[Federal Register Volume 68, Number 183 (Monday, September 22, 2003)]
[Notices]
[Pages 55071-55072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24087]


=======================================================================
-----------------------------------------------------------------------

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: Rules 17h-1T and 17h-2T, SEC File No. 270-359, OMB Control 
No. 3235-0410
    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. The Code of Federal Regulation citations 
to this collection of information are the following rules: 17 CFR 
240.17h-1T and 17 CFR 240.17h-2T.
    Rule 17h-1T requires a broker-dealer to maintain and preserve 
records and other information concerning certain entities that are 
associated with the broker-dealer. This requirement extends to the 
financial and securities activities of the holding company, affiliates 
and subsidiaries of the broker-dealer that are reasonably likely to 
have a material impact on the financial or operational condition of the 
broker-dealer. Rule 17h-2T requires a broker-dealer to file with the 
Commission quarterly reports and a cumulative year-end report 
concerning the information required to be maintained and preserved 
under Rule 17h-1T.
    The collection of information required by Rules 17h-1T and 17h-2T 
is necessary to enable the Commission to monitor the activities of a 
broker-dealer affiliate whose business activities is reasonably likely 
to have a material impact on the financial and operational condition of 
the broker-dealer. Without this information, the Commission would be 
unable to assess the potentially damaging impact of the affiliate's 
activities on the broker-dealer.
    There are currently 166 respondents that must comply with Rules 
17h-1T and 17h-2T. Each of these 166 respondents require approximately 
10 hours per year, or 2.5 hours per quarter, to maintain the records 
required under Rule 17h-1T, for an aggregate annual burden of 1,660 
hours (166 respondents x 10 hours). In addition, each of these 166 
respondents must make five annual responses under Rule 17h-2T. These 
five responses require approximately 14 hours per respondent per year, 
or 3.5 hours per quarter, for an aggregate annual burden of 2,324 hours 
(166 respondents X 14 hours). In addition, there are approximately 
seven new respondents per year that must draft an organizational chart 
required under Rule 17h-1T and establish a system for complying with 
the Rules. The staff estimates that drafting the required 
organizational chart requires one hour and establishing a system for 
complying with the Rules requires three hours, thus requiring an 
aggregate of 28 hours (7 new respondents x 4 hours). Thus, the total 
compliance burden per year is approximately 4,012 burden hours (1,660 + 
2,324 + 28).
    Rule 17h-1T specifies that the records required to be maintained 
under the Rule must be preserved for a period of not less than three 
years. There is no specific retention period or record keeping 
requirement for Rule 17h-2T. The collection of information is mandatory 
and the information required to be provided to the Commission pursuant 
to these Rules are deemed confidential, notwithstanding any other 
provision of law under section 17(h)(5) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78q(h)(5)) and section 552(b)(3)(B) of the Freedom 
of Information Act (5 U.S.C. 552(b)(3)(B)).

[[Page 55072]]

    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 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 Fifth Street, NW., Washington, 
DC 20549. Comments must be submitted to OMB within 30 days of this 
notice.

    Dated: September 15, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-24087 Filed 9-18-03; 12:01 pm]
BILLING CODE 8010-01-P