[Federal Register Volume 69, Number 224 (Monday, November 22, 2004)]
[Notices]
[Pages 67967-67968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3267]


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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 17a-3; SEC File No. 270-026; OMB Control No. 3235-
0033.

    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 (``OMB'') a request for extension of the previously approved 
collection of information discussed below.
    Rule 17a-3 [17 CFR 240.17a-3] under the Securities Exchange Act of 
1934 requires records to be made by certain exchange members, brokers, 
and dealers, to be used in monitoring compliance with the Commission's 
financial responsibility program and antifraud and antimanipulative 
rules as well as other rules and regulations of the Commission and the 
self-regulatory organizations. It is estimated that approximately 6,900 
active broker-dealer respondents registered with the Commission incur 
an average burden of 2,421,195 hours per year to comply with this rule. 
It is estimated that approximately 6,900 active broker-dealer 
respondents registered with the Commission incur an average burden of 
2,421,195 hours per year to comply with this rule. The Commission 
believes that requirements included in Rule 17a-3(a)(17) relating to 
new account data would be performed by clerical workers. The hourly 
wage of the average person who would be providing customers with 
account record information is $24 per hour.\1\ The hourly wage of the 
average person who would be updating account record information is $25 
per hour.\2\ Thus the aggregate cost of these hours is about $16.86 
million ((601,753 hours x $24)\3\ + (96,742 hours x $25)\4\). The 
Commission believes that requirements contained in the rest of Rule 
17a-3 would be performed by individuals in a broker-dealer's compliance 
department

[[Page 67968]]

at $82 per hour.\5\ Thus, the dollar cost of the 4,600 yearly hours 
incurred as a result of these rules is 1,722,700 x 82 = $171.66 
million. The total cost of ongoing compliance with Rule 17a-3 is $16.86 
+ $171.66 = $188.52 million.
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    \1\ This figure is based on the SIA Report on Office Salaries In 
the Securities Industry 2003 (Retail Sales Assistant, Junior) and 
includes 35% for overhead charges.
    \2\ This figure is based on the SIA Report on Office Salaries In 
the Securities Industry 2003 (Data Entry Clerk, Senior) and includes 
35% for overhead charges.
    \3\ This figure comes to approximately $14,442,072.
    \4\ This figure comes to approximately $2,418,550.
    \5\ This figure is based on statistics collected by the 
Commission's Office of Economic Analysis.
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    The Commission believes that requirements included in Rule 17a-
3(a)(17) relating to new account data would be performed by clerical 
workers. The hourly wage of the average person who would be providing 
customers with account record information is $24 per hour.\6\ The 
hourly wage of the average person who would be updating account record 
information is $25 per hour.\7\ Thus the aggregate cost of these hours 
is about $16.86 million ((601,753 hours x $24)\8\ + (96,742 hours x 
$25)\9\). The Commission believes that requirements contained in the 
rest of Rule 17a-3 would be performed by individuals in a broker-
dealer's compliance department at $82 per hour.\10\ Thus, the dollar 
cost of the 4,600 yearly hours incurred as a result of these rules is 
1,722,700 x 82 = $171.66 million. The total cost of ongoing compliance 
with Rule 17a-3 is $16.86 + $171.66 = $188.52 million.
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    \6\ This figure is based on the SIA Report on Office Salaries In 
the Securities Industry 2003 (Retail Sales Assistant, Junior) and 
includes 35% for overhead charges.
    \7\ This figure is based on the SIA Report on Office Salaries In 
the Securities Industry 2003 (Data Entry Clerk, Senior) and includes 
35% for overhead charges.
    \8\ This figure comes to approximately $14,442,072.
    \9\ This figure comes to approximately $2,418,550.
    \10\ This figure is based statistics collected by the 
Commission's Office of Economic Analysis.
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    Rule 17a-3 does not contain record retention requirements. 
Compliance with the rule is mandatory. The required records are 
available only to the examination staff of the Commission and the self-
regulatory organization of which the broker-dealer is a member. 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 estimated burden hours should be 
directed to the following persons: (i) Desk Officer for the Securities 
and Exchange Commission, by sending an e-mail to [email protected]; and (ii) R. Corey Booth, Director/Chief 
Information Officer, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Comments must be submitted to the Office of Management and Budget 
within 30 days of this notice.

    Dated: November 15, 2004.
Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-3267 Filed 11-19-04; 8:45 am]
BILLING CODE 8010-01-P