[Federal Register Volume 70, Number 104 (Wednesday, June 1, 2005)]
[Notices]
[Pages 31549-31550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2755]


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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 15c2-5; SEC File No. 270-195; OMB Control No. 3235-0198.

    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 collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for extension and approval. The Code of Federal Regulations 
citation to this collection of information is the following rule: 17 
CFR 240.15c2-5.
    Rule 15c2-5 prohibits a broker-dealer from arranging or extending 
certain loans to persons in connection with the offer or sale of 
securities unless, before any element of the transaction is entered 
into, the broker-dealer: (1) Delivers to the person a written statement 
containing the exact nature and extent of the person's obligations 
under the loan arrangement; the risks and disadvantages of the loan 
arrangement; and all commissions, discounts, and other remuneration 
received and to be received in connection with the transaction by the 
broker-dealer or certain related persons (unless the person receives 
certain materials from the lender or broker-dealer which contain the 
required information); and (2) obtains from the person information on 
the person's financial situation and needs, reasonably determines that 
the transaction is suitable for the person, and retains on file and 
makes available to the person on request 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 $25.00 
(based on an annual salary of $52,000 for clerical labor), resulting in 
a total compliance cost of $15,000 (600 hours @ $25.00 per hour).
    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 will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information 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

[[Page 31550]]

to comments and suggestions submitted in writing within 60 days of this 
publication.
    Please direct your written comments to R. Corey Booth, Chief 
Information Officer, Office of Information Technology, Securities and 
Exchange Commission, 450 5th Street, NW., Washington, DC 20549.

    Dated: May 13, 2005.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2755 Filed 5-31-05; 8:45 am]
BILLING CODE 8010-01-P