Submission for OMB Review; Comment Request; Extension: Rule 10b-17, 71388 [2023-22734]

Download as PDF ddrumheller on DSK120RN23PROD with NOTICES1 71388 Federal Register / Vol. 88, No. 198 / Monday, October 16, 2023 / Notices Rule 17a–11 was adopted on July 11, 1971 in response to an operational crisis in the securities industry between 1967 and 1970. Rule 17a–11 requires brokerdealers that are experiencing financial or operational difficulties to provide notice to the Commission, the brokerdealer’s designated examining authority (‘‘DEA’’), and the Commodity Futures Trading Commission (‘‘CFTC’’) if the broker-dealer is registered with the CFTC as a futures commission merchant. Rule 17a–11 is an integral part of the Commission’s financial responsibility program which enables the Commission, a broker-dealer’s DEA, and the CFTC to increase surveillance of a broker-dealer experiencing difficulties and to obtain any additional information necessary to gauge the broker-dealer’s financial or operational condition. Rule 17a–11 also requires over-thecounter derivatives dealers and brokerdealers that are permitted to compute net capital pursuant to Appendix E to Exchange Act Rule 15c3–1 to notify the Commission when their tentative net capital drops below certain levels. To ensure the provision of these types of notices to the Commission, Rule 17a– 11 requires every national securities exchange or national securities association to notify the Commission when it learns that a member brokerdealer has failed to send a notice or transmit a report required under the rule. Compliance with the rule is mandatory. The Commission will generally not publish or make available to any person notices or reports received pursuant to Rule 17a–11. The Commission believes that information obtained under Rule 17a–11 relates to a condition report prepared for the use of the Commission, other federal governmental authorities, and securities industry self-regulatory organizations responsible for the regulation or supervision of financial institutions. The Commission estimates that the total hour burden under Rule 17a–11 is approximately 274 hours per year. 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. The public may view background documentation for this information collection at the following website: www.reginfo.gov. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Written comments and recommendations for the proposed information collection should be sent by VerDate Sep<11>2014 17:03 Oct 13, 2023 Jkt 262001 November 15, 2023 to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending an email to: PRA_Mailbox@sec.gov. Dated: October 10, 2023. Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–22732 Filed 10–13–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–427, OMB Control No. 3235–0476] Submission for OMB Review; Comment Request; Extension: Rule 10b–17 Upon Written Request, Copies Available From: 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 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for approval of extension of the previously approved collection of information provided for in Rule 10b–17 (17 CFR 240.10b–17), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 10b–17 requires any issuer of a class of securities publicly traded by the use of any means or instrumentality of interstate commerce or of the mails or of any facility of any national securities exchange to give notice of the following specific distributions relating to such class of securities: (1) a dividend or other distribution in cash or in kind other than interest payments on debt securities; (2) a stock split or reverse stock split; or (3) a rights or other subscription offering. Notice shall be either given to the Financial Industry Regulatory Authority, Inc. as successor to the National Association of Securities Dealers, Inc. or in accordance with the procedures of the national securities exchange upon which the securities are registered. The Commission may exempt an issuer of over-the-counter (but not listed) securities from the notice requirement. The requirements of Rule 10b–17 do not apply to redeemable securities of registered open-end investment companies or unit investment trusts. PO 00000 Frm 00056 Fmt 4703 Sfmt 9990 The information required by Rule 10b–17 is necessary for the execution of the Commission’s mandate under the Securities Exchange Act of 1934 to prevent fraudulent, manipulative, and deceptive acts and practices. The Commission has found that not requiring formal notices of the types of distributions covered by Rule 10b–17 has led to a number of abuses including purchasers not being aware of their rights to such distributions. It is only through formal notice of the distribution, including the date of the distribution, that current holders, potential buyers, or potential sellers of the securities at issue will know their rights to the distribution and make an informed decision as to whether to buy or sell a security. There are approximately 7,588 respondents per year. These respondents make approximately 29,952 responses per year. Each response takes approximately 10 minutes to complete. Thus, the total hour burden per year is approximately 4,992 hours. The total internal labor cost of compliance for respondents associated with providing notice under Rule 10b–17 is approximately $431,258.88. 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. The public may view background documentation for this information collection at the following website: www.reginfo.gov. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Written comments and recommendations for the proposed information collection should be sent by November 15, 2023 to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending an email to: PRA_Mailbox@sec.gov. Dated: October 10, 2023. Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–22734 Filed 10–13–23; 8:45 am] BILLING CODE 8011–01–P E:\FR\FM\16OCN1.SGM 16OCN1

Agencies

[Federal Register Volume 88, Number 198 (Monday, October 16, 2023)]
[Notices]
[Page 71388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-22734]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-427, OMB Control No. 3235-0476]


Submission for OMB Review; Comment Request; Extension: Rule 10b-
17

Upon Written Request, Copies Available From: 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 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rule 10b-
17 (17 CFR 240.10b-17), under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.).
    Rule 10b-17 requires any issuer of a class of securities publicly 
traded by the use of any means or instrumentality of interstate 
commerce or of the mails or of any facility of any national securities 
exchange to give notice of the following specific distributions 
relating to such class of securities: (1) a dividend or other 
distribution in cash or in kind other than interest payments on debt 
securities; (2) a stock split or reverse stock split; or (3) a rights 
or other subscription offering. Notice shall be either given to the 
Financial Industry Regulatory Authority, Inc. as successor to the 
National Association of Securities Dealers, Inc. or in accordance with 
the procedures of the national securities exchange upon which the 
securities are registered. The Commission may exempt an issuer of over-
the-counter (but not listed) securities from the notice requirement. 
The requirements of Rule 10b-17 do not apply to redeemable securities 
of registered open-end investment companies or unit investment trusts.
    The information required by Rule 10b-17 is necessary for the 
execution of the Commission's mandate under the Securities Exchange Act 
of 1934 to prevent fraudulent, manipulative, and deceptive acts and 
practices. The Commission has found that not requiring formal notices 
of the types of distributions covered by Rule 10b-17 has led to a 
number of abuses including purchasers not being aware of their rights 
to such distributions. It is only through formal notice of the 
distribution, including the date of the distribution, that current 
holders, potential buyers, or potential sellers of the securities at 
issue will know their rights to the distribution and make an informed 
decision as to whether to buy or sell a security.
    There are approximately 7,588 respondents per year. These 
respondents make approximately 29,952 responses per year. Each response 
takes approximately 10 minutes to complete. Thus, the total hour burden 
per year is approximately 4,992 hours. The total internal labor cost of 
compliance for respondents associated with providing notice under Rule 
10b-17 is approximately $431,258.88.
    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.
    The public may view background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent by November 15, 2023 to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F 
Street NE, Washington, DC 20549, or by sending an email to: 
[email protected].

    Dated: October 10, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-22734 Filed 10-13-23; 8:45 am]
BILLING CODE 8011-01-P
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