[Federal Register Volume 64, Number 165 (Thursday, August 26, 1999)]
[Notices]
[Pages 46733-46735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22115]


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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:
    Form BDW, SEC File No. 270-17, OMB Control No. 3235-0018
    Form 15Ba2-5, SEC File No. 270-91, OMB Control No. 3235-0088
    Form 15c1-5, SEC File No. 270-422, OMB Control No. 3235-0471
    Form 15c1-6, SEC File No. 270-423, OMB Control No. 3235-0472
    Form 15c3-1, SEC File No. 270-197, OMB Control No. 3235-0200
    Form 17Ad-3(b), SEC File No. 270-424, OMB Control No. 3235-0473
    Form 17Ad-17, SEC File No. 270-412, OMB Control No. 3235-0469
    Form 17a-10, SEC File No. 270-154, OMB Control No. 3235-0122
    Form 17f-2(c), SEC File No. 270-35, OMB Control No. 3235-0029

    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 extension of the previously approved collections of 
information discussed below and as defined under the Securities 
Exchange Act of 1934 (``Exchange Act'').
    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 
inure an 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

[[Page 46734]]

per hour, would be $7,875 (225  x  $35 = 7,875).
    Rule 15Ba2-5, Registration of Fiduciaries permits a duly appointed 
fiduciary to assume immediate responsibility for the operation of a 
municipal securities dealer's business. Without Rule 15Ba2-5, the 
fiduciary would not be able to assume operation until it registered as 
a municipal securities dealer. Under Rule 15Ba2-5, 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, with 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 Rule 15Ba2-5. 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 in $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 (7,800 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. Rule 15c3-1 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 Rule 15c3-1.
    Rule 17Ad-3(d) 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 non-compliance with the Commission's minimum performance 
standards regarding registered transfer agents, 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 agents' failure to comply with the Commission's minimum 
performance standards than 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 of 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 Rule 17Ad-
3(b), such transfer agent is simply sending a copy of a form that has 
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 Rule 17Ad-17.
    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 with 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 17a-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 complying with Rule 17a-10. The total burden is 
estimated to be approximately 4,200 hours. Each broker-dealer will 
spend approximately $1,200 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 Exchange Act 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 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

[[Page 46735]]

responsibly and with due care for confidentiality.
    To date, plans have been approved for seven exchanges and one 
national securities association: the American Stock Exchange, the 
Boston Stock Exchange, the Chicago Stock Exchange, the New York Stock 
Exchange, the Pacific 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid control number.
    Written comments regarding the above information should be directed 
to the following persons: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503; and (ii) Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549. 
Comments must be submitted to OMB within 30 days of this notice.

    Dated: August 16, 1999.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-22115 Filed 8-25-99; 8:45 am]
BILLING CODE 8010-01-M