[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)]
[Notices]
[Page 71871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29202]
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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 FOIA Services, 100 F Street NE., Washington, DC
20549-2736.
Extension:
Rule 17a-12/Form X-17A-5 Part IIB; SEC File No. 270-442, OMB
Control No. 3235-0498.
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 17a-
12 (17 CFR 240.17a-12) and Part IIB of Form X-17A-5 (17 CFR 249.617)
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
Rule17a-12 requires OTC derivatives dealers to file quarterly
Financial and Operational Combined Uniform Single Reports (``FOCUS''
reports) on Part IIB of Form X-17A-5, the basic document for reporting
the financial and operational condition of over-the-counter (``OTC'')
derivatives dealers. Rule 17a-12 also requires that OTC derivatives
dealers file audited financial statements annually. The reports
required under Rule 17a-12 provide the Commission with information used
to monitor the operations of OTC derivatives dealers and to enforce
their compliance with the Commission's rules. These reports also enable
the Commission to review the business activities of OTC derivatives
dealers and to anticipate, where possible, how these dealers may be
affected by significant economic events.
There are currently four registered OTC derivatives dealers. The
staff expects that one additional firm will register as an OTC
derivatives dealer within the next three years. The staff estimates
that the average amount of time necessary to prepare and file the
quarterly reports required by the rule is eighty hours per OTC
derivatives dealer \1\ and that the average amount of time to prepare
and file the annual audit report is 100 hours per OTC derivatives
dealer per year, for a total reporting burden of 180 hours per OTC
derivatives dealer annually. Thus the staff estimates that the total
industry-wide reporting burden to comply with the requirements of Rule
17a-12 is 900 hours per year (180 x 5). Further, the Commission
estimates that the total internal compliance cost associated with this
requirement is approximately $255,000 per year.\2\ The average annual
reporting cost per broker-dealer for an independent public accountant
to examine the financial statements is approximately $46,300 per
broker-dealer. Thus, the total industry-wide annual reporting cost is
approximately $231,500 ($46,300 x 5).
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\1\ Based upon an average of 4 responses per year and an average
of 20 hours spent preparing each response.
\2\ Based on staff experience, an OTC derivatives dealer likely
would have a Compliance Manager gather the necessary information and
prepare and file the quarterly reports and annual audit report and
supporting schedules. According to the Securities Industry and
Financial Markets Association Report on Management and Professional
Earnings in the Securities Industry dated October 2013, which
provides base salary and bonus information for middle-management and
professional positions within the securities industry, the hourly
cost of a compliance manager, which the Commission staff has
modified to account for an 1800-hour work year and multiplied by
5.35 to account for bonuses, firm size, employee benefits, and
overhead, is approximately $283/hour. $283/hour times 900 hours =
$254,700, rounded to $255,000.
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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) Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an
email to [email protected]. Comments must be submitted to OMB within
30 days of this notice.
Dated: November 10, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29202 Filed 11-16-15; 8:45 am]
BILLING CODE 8011-01-P