[Federal Register Volume 67, Number 31 (Thursday, February 14, 2002)]
[Notices]
[Page 6951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3629]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Extension of Existing 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-13, SEC File No. 270-27, OMB Control No. 3235-0035.

    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. The Code of Federal Regulations 
citation to this collection of information is the following rule: 17 
CFR 240.17a-13 Quarterly Security Counts to be Made by Certain Exchange 
Members, Brokers, and Dealers.
    Rule 17a-13(b) generally requires that at least once each calendar 
quarter, all registered brokers and dealers physically examine and 
count all securities held and account for all other securities not in 
their possession, but subject to the broker-dealer's control or 
direction. Any discrepancies between the broker-dealer's securities 
count and the firm's records must be noted and, within seven days, the 
unaccounted for difference must be recorded in the firm's records. Rule 
17a-13(c) provides that under specified conditions, the securities 
counts, examination and verification of the broker-dealer's entire list 
of securities may be conducted on a cyclical basis rather than on a 
certain date. Although Rule 17a-13 does not require filing a report 
with the Commission, security count discrepancies must be reported on 
Form X-17a-5 as required by Rule 17a-5. Rule 17a-13 exempts broker-
dealers that limit their business to the sale and redemption of 
securities of registered investment companies and interests or 
participation in an insurance company separate account and those who 
solicit accounts for federally insured savings and loan associations, 
provided that such persons promptly transmit all funds and securities 
and hold no customer funds and securities.
    The information obtained from Rule 17a-13 is used as an inventory 
control device to monitor a broker-dealer's ability to account for all 
securities held, in transfer, in transit, pledged, loaned, borrowed, 
deposited or otherwise subject to the firm's control or direction. 
Discrepancies between the securities counts and the broker-dealer's 
records alert the Commission and the Self Regulatory Organizations 
(``SROs'') to those firms having problems in their back offices.
    Because of the many variations in the amount of securities that 
broker-dealers are accountable for, it is difficult to develop a 
meaningful figure for the cost of compliance with Rule 17a-13. 
Approximately 91% of all registered broker-dealers are subject to Rule 
17a-13. Accordingly, approximately 6,579 broker-dealers have 
obligations under the Rule, and the average time it would take each 
broker-dealer to comply with the Rule is 100 hours per year, for a 
total estimated annualized burden of 657,900 hours. It should be noted 
that a significant number of firms subject to Rule 17a-13 have minimal 
obligations under the Rule because they do not hold securities. It 
should further be noted that most broker-dealers would engage in the 
activities required by Rule 17a-13 even if they were not required to do 
so.
    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 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, NW., Washington, DC 
20549.

    Dated: February 7, 2002.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-3629 Filed 2-13-02; 8:45 am]
BILLING CODE 8010-01-U