[Federal Register Volume 67, Number 147 (Wednesday, July 31, 2002)]
[Notices]
[Page 49714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-19318]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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 U.S.C. 3501 et seq.) the Securities and Exchange Commission 
(``Commission'') has submitted to the Office of Management and Budget 
requests for extension of the previously approved collections of 
information discussed below.
    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 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).
    Although Rule 15c2-5 does not specify a retention period or record 
keeping requirement under the rule, nevertheless broker-dealers are 
required to preserve the records for a period no less than six years 
pursuant to Rule 17a-4(c). The information required under Rule 15c2-5 
is necessary for broker-dealers to engage in the lending activities 
prescribed in the rule. Rule 15c2-5 does not assure confidentiality for 
the information retained under the rule.\1\
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    \1\ The records required by Rule 15c2-5 would be available only 
to the examination of the Commission staff, state securities 
authorities and the SROs. Subject to the provisions of the Freedom 
of Information Act, 5 U.S.C. 522, and the Commission's rules 
thereunder (17 CFR 200.80(b)(4)(iii)), the Commission does not 
generally publish or make available information contained in any 
reports, summaries, analyses, letters, or memoranda arising out of, 
in anticipation of, or in connection with an examination or 
inspection of the books and records of any person or any other 
investigation.
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    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).
    Please note that an agency may not conduct or sponsor, and a person 
is not required to respond to, a collection of information unless it 
displays a currently valid control number.
    Written comments regarding the above information should be directed 
to the following persons: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10202, New Executive Office 
Building, Washington, DC 20503; and (ii) Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549. 
Comments must be submitted to OMB within 30 days of this notice.

    Dated: July 23, 2002.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-19318 Filed 7-30-02; 8:45 am]
BILLING CODE 8010-01-P