[Federal Register Volume 73, Number 105 (Friday, May 30, 2008)]
[Notices]
[Pages 31156-31157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12015]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon written request, copies available from: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213

Extension:
Rule 15c2-5, OMB Control No. 3235-0198, SEC File No. 270-195

    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 (17 U.S.C. 78a et seq.) (``Exchange Act'') to 
prevent fraudulent, manipulative, and deceptive acts and practices by 
broker-dealers.
    The Commission estimates that 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 $40.00 for clerical labor, 
resulting in a total compliance cost of $24,000 (600 hours @ $40.00 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

[[Page 31157]]

information on respondents, including through the use of automated 
collection techniques or other forms of information technology. 
Consideration will be given to comments and suggestions submitted in 
writing within 60 days of this publication.
    Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Securities and Exchange Commission, C/O 
Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312 
or send an e-mail to: [email protected]. Comments must be submitted 
within 60 days of this notice.

    Dated: May 21, 2008.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8-12015 Filed 5-29-08; 8:45 am]
BILLING CODE 8010-01-P