[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]


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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.
    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