[Federal Register Volume 74, Number 162 (Monday, August 24, 2009)]
[Notices]
[Page 42708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-20186]


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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: 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.
    Rule 17h-1T (17 CFR 240.17h-1T) under the Securities Exchange Act 
of 1934 (15 U.S.C. 78a et seq.) (the ``Act'') 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 (17 CFR 
240.17h-2T) under the Act 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 148 respondents that must comply with Rules 
17h-1T and 17h-2T. Each of these 148 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 1,480 
hours (148 respondents x 10 hours). In addition, each of these 148 
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 2,072 hours 
(148 respondents x 14 hours). In addition, there are approximately five 
new respondents per year \1\ 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 20 hours (5 new respondents x 4 hours). Thus, the total 
compliance burden per year is approximately 3,572 burden hours (1,480 + 
2,072 + 20).
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    \1\ However, the staff further estimates that the number of 
respondents decreases by at least that many firms per year as a 
result of mergers and other business factors.
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    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)).
    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.
    Comments should be directed to (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) Charles Boucher, 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 to OMB within 30 
days of this notice.

    Dated: August 17, 2009.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-20186 Filed 8-21-09; 8:45 am]
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