Proposed Collection; Comment Request, 77476 [2020-26588]

Download as PDF 77476 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Notices SECURITIES AND EXCHANGE COMMISSION 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 17f–2 (d), [SEC File No. 270–036, OMB Control No. 3235–0028] 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 17f–2(d) (17 CFR 240.17f–2(d)), 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 (‘‘OMB’’) for extension and approval. Rule 17f–2(d) requires that records created pursuant to the fingerprinting requirements of Section 17(f)(2) of the Act be maintained and preserved by every member of a national securities exchange, broker, dealer, registered transfer agent and registered clearing agency (‘‘covered entities’’ or ‘‘respondents’’); permits, under certain circumstances, the records required to be maintained and preserved by a member of a national securities exchange, broker, or dealer to be maintained and preserved by a self– regulatory organization that is also the designated examining authority for that member, broker or dealer; and permits the required records to be preserved on microfilm. The general purpose for Rule 17f–2 is to: (i) Identify security risk personnel; (ii) provide criminal record information so that employers can make fully informed employment decisions; and (iii) deter persons with criminal records from seeking employment or association with covered entities. The rule enables the Commission or other examining authority to ascertain whether all required persons are being fingerprinted and whether proper procedures regarding fingerprinting are being followed. Retention of these records for a period of not less than three years after termination of a covered person’s employment or relationship with a covered entity ensures that law enforcement officials will have easy access to fingerprint cards on a timely basis. This in turn acts as an effective deterrent to employee misconduct. VerDate Sep<11>2014 17:39 Dec 01, 2020 Jkt 253001 Approximately 3,900 respondents are subject to the recordkeeping requirements of the rule. Each respondent maintains approximately 68 new records per year, each of which takes approximately 2 minutes per record to maintain, for an annual burden of approximately 2.2666667 hours (68 records times 2 minutes). The total annual time burden for all respondents is approximately 8,840 hours (3,900 respondents times 2.2666667 hours). As noted above, all records maintained subject to the rule must be retained for a period of not less than three years after termination of a covered person’s employment or relationship with a covered entity. In addition, we estimate the total annual cost burden to respondents is approximately $39,000 in third party storage costs. 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 estimates of the burden of the proposed 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. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number. Please direct your written comments to: David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or send an email to: PRA_ Mailbox@sec.gov. Dated: November 27, 2020. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–26588 Filed 12–1–20; 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 PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Extension: Rule 17f–2(c), [SEC File No. 270–035, OMB Control No. 3235–0029] 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 17f–2(c) (17 CFR 240.17f–2(c)), 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 (‘‘OMB’’) for extension and approval. Rule 17f–2(c) allows persons required to be fingerprinted pursuant to Section 17(f)(2) of the Act to submit their fingerprints to the Attorney General of the United States or its designee (i.e., the Federal Bureau of Investigation (‘‘FBI’’)) through a registered national securities exchange or a registered national securities association (collectively, also known as ‘‘self– regulatory organizations’’ or ‘‘SROs’’) pursuant to a fingerprint plan filed with, and declared effective by, the Commission. Fingerprint plans have been declared effective for the American, Boston, Chicago, New York, and Philadelphia stock exchanges and for the Financial Industry Regulatory Authority (‘‘FINRA’’) and the Chicago Board Options Exchange. Currently, FINRA accounts for the bulk of the fingerprint submissions. It is estimated that 3,900 respondents submit approximately 281,804 sets of fingerprints (consisting of approximately 253,721 electronic sets and 28,083 hard copy sets) to SROs on an annual basis. The Commission estimates that it would take approximately 15 minutes to create and submit each fingerprint card. The total time burden is therefore estimated to be approximately 70,451 hours, or approximately 18 hours per respondent, annually. In addition, the SROs charge an estimated $26 fee for processing fingerprint cards submitted electronically, resulting in a total annual cost to all 3,900 respondents of approximately $6,596,746 or approximately $1,691 per respondent per year. The SROs charge an estimated $41 fee for processing fingerprint cards submitted in hard copy, resulting in a total annual cost to all 3,900 respondents of approximately $1,151,403, or approximately $295 per respondent per year. The combined E:\FR\FM\02DEN1.SGM 02DEN1

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[Federal Register Volume 85, Number 232 (Wednesday, December 2, 2020)]
[Notices]
[Page 77476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26588]



[[Page 77476]]

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SECURITIES AND EXCHANGE COMMISSION


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 17f-2 (d), [SEC File No. 270-036, OMB Control No. 3235-
0028]

    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 17f-2(d) (17 CFR 
240.17f-2(d)), 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 (``OMB'') for 
extension and approval.
    Rule 17f-2(d) requires that records created pursuant to the 
fingerprinting requirements of Section 17(f)(2) of the Act be 
maintained and preserved by every member of a national securities 
exchange, broker, dealer, registered transfer agent and registered 
clearing agency (``covered entities'' or ``respondents''); permits, 
under certain circumstances, the records required to be maintained and 
preserved by a member of a national securities exchange, broker, or 
dealer to be maintained and preserved by a self-regulatory organization 
that is also the designated examining authority for that member, broker 
or dealer; and permits the required records to be preserved on 
microfilm. The general purpose for Rule 17f-2 is to: (i) Identify 
security risk personnel; (ii) provide criminal record information so 
that employers can make fully informed employment decisions; and (iii) 
deter persons with criminal records from seeking employment or 
association with covered entities. The rule enables the Commission or 
other examining authority to ascertain whether all required persons are 
being fingerprinted and whether proper procedures regarding 
fingerprinting are being followed. Retention of these records for a 
period of not less than three years after termination of a covered 
person's employment or relationship with a covered entity ensures that 
law enforcement officials will have easy access to fingerprint cards on 
a timely basis. This in turn acts as an effective deterrent to employee 
misconduct.
    Approximately 3,900 respondents are subject to the recordkeeping 
requirements of the rule. Each respondent maintains approximately 68 
new records per year, each of which takes approximately 2 minutes per 
record to maintain, for an annual burden of approximately 2.2666667 
hours (68 records times 2 minutes). The total annual time burden for 
all respondents is approximately 8,840 hours (3,900 respondents times 
2.2666667 hours). As noted above, all records maintained subject to the 
rule must be retained for a period of not less than three years after 
termination of a covered person's employment or relationship with a 
covered entity. In addition, we estimate the total annual cost burden 
to respondents is approximately $39,000 in third party storage costs.
    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 
estimates of the burden of the proposed 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or send an email 
to: [email protected].

    Dated: November 27, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-26588 Filed 12-1-20; 8:45 am]
BILLING CODE 8011-01-P
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