Proposed Collection; Comment Request, 36940-36941 [2011-15664]

Download as PDF 36940 Federal Register / Vol. 76, No. 121 / Thursday, June 23, 2011 / Notices industry. The filing of these plans for review assures users and their personnel that fingerprint cards will be handled responsibly and with due care for confidentiality. 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 PRA that does not display a valid Office of Management and Budget (OMB) number. Please direct your written comments to Thomas Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, Virginia 22312; or send an e-mail to: PRA_Mailbox@sec.gov. Dated: June 17, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–15665 Filed 6–22–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request erowe on DSK5CLS3C1PROD with NOTICES Upon written request, copies available from: U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Rule 15g–9; SEC File No. 270–325; OMB Control No. 3235–0385. 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 comment on the collection of information described below. The Commission plans to submit this existing collection of information to the Office of VerDate Mar<15>2010 15:02 Jun 22, 2011 Jkt 223001 Management and Budget for extension and approval. Section 15(c)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (the ‘‘Exchange Act’’) authorizes the Commission to promulgate rules that prescribe means reasonably designed to prevent fraudulent, deceptive, or manipulative practices in connection with over-the-counter (‘‘OTC’’) securities transactions. Pursuant to this authority, the Commission in 1989 adopted Rule 15a– 6 which was subsequently redesignated as Rule 15g–9, 17 CFR 240.15g–9 (the ‘‘Rule’’). The Rule requires brokerdealers to produce a written suitability determination for, and to obtain a written customer agreement to, certain recommended transactions in penny stocks that are not registered on a national securities exchange, and whose issuers do not meet certain minimum financial standards. The Rule is intended to prevent the indiscriminate use by broker-dealers of fraudulent, high pressure telephone sales campaigns to sell penny stocks to unsophisticated customers. The Commission staff estimates that there are approximately 253 brokerdealers subject to the Rule. The burden of the Rule on a respondent varies widely depending on the frequency with which new customers are solicited. On the average for all respondents, the staff has estimated that respondents process three new customers per week, or approximately 156 new customer suitability determinations per year. We also estimate that a broker-dealer would expend approximately one-half hour per new customer in obtaining, reviewing, and processing (including transmitting to the customer) the information required by Rule 15g–9, and each respondent would consequently spend 78 hours annually (156 customers × .5 hours) obtaining the information required in the rule. We determined, based on the estimate of 253 brokerdealer respondents, that the current annual burden of Rule 15g–9 is 19,734 hours (253 respondents × 78 hours). In addition, we estimate that if tangible communications alone are used to transmit the documents required by Rule 15g–9, each customer should take: (1) No more than eight minutes to review, sign and return the suitability determination document; and (2) no more than two minutes to either read and return or produce the customer agreement for a particular recommended transaction in penny stocks, listing the issuer and number of shares of the particular penny stock to be purchased, and send it to the broker-dealer. Thus, the total current customer respondent PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 burden is approximately 10 minutes per response, for an aggregate total of 1,560 minutes for each broker-dealer respondent. Since there are 253 respondents, the annual burden for customer responses is 394,680 minutes (1,560 customer minutes per each of the 253 respondents) or 6,578 hours. In addition, we estimate that, if tangible means of communications alone are used, broker-dealers could incur a burden under Rule 15g–9 of approximately two minutes per response. Since there are approximately 253 broker-dealer respondents and each respondent would have approximately 156 responses annually, respondents would incur an aggregate burden of 78,936 minutes (253 respondents × 156 responses × 2 minutes per response), or 1,315 hours. Accordingly, the aggregate annual hour burden associated with Rule 15g–9 is 27,627 hours (19,734 hours to prepare the suitability statement and agreement + 6,578 hours for customer review + 1,315 hours for processing). We recognize that under the amendments to Rule 15g–9, the burden hours may be slightly reduced if the transaction agreement required under the rule is provided through electronic means such as an e-mail from the customer to the broker-dealer (e.g., the customer may take only one minute, instead of the two minutes estimated above, to provide the transaction agreement by e-mail rather than regular mail). If each of the customer respondents estimated above communicates with his or her brokerdealer electronically, the total burden hours on the customers would be reduced from 10 minutes to 9 minutes per response, or an aggregate total of 1,404 minutes per respondent (156 customers × 9 minutes for each customer). Since there are 253 respondents, the annual customer respondent burden, if electronic communications were used by all customers, would be approximately 355,212 minutes (253 respondents × 1,404 minutes per each respondent), or 5,920 hours. We do not believe the hour burden on broker-dealers in obtaining, reviewing, and processing the suitability determination would change through use of electronic communications. In addition, we do not believe that, based on information currently available to us, recordkeeping burdens under Rule 15g– 9 would change where the required documents were sent or received through means of electronic communication. Thus, if all brokerdealer respondents obtain and send the documents required under the rule electronically, the aggregate annual hour E:\FR\FM\23JNN1.SGM 23JNN1 erowe on DSK5CLS3C1PROD with NOTICES Federal Register / Vol. 76, No. 121 / Thursday, June 23, 2011 / Notices burden associated with Rule 15g–9 would be 26,969 hours (19,734 hours to prepare the suitability statement and agreement + 5,920 hours for customer review + 1,315 hours for processing). We cannot estimate how many brokerdealers and customers will choose to communicate electronically. If we assume that 50 percent of respondents would continue to provide documents and obtain signatures in tangible form, and 50 percent would choose to communicate electronically in satisfaction of the requirements of Rule 15g–9, the total aggregate hour burden would be 27,297 burden hours ((27,627 aggregate burden hours for documents and signatures in tangible form × 0.50 of the respondents = 13,813 hours) + (26,969 aggregate burden hours for electronically signed and transmitted documents × 0.50 of the respondents = 13,484 hours)). We estimate that 50% of the burden associated with Rule 15g–9 is a recordkeeping type of burden, and the remaining 50% of the burden is a third party disclosure type of burden. 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 estimates of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information on respondents; 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 PRA that does not display a valid Office of Management and Budget (OMB) control number. Please direct your written comments to: Thomas Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, Virginia 22312; or comments may be sent by e-mail to: PRA_Mailbox@sec.gov. VerDate Mar<15>2010 15:02 Jun 22, 2011 Jkt 223001 Dated: June 17, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–15664 Filed 6–22–11; 8:45 am] BILLING CODE 8011–01–P 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: Form 8–A; OMB Control No. 3235–0056; SEC File No. 270–54. 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 summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Form 8–A (17 CFR 249.208a) is a registration statement use to register a class of securities under Sections 12(b) and 12(g) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(b) and 78l(g)) (‘‘Exchange Act’’). Section 12(a) (15 U.S.C. 78l(a)) of the Exchange Act requires securities traded on a national exchange to be registered under the Exchange Act (15 U.S.C. 78a et seq.). Exchange Act Section 12(b) establishes the registration procedures. Section 12(g) and Rule 12g–1 (17 CFR 240.12g– 1) under the Exchange Act requires issuers engaged in interstate commerce or in a business affecting interstate commerce, that has total assets of $10,000,000 or more, and a class of equity security held or record by 500 or more persons to register that class of security. Form 8–A takes approximately 3 hours to prepare and is filed by approximately 1,170 respondents for a total of 3,510 annual burden hours. Written comments are invited on: (a) Whether this 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 imposed by 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 PO 00000 Frm 00046 Fmt 4703 Sfmt 9990 36941 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, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, Virginia 22312; or send an e-mail to: PRA_Mailbox@sec.gov. Dated: June 16, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–15666 Filed 6–22–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Federal Register Citation of Previous Announcement: [76 FR 34277, June 13, 2011]. STATUS: PLACE: Open meeting. 100 F Street, NE., Washington, DC. DATE AND TIME OF PREVIOUSLY ANNOUNCED MEETING: Wednesday, June 22, 2011 at 10 a.m. Time change. The Open Meeting scheduled for Wednesday, June 22, 2011 10 a.m. has been changed to Wednesday, June 22, 2011 at 11 a.m. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact the Office of the Secretary at (202) 551–5400. CHANGE IN THE MEETING: Dated: June 21, 2011. Elizabeth M. Murphy, Secretary. [FR Doc. 2011–15824 Filed 6–21–11; 4:15 pm] BILLING CODE 8011–01–P E:\FR\FM\23JNN1.SGM 23JNN1

Agencies

[Federal Register Volume 76, Number 121 (Thursday, June 23, 2011)]
[Notices]
[Pages 36940-36941]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-15664]


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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 15g-9; SEC File No. 270-325; OMB Control No. 3235-0385.

    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 comment on the collection of 
information described below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for extension and approval.
    Section 15(c)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.) (the ``Exchange Act'') authorizes the Commission to 
promulgate rules that prescribe means reasonably designed to prevent 
fraudulent, deceptive, or manipulative practices in connection with 
over-the-counter (``OTC'') securities transactions. Pursuant to this 
authority, the Commission in 1989 adopted Rule 15a-6 which was 
subsequently redesignated as Rule 15g-9, 17 CFR 240.15g-9 (the 
``Rule''). The Rule requires broker-dealers to produce a written 
suitability determination for, and to obtain a written customer 
agreement to, certain recommended transactions in penny stocks that are 
not registered on a national securities exchange, and whose issuers do 
not meet certain minimum financial standards. The Rule is intended to 
prevent the indiscriminate use by broker-dealers of fraudulent, high 
pressure telephone sales campaigns to sell penny stocks to 
unsophisticated customers.
    The Commission staff estimates that there are approximately 253 
broker-dealers subject to the Rule. The burden of the Rule on a 
respondent varies widely depending on the frequency with which new 
customers are solicited. On the average for all respondents, the staff 
has estimated that respondents process three new customers per week, or 
approximately 156 new customer suitability determinations per year. We 
also estimate that a broker-dealer would expend approximately one-half 
hour per new customer in obtaining, reviewing, and processing 
(including transmitting to the customer) the information required by 
Rule 15g-9, and each respondent would consequently spend 78 hours 
annually (156 customers x .5 hours) obtaining the information required 
in the rule. We determined, based on the estimate of 253 broker-dealer 
respondents, that the current annual burden of Rule 15g-9 is 19,734 
hours (253 respondents x 78 hours).
    In addition, we estimate that if tangible communications alone are 
used to transmit the documents required by Rule 15g-9, each customer 
should take: (1) No more than eight minutes to review, sign and return 
the suitability determination document; and (2) no more than two 
minutes to either read and return or produce the customer agreement for 
a particular recommended transaction in penny stocks, listing the 
issuer and number of shares of the particular penny stock to be 
purchased, and send it to the broker-dealer. Thus, the total current 
customer respondent burden is approximately 10 minutes per response, 
for an aggregate total of 1,560 minutes for each broker-dealer 
respondent. Since there are 253 respondents, the annual burden for 
customer responses is 394,680 minutes (1,560 customer minutes per each 
of the 253 respondents) or 6,578 hours.
    In addition, we estimate that, if tangible means of communications 
alone are used, broker-dealers could incur a burden under Rule 15g-9 of 
approximately two minutes per response. Since there are approximately 
253 broker-dealer respondents and each respondent would have 
approximately 156 responses annually, respondents would incur an 
aggregate burden of 78,936 minutes (253 respondents x 156 responses x 2 
minutes per response), or 1,315 hours. Accordingly, the aggregate 
annual hour burden associated with Rule 15g-9 is 27,627 hours (19,734 
hours to prepare the suitability statement and agreement + 6,578 hours 
for customer review + 1,315 hours for processing).
    We recognize that under the amendments to Rule 15g-9, the burden 
hours may be slightly reduced if the transaction agreement required 
under the rule is provided through electronic means such as an e-mail 
from the customer to the broker-dealer (e.g., the customer may take 
only one minute, instead of the two minutes estimated above, to provide 
the transaction agreement by e-mail rather than regular mail). If each 
of the customer respondents estimated above communicates with his or 
her broker-dealer electronically, the total burden hours on the 
customers would be reduced from 10 minutes to 9 minutes per response, 
or an aggregate total of 1,404 minutes per respondent (156 customers x 
9 minutes for each customer). Since there are 253 respondents, the 
annual customer respondent burden, if electronic communications were 
used by all customers, would be approximately 355,212 minutes (253 
respondents x 1,404 minutes per each respondent), or 5,920 hours. We do 
not believe the hour burden on broker-dealers in obtaining, reviewing, 
and processing the suitability determination would change through use 
of electronic communications. In addition, we do not believe that, 
based on information currently available to us, recordkeeping burdens 
under Rule 15g-9 would change where the required documents were sent or 
received through means of electronic communication. Thus, if all 
broker-dealer respondents obtain and send the documents required under 
the rule electronically, the aggregate annual hour

[[Page 36941]]

burden associated with Rule 15g-9 would be 26,969 hours (19,734 hours 
to prepare the suitability statement and agreement + 5,920 hours for 
customer review + 1,315 hours for processing).
    We cannot estimate how many broker-dealers and customers will 
choose to communicate electronically. If we assume that 50 percent of 
respondents would continue to provide documents and obtain signatures 
in tangible form, and 50 percent would choose to communicate 
electronically in satisfaction of the requirements of Rule 15g-9, the 
total aggregate hour burden would be 27,297 burden hours ((27,627 
aggregate burden hours for documents and signatures in tangible form x 
0.50 of the respondents = 13,813 hours) + (26,969 aggregate burden 
hours for electronically signed and transmitted documents x 0.50 of the 
respondents = 13,484 hours)). We estimate that 50% of the burden 
associated with Rule 15g-9 is a recordkeeping type of burden, and the 
remaining 50% of the burden is a third party disclosure type of burden.
    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 estimates of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information on 
respondents; 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 PRA that does not display a 
valid Office of Management and Budget (OMB) control number.
    Please direct your written comments to: Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312; or 
comments may be sent by e-mail to: PRA_Mailbox@sec.gov.

    Dated: June 17, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-15664 Filed 6-22-11; 8:45 am]
BILLING CODE 8011-01-P