[Federal Register Volume 76, Number 126 (Thursday, June 30, 2011)]
[Notices]
[Pages 38430-38431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-16426]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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; 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 (``OMB'') a request for approval of an extension of the 
previously approved collection of information provided for in Rule 
15c2-5 (17 CFR 240.15c2-5), under the Securities Exchange Act of 1934 
(15 U.S.C. 78 et seq.) (``Exchange Act'').
    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 Rule 15c2-5 is 
necessary to execute the Commission's mandate under the 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 
Rule 15c2-5. Each of these approximately 50 registered broker-dealers 
makes an estimated six annual responses, for an aggregate total of 300 
responses per year. Each response takes approximately two hours to 
complete. Thus, the total compliance burden per year is 600 burden 
hours. The approximate cost per hour is $50.00 for clerical labor, 
resulting in a total compliance cost of $30,000 (600 hours @ $50.00 per 
hour). These reflect internal labor costs; there are no external labor, 
capital, or start-up costs.
    Although Rule 15c2-5 does not specify a retention period or record-
keeping requirement under the rule, 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

[[Page 38431]]

prescribed in the Rule. Rule 15c2-5 does not assure confidentiality for 
the information retained under the rule.\1\
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    \1\ The records required by Rule 15c2-5 would be available only 
for examination purposes of the Commission staff, state securities 
authorities, and the self-regulatory organizations. Subject to the 
provisions of the Freedom of Information Act, 5 U.S.C. 552, 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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    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 Paperwork Reduction Act that 
does not display a valid OMB control number.
    Background documentation for this information collection may be 
viewed at the following link, 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, Director/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 30 days 
of this notice.

    Dated: June 26, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-16426 Filed 6-29-11; 8:45 am]
BILLING CODE 8011-01-P