[Federal Register Volume 63, Number 55 (Monday, March 23, 1998)]
[Page 13887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7428]

[[Page 13887]]



Submission for OMB Review; Comment Request

Upon written request, copies available from: Securities and Exchange 
Commission, Office of Filings and Information Services, 450 Fifth 
Street, N.W., Washington, D.C. 20549.
Extension: Rule 15g-9, SEC File No. 270-325, OMB Control No. 3235-0385.

    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 a 
request for extension of the previously approved collection of 
information discussed below.
     Rule 15g-9, Sales Practice Requirements for Certain Low-
Priced Securities.
    Section 15(c)(2) of the Securities Exchange Act of 1934 (the 
``Exchange Act'') authorizes the Commission to promulgate rules that 
prescribe means reasonably designed to prevent fraudulent, deceptive, 
or manipulative practices in connection with over-the-counter (``OTC'') 
securities transactions. Pursuant to this authority, the Commission in 
1989 adopted Rule 15a-6 (the ``Rule''), which was subsequently 
redesignated as Rule 15g-9, 17 CFR 240.15g-9. The Rule requires broker-
dealers to produce a written suitability determination for, and to 
obtain a written customer agreement to, certain recommended 
transactions in low-priced stocks that are not registered on a national 
securities exchange or authorized for trading on NASDAQ, and whose 
issuers do not meet certain minimum financial standards. The Rule is 
intended to prevent the indiscriminate use by broker-dealers of 
fraudulent, high pressure telephone sales campaigns to sell low-priced 
securities to unsophisticated customers. The staff estimates that 
approximately 270 broker-dealers incur an average burden of 78 hours 
per year to comply with this rule. Thus, the total burden hours to 
comply with the Rule is estimated at 21,060 hours (270  x  78).
    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 control number.
    Written comments regarding the above information should be directed 
to the following persons: (i) 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; and (ii) Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, 
D.C. 20549. Comments must be submitted to OMB within 30 days of this 

    Dated: March 16, 1998.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-7428 Filed 3-20-98; 8:45 am]