[Federal Register Volume 81, Number 206 (Tuesday, October 25, 2016)]
[Notices]
[Pages 73459-73460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25705]
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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-3; SEC File No. 270-026, OMB Control No. 3235-0033.
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 extension of the previously approved
collection of information discussed below. The Code of Federal
Regulation citation to this collection of information is the following
rule: 17 CFR 240.17a-3.
Rule 17a-3 under the Securities Exchange Act of 1934 establishes
minimum standards with respect to business records that broker-dealers
registered with the Commission must make and keep current. These
records are maintained by the broker-dealer (in accordance with a
separate rule), so they can be used by the broker-dealer and reviewed
by Commission examiners, as well as other regulatory authority
examiners, during inspections of the broker-dealer.
The collections of information included in Rule 17a-3 are necessary
to provide Commission, self-regulatory organization and state examiners
to conduct effective and efficient examinations to determine whether
broker-dealers are complying with relevant laws, rules, and
regulations. If broker-dealers were not required to create these
baseline, standardized records, Commission, self-regulatory
organization and state examiners could be unable to determine whether
broker-dealers are in compliance with the Commission's antifraud and
anti-manipulation rules, financial responsibility program, and other
Commission, SRO, and State laws, rules, and regulations.
As of April 1, 2016 there were 4,104 broker-dealers registered with
the Commission. The Commission estimates that these broker-dealer
respondents
[[Page 73460]]
incur a total burden of 2,763,566 hours per year to comply with Rule
17a-3.
In addition, Rule 17a-3 contains ongoing operation and maintenance
costs for broker-dealers, including the cost of postage to provide
customers with account information, and costs for equipment and systems
development. The Commission estimates that under Rule 17a-3(a)(17),
approximately 41,143,233 customers will need to be provided with
information regarding their account on a yearly basis. The Commission
estimates that the postage costs associated with providing those
customers with copies of their account record information would be
approximately $13,577,267 per year (41,143,233 x $0.33).\1\ The staff
estimates that broker-dealers establishing liquidity, credit, and
market risk management controls pursuant to Rule 17a-3(a)(23) incur
one-time startup costs of $924,000, or $308,000 amortized over a three-
year approval period, to hire outside counsel to review the controls.
The staff further estimates that the ongoing equipment and systems
development costs relating to Rule 17a-3 for the industry would be
about $30,677,094 per year. Consequently, the total cost burden
associated with Rule 17a-3 would be approximately $44,562,361 per year.
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\1\ Estimates of postage costs are derived from past
conversations with industry representatives and have been adjusted
to account for inflation and increases in postage costs.
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Rule 17a-3 does not contain record retention requirements.
Compliance with the rule is mandatory. The required records are
available only to the staffs of the Commission, self-regulatory
organizations of which the broker-dealer is a member, and the states
during examination, inspections and investigations.
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 the 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: October 18, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-25705 Filed 10-24-16; 8:45 am]
BILLING CODE 8011-01-P