[Federal Register Volume 65, Number 223 (Friday, November 17, 2000)]
[Notices]
[Page 69580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29442]


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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 15c3-3, SEC File No. 270-87, OMB Control No. 3235-
0078.

    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 this 
existing collection[s] of information to the Office of Management and 
Budget for extension and approval.

 Rule 15c3-3 Customer Protection--Reserves and Custody of 
Securities

    Rule 15c3-3 requires broker-dealers that hold customer securities 
to obtain and maintain possession and control of fully paid and excess 
margin securities they hold for customers. In addition, the rule 
requires broker-dealers that hold customer funds to make either a 
weekly or monthly computation to determine whether certain customer 
funds need to be segregated in a special reserve bank account for the 
exclusive benefit of the firm's customers. It also requires broker-
dealers (1) to maintain a description of the procedures utilized to 
comply with the possession and control requirements of the rule; (2) to 
maintain a written notification from the bank where the Special Reserve 
Bank Account is located that all assets in the account are for the 
exclusive benefit of broker-dealer's customers; and (3) to give 
telegraphic notice to the Commission, and the appropriate Self-
Regulatory Organization under certain circumstances.
    Commission staff estimates that the average number of hours 
necessary for each broker-dealer subject to the rule to make the 
required reserve computations is 2.5 hours per response. Approximately 
327 broker-dealers choose to make a weekly computation and 115 broker-
dealers choose to make a monthly computation. Accordingly, the total 
burden for this requirement is estimated to be 45,960 hours annually 
for all broker-dealers, based upon past submissions. The staff believes 
that financial reporting specialists will make the computations. The 
staff estimates that the hourly salary of a financial reporting 
specialist is $72.40 per hour.\1\ Consequently, Commission staff 
estimates that the annual total cost of compliance with the reserve 
computation requirement for all broker-dealers, taking overhead into 
consideration, is $3,327,504.
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    \1\ Per Securities Industry Association (SIA) Management and 
Professional Earnings, Table 011 (Financial Reporting Manager) + 35% 
overhead (based on end-of-year 1998 figures).
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    In addition, Commission staff estimates that broker-dealers file 
approximately 30 notices per year pursuant to the rule. Commission 
staff estimates that it takes approximately 30 minutes to file each 
notice. Accordingly, the total burden for this requirement is estimated 
to be 15 hours annually for all broker-dealers, based on past 
submissions. The average cost per hour is approximately $72.40. 
Consequently, Commission staff estimates that the annual total cost of 
compliance with the notice requirement for all broker-dealers, taking 
overhead into consideration, is $1,086.
    Based on the above, Commission staff estimates that the total cost 
of compliance with the rule for all broker-dealers is $3,328,590.
    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 estimate 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.
    Direct your written comments to Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 5th Street, NW., Washington, DC 20549.

    Dated: November 9, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-29442 Filed 11-16-00; 8:45 am]
BILLING CODE 8010-01-M