[Federal Register Volume 70, Number 149 (Thursday, August 4, 2005)]
[Notices]
[Page 44954]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4137]


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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 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'') has submitted to the Office of Management and Budget 
request[s] for extension of the previously approved collection of 
information discussed below. 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).
    Although Rule 15c2-5 does not specify a retention period or record 
keeping requirement under the Rule, nevertheless broker-dealers are 
required to preserve the records for a period no less than six years 
pursuant to Rule 17a-4(c). The information required under Rule 15c2-5 
is necessary for broker-dealers to engage in the lending activities 
prescribed in the Rule. Rule 15c2-5 does not assure confidentiality for 
the information retained under the Rule.\1\ 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.
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    \1\ The records required by Rule 15c2-5 would be available only 
to the examination of the Commission staff, state securities 
authorities and the SROs. Subject to the provisions of the Freedom 
of Information Act, 5 U.S.C. 522, and the Commission's rules 
thereunder (17 CFR 200.80(b)(4)(iii)), the Commission does not 
generally publish or make available information contained in any 
reports, summaries, analyses, letters, or memoranda arising out of, 
in anticipation of, or in connection with an examination or 
inspection of the books and records of any person or any other 
investigation.
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    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 or by sending an e-mail to [email protected]; and (ii) R. Corey Booth, Chief Information 
Officer, Office of Information Technology, Securities and Exchange 
Commission, 100 F Street, NE., Washington, DC 20549. Comments must be 
submitted to OMB within 30 days of this notice.

    Dated: July 25, 2005.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4137 Filed 8-3-05; 8:45 am]
BILLING CODE 8010-01-P