[Federal Register Volume 67, Number 99 (Wednesday, May 22, 2002)]
[Notices]
[Pages 36048-36049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12767]


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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 15c2-5, SEC File No. 270-195, OMB Control No. 3235-0198
    Rule 15Ba2-5, SEC File No. 270-91, OMB Control No. 3235-0088

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 USC 3501 et seq.) the Securities and Exchange Commission 
(``Commission'') is soliciting comments on the collections of 
information summarized below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget for extension and approval.
    Rule 15c2-5 (17 CFR 240.15c2-5) prohibits a broker-dealer from 
arranging or extending a loan to customers, not subject to Regulation T 
(12 CFR 220), in connection with the offer or sale of securities 
unless, before entering the

[[Page 36049]]

transaction, the broker-dealer: (1) Delivers to the customer a written 
statement containing specific information concerning the terms, 
obligations, risks and charges of the loan; (2) obtains from the 
customer sufficient financial information to determine that the entire 
transaction is suitable for the customer; and (3) retains on file and 
makes available to the customer a written statement setting forth the 
broker-dealer's basis for determining that the transaction was 
suitable. The collection of information required by the rule is 
necessary to execute the Commission's mandate under the Securities 
Exchange Act of 1934 (``Exchange Act'') to prevent fraudulent, 
manipulative, and deceptive acts and practices by broker-dealers.
    There are approximately 50 respondents that require an aggregate 
total of 600 hours to comply with the rule. Each of these approximately 
50 registered broker-dealers makes an estimated 6 annual responses, for 
an aggregate total of 300 responses per year. Each response takes 
approximately 2 hours to complete. Thus, the total compliance burden 
per year is 600 burden hours. The approximate cost per hour is $ 24.00 
(based on an annual salary of $ 32,050 for clerical labor plus an 
additional 35% to account for overhead costs, totaling $43,268), 
resulting in a total compliance cost of $14,400 (600 hours @ $24.00 per 
hour).
    On July 7, 1975, effective July 16, 1975 (see 41 FR 28948, July 14, 
1975), the Commission adopted Rule 15Ba2-5 (17 CFR 240.15Ba2-5) under 
the Exchange Act to permit a duly-appointed fiduciary to assume 
immediate responsibility for the operation of a municipal securities 
dealer's business. Without the rule, the fiduciary would not be able to 
assume operation until it registered as a municipal securities dealer. 
Under the rule, the registration of a municipal securities dealer is 
deemed to be the registration of any executor, administrator, 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 such fiduciary files with the Commission, within 30 days after 
entering upon the performance of his duties, a statement setting forth 
as to such fiduciary substantially the same information required by 
Form MSD or Form BD. The statement is necessary to ensure that the 
Commission and the public have adequate information about the 
fiduciary.
    There is approximately 1 respondent per year that requires an 
aggregate total of 4 hours to comply with this rule. This respondent 
makes an estimated 1 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 approximately $80 (i.e., 
4 hours x $20).
    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 will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the 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: May 15, 2002.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-12767 Filed 5-21-02; 8:45 am]
BILLING CODE 8010-01-P