[Federal Register Volume 68, Number 29 (Wednesday, February 12, 2003)]
[Notices]
[Pages 7153-7154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3492]


-----------------------------------------------------------------------

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 15g-3, SEC File No. 270-346, OMB Control No. 3235-0392;
Rule 15g-4, SEC File No. 270-347, OMB Control No. 3235-0393;
Rule 15g-5, SEC File No. 270-348 OMB, Control No. 3235-0394;
Rules 17Ad-6 and 17Ad-7, SEC File No. 270-151, OMB Control No. 3235-
0291.

    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 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.
    [sbull] Rule 15g-3 Broker or Dealer Disclosure of Quotations and 
other Information Relating to the Penny Stock Market.
    Rule 15g-3 under the Securities Exchange Act of 1934 (the 
``Exchange Act'') requires that brokers and dealers disclose to 
customers current quotation prices or similar market information in 
connection with transactions in penny stocks. It is estimated that 
approximately 270 respondents incur an average burden of 100 hours 
annually to comply with the rule.
    [sbull] Rule 15g-4 Disclosure of compensation to brokers or 
dealers.
    Rule 15g-4 under the Exchange Act requires brokers and dealers 
effecting transactions in penny stocks for or with customers to 
disclose the amount of compensation received by the broker-dealer in 
connection with the transaction. It is estimated that approximately 270 
respondents incur an average of 100 hours annually to comply with the 
rule.
    [sbull] Rule 15g-5 Disclosure of compensation of associated persons 
in connection with penny stock transactions.
    Rule 15g-5 under the Exchange Act requires brokers and dealers to 
disclose to customers the amount of compensation to be received by 
their sales agents in connection with penny stock transactions. This 
rule was adopted by the Commission to increase the level of disclosure 
to investors concerning penny stocks generally and

[[Page 7154]]

specific penny stock transactions. It is estimated that approximately 
270 respondents incur an average burden of 100 hours annually to comply 
with the rule. The total annual reporting and recordkeeping burden will 
be 27,000 burden hours.
    [sbull] Rules 17Ad-6 and 17Ad-7 Recordkeeping requirements for 
transfer agents
    Rule 17Ad-6 under the Exchange Act requires every registered 
transfer agent to make and keep current records about a variety of 
information, such as: (1) Specific operational data regarding the time 
taken to perform transfer agent activities (to ensure compliance with 
the minimum performance standards in Rule 17Ad-2 (17 CFR 240.17Ad-2)); 
(2) written inquiries and requests by shareholders and broker-dealers 
and response time thereto; (3) resolutions, contracts or other 
supporting documents concerning the appointment or termination of the 
transfer agent; (4) stop orders or notices of adverse claims to the 
securities; and (5) all canceled registered securities certificates.
    Rule 17Ad-7 under the Exchange Act requires each registered 
transfer agent to retain the records specified in Rule 17Ad-6 in an 
easily accessible place for a period of six months to six years, 
depending on the type of record or document. Rule 17Ad-7 also specifies 
the manner in which records may be maintained using electronic, 
microfilm, and microfiche storage methods.
    These recordkeeping requirements ensure that all registered 
transfer agents are maintaining the records necessary to monitor and 
keep control over their own performance and for the Commission to 
adequately examine registered transfer agents on an historical basis 
for compliance with applicable rules.
    We estimate that approximately 1,000 registered transfer agents 
will spend a total of 500,000 hours per year complying with Rules 17Ad-
6 and 17Ad-7. Based on average cost per hour of $50, the total cost of 
compliance with Rule 17Ad-6 is $25,000,000.
    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 
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 Kenneth A. Fogash, Acting 
Associate Executive Director/CIO, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, NW., Washington, DC 
20549.

    Dated: February 4, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-3492 Filed 2-11-03; 8:45 am]
BILLING CODE 8010-01-P