[Federal Register Volume 76, Number 13 (Thursday, January 20, 2011)]
[Notices]
[Page 3680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-1073]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.
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'') is soliciting comments on the existing collection of 
information provided for in Rule 17a-3 (17 CFR 240.17a-3), under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission 
plans to submit this existing collection of information to the Office 
of Management and Budget for extension and approval.
    Rule 17a-3 under the Securities Exchange Act of 1934 establishes 
minimum standards with respect to business records that broker-dealers 
registered with the Commission must make and keep current. These 
records are maintained by the broker-dealer (in accordance with a 
separate rule), so they can be used by the broker-dealer and reviewed 
by Commission examiners, as well as other regulatory authority 
examiners, during inspections of the broker-dealer.
    The collections of information included in Rule 17a-3 is necessary 
to provide Commission, self-regulatory organization (``SRO'') and state 
examiners to conduct effective and efficient examinations to determine 
whether broker-dealers are complying with relevant laws, rules, and 
regulations. If broker-dealers were not required to create these 
baseline, standardized records, Commission, SRO and state examiners 
could be unable to determine whether broker-dealers are in compliance 
with the Commission's antifraud and anti-manipulation rules, financial 
responsibility program, and other Commission, SRO, and State laws, 
rules, and regulations.
    As of October 1, 2010 there were 5,057 broker-dealers registered 
with the Commission. The Commission estimates that these broker-dealer 
respondents incur a total burden of 2,723,970 hours per year to comply 
with Rule 17a-3. Approximately 1,464,777 of those hours are 
attributable to paragraph 17a-3(a)(17), and about 1,259,193 hours are 
attributable to the rest of Rule 17a-3. Paragraph 17a-3(a)(17) contains 
requirements to provide customers with account information 
(approximately 683,969 hours) and requirements to update customer 
account information (approximately 777,436 hours).
    In addition, Rule 17a-3 contains ongoing operation and maintenance 
costs for broker-dealers including the cost of postage to provide 
customers with account information, and costs for equipment and systems 
development. The Commission estimates that under Rule 17a-3(a)(17), 
approximately 35,627,958 customers will need to be provided with 
information regarding their account on a yearly basis. The Commission 
estimates that the postage costs associated with providing those 
customers with copies of their account record information would be 
approximately $10,688,387 per year (35,627,958 x $0.30).\1\ The staff 
estimates that the ongoing equipment and systems development costs 
relating to Rule 17a-3 for the industry would be about $23,514,452 per 
year. Consequently, the total cost burden associated with Rule 17a-3 
would be approximately $34,202,839 per year.
---------------------------------------------------------------------------

    \1\ Estimates of postage costs are derived from past 
conversations with industry representatives and have been adjusted 
to account for inflation and increases in postage costs.
---------------------------------------------------------------------------

    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 shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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 to comments and suggestions submitted in 
writing within 60 days of this publication.
    Please direct your written comments to: Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312 or 
send an e-mail to: [email protected].

    Dated: January 12, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-1073 Filed 1-19-11; 8:45 am]
BILLING CODE 8011-01-P