[Federal Register Volume 66, Number 30 (Tuesday, February 13, 2001)]
[Notices]
[Pages 10036-10037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3624]


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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 17a-4; SEC File No. 270-198; OMB Control No. 
3235-0279.

    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 of information to the Office of Management and 
Budget for extension and approval.
    Rule 17a-4 (17 CFR 240.17a-4) requires exchange members, brokers 
and dealers to preserve for prescribed periods of time certain records 
required to be made by Rule 17a-3. In addition, Rule 17a-4 requires the 
preservation of records required to be made by other Commission rules 
and other kinds of records which firms make or receive in the ordinary 
course of business. These include, but are not limited to, bank 
statements, cancelled checks, bills receivable and payable, originals 
of communications, and descriptions of various transactions. Rule 17a-4 
also permits broker-dealers to employ, under certain conditions, 
electronic storage media to maintain records required to be maintained 
under Rules 17a-3 and 17a-4.
    These are approximately 7,525 active, registered broker-dealers. 
The staff estimates that the average amount of time necessary to 
preserve the books and records as required by Rule 17a-4 is 1.001 hours 
per broker-dealer per working day. Thus the staff estimates that 
because there are approximately 250 business day per year, the total 
compliance burden for 7,525 respondents is 1,883,131 hours.
    The staff believes that compliance personnel would be charged with 
ensuring compliance with Commission regulation, including Rule 17a-4. 
The staff estimates that the hourly salary of a compliance manager is 
$82.50 per hour.\1\ Based upon these numbers, the total cost of 
compliance for 7,525 respondents is $155,358,308 per year.\2\ Despite 
the total burden hour decrease of 244,054 (resulting from the decrease 
in the number of respondents from 8,500 to 7,525), the increase in the 
estimated hourly salary used (from $48.08 as used in previous estimates 
to

[[Page 10037]]

the $82.50 obtained from the Securities Industry Association's survey 
of industry salaries, which was not previously available) caused the 
total cost of compliance to be $53,086,138 higher than the previous 
estimate of $102,272.170.
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    \1\ Securities Industry Association, Management and Professional 
Earnings, Table 051 (Compliance Manager) + 35% overhead (based on 
end-of-year 1998 figures).
    \2\ (1.001 hours per day  x  250 days  x  7,525 active, 
registered broker-dealer respondents) = 1,883,131 total hours per 
year. (1,883,131 hours  x  $82.50 per hour) = $155,358,308 per year.
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    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 the 
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: February 6, 2001.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-3624 Filed 2-12-01; 8:45 am]
BILLING CODE 8010-01-M