Proposed Collection; Comment Request; Extension: Rule 15g-2, 63173 [2023-19853]

Download as PDF Federal Register / Vol. 88, No. 177 / Thursday, September 14, 2023 / Notices SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–381, OMB Control No. 3235–0434] lotter on DSK11XQN23PROD with NOTICES1 Proposed Collection; Comment Request; Extension: Rule 15g–2 Upon Written Request, Copies Available From: U.S. Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information provided for in Rule 15g–2 (17 CFR 240.15g–2) under the Securities 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 15g–2 (The ‘‘Penny Stock Disclosure Rule’’) requires brokerdealers to provide their customers with a risk disclosure document, as set forth in Schedule 15G, prior to their first nonexempt transaction in a ‘‘penny stock.’’ As amended, the rule requires brokerdealers to obtain written acknowledgement from the customer that he or she has received the required risk disclosure document. The amended rule also requires broker-dealers to maintain a copy of the customer’s written acknowledgement for at least three years following the date on which the risk disclosure document was provided to the customer, the first two years in an accessible place. Rule 15g– 2 also requires a broker-dealer, upon request of a customer, to furnish the customer with a copy of certain information set forth on the Commission’s website. The risk disclosure documents are for the benefit of the customers, to assure that they are aware of the risks of trading in ‘‘penny stocks’’ before they enter into a transaction. The risk disclosure documents are maintained by the broker-dealers and may be reviewed during the course of an examination by the Commission. The Commission estimates that approximately 175 broker-dealers are engaged in penny stock transactions and that each of these firms processes an average of three new customers for penny stocks per week. The Commission further estimates that half of the broker-dealers send the penny stock disclosure documents by mail, VerDate Sep<11>2014 17:47 Sep 13, 2023 Jkt 259001 and the other half send them through electronic means such as email. Because the Commission estimates the copying and mailing of the penny stock disclosure document takes two minutes, this means that there is an annual burden of 27,456 minutes, or 457 hours, for this third-party disclosure burden of mailing documents. Additionally, because the Commission estimates that sending the penny stock disclosure document electronically takes one minute, the annual burden is 13,728 minutes, or 229 hours, for this thirdparty disclosure burden of emailing documents. Broker-dealers also incur a recordkeeping burden of approximately two minutes per response when filing the completed penny stock disclosure documents as required pursuant to the Rule 15g–2(c), which means that the respondents incur an aggregate recordkeeping burden of 54,600 minutes, or 910 hours. Furthermore, Rule 15g–2(d) requires a broker-dealer, upon request of a customer, to furnish the customer with a copy of certain information set forth on the Commission’s website, which takes a respondent no more than two minutes per customer. Because the Commission estimates that a quarter of customers who are required to receive the Rule 15g–2 disclosure document will request that their broker-dealer provide them with the additional microcap and penny stock information posted on the Commission’s website, the Commission therefore estimates that each broker-dealer respondent processes approximately 39 requests for paper copies of this information per year or an aggregate total of 78 minutes per respondent, which amounts to an annual burden of 13,650 minutes, or 228 hours. There was an overall decrease in the total burden hours because the number of registered broker-dealers the Commission estimates will be engaged in penny stock transactions decreased from 182 to 175. The Commission does not maintain the risk disclosure document. Instead, it must be retained by the broker-dealer for at least three years following the date on which the risk disclosure document was provided to the customer, the first two years in an accessible place. The collection of information required by the rule is mandatory. The risk disclosure document is otherwise governed by the internal policies of the broker-dealer regarding confidentiality, etc. Written comments are invited on: (a) whether the proposed collection of information is necessary for the proper performance of the functions of the PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 63173 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 by November 13, 2023. 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. Please direct your written comments to: David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: PRA_ Mailbox@sec.gov. Dated: September 8, 2023. Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–19853 Filed 9–13–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–98331; File No. 4–809] Notice of Filing and Request for Comment on ICE Clear Europe Limited’s Request To Withdraw From Registration as a Clearing Agency September 8, 2023. I. Introduction Pursuant to section 19(a)(3) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’ or ‘‘Act’’),1 on August 10, 2023, ICE Clear Europe Limited (‘‘ICE Clear Europe’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a written request (the ‘‘Written Request’’) 2 to withdraw from registration as a clearing agency under section 17A of the Exchange Act.3 The Commission is publishing this notice to solicit comments from interested persons concerning ICE Clear Europe’s Written Request. 1 15 U.S.C. 78s(a)(3). Letter from Hester Serafini, President, ICEEU, to Vanessa Countryman, Secretary, Securities and Exchange Commission (dated August 10 2023). 3 15 U.S.C. 78q–1. 2 See E:\FR\FM\14SEN1.SGM 14SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 88, Number 177 (Thursday, September 14, 2023)]
[Notices]
[Page 63173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19853]



[[Page 63173]]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-381, OMB Control No. 3235-0434]


Proposed Collection; Comment Request; Extension: Rule 15g-2

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

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collection of 
information provided for in Rule 15g-2 (17 CFR 240.15g-2) under the 
Securities 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 15g-2 (The ``Penny Stock Disclosure Rule'') requires broker-
dealers to provide their customers with a risk disclosure document, as 
set forth in Schedule 15G, prior to their first non-exempt transaction 
in a ``penny stock.'' As amended, the rule requires broker-dealers to 
obtain written acknowledgement from the customer that he or she has 
received the required risk disclosure document. The amended rule also 
requires broker-dealers to maintain a copy of the customer's written 
acknowledgement for at least three years following the date on which 
the risk disclosure document was provided to the customer, the first 
two years in an accessible place. Rule 15g-2 also requires a broker-
dealer, upon request of a customer, to furnish the customer with a copy 
of certain information set forth on the Commission's website.
    The risk disclosure documents are for the benefit of the customers, 
to assure that they are aware of the risks of trading in ``penny 
stocks'' before they enter into a transaction. The risk disclosure 
documents are maintained by the broker-dealers and may be reviewed 
during the course of an examination by the Commission.
    The Commission estimates that approximately 175 broker-dealers are 
engaged in penny stock transactions and that each of these firms 
processes an average of three new customers for penny stocks per week. 
The Commission further estimates that half of the broker-dealers send 
the penny stock disclosure documents by mail, and the other half send 
them through electronic means such as email. Because the Commission 
estimates the copying and mailing of the penny stock disclosure 
document takes two minutes, this means that there is an annual burden 
of 27,456 minutes, or 457 hours, for this third-party disclosure burden 
of mailing documents. Additionally, because the Commission estimates 
that sending the penny stock disclosure document electronically takes 
one minute, the annual burden is 13,728 minutes, or 229 hours, for this 
third-party disclosure burden of emailing documents.
    Broker-dealers also incur a recordkeeping burden of approximately 
two minutes per response when filing the completed penny stock 
disclosure documents as required pursuant to the Rule 15g-2(c), which 
means that the respondents incur an aggregate recordkeeping burden of 
54,600 minutes, or 910 hours.
    Furthermore, Rule 15g-2(d) requires a broker-dealer, upon request 
of a customer, to furnish the customer with a copy of certain 
information set forth on the Commission's website, which takes a 
respondent no more than two minutes per customer. Because the 
Commission estimates that a quarter of customers who are required to 
receive the Rule 15g-2 disclosure document will request that their 
broker-dealer provide them with the additional microcap and penny stock 
information posted on the Commission's website, the Commission 
therefore estimates that each broker-dealer respondent processes 
approximately 39 requests for paper copies of this information per year 
or an aggregate total of 78 minutes per respondent, which amounts to an 
annual burden of 13,650 minutes, or 228 hours. There was an overall 
decrease in the total burden hours because the number of registered 
broker-dealers the Commission estimates will be engaged in penny stock 
transactions decreased from 182 to 175.
    The Commission does not maintain the risk disclosure document. 
Instead, it must be retained by the broker-dealer for at least three 
years following the date on which the risk disclosure document was 
provided to the customer, the first two years in an accessible place. 
The collection of information required by the rule is mandatory. The 
risk disclosure document is otherwise governed by the internal policies 
of the broker-dealer regarding confidentiality, etc.
    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 by 
November 13, 2023.
    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.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
[email protected].

    Dated: September 8, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-19853 Filed 9-13-23; 8:45 am]
BILLING CODE 8011-01-P

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