[Federal Register Volume 78, Number 99 (Wednesday, May 22, 2013)]
[Notices]
[Page 30345]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12148]
[[Page 30345]]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 15a-6, SEC File No. 270-0329, OMB Control No. 3235-0371.
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'') 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 15a-
6 (17 CFR 240.15a-6) under the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 15a-6 provides conditional exemptions from the requirement to
register as a broker-dealer pursuant to Section 15 of the Exchange Act
(15 U.S.C. 78o) for foreign broker-dealers that engage in certain
specified activities involving U.S. persons. In particular, Rule 15a-
6(a)(3) provides an exemption from broker-dealer registration for
foreign broker-dealers that solicit and effect transactions with or for
U.S. institutional investors or major U.S. institutional investors
through a registered broker-dealer, provided that the U.S. broker-
dealer, among other things, obtains certain information about, and
consents to service of process from, the personnel of the foreign
broker-dealer involved in such transactions, and maintains certain
records in connection therewith.
These requirements are intended to ensure (a) that the registered
broker-dealer will receive notice of the identity of, and has reviewed
the background of, foreign personnel who will contact U.S. investors,
(b) that the foreign broker-dealer and its personnel effectively may be
served with process in the event enforcement action is necessary, and
(c) that the Commission has ready access to information concerning
these persons and their U.S. securities activities. Commission staff
estimates that approximately 2,000 U.S. registered broker-dealers will
spend an average of two hours of clerical staff time and one hour of
managerial staff time per year obtaining the information required by
the rule, resulting in a total aggregate burden of 6,000 hours per year
for complying with the rule. Assuming an hourly cost of $63 \1\ for a
compliance clerk and $269 \2\ for a compliance manager, the resultant
total internal labor cost of compliance for the respondents is $790,000
per year (2,000 entities x ((2 hours/entity x $63/hour) + (1 hour per
entity X $269/hour)) = $790,000).
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\1\ The hourly rate used for a compliance clerk was from SIFMA's
Office Salaries in the Securities Industry 2012, modified by
Commission staff to account for an 1,800 hour work-year and
multiplied by 2.93 to account for bonuses, firm size, employee
benefits and overhead.
\2\ The hourly rate used for a compliance manager was from
SIFMA's Management & Professional Earnings in the Securities
Industry 2012, modified by Commission staff to account for an 1,800
hour work-year and multiplied by 5.35 to account for bonuses, firm
size, employee benefits and overhead.
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In general, the records to be maintained under Rule 15a-6 must be
kept for the applicable time periods as set forth in Rule 17a-4 (17 CFR
240.17a-4) under the Exchange Act or, with respect to the consents to
service of process, for a period of not less than six years after the
applicable person ceases engaging in U.S. securities activities.
Reliance on the exemption set forth in Rule 15a-6 is voluntary, but if
a foreign broker-dealer elects to rely on such exemption, the
collection of information described therein is mandatory. The
collection does not involve confidential information.
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. The public may view background
documentation for this information collection at the following Web
site, www.reginfo.gov. Comments should be directed to: (i) Desk Officer
for the Securities and Exchange Commission, Office of Information and
Regulatory Affairs, Office of Management and Budget, Room 10102, New
Executive Office Building, Washington, DC 20503, or by sending an email
to: [email protected]; and (ii) Thomas Bayer, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an
email to: [email protected]. Comments must be submitted to OMB
within 30 days of this notice.
Dated: May 16, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-12148 Filed 5-21-13; 8:45 am]
BILLING CODE 8011-01-P