Submission for OMB Review; Comment Request, 15008-15009 [2011-6316]
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15008
Federal Register / Vol. 76, No. 53 / Friday, March 18, 2011 / Notices
Commission. Paragraph (d)(3) of the rule
provides an exemption from this
requirement for any loan or advance of
credit to, or acquisition of securities or
other property of, a small business
concern, or any agreement to do any of
the foregoing (‘‘investments’’) made by a
small business investment company
(‘‘SBIC’’) and an affiliated bank,
provided that reports about the
investments are made on forms the
Commission may prescribe. Rule 17d–2
(17 CFR 270.17d–2) designates Form N–
17D–1 (17 CFR 274.00) (‘‘form’’) as the
form for reports required by rule 17d–
1.
SBICs and their affiliated banks use
form N–17D–1 to report any
contemporaneous investments in a
small business concern. The form
provides shareholders and persons
seeking to make an informed decision
about investing in an SBIC an
opportunity to learn about transactions
of the SBIC that have the potential for
self dealing and other forms of
overreaching by affiliated persons at the
expense of shareholders.
Form N–17D–1 requires SBICs and
their affiliated banks to report
identifying information about the small
business concern and the affiliated
bank. The report must include, among
other things, the SBIC’s and affiliated
bank’s outstanding investments in the
small business concern, the use of the
proceeds of the investments made
during the reporting period, any
changes in the nature and amount of the
affiliated bank’s investment, the name of
any affiliated person of the SBIC or the
affiliated bank (or any affiliated person
of the affiliated person of the SBIC or
the affiliated bank) who has any interest
in the transactions, the basis of the
affiliation, the nature of the interest, and
the consideration the affiliated person
has received or will receive.
Up to three SBICs may file the form
in any year.1 The Commission estimates
the burden of filling out the form is
approximately one hour per response
and would likely be completed by an
accountant or other professional. Based
on past filings, the Commission
estimates that no more than one SBIC is
likely to use the form each year. Most
of the information requested on the form
should be readily available to the SBIC
or the affiliated bank in records kept in
the ordinary course of business, or with
respect to the SBIC, pursuant to the
recordkeeping requirements under the
Act. Commission staff estimates that it
should take approximately one hour for
an accountant or other professional to
1 As of February 4, 2011, three SBICs were
registered with the Commission.
VerDate Mar<15>2010
18:30 Mar 17, 2011
Jkt 223001
complete the form.2 The estimated total
annual burden of filling out the form is
1 hour, at an estimated total annual cost
of $198.3 The Commission will not keep
responses on Form N–17D–1
confidential.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act, and is not
derived from a comprehensive or even
a representative survey or study of the
costs of Commission rules. 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 OMB control
number.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the Commission,
including whether the information has
practical utility; (b) the accuracy of the
Commission’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.
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,
VA 22312; or send an e-mail to:
PRA_Mailbox@sec.gov.
Dated: March 15, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–6362 Filed 3–17–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
2 This estimate of hours is based on past
conversations with representatives of SBICs and
accountants that have filed the form.
3 Commission staff estimates that the annual
burden would be incurred by a senior accountant
with an average hourly wage rate of $198 per hour.
See Securities Industry and Financial Markets
Association, Report on Management and
Professional Earnings in the Securities Industry
2010, modified to account for an 1,800-hour work
year and multiplied by 5.35 to account for bonuses,
firm size, employee benefits and overhead.
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Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 15c3–3; SEC File No. 270–087;
OMB Control No. 3235–0078.
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 approval of extension of the
previously approved collection of
information provided for in Rule 15c3–
3 (17 CFR 240.15c3–3), under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 15c3–3 requires that a brokerdealer that hold customer securities
obtain and maintain possession and
control of fully-paid and excess margin
securities they hold for customers. In
addition, the Rule requires that a brokerdealer that holds customer funds make
either a weekly or monthly computation
to determine whether certain customer
funds need to be segregated in a special
reserve bank account for the exclusive
benefit of the firm’s customers. It also
requires that a broker-dealer maintain a
written notification from each bank
where a Special Reserve Bank Account
is held acknowledging that all assets in
the account are for the exclusive benefit
of the broker-dealer’s customers, and to
provide written notification to the
Commission (and its designated
examining authority) under certain,
specified circumstances. Finally,
paragraph (o) of Rule 15c3–3, which
only applies to broker-dealers that sell
securities futures products (‘‘SFP’’) to
customers, requires that such brokerdealers provide certain notifications to
customers, and to make a record of any
changes of account type.
There are approximately 279 brokerdealers fully subject to the Rule (i.e.,
broker-dealers that cannot claim any of
the exemptions enumerated at
paragraph (k)), of which approximately
13 make daily, 210 make weekly, and 56
make monthly, reserve computations.
On average, each of these respondents
require approximately 2.5 hours to
complete a computation. Accordingly,
Commission staff estimates that the
resulting burden totals 36,780 hours
annually ((2.5 hours × 240 computations
× 13 respondents that calculate daily) +
(2.5 hours × 52 computations × 210
respondents that calculate weekly) +
(2.5 hours × 12 computations × 56
respondents that calculate monthly)).
A broker-dealer required to maintain
the Special Reserve Bank Account
prescribed by Rule 15c3–3 must obtain
E:\FR\FM\18MRN1.SGM
18MRN1
Emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 53 / Friday, March 18, 2011 / Notices
and retain a written notification from
each bank in which it has a Special
Reserve Bank Account to evidence
bank’s acknowledgement that assets
deposited in the Account are being held
by the bank for the exclusive benefit of
the broker-dealer’s customers. As stated
previously, 279 broker-dealers are
presently fully-subject to Rule 15c3–3.
In addition, 120 broker-dealers operate
in accordance with the exemption
provided in paragraph (k)(2)(i) which
also requires that a broker-dealer
maintain a Special Reserve Bank
Account. The staff estimates that of the
total broker-dealers that must comply
with this rule, only 25%, or 100 ((279
+ 120) × .25) must obtain 1 new letter
each year (either because the brokerdealer changed the type of business it
does and became subject to either
paragraph (e)(3) or (k)(2)(i) or simply
because the broker-dealer established a
new Special Reserve Bank Account).
The staff estimates that it would take a
broker-dealer approximately 1 hour to
obtain this written notification from a
bank regarding a Special Reserve Bank
Account because the language in these
letters is largely standardized.
Therefore, Commission staff estimates
that broker-dealers will spend
approximately 100 hours each year to
obtain these written notifications.
In addition, a broker-dealer must
immediately notify the Commission and
its designated examining authority if it
fails to make a required deposit to its
Special Reserve Bank Account.
Commission staff estimates that brokerdealers file approximately 33 such
notices per year. Broker-dealers would
require approximately 30 minutes, on
average, to file such a notice. Therefore,
Commission staff estimates that brokerdealers would spend a total of
approximately 17 hours each year to
comply with the notice requirement of
Rule 15c3–3.
Finally, a broker-dealer that effects
transactions in SFPs for customers also
will have paperwork burdens associated
with the requirement in paragraph (o) of
Rule 15c3–3 to make a record of each
change in account type.1 More
specifically, a broker-dealer that
changes the type of account in which a
customer’s SFPs are held must create a
record of each change in account type
that includes the name of the customer,
the account number, the date the brokerdealer received the customer’s request
to change the account type, and the date
the change in account type took place.
As of December 31, 2009, broker-dealers
that were also registered as futures
commission merchants reported that
1 17
CFR 240.15c3–3(o)(3)(i).
VerDate Mar<15>2010
18:30 Mar 17, 2011
Jkt 223001
they maintained 35,242,468 customer
accounts. The staff estimates that 8% of
these customers may engage in SFP
transactions (35,242,468 accounts × 8%
= 2,819,397). Further, the staff estimates
that 20% per year may change account
type. Thus, broker-dealers may be
required to create this record for up to
563,879 accounts (2,819,397 accounts ×
20%). The staff believes that it will take
approximately 3 minutes to create each
record.2 Thus, the total annual burden
associated with creating a record of
change of account type will be 28,194
hours (563,879 accounts × (3min/
60min)).
Consequently, the staff estimates that
the total annual burden hours associated
with Rule 15c3–3 would be
approximately 65,091 hours (36,780
hours + 100 hours + 17 hours + 28,194
hours).
In addition, a broker-dealer that
effects transactions in SFPs for
customers also will have an annualized
cost burden associated with the
requirements in paragraph (o) of Rule
15c3–3 to (1) provide each customer
that plans to effect SFP transactions
with a disclosure document containing
certain information,3 and (2) send each
SFP customer notification of any change
of account type.4 Approximately 8% of
the accounts held by broker-dealers that
are also registered as FCMs, or 2,819,397
accounts, may engage in SFP
transactions. The staff estimates that the
cost of printing and sending each
disclosure document will be
approximately $.15 per document sent.5
Thus, the staff estimates that the cost of
printing and sending disclosure
documents would be approximately
$422,910 (2,819,397 accounts × $.15). In
addition, approximately 563,879
accounts (2,819,397 accounts × 20%)
may change account type per year
requiring that broker-dealers provide
notification to those customers. The
staff estimates that the cost of sending
this notification to customers will be
about $84,582 (563,879 accounts × $.15).
Consequently, the staff estimates that
the total annual cost associated with
Rule 15c3–3 would be $507,492
($422,910 + $84,583).
Records required to be created and
notices required to be filed with the
Commission pursuant to Rule 15c3–3
2 In fact, the staff believes that most firms will
have this process automated. To the extent that no
person need be involved in the generation of this
record, the burden will be very minimal.
3 17 CFR 240.15c3–3(o)(2).
4 17 CFR 240.15c3–3(o)(3)(ii).
5 Based on past conversations with industry
representatives regarding other rule changes as
adjusted to account for inflation and increased
postage costs.
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
15009
must be maintained in accordance with
Rule 17a–4 (17 CFR 240.17a–4). The
collection of information is mandatory
and the information required to be
provided to the Commission pursuant to
these Rules are deemed confidential,
notwithstanding any other provision of
law under Section 24(b) of the
Securities Exchange Act of 1934 (15
U.S.C. 78x(b)) and Section 552(b)(3)(B)
of the Freedom of Information Act (5
U.S.C. 552(b)(3)(B)).
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.
The public may view the background
documentation for this information
collection at the following Web site,
https://www.reginfo.gov. 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:
Shagufta_Ahmed@omb.eop.gov; and (ii)
Thomas Bayer, Chief Information
Officer, Securities and Exchange
Commission, c/o Remi Pavlik-Simon,
6432 General Green Way, Alexandria,
VA 22312 or send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
Dated: March 14, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–6316 Filed 3–17–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549.
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’’) has submitted to the
Office of Management and Budget a
request for extension of the previously
approved collection of information
discussed below.
E:\FR\FM\18MRN1.SGM
18MRN1
]]>Agencies
[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Pages 15008-15009]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6316]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 15c3-3; SEC File No. 270-087; OMB Control No. 3235-0078.
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 approval of extension of the previously approved collection
of information provided for in Rule 15c3-3 (17 CFR 240.15c3-3), under
the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
Rule 15c3-3 requires that a broker-dealer that hold customer
securities obtain and maintain possession and control of fully-paid and
excess margin securities they hold for customers. In addition, the Rule
requires that a broker-dealer that holds customer funds make either a
weekly or monthly computation to determine whether certain customer
funds need to be segregated in a special reserve bank account for the
exclusive benefit of the firm's customers. It also requires that a
broker-dealer maintain a written notification from each bank where a
Special Reserve Bank Account is held acknowledging that all assets in
the account are for the exclusive benefit of the broker-dealer's
customers, and to provide written notification to the Commission (and
its designated examining authority) under certain, specified
circumstances. Finally, paragraph (o) of Rule 15c3-3, which only
applies to broker-dealers that sell securities futures products
(``SFP'') to customers, requires that such broker-dealers provide
certain notifications to customers, and to make a record of any changes
of account type.
There are approximately 279 broker-dealers fully subject to the
Rule (i.e., broker-dealers that cannot claim any of the exemptions
enumerated at paragraph (k)), of which approximately 13 make daily, 210
make weekly, and 56 make monthly, reserve computations. On average,
each of these respondents require approximately 2.5 hours to complete a
computation. Accordingly, Commission staff estimates that the resulting
burden totals 36,780 hours annually ((2.5 hours x 240 computations x 13
respondents that calculate daily) + (2.5 hours x 52 computations x 210
respondents that calculate weekly) + (2.5 hours x 12 computations x 56
respondents that calculate monthly)).
A broker-dealer required to maintain the Special Reserve Bank
Account prescribed by Rule 15c3-3 must obtain
[[Page 15009]]
and retain a written notification from each bank in which it has a
Special Reserve Bank Account to evidence bank's acknowledgement that
assets deposited in the Account are being held by the bank for the
exclusive benefit of the broker-dealer's customers. As stated
previously, 279 broker-dealers are presently fully-subject to Rule
15c3-3. In addition, 120 broker-dealers operate in accordance with the
exemption provided in paragraph (k)(2)(i) which also requires that a
broker-dealer maintain a Special Reserve Bank Account. The staff
estimates that of the total broker-dealers that must comply with this
rule, only 25%, or 100 ((279 + 120) x .25) must obtain 1 new letter
each year (either because the broker-dealer changed the type of
business it does and became subject to either paragraph (e)(3) or
(k)(2)(i) or simply because the broker-dealer established a new Special
Reserve Bank Account). The staff estimates that it would take a broker-
dealer approximately 1 hour to obtain this written notification from a
bank regarding a Special Reserve Bank Account because the language in
these letters is largely standardized. Therefore, Commission staff
estimates that broker-dealers will spend approximately 100 hours each
year to obtain these written notifications.
In addition, a broker-dealer must immediately notify the Commission
and its designated examining authority if it fails to make a required
deposit to its Special Reserve Bank Account. Commission staff estimates
that broker-dealers file approximately 33 such notices per year.
Broker-dealers would require approximately 30 minutes, on average, to
file such a notice. Therefore, Commission staff estimates that broker-
dealers would spend a total of approximately 17 hours each year to
comply with the notice requirement of Rule 15c3-3.
Finally, a broker-dealer that effects transactions in SFPs for
customers also will have paperwork burdens associated with the
requirement in paragraph (o) of Rule 15c3-3 to make a record of each
change in account type.\1\ More specifically, a broker-dealer that
changes the type of account in which a customer's SFPs are held must
create a record of each change in account type that includes the name
of the customer, the account number, the date the broker-dealer
received the customer's request to change the account type, and the
date the change in account type took place. As of December 31, 2009,
broker-dealers that were also registered as futures commission
merchants reported that they maintained 35,242,468 customer accounts.
The staff estimates that 8% of these customers may engage in SFP
transactions (35,242,468 accounts x 8% = 2,819,397). Further, the staff
estimates that 20% per year may change account type. Thus, broker-
dealers may be required to create this record for up to 563,879
accounts (2,819,397 accounts x 20%). The staff believes that it will
take approximately 3 minutes to create each record.\2\ Thus, the total
annual burden associated with creating a record of change of account
type will be 28,194 hours (563,879 accounts x (3min/60min)).
---------------------------------------------------------------------------
\1\ 17 CFR 240.15c3-3(o)(3)(i).
\2\ In fact, the staff believes that most firms will have this
process automated. To the extent that no person need be involved in
the generation of this record, the burden will be very minimal.
---------------------------------------------------------------------------
Consequently, the staff estimates that the total annual burden
hours associated with Rule 15c3-3 would be approximately 65,091 hours
(36,780 hours + 100 hours + 17 hours + 28,194 hours).
In addition, a broker-dealer that effects transactions in SFPs for
customers also will have an annualized cost burden associated with the
requirements in paragraph (o) of Rule 15c3-3 to (1) provide each
customer that plans to effect SFP transactions with a disclosure
document containing certain information,\3\ and (2) send each SFP
customer notification of any change of account type.\4\ Approximately
8% of the accounts held by broker-dealers that are also registered as
FCMs, or 2,819,397 accounts, may engage in SFP transactions. The staff
estimates that the cost of printing and sending each disclosure
document will be approximately $.15 per document sent.\5\ Thus, the
staff estimates that the cost of printing and sending disclosure
documents would be approximately $422,910 (2,819,397 accounts x $.15).
In addition, approximately 563,879 accounts (2,819,397 accounts x 20%)
may change account type per year requiring that broker-dealers provide
notification to those customers. The staff estimates that the cost of
sending this notification to customers will be about $84,582 (563,879
accounts x $.15). Consequently, the staff estimates that the total
annual cost associated with Rule 15c3-3 would be $507,492 ($422,910 +
$84,583).
---------------------------------------------------------------------------
\3\ 17 CFR 240.15c3-3(o)(2).
\4\ 17 CFR 240.15c3-3(o)(3)(ii).
\5\ Based on past conversations with industry representatives
regarding other rule changes as adjusted to account for inflation
and increased postage costs.
---------------------------------------------------------------------------
Records required to be created and notices required to be filed
with the Commission pursuant to Rule 15c3-3 must be maintained in
accordance with Rule 17a-4 (17 CFR 240.17a-4). The collection of
information is mandatory and the information required to be provided to
the Commission pursuant to these Rules are deemed confidential,
notwithstanding any other provision of law under Section 24(b) of the
Securities Exchange Act of 1934 (15 U.S.C. 78x(b)) and Section
552(b)(3)(B) of the Freedom of Information Act (5 U.S.C. 552(b)(3)(B)).
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.
The public may view the background documentation for this
information collection at the following Web site, https://www.reginfo.gov. 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: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an
e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB
within 30 days of this notice.
Dated: March 14, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-6316 Filed 3-17-11; 8:45 am]
BILLING CODE 8011-01-P
