[Federal Register Volume 64, Number 116 (Thursday, June 17, 1999)]
[Notices]
[Pages 32558-32560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15346]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection, Comment Request
Upon Written Request, Copies Available From: Securities and
Exchange Commission, Office of Filings and Information Services,
Washington, DC 20549.
Extension:
Rule 15b6-1; Form BDW............................. SEC File No. 270-17.......... OMB Control No. 3235-0018.
Rule 15Ba2-5...................................... SEC File No. 270-91.......... OMB Control No. 3235-0088.
Rule 15c1-5....................................... SEC File No. 270-422......... OMB Control No. 3235-0471.
Rule 15c1-6....................................... SEC File No. 270-423......... OMB Control No. 3235-0472.
Rule 15c3-1....................................... SEC File No. 270-197......... OMB Control No. 3235-0200.
Rule 17Ad-3(b).................................... SEC File No. 270-424......... OMB Control No. 3235-0473.
Rule 17Ad-17...................................... SEC File No. 270-412......... OMB Control No. 3235-0469.
Rule 17a-10....................................... SEC File No. 270-154......... OMB Control No. 3235-0122.
Rule 17f-2(c)..................................... SEC File No. 270-35.......... OMB Control No. 3235-029.
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'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit these
existing collections of information to the Office of Management and
Budget for extension and approval.
Form BDW is used by broker-dealers to withdraw from registration
with the Commission, the self-regulatory organizations, and the states.
It is estimated that approximately 900 broker-dealers annually will
incur an
[[Page 32559]]
average burden of 15 minutes, or 0.25 hours, to file for withdrawal on
Form BDW via the internet with Web CRD, a computer system operated by
the National Association of Securities Dealers, Inc. that maintains
information regarding broker-dealers and their registered personnel.
The annualized compliance burden per year is 225 hours (900 x 25 =
225 hours). The annualized cost to respondents, utilizing staff at an
estimated cost of $35 per hour, would be $7,875 (225 x $35 = $7,875).
Rule 15Ba2-5 permits a duly appointed fiduciary to assume immediate
responsibility for the operation of a municipal securities dealer's
business. Without the rule, the fiduciary would not be able to assume
operation until it registered as a municipal securities dealer. Under
the rule, the registration of a municipal securities dealer is deemed
to be the registration of any executor, guardian, conservator, assignee
for the benefit of creditors, receiver, trustee in insolvency or
bankruptcy, or other fiduciary appointed or qualified by order,
judgment, or decree of a court of competent jurisdiction to continue
the business of such municipal securities dealer, provided that the
fiduciary files with the Commission, within 30 days after entering upon
the performance of its duties, a statement setting forth substantially
the same information required by Form MSD or Form BD. That statement is
necessary to ensure that the Commission and the public have adequate
information about the fiduciary.
There is approximately one respondent per year that requires an
aggregate total of 4 hours to comply with this rule. This respondent
makes an estimated one annual response. Each response takes
approximately 4 hours to complete. Thus, the total compliance burden
per year is 4 burden hours. The approximate cost per hour is $20,
resulting in a total cost of compliance for the respondent of $80 (i.e,
4 hours x $20).
Rule 15c1-5 states that any broker-dealer controlled by,
controlling, or under common control with the issuer of a security that
the broker-dealer is trying to sell to or buy from a customer must give
the customer written notification disclosing the control relationship
at or before completion of the transaction. The Commission estimates
that 390 respondents collect information annually under Rule 15c1-5 and
that approximately 3,900 hours would be required annually for these
collections. The approximate cost per hour is $100, resulting in a
total cost of compliance for the respondents of $390,000 (3,900 hours @
$100).
Rule 15c1-6 states that any broker-dealer trying to sell to or buy
from a customer a security in a primary or secondary distribution in
which the broker-dealer is participating or is otherwise financially
interested must give the customer written notification of the broker-
dealer's participation or interest at or before completion of the
transaction. The Commission estimates that 780 respondents collect
information annually under Rule 15c1-6 and that approximately 7,800
hours would be required annually for these collections. The approximate
cost per hour is $100, resulting in a total cost of compliance for the
respondents of $780,000 (8,800 hours @ $100).
Rule 15c3-1 requires brokers and dealers to have at all times
sufficient liquid assets to meet their current liabilities,
particularly the claims of customers. The rule facilitates monitoring
the financial condition of brokers and dealers by the Commission and
the various self-regulatory organizations. It is estimated that
approximately 8,500 active broker-dealer respondents registered with
the Commission incur an aggregate burden of 950 hours per year to
comply with this rule.
Rule 17Ad-3(b) requires registered transfer agents which for each
of two consecutive months have failed to turnaround at least 75% of all
routine items in accordance with the requirements of Rule 17Ad-2(a) or
to process at least 75% of all routine items in accordance with the
requirements of Rule 17Ad-2(a) to send to the chief executive officer
of each issuer for which such registered transfer agent acts a copy of
the written notice required under Rule 17Ad-2(c), (d), and (h). The
issuer may use the information contained in the notices in several
ways: (1) to provide an early warning to the issuer of the transfer
agent's and (2) to assure that issuers are aware of certain problems
and poor performances with respect to the transfer agents that are
servicing the issuer's securities. If the issuer does not receive
notice of a registered transfer agent's failure to comply with the
Commission's minimum performance standards then the issuer will be
unable to take remedial action to correct the problem or to find
another registered transfer agent. Pursuant to Rule 17Ad-3(b), a
transfer agent that has already filed a Notice of Non-Compliance with
the Commission pursuant to Rule 17Ad-2 will only be required to send a
copy of that notice to issuers for which it acts when that transfer
agent fails to turnaround 75% of all routine items or to process 75% of
all items.
The Commission estimates that the seven transfer agents that filed
the Notice of Non-Compliance pursuant to Rule 17Ad-2, only two transfer
agents will meet the requirements of Rule 17Ad-3(b) . If a transfer
agent fails to meet the minimum requirements under 17Ad-3(b), such
transfer agent is simply sending a copy of a form that had already been
produced for the Commission. The Commission estimates a requirement
will take each respondent approximately one hour to complete, for a
total annual estimate burden of two hours at cost of approximately
$60.00 for each hour.
Rule 17Ad-17 requires approximately 1,500 registered transfer
agents to conduct searches using third party database vendors to
attempt to locate lost securityholders. These recordkeeping
requirements assist the Commission and other regulatory agencies with
monitoring transfer agents and ensuring compliance with the rule.
The staff estimates that the average number of hours necessary for
each transfer agent to comply with Rule 17Ad-17 is five hours annually.
The total burden is 7,500 hours annually for all transfer agents. The
cost of compliance for each individual transfer agent depends on the
number of lost accounts at each transfer agent. Based on information
received from transfer agents, we estimate that the annual cost
industry wide is $5.2 million.
Rule 17a-10 requires broker-dealers that are exempted from the
filing requirements of paragraph (a) of Rule 17s-5 to file with the
Commission an annual statement of income (loss) and balance sheet. It
is anticipated that approximately 350 broker-dealers will spend 12
hours per year comply with Rule 17a-10. The total burden is estimated
to be approximately 4,200 hours. Each broker-dealer will spend
approximately $1,200.00 per response for a total annual expense for all
broker-dealers of $420,000.
Rule 17f-2(c) allows persons required to be fingerprinted pursuant
to Section 17(f)(2) of the Securities Exchange Act of 1934 to submit
their fingerprints through a national securities exchange or a national
securities association in accordance with a plan submitted to and
approved by the Commission. The plan or information is collected from
the exchange or national securities association only once.
Because the Federal Bureau of Investigation will not accept
fingerprint cards directly from submitting organizations, Commission
approval of plans from certain exchanges and
[[Page 32560]]
national securities associations is essential to the Congressional goal
of fingerprint personnel in the security industry. The filing of these
plans for review assures users and their personnel that fingerprint
cards will be handled responsibly and with due care for
confidentiality.
To date, plans have been approved for seven exchanges and one
national securities associations: the American Stock Exchange, the
Boston Stock Exchange, the Chicago Stock Exchange, the New York Stock
Exchange, the Pacific Stock Exchange, the Philadelphia Stock Exchange,
and the Chicago Board Options Exchange, and for the National
Association of Securities Dealers (collectively the ``SROs''). For the
SROs that have already submitted their fingerprint plans to the
Commission, there is no requirement for them with approved plans to
submit subsequent filings to the Commission and, therefore, there is no
continuing annual reporting or recordkeeping burden.
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimates of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
Please direct your written comments to Michael E. Bartell,
Associate Executive Director, Office of Information Technology,
Securities and Exchange Commission, 450 5th Street, N.W., Washington,
D.C. 20549.
Dated: June 9, 1999.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-15346 Filed 6-16-99; 8:45 am]
BILLING CODE 8010-01-M