[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]


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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 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.
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    \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.
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    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