[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]


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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

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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

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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