Proposed Collection; Comment Request, 35144 [2019-15530]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 84, Number 140 (Monday, July 22, 2019)]
[Notices]
[Page 35144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15530]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-0088, OMB Control No. 3235-0083]


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736.

Extension:
    Rule 15Ba2-1 and Form MSD.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (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 15Ba2-1 (17 CFR 
240.15Ba2-1) and Form MSD (17 CFR 249.1100), under the Securities and 
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 15Ba2-1 provides that an application for registration with the 
Commission by a bank municipal securities dealer must be filed on Form 
MSD. The Commission uses the information obtained from Form MSD filings 
to determine whether bank municipal securities dealers meet the 
standards for registration set forth in the Act, to maintain a central 
registry where members of the public may obtain information about 
particular bank municipal securities dealers, and to develop risk 
assessment information about bank municipal securities dealers.
    Form MSD is a one-time registration form that must be amended only 
if it becomes inaccurate. Based upon past submissions of two initial 
filings and 11 amendments in 2016, zero initial filings and 22 
amendments in 2017, zero initial filings and 18 amendments in 2018, and 
zero initial filings and zero amendments so far in 2019, the Commission 
estimates that on an annual basis approximately 1 respondent will 
utilize Form MSD for an initial registration application, and that 
approximately 13 respondents will utilize Form MSD for an amendment, 
for a total of 14 respondents per year. The time required to complete 
Form MSD varies with the size and complexity of the bank municipal 
securities dealer's proposed operations. Bank personnel that prepare 
Form MSD filings previously indicated that it can take up to 15 hours 
for a bank with a large operation and many employees to complete the 
form, but that smaller banks with fewer personnel can complete the form 
in one to two hours. We believe that most recent applications have come 
from smaller banks. Also, amendments to form MSD are likely to require 
significantly less time. We estimate that the total annual burden is 
currently 21 hours at an average of 1.5 hours per respondent. (14 
respondents/year x 1.5 hours/respondent = 21 hours/year). The staff 
estimates that the average internal compliance cost per hour is 
approximately $417.\1\ Therefore, the estimated total annual cost of 
compliance is approximately $8,757 per year (21 hours/year x $417/hour 
= $8,757/year).
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    \1\ The estimate of $417 per hour is for a compliance attorney, 
based on the Securities Industry and Financial Markets Association's 
Management & Professional Earnings in the Securities Industry 2013, 
modified by Commission staff to account for an 1800-hour work-year 
and inflation, and multiplied by 5.35 to account for bonuses, firm 
size, employee benefits and overhead.
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    Rule 15Ba2-1 does not contain an explicit recordkeeping 
requirement, but the rule does require the prompt correction of any 
information on Form MSD that becomes inaccurate, meaning that bank 
municipal securities dealers need to maintain a current copy of Form 
MSD indefinitely. In addition, the instructions for filing Form MSD 
state that an exact copy should be retained by the registrant. 
Providing the information on the application is mandatory in order to 
register with the Commission as a bank municipal securities dealer. The 
information contained in the application will not be kept confidential.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have 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 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information subject to the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: Charles Riddle, Acting 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an 
email to: [email protected].

    Dated: July 17, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15530 Filed 7-19-19; 8:45 am]
 BILLING CODE 8011-01-P