[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)] [Notices] [Page 37776] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-18298] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission Office of Filings and Information Services, Washington, DC 20549. Extension: Rule 15g-2; SEC File No. 270-381; OMB Control No. 3235- 0434 Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (``Commission'') has submitted to the Office of Management and Budget requests for approval of extension on the following rule: Rule 15g-2 requires broker-dealers to provide their customers with a risk disclosure document, as set forth in Schedule 15G,\1\ prior to their first non-exempt transaction in a ``penny stock.'' The rule requires broker-dealers to obtain written acknowledgement from the customer that he or she has received the required risk disclosure document. The rule also requires broker-dealers to maintain a copy of the customer's written acknowledgment 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. --------------------------------------------------------------------------- \1\ Schedule 15G explains the risks of investing in penny stocks; important concepts associated with the penny stock market; the broker-dealer's duties to customers; a toll-free telephone number through which a customer may inquire about the disciplinary history of a broker-dealer; the customer's rights and remedies in cases of fraud or abuse in connection with transactions in penny stocks; and certain other significant information. --------------------------------------------------------------------------- Approximately 270 broker-dealers are subject to Rule 15g-2, and each one of these firms will process an average of approximately 156 risk disclosure documents per year. The total ongoing respondent burden is approximately 4 minutes per response, or an aggregate total of 624 minutes per respondent. Since there are 270 respondents, the annual burden 2808 hours. In addition, 270 broker-dealers will incur a recordkeeping burden of approximately one minute per response. Thus, respondents as a group will incur an aggregate annual recordkeeping burden of 702 hours. The total annual hour burden is 3510 hours. The total cost of ongoing compliance for the respondents and recordkeepers is $70,200. General comments regarding the estimated burden hours should be directed to the Desk Officer for the Securities and Exchange Commission at the address below. Any comments concerning the accuracy of the estimated average burden hours for compliance with Commission rules and forms should be directed to Michael E. Bartell, Associate Executive Director, Office of Information Technology, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549 and Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 3208, New Executive Office Building, Washington, D.C. 20503. Dated: July 10, 1996. Margaret H. McFarland, Deputy Secretary. [FR Doc. 96-18298 Filed 7-18-96; 8:45 am] BILLING CODE 8010-01-M