[Federal Register Volume 76, Number 81 (Wednesday, April 27, 2011)]
[Notices]
[Page 23632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10107]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: U.S. Securities and
Exchange Commission, Office of Investor Education and Advocacy,
Washington, DC 20549-0213.
Extension:
Rule 15c2-5, SEC File No. 270-195, OMB Control No. 3235-0198.
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'') is soliciting comments on the existing
collection of information provided for in Rule 15c2-5 (17 CFR 240.15c2-
5) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.)
(``Exchange Act''). The Commission plans to submit this existing
collection of information to the Office of Management and Budget
(``OMB'') for extension and approval.
Rule 15c2-5 prohibits a broker-dealer from arranging or extending
certain loans to persons in connection with the offer or sale of
securities unless, before any element of the transaction is entered
into, the broker-dealer: (1) Delivers to the person a written statement
containing the exact nature and extent of the person's obligations
under the loan arrangement; the risks and disadvantages of the loan
arrangement; and all commissions, discounts, and other remuneration
received and to be received in connection with the transaction by the
broker-dealer or certain related persons (unless the person receives
certain materials from the lender or broker-dealer which contain the
required information); and (2) obtains from the person information on
the person's financial situation and needs, reasonably determines that
the transaction is suitable for the person, and retains on file and
makes available to the person on request a written statement setting
forth the broker-dealer's basis for determining that the transaction
was suitable. The collection of information required by Rule 15c2-5 is
necessary to execute the Commission's mandate under the Exchange Act to
prevent fraudulent, manipulative, and deceptive acts and practices by
broker-dealers.
The Commission estimates that there are approximately 50
respondents that require an aggregate total of 600 hours to comply with
Rule 15c2-5. Each of these approximately 50 registered broker-dealers
makes an estimated six annual responses, for an aggregate total of 300
responses per year. Each response takes approximately two hours to
complete. Thus, the total compliance burden per year is 600 burden
hours. The approximate cost per hour is $50.00 for clerical labor,
resulting in a total compliance cost of $30,000 (600 hours @ $50.00 per
hour). These reflect internal labor costs; there are no external labor,
capital, or start-up costs.
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 will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information 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 60
days of this publication.
The Commission may not conduct or sponsor a collection of
information unless it displays a currently valid control number. No
person shall be subject to any penalty for failing to comply with a
collection of information subject to the Paperwork Reduction Act that
does not display a valid OMB control number.
Please direct your written comments to: Thomas Bayer, Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312 or
send an e-mail to: [email protected].
Dated: April 20, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-10107 Filed 4-26-11; 8:45 am]
BILLING CODE 8011-01-P