[Federal Register Volume 68, Number 76 (Monday, April 21, 2003)]
[Notices]
[Pages 19584-19585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9674]


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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 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'') has submitted to the Office of Management 
and Budget requests for extension of the previously

[[Page 19585]]

approved collections of information discussed below.
    [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 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.
    The retention period for the recordkeeping requirements under Rule 
17Ad-6 is six months to one year. In addition, such records must be 
retained for a total of two to six years or for one year after 
termination of the transfer agency, depending on the particular record 
or document. The recordkeeping requirements under Rules 17Ad-6 and 
17Ad-7 are mandatory to assist the Commission and other regulatory 
agencies with monitoring transfer agents and ensuring compliance with 
the rule. This rule does not involve the collection of confidential 
information.
    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.
    General 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 10102, New Executive Office 
Building, Washington, DC 20503; and (ii) Kenneth A. Fogash, Acting 
Associate Executive Director/CIO, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, NW., Washington, DC 
20549. Comments must be submitted to OMB within 30 days of this notice.

    Dated: April 14, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-9674 Filed 4-18-03; 8:45 am]
BILLING CODE 8010-01-P