[Federal Register Volume 75, Number 37 (Thursday, February 25, 2010)]
[Notices]
[Pages 8759-8760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3769]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Rule 17a-5; SEC File No. 270-155; OMB Control No. 3235-0123]
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: U.S. Securities and
Exchange Commission, Office of Investor Education and Advocacy,
Washington, DC 20549-0213.
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 (``Commission'') has submitted to the Office of Management
and Budget a request for extension of the previously approved
collection of information discussed below. 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.
Rule 17a-5 (17 CFR 240.17a-5) is the basic financial reporting rule
for brokers and dealers.\1\ The Rule requires the filing of Form X-17A-
5 (17 CFR 249.617), the Financial and Operational Combined Uniform
Single Report (``FOCUS Report''), which was the result of years of
study and comments by representatives of the securities industry
through advisory committees and through the normal rule proposal
methods. The FOCUS Report was designed to eliminate the overlapping
regulatory reports required by various self-regulatory organizations
and the Commission and to reduce reporting burdens as much as possible.
The Rule also requires the filing of an annual audited report of
financial statements.
---------------------------------------------------------------------------
\1\ Rule 17a-5(c) requires a broker or dealer to furnish certain
of its financial information to customers and is subject to a
separate PRA filing (OMB Control Number 3235-0199).
---------------------------------------------------------------------------
The FOCUS Report consists of: (1) Part I, which is a monthly report
that must be filed by brokers or dealers that clear transactions or
carry customer securities; (2) one of three alternative quarterly
reports: Part II, which must be filed by brokers or dealers that clear
transactions or carry customer securities; Part IIA, which must be
filed by brokers or dealers that do not clear transactions or carry
customer securities; and Part IIB, which must be filed by specialized
broker-dealers registered with the Commission as OTC derivatives
dealers; \2\ (3) supplemental
[[Page 8760]]
schedules, which must be filed annually; and (4) a facing page, which
must be filed with the annual audited report of financial statements.
Under the Rule, a broker or dealer that computes certain of its capital
charges in accordance with Appendix E to Exchange Act Rule 15c3-1 (17
CFR 240.15c3-1) must file additional monthly, quarterly, and annual
reports with the Commission.
---------------------------------------------------------------------------
\2\ Part IIB of Form X-17A-5 must be filed by OTC derivatives
dealers under Exchange Act Rule 17a-12 and is subject to a separate
PRA filing (OMB Control Number 3235-0498).
---------------------------------------------------------------------------
The variation in the size and complexity of brokers and dealers
subject to Rule 17a-5 and the differences in the FOCUS Report forms
that must be filed under the Rule make it difficult to calculate the
cost of compliance. However, we estimate that, on average, each report
will require approximately 12 hours. At year-end 2008, the Commission
estimates that there were approximately 5,190 brokers or dealers, and
that of those firms there were approximately 530 brokers or dealers
that clear transactions or carry customer securities. In addition,
approximately 220 firms filed annual reports. The Commission therefore
estimates that approximately 530 firms filed monthly reports,
approximately 4,400 firms filed quarterly reports, and approximately
220 firms filed annual reports. In addition, approximately 5,190 firms
filed annual audited reports. As a result, there were approximately
29,530 total annual responses ((530 x 12) + (4,400 x 4) + 220 + 5,190 =
29,370). This results in an estimated annual burden of 354,360 hours
(29,530 annual responses x 12 hours = 354,360).
In addition, we estimate that approximately 11 brokers or dealers
will elect to use Appendix E to Rule 15c3-1 to compute certain of their
capital charges (as of October 2009, seven brokers or dealers have
elected to use Appendix E). We estimate that the average amount of time
necessary to prepare and file the additional monthly reports that must
be filed by these firms is about 4 hours per month, or approximately 48
hours per year; the average amount of time necessary to prepare and
file the additional quarterly reports is about 8 hours per quarter, or
approximately 32 hours per year; and the average amount of time
necessary to prepare and file the additional supplemental reports with
the annual audit required is approximately 40 hours per year.
Consequently, we estimate that the total additional annual burden for
these 11 brokers or dealers is approximately 1,320 hours ((48 + 32 +
40) x 11 = 1,320).
The Commission therefore estimates that the total annual burden
under Rule 17a-5 is approximately 353,800 hours (352,440 + 1,320 =
353,760, rounded to 353,800).
Comments should be directed to: (i) Desk Officer for the Securities
and Exchange Commission Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503 or by sending an e-mail to: (i)
[email protected]; and (ii) Charles Boucher, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send
an e-mail to [email protected]. Comments must be submitted to OMB
within 30 days of this notice.
Dated: February 17, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-3769 Filed 2-24-10; 8:45 am]
BILLING CODE 8011-01-P