe of purchasers of securities, in
particular investment grade debt securities for the reasons described
above, opening the door to greater investor participation in the
securities markets with a potential positive effect on capital
formation.
    The Commission requests comment on whether the proposed amendments
are likely to promote efficiency, competition, and capital formation.

VIII. Final Regulatory Flexibility Analysis

    This Final Regulatory Flexibility Analysis (``FRFA'') has been
prepared in accordance with 5 U.S.C. 604. It relates to rule 206(3)-3T,
which we are adopting in this Release.\122\
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    \122 \ Although the requirements of the Regulatory Flexibility
Act are not applicable to rules adopted under the Administrative
Procedure Act's ``good cause'' exception, see 5 U.S.C. 601(2)
(defining ``rule'' and notice requirements under the Administrative
Procedures Act), we nevertheless prepared a FRFA.
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A. Need for and Objectives of the Rule

    Sections I and II of this Release describe the reasons for and
objectives of rule 206(3)-3T. As we discuss in detail above, our
reasons include the need to facilitate the transition of customers in
fee-based brokerage accounts in the wake of the FPA decision and to
address the stated inability of the sponsors of those accounts to offer
clients some of the services the clients desire in the non-
discretionary advisory accounts to which they will be transitioned.

B. Small Entities Affected by the Rule

    Rule 206(3)-3T is an alternative method of complying with Advisers
Act section 206(3) and is available to all investment advisers that:
(i) Are registered as broker-dealers under the Exchange Act; and (ii)
effect trades with clients directly or indirectly through a broker-
dealer controlling, controlled by or under common control with the
investment adviser, including small entities. Under Advisers Act rule
0-7, for purposes of the Regulatory Flexibility Act an investment
adviser generally is a small entity if it: (i) Has assets under
management having a total value of less than $25 million; (ii) did not
have total assets of $5 million or more on the last day of its most
recent fiscal year; and (iii) does not control, is not controlled by,
and is not under common control with another investment adviser that
has assets under management of $25 million or more, or any person
(other than a natural person) that had $5 million or more on the last
day of its most recent fiscal year.\123\
---------------------------------------------------------------------------

    \123\ See 17 CFR 275.0-7.
---------------------------------------------------------------------------

    We have opted not to make the relief available to all investment
advisers, but have instead restricted it to investment advisers that
are dually registered as broker-dealers under the Exchange Act. We have
taken this approach because, as more fully discussed above, in the
context of principal trades which implicate potentially significant
conflicts of interest, and which are executed through broker-dealers,
we believe it is important that the protections of both the Advisers
Act and the Exchange Act, which includes well developed sales practice
rules, apply to advisers entering into principal transactions with
clients.
    The Commission estimates that as of August 1, 2007, 597 investment
advisers were small entities.\124\ The Commission

assumes for purposes of this FRFA that 29 of these small entities
(those that are both as investment advisers and broker-dealers) could
rely on rule 206(3)-3T, and that all of these small entities would rely
on the new rule.\125\ We welcome comment on the availability of the
rule to small entities. Do small investment advisers believe an
alternative means of compliance with section 206(3) of the Advisers Act
should be available to more of them? Do they believe that the dual
registration requirement of the rule is too onerous for small advisers
despite the discussion in subsection F below? If so, how do they
propose replicating the additional protections afforded to clients by
the broker-dealer regulations?
---------------------------------------------------------------------------

    \124\ IARD Data as of August 1, 2007.
    \125\ Id.
---------------------------------------------------------------------------

C. Projected Reporting, Recordkeeping, and Other Compliance
Requirements

    The provisions of rule 206(3)-3T would impose certain new reporting
or recordkeeping requirements, but are not expected to materially alter
the time required for investment advisers that also are registered as
broker-dealers to engage in transactions with their clients on a
principal basis. Rule 206(3)-3T is designed to provide an alternative
means of compliance with the requirements of section 206(3) of the
Advisers Act. Investment advisers taking advantage of the rule with
respect to non-discretionary advisory accounts would be required to
make certain disclosures to clients on a prospective, trade-by-trade
and annual basis. Specifically, rule 206(3)-3T permits an adviser, with
respect to a non-discretionary advisory account, to comply with section
206(3) of the Advisers Act by, among other things: (i) Making certain
written disclosures; (ii) obtaining written, revocable consent from the
client prospectively authorizing the adviser to enter into principal
trades; (iii) making oral or written disclosure and obtaining the
client's consent orally or in writing prior to the execution of each
principal transaction; (iv) sending to the client confirmation
statements for each principal trade that disclose the capacity in which
the adviser has acted and indicating that the client consented to the
transaction; and (v) delivering to the client an annual report
itemizing the principal transactions. Advisers are already required to
communicate the content of many of the disclosures pursuant to their
fiduciary obligations to clients. Other disclosures are already
required by rules applicable to broker-dealers.

D. Agency Action To Minimize Effect on Small Entities

    Small entities registered with the Commission as investment
advisers seeking to rely on the rule would be subject to the same
disclosure requirements as larger entities. In each case, however, an
investment adviser, whether large or small, would only be able to rely
on the rule if it also is registered with us as a broker-dealer. As
noted above, we estimate that 25 small entities are registered as both
advisers and broker-dealers and therefore those small entities are
eligible to rely on the rule. In developing the requirements of the
rule, we considered the extent to which they would have a significant
impact on a substantial number of small entities, and included
flexibility where possible, calling for disclosures that are already
generated by the relevant firms in one form or another wherever
possible in light of the objectives of the rule, to reduce the
corresponding burdens imposed.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission believes that there are no rules that duplicate or
conflict with rule 206(3)-3T, which presents an alternative means of
compliance with the procedural requirements of section 206(3) of the
Advisers Act that relate to principal transactions.
    The Commission notes, however, that rule 10b-10 under the Exchange
Act is a separate confirmation rule that requires broker-dealers to
provide certain information to their customers regarding the
transactions they effect. Furthermore, FINRA Rule 2230 requires broker-
dealers that are members of FINRA to deliver a written notification
containing certain information, including whether the member is acting
as a broker for the customer or is working as a dealer for its own
account. Brokers and dealers typically deliver this information in
confirmations that fulfill the requirements of rule 10b-10 under the
Exchange Act. Rule G-15 of the Municipal Securities Rulemaking Board
also contains a separate confirmation rule that governs member
transactions in municipal securities, including municipal fund
securities. In addition, investment advisers that are qualified
custodians for purposes of rule 206(4)-2 under the Advisers Act and
that maintain custody of their advisory clients' assets must send
quarterly account statements to their clients pursuant to rule 206(4)-
2(a)(3) under the Advisers Act.
    These rules overlap with certain elements of rule 206(3)-3T, but
the Commission has designed the temporary rule to work efficiently
together with existing rules by permitting firms to incorporate the
required disclosure into one confirmation statement.

F. Significant Alternatives

    The Regulatory Flexibility Act directs us to consider significant
alternatives that would accomplish our stated objective, while
minimizing any significant adverse impact on small entities.\126\
Alternatives in this category would include: (i) Establishing different
compliance or reporting standards or timetables that take into account
the resources available to small entities; (ii) clarifying,
consolidating, or simplifying compliance requirements under the rule
for small entities; (iii) using performance rather than design
standards; and (iv) exempting small entities from coverage of the rule,
or any part of the rule.
---------------------------------------------------------------------------

    \126\ See 5 U.S.C. 603(c).
---------------------------------------------------------------------------

    The Commission believes that special compliance or reporting
requirements or timetables for small entities, or an exemption from
coverage for small entities, may create the risk that the investors who
are advised by and effect securities transactions through such small
entities would not receive adequate disclosure. Moreover, different
disclosure requirements could create investor confusion if it creates
the impression that small investment advisers have different conflicts
of interest with their advisory clients in connection with principal
trading than larger investment advisers. We believe, therefore, that it
is important for the disclosure protections required by the rule to be
provided to advisory clients by all advisers, not just those that are
not considered small entities. Further consolidation or simplification
of the proposals for investment advisers that are small entities would
be inconsistent with the Commission's goals of fostering investor
protection.
    We have endeavored through rule 206(3)-3T to minimize the
regulatory burden on all investment advisers eligible to rely on the
rule, including small entities, while meeting our regulatory
objectives. It was our goal to ensure that eligible small entities may
benefit from the Commission's approach to the new rule to the same
degree as other eligible advisers. The condition that advisers seeking
to rely on the rule must also be registered as broker-dealers and that
each account with respect to which a dually-registered adviser seeks to
rely on the rule must be a brokerage account subject to the Exchange
Act, and the rules thereunder, and the rules

of the self-regulatory organization(s) of which it is a member, reflect
what we believe is an important element of our balancing between easing
regulatory burdens (by affording advisers an alternative means of
compliance with section 206(3) of the Act) and meeting our investor
protection objectives.\127\ Finally, we do not consider using
performance rather than design standards to be consistent with our
statutory mandate of investor protection in the present context.
---------------------------------------------------------------------------

    \127\ See Section II.B.7 of this Release.
---------------------------------------------------------------------------

G. General Request for Comments

    We solicit written comments regarding our analysis. We request
comment on whether the rule will have any effects that we have not
discussed. We request that commenters describe the nature of any impact
on small entities and provide empirical data to support the extent of
the impact.

IX. Statutory Authority

    The Commission is adopting Rule 206(3)-3T pursuant to sections 206A
and 211(a) of the Advisers Act.

Text of Rule

List of Subjects in 17 CFR Part 275

    Investment advisers, Reporting and recordkeeping requirements.

0
For the reasons set out in the preamble, Title 17, Chapter II of the
Code of Federal Regulations is amended as follows:

PART 275--RULES AND REGULATIONS, INVESTMENT ADVISERS ACT OF 1940

0
1. The general authority citation for Part 275 is revised to read as
follows:

    Authority: 15 U.S.C. 80b-2(a)(11)(G), 80b-2(a)(17), 80b-3, 80b-
4, 80b-4a, 80b-6(4), 80b-6a, and 80b-11, unless otherwise noted.
* * * * *

0
2. Section 275.206(3)-3T is added to read as follows:

Sec.  275.206(3)-3T  Temporary rule for principal trades with certain
advisory clients.

    (a) An investment adviser shall be deemed in compliance with the
provisions of section 206(3) of the Advisers Act (15 U.S.C. 80b-6(3))
when the adviser directly or indirectly, acting as principal for its
own account, sells to or purchases from an advisory client any security
if:
    (1) The investment adviser exercises no ``investment discretion''
(as such term is defined in section 3(a)(35) of the Securities Exchange
Act of 1934 (``Exchange Act'') (15 U.S.C. 78c(a)(35))), except
investment discretion granted by the advisory client on a temporary or
limited basis, with respect to the client's account;
    (2) Neither the investment adviser nor any person controlling,
controlled by, or under common control with the investment adviser is
the issuer of, or, at the time of the sale, an underwriter (as defined
in section 202(a)(20) of the Advisers Act (15 U.S.C. 80b-2(a)(20))) of,
the security; except that the investment adviser or a person
controlling, controlled by, or under common control with the investment
adviser may be an underwriter of an investment grade debt security (as
defined in paragraph (c) of this section);
    (3) The advisory client has executed a written, revocable consent
prospectively authorizing the investment adviser directly or indirectly
to act as principal for its own account in selling any security to or
purchasing any security from the advisory client, so long as such
written consent is obtained after written disclosure to the advisory
client explaining:
    (i) The circumstances under which the investment adviser directly
or indirectly may engage in principal transactions;
    (ii) The nature and significance of conflicts with its client's
interests as a result of the transactions; and
    (iii) How the investment adviser addresses those conflicts;
    (4) The investment adviser, prior to the execution of each
principal transaction:
    (i) Informs the advisory client, orally or in writing, of the
capacity in which it may act with respect to such transaction; and
    (ii) Obtains consent from the advisory client, orally or in
writing, to act as principal for its own account with respect to such
transaction;
    (5) The investment adviser sends a written confirmation at or
before completion of each such transaction that includes, in addition
to the information required by 17 CFR 240.10b-10, a conspicuous, plain
English statement informing the advisory client that the investment
adviser:
    (i) Disclosed to the client prior to the execution of the
transaction that the adviser may be acting in a principal capacity in
connection with the transaction and the client authorized the
transaction; and
    (ii) Sold the security to, or bought the security from, the client
for its own account;
    (6) The investment adviser sends to the client, no less frequently
than annually, written disclosure containing a list of all transactions
that were executed in the client's account in reliance upon this
section, and the date and price of such transactions;
    (7) The investment adviser is a broker-dealer registered under
section 15 of the Exchange Act (15 U.S.C. 78o) and each account for
which the investment adviser relies on this section is a brokerage
account subject to the Exchange Act, and the rules thereunder, and the
rules of the self-regulatory organization(s) of which it is a member;
and
    (8) Each written disclosure required by this section includes a
conspicuous, plain English statement that the client may revoke the
written consent referred to in paragraph (a)(3) of this section without
penalty at any time by written notice to the investment adviser.
    (b) This section shall not be construed as relieving in any way an
investment adviser from acting in the best interests of an advisory
client, including fulfilling the duty with respect to the best price
and execution for the particular transaction for the advisory client;
nor shall it relieve such person or persons from any obligation that
may be imposed by sections 206(1) or (2) of the Advisers Act or by
other applicable provisions of the federal securities laws.
    (c) For purposes of paragraph (a)(2) of this section, an investment
grade debt security means a non-convertible debt security that, at the
time of sale, is rated in one of the four highest rating categories of
at least two nationally recognized statistical rating organizations (as
defined in section 3(a)(62) of the Exchange Act (15 U.S.C.
78c(a)(62))).
    (d) This section will expire and no longer be effective on December
31, 2009.

    By the Commission.

    September 24, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. E7-19191 Filed 9-27-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 79, Number 80 (Friday, April 25, 2014)]
[Notices]
[Pages 23005-23008]
[FR Doc No: 2014-09450]

-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2014-0002; Internal Agency Docket No. FEMA-B-1404]

Proposed Flood Hazard Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Comments are requested on proposed flood hazard
determinations, which may include additions or modifications of any
Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area
(SFHA) boundary or zone designation, or regulatory floodway on the
Flood Insurance Rate Maps (FIRMs), and where applicable, in the
supporting Flood Insurance Study (FIS) reports for the communities
listed in the table below. The purpose of this notice is to seek
general information and comment regarding the preliminary FIRM, and
where applicable, the FIS report that the Federal Emergency Management
Agency (FEMA) has provided to the affected communities. The FIRM and
FIS report are the basis of the floodplain management measures that the
community is required either to adopt or to show evidence of having in
effect in order to qualify or remain qualified for participation in the
National Flood Insurance Program (NFIP). In addition, the FIRM and FIS
report, once effective, will be used by insurance agents and others to
calculate appropriate flood insurance premium rates for new buildings
and the contents of those buildings.

DATES: Comments are to be submitted on or before July 24, 2014.

ADDRESSES: The Preliminary FIRM, and where applicable, the FIS report
for each community are available for inspection at both the online
location and the respective Community Map Repository address listed in
the tables below. Additionally, the current effective FIRM and FIS
report for each community are accessible online through the FEMA Map
Service Center at www.msc.fema.gov for comparison.
    You may submit comments, identified by Docket No. FEMA-B-1404, to
Luis Rodriguez, Chief, Engineering Management Branch, Federal Insurance
and Mitigation Administration, FEMA, 500 C Street SW., Washington, DC
20472,<PHONE_NUMBER>, or (email<EMAIL_ADDRESS>
FOR FURTHER INFORMATION CONTACT: Luis Rodriguez, Chief, Engineering
Management Branch, Federal Insurance and Mitigation Administration,
FEMA, 500 C Street SW., Washington, DC 20472,<PHONE_NUMBER>, or
(email<EMAIL_ADDRESS>or visit the FEMA Map Information
eXchange (FMIX) online at www.floodmaps.fema.gov/fhm/fmx_main.html.

SUPPLEMENTARY INFORMATION: FEMA proposes to make flood hazard
determinations for each community listed below, in accordance with
section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C.
4104, and 44 CFR 67.4(a).
    These proposed flood hazard determinations, together with the
floodplain management criteria required by 44 CFR 60.3, are the minimum
that are required. They should not be construed to mean that the
community must change any existing ordinances that are more stringent
in their floodplain management requirements. The community may at any
time enact stricter requirements of its own or pursuant to policies
established by other Federal, State, or regional entities. These flood
hazard determinations are used to meet the floodplain management
requirements of the NFIP and also are used to calculate the appropriate
flood insurance premium rates for new buildings built after the FIRM
and FIS report become effective.
    The communities affected by the flood hazard determinations are
provided in the tables below. Any request for reconsideration of the
revised flood hazard information shown on the Preliminary FIRM and FIS
report that satisfies the data requirements outlined in 44 CFR 67.6(b)
is considered an appeal. Comments unrelated to the flood hazard
determinations also will be considered before the FIRM and FIS report
become effective.
    Use of a Scientific Resolution Panel (SRP) is available to
communities in support of the appeal resolution process. SRPs are
independent panels of experts in hydrology, hydraulics, and other
pertinent sciences established to review conflicting scientific and
technical data and provide recommendations for resolution. Use of the
SRP only may be exercised after

FEMA and local communities have been engaged in a collaborative
consultation process for at least 60 days without a mutually acceptable
resolution of an appeal. Additional information regarding the SRP
process can be found online at http://floodsrp.org/pdfs/srp_fact_sheet.pdf.
    The watersheds and/or communities affected are listed in the tables
below. The Preliminary FIRM, and where applicable, FIS report for each
community are available for inspection at both the online location and
the respective Community Map Repository address listed in the tables.
Additionally, the current effective FIRM and FIS report for each
community are accessible online through the FEMA Map Service Center at
www.msc.fema.gov for comparison.
    I. Non-watershed-based studies:

------------------------------------------------------------------------
                                             Community Map Repository
               Community                             Address
------------------------------------------------------------------------
            Santa Barbara, California, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
City of Santa Barbara..................  City Administrator, 630 Garden
                                          Street, Santa Barbara, CA
                                          93101.
Unincorporated Areas of Santa Barbara    Santa Barbara County Public
 County.                                  Works Department, Water
                                          Resources Division, 123 East
                                          Anapamu Street, Santa Barbara,
                                          CA 93101.
------------------------------------------------------------------------
              Lake County, Illinois, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
Unincorporated Areas of Lake County....  Central Permit Facility, 500
                                          West Winchester Road, Unit 1,
                                          Libertyville, IL 60048.
Village of Grayslake...................  Village Hall, 10 South Seymour
                                          Avenue, Grayslake, IL 60030.
Village of Hainesville.................  Village Hall, 100 North
                                          Hainesville Road, Hainesville,
                                          IL 60030.
Village of Hawthorn Woods..............  Village Hall, 2 Lagoon Drive,
                                          Hawthorn Woods, IL 60047.
Village of Mundelein...................  Village Hall, 440 East Hawley
                                          Street, Mundelein, IL 60060.
Village of Round Lake..................  Village Hall, 442 North Cedar
                                          Lake Road, Round Lake, IL
                                          60073.
Village of Round Lake Park.............  Village Hall, 203 East Lake
                                          Shore Drive, Round Lake Park,
                                          IL 60073.
Village of Volo........................  Village Hall, 500 South Fish
                                          Lake Road, Volo, IL 60073.
Village of Wauconda....................  Village Hall, 101 North Main
                                          Street, Wauconda, IL 60084.
------------------------------------------------------------------------
              Lake County, Indiana, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
Town of Griffith.......................  Town Hall, 111 North Broad
                                          Street, Griffith, IN 46319.
Town of Highland.......................  Town Hall, 3333 Ridge Road,
                                          Highland, IN 46322.
Town of Munster........................  Town Hall, 1005 Ridge Road,
                                          Munster, IN 46321.
Town of Schererville...................  Town Hall, 10 East Joliet
                                          Street, Schererville, IN
                                          46375.
Unincorporated Areas of Lake County....  County Building, 2293 North
                                          Main Street, Crown Point, IN
                                          46307.
------------------------------------------------------------------------
              Buchanan County, Iowa, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
City of Independence...................  City Hall, 331 1st Street East,
                                          Independence, IA 50644.
Unincorporated Areas of Buchanan County  Buchanan County Zoning Office,
                                          210 5th Avenue Northeast,
                                          Suite I, Independence, IA
                                          50644.
------------------------------------------------------------------------
            Washington County, Kansas, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
City of Barnes.........................  City Hall, 202 Railroad Avenue,
                                          Barnes, KS 66933.
City of Clifton........................  City Hall, 104 East Parallel
                                          Street, Clifton, KS 66937.
City of Greenleaf......................  City Hall, 507 5th Street,
                                          Grenleaf, KS 66943.
City of Haddam.........................  City Office, 412 Main Street,
                                          Haddam, KS 66944.
City of Hanover........................  City Hall, 200 North Railroad
                                          Street, Hanover, KS 66945.
City of Hollenberg.....................  City Hall, 427 Fuller Street,
                                          Hollenberg, KS 66946.
City of Linn...........................  City Hall, 104 5th Street,
                                          Linn, KS 66953.
City of Mahaska........................  City Hall, 109 North Main
                                          Street, Mahaska, KS 66955.
City of Morrowville....................  City Hall, 111 South Main
                                          Street, Morrowville, KS 66958.
City of Palmer.........................  City Hall, 217 North Illinois
                                          Street, Palmer, KS 66962.
City of Vining.........................  City Hall, 109 South Scribner
                                          Street, Vining, KS 66937.
City of Washington.....................  City Hall, 301 C Street,
                                          Washington, KS 66968.
Unincorporated Areas of Washington       Emergency Management Office,
 County.                                  214 C Street, Washington, KS
                                          66968.
------------------------------------------------------------------------
           Middlesex County, Massachusetts (All Jurisdictions)
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
Town of Bedford........................  Town Hall, 10 Mudge Way,
                                          Bedford, MA 01730.
Town of Billerica......................  Town Hall, 365 Boston Road,
                                          Billerica, MA 01821.

Town of Burlington.....................  Town Hall, 29 Center Street,
                                          Burlington, MA 01803.
Town of Lexington......................  Town Offices, 1625
                                          Massachusetts Avenue,
                                          Lexington, MA 02420.
Town of Tewksbury......................  Town Hall, 1009 Main Street,
                                          Tewksbury, MA 01876.
Town of Wilmington.....................  Town Hall, 121 Glen Road,
                                          Wilmington, MA 01887.
------------------------------------------------------------------------
           Sweet Grass County, Montana, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
City of Big Timber.....................  Sweet Grass County Annex, Sweet
                                          Grass County Planning Office,
                                          515 Hooper Street, Big Timber,
                                          MT 59011.
Unincorporated Areas of Sweet Grass      Sweet Grass County Annex, Sweet
 County.                                  Grass County Planning Office,
                                          515 Hooper Street, Big Timber,
                                          MT 59011.
------------------------------------------------------------------------
               Greene County, New York (All Jurisdictions)
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
Town of Hunter.........................  Hunter Town Hall, 5748 State
                                          Route 23A, Tannersville, NY
                                          12485.
Town of Jewett.........................  Municipal Building, 3547 County
                                          Route 23C, Jewett, NY 12444.
Town of Lexington......................  Municipal Building, 3542 State
                                          Route 42, Lexington, NY 12542.
Village of Hunter......................  Village Hall, 7955 Main Street,
                                          Hunter, NY 12442.
Village of Tannersville................  Village Hall, 1 Park Lane,
                                          Tannersville, NY 12485.
------------------------------------------------------------------------
              Sullivan County, New York (All Jurisdictions)
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
Town of Neversink......................  Neversick Town Hall, 273 Main
                                          Street, Grahamsville, NY
                                          12740.
------------------------------------------------------------------------
               Ulster County, New York (All Jurisdictions)
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
Town of Denning........................  Denning Town Clerk's Office,
                                          1567 Denning Road, Claryville,
                                          NY 12725.
Town of Hardenburgh....................  Hardenburgh Town Hall, 51 Rider
                                          Hollow Road, Arkville, NY
                                          12406.
Town of Hurley.........................  Town Hall, 10 Wamsley Place,
                                          Hurley, NY 12443.
Town of Marbletown.....................  Marbletown Town Hall, 3775 Main
                                          Street, Stone Ridge, NY 12484.
Town of Olive..........................  Olive Town Hall, 45 Watson
                                          Hollow Road, West Shokan, NY
                                          12494.
Town of Shandaken......................  Town Hall, 7209 Route 28,
                                          Shandaken, NY 12480.
Town of Wawarsing......................  Wawarsing Town Assessor's
                                          Office and Building
                                          Department, 108 Canal Street,
                                          Ellenville, NY 12428.
Town of Woodstock......................  Town Clerk's Office, 45 Comeau
                                          Drive, Woodstock, NY 12498.
------------------------------------------------------------------------
           Pittsburg County, Oklahoma, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
Town of Kiowa..........................  City Hall, 813 South Harrison
                                          Street, Kiowa, OK 74553.
Unincorporated Areas of Pittsburg        Pittsburg County Courthouse,
 County.                                  115 East Carl Albert Parkway,
                                          McAlester, OK 74501.
------------------------------------------------------------------------
           Davidson County, Tennessee, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
City of Belle Meade....................  City Hall, 4705 Harding Road,
                                          Nashville, TN 37205.
City of Berry Hill.....................
City of Forest Hills...................  City Hall, 6300 Hillsboro Road,
                                          Nashville, TN 37215.
City of Goodlettsville.................  City Hall, 105 South Main
                                          Street, Goodlettsville, TN
                                          37072.
City of Nashville & Davidson County....  Metro Nashville Public Works
                                          Department, 720 South Fifth
                                          Street, Nashville, TN 37206.
City of Oak Hill.......................  City Hall, 5548 Franklin Pike,
                                          Suite 101, Nashville, TN
                                          37220.
------------------------------------------------------------------------
             City of Portsmouth, Virginia (Independent City)
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
City of Portsmouth.....................  Department of Planning, City
                                          Hall Building, 801 Crawford
                                          Street, 4th Floor, Portsmouth,
                                          VA 23704.
------------------------------------------------------------------------
           Pacific County, Washington, and Incorporated Areas
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------

City of Ilwaco.........................  City Hall, 120 1st Avenue
                                          North, Ilwaco, WA 98624.
City of Long Beach.....................  City Hall, 115 Bolstad Avenue
                                          West, Long Beach, WA 98631.
City of Raymond........................  City Hall, 230 2nd Street,
                                          Raymond, WA 98577.
City of South Bend.....................  City Hall, 1102 West 1st
                                          Street, South Bend, WA 98586.
Shoalwater Bay Indian Tribe............  Tribal Center, 2373 Old
                                          Tokeland Road, Tokeland, WA
                                          98590.
Unincorporated Areas of Pacific County.  Emergency Management Office,
                                          300 Memorial Drive, South
                                          Bend, WA 98586.
------------------------------------------------------------------------

    II. Watershed-based studies:

------------------------------------------------------------------------
                                             Community Map Repository
               Community                             Address
------------------------------------------------------------------------
                          Upper Grand Watershed
------------------------------------------------------------------------
Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata preliminaryfloodhazarddata
------------------------------------------------------------------------
            Caldwell County, Missouri, and Incorporated Areas
------------------------------------------------------------------------
City of Braymer........................  City Hall, 108 East 2nd Street,
                                          Braymer, MO 64624.
City of Kingston.......................  City Hall, 30 West Main Street,
                                          Kingston, MO 64650.
Unincorporated Areas of Caldwell County  County Courthouse, 49 East Main
                                          Street, Kingston, MO 64650.
------------------------------------------------------------------------
            Daviess County, Missouri, and Incorporated Areas
------------------------------------------------------------------------
City of Gallatin.......................  City Hall, 112 East Grand
                                          Street, Gallatin, MO 64650.
Town of Lock Springs...................  Lock Springs Town Hall, 200
                                          Lake Street, Jameson, MO
                                          64648.
Unincorporated Areas of Daviess County.  County Courthouse, 102 North
                                          Main Street, Gallatin, MO
                                          64640.
Village of Jameson.....................  Village Hall, 201 Main Street,
                                          Jameson, MO 64647.
------------------------------------------------------------------------
             Gentry County, Missouri, and Incorporated Areas
------------------------------------------------------------------------
City of Albany.........................  City Hall, 106 East Clay
                                          Street, Albany, MO 64402.
City of Stanberry......................  City Hall, 130 West 1st Street,
                                          Stanberry, MO 64489.
Unincorporated Areas of Gentry County..  County Courthouse, 200 West
                                          Clay Street, Albany, MO 64402.
Village of Darlington..................  Village Hall, 209 Mill Street,
                                          Darlington, MO 64438.
Village of Gentry......................  Gentry County Courthouse, 200
                                          West Clay Street, Albany, MO
                                          64402.
------------------------------------------------------------------------

(Catalog of Federal Domestic Assistance No. 97.022, ``Flood
Insurance.'')

    Dated: April 14, 2014.
Roy E. Wright,
Deputy Associate Administrator for Mitigation, Department of Homeland
Security, Federal Emergency Management Agency.
[FR Doc. 2014-09450 Filed 4-24-14; 8:45 am]
BILLING CODE 9110-12-P