[Federal Register Volume 76, Number 59 (Monday, March 28, 2011)]
[Notices]
[Pages 17165-17166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7151]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comments Requested

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549.

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'') has submitted to the Office of Management 
and Budget (``OMB'') a request for extension of the previously approved 
collection of information discussed below. The Code of Federal 
Regulation citation to this collection of information is the following 
rule: 17 CFR 240.17a-3.
    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 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, self-regulatory 
organization 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.

[[Page 17166]]

    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). The staff 
believes 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.
    Rule 17a-3 does not contain record retention requirements. 
Compliance with the rule is mandatory. The required records are 
available only to the staffs of the Commission, self-regulatory 
organizations of which the broker-dealer is a member, and the States 
during examination, inspections and investigations.
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently valid control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid Office of Management and Budget (OMB) control number.
    The public may view the background documentation for this 
information collection at the following Web site, http://www.reginfo.gov. 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) Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an 
e-mail to: [email protected]. Comments must be submitted to OMB 
within thirty days of this notice.

    Dated: March 22, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-7151 Filed 3-25-11; 8:45 am]
BILLING CODE 8011-01-P