[Federal Register Volume 62, Number 45 (Friday, March 7, 1997)] [Notices] [Page 10598] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-5592] ----------------------------------------------------------------------- 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. Revision: Rule 17a-4, SEC File No. 270-198, OMB Control No. 3235- 0279. 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 approval of revision on the following rule: Rule 17a-4 (17 CFR 240.17a-4) requires exchange members, brokers and dealers to preserve for prescribed periods of time certain records required to be made by Rule 17a-3. In addition, Rule 17a-4 requires the preservation of records required to made by other Commission rules and other kinds of records which firms make or receive in the ordinary course of business. These include, but are not limited to, bank statements, cancelled checks, bills receivable and payable, originals of communications, and descriptions of various transactions. Rule 17a-4 now permits broker-dealers to employ, under certain conditions, electronic storage media to maintain records required to be maintained under Rules 17a-3 and 17a-4. There are approximately 8,500 broker-dealers. Based on conversations with members of the securities industry and based on the Commission's experience in this area, it is estimated that the average amount of time necessary to preserve the books and records as required by Rule 17a-4 is one hour per broker per working days. Therefore, because there are approximately 250 business days per year, the total compliance burden for 8,500 respondents is 2,125,000 hours. In addition, the average amount of time necessary to comply with the final amendments will be 15 minutes per year. Accordingly, the total burden of compliance will be increased by 2,125 hours per year to 2,127,125. The Commission estimates that typical employee of a broker-dealer charged with ensuring compliance with Commission regulation receives annual compensation of $100,000. This compensation is the equivalent of $48.08 per hour ($100,000 divided by 2,080 payroll hours per year). Since the rule amendment would require an additional 2,125 hours per year to comply, at $48.08 per hour, the total cost of compliance for these respondents would be $102,170. 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, NW., Washington, DC 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, DC 20503. Dated: February 26, 1997. Margaret H. McFarland, Deputy Secretary. [FR Doc. 97-5592 Filed 3-6-97; 8:45 am] BILLING CODE 8010-01-M