[Federal Register Volume 76, Number 8 (Wednesday, January 12, 2011)]
[Notices]
[Pages 2152-2153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-476]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 17a-4; SEC File No. 270-198; OMB Control No. 3235-0279.
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 collection of
information provided for in Rule 17a-4 (17 CFR 240.17a-4), under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission
plans to submit this existing collection of information to the Office
of Management and Budget for extension and approval.
Rule 17a-4 requires exchange members, brokers and dealers
(``broker-dealers'') to preserve for prescribed periods of time certain
records required to be made by Rule 17a-3. In addition, Rule 17a-4
requires the preservation of records required to be made by other
Commission rules and other kinds of records which firms make or receive
in the ordinary course of business. These include, but are not limited
to, bank statements, cancelled checks, bills receivable and payable,
originals of communications, and descriptions of various transactions.
Rule 17a-4 also permits broker-dealers to employ, under certain
conditions, electronic storage media to maintain records required to be
maintained under Rules 17a-3 and 17a-4.
[[Page 2153]]
There are approximately 5,057 active, registered broker-dealers.
The staff estimates that the average amount of time necessary to
preserve the books and records as required by Rule 17a-4 is 254 hours
per broker-dealer per year. Thus the staff estimates that the total
compliance burden for 5,057 respondents is 1,284,478 hours.
The staff believes that compliance personnel would be charged with
ensuring compliance with Commission regulation, including Rule 17a-4.
The staff estimates that the hourly salary of a Compliance Clerk is $67
per hour.\1\ Based upon these numbers, the total cost of compliance for
5,057 respondents is the dollar cost of approximately $86.1 million
(1,284,478 yearly hours x $67). The total burden hour decrease of
468,122 is due to a decrease in the number of respondents from 6,900 to
5,057.
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\1\ This figure is based on SIFMA's Office Salaries in the
Securities Industry 2010, modified by Commission staff to account
for an 1800-hour work-year multiplied by 2.93 to account for
bonuses, firm size, employee benefits, and overhead.
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Based on conversations with members of the securities industry and
based on the Commission's experience in the area, the staff estimates
that the average broker-dealer spends approximately $5,000 each year to
store documents required to be retained under Rule 17a-4. Costs include
the cost of physical space, computer hardware and software, etc., which
vary widely depending on the size of the broker-dealer and the type of
storage media employed. The Commission estimates that the annual
reporting and record-keeping cost burden is $25,285,000. This cost is
calculated by the number of active, registered broker-dealers
multiplied by the reporting and record-keeping cost for each respondent
(5,057 active, registered broker-dealers x $5,000).
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
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: January 6, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-476 Filed 1-11-11; 8:45 am]
BILLING CODE 8011-01-P