[Federal Register Volume 66, Number 8 (Thursday, January 11, 2001)]
[Notices]
[Page 2461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-788]


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SECURITIES AND EXCHANGE COMMISSION

[Rule 15g-9; SEC File No. 270-325; OMB Control No. 3235-0385]


Proposed Collection; Comment Request

    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 comment on the collection of 
information described below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for extension and approval.

Rule 15g-9, Sales Practice Requirements for Certain Low-Priced 
Securities

    Section 15(c)(2) of the Securities Exchange Act of 1934 (the 
``Exchange Act'') authorizes the Commission to promulgate rules that 
prescribe means reasonably designed to prevent fraudulent, deceptive, 
or manipulative practices in connection with over-the-counter (``OTC'') 
securities transactions. Pursuant to this authority, the Commission in 
1989 adopted rule 15a-6 (the ``Rule''), which was subsequently 
redesignated as rule 15g-9, 17 CFR 240.15g-9. The Rule requires broker-
dealers to produce a written suitability determination for, and to 
obtain a written customer agreement to, certain recommended 
transactions in low-priced stocks that are not registered on a national 
securities exchange or authorized for trading on NASDAQ, and whose 
issuers do not meet certain minimum financial standards. The Rule is 
intended to prevent the indiscriminate use by broker-dealers of 
fraudulent, high-pressure telephone sales campaigns to sell low-priced 
securities to unsophisticated customers.
    The staff estimates that approximately 270 broker-dealers incur an 
average burden of 78 hours per year to comply with this rule. Thus, the 
total annual burden to comply with the Rule is estimated at 21,060 
hours (270  x  78).
    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 on 
respondents; and (d) ways to minimuze 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 comments to Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.

    Dated: January 4, 2001.
Jonathan G. Katz,
Secretary.
[FR Doc. 01-788 Filed 1-10-01; 8:45 am]
BILLING CODE 8010-01-M