[Federal Register Volume 84, Number 88 (Tuesday, May 7, 2019)]
[Notices]
[Pages 19978-19979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09290]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Form Custody, SEC File No. 270-643, OMB Control No. 3235-0691
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Form Custody (17 CFR 249.639)
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.)
(``Exchange Act''). The Commission plans to submit this existing
collection of information to the Office of Management and Budget
(``OMB'') for extension and approval.
Section 17(a)(1) of the Exchange Act provides that broker-dealers
registered with the Commission must make and keep records, furnish
copies of the records, and make and disseminate
[[Page 19979]]
reports as the Commission, by rule, prescribes. Pursuant to this
authority, the Commission adopted Rule 17a-5 (17 CFR 240.17a-5), which
is one of the primary financial and operational reporting rules for
broker-dealers.\1\ Paragraph (a)(5) of Rule 17a-5 requires every
broker-dealer registered with the Commission to file Form Custody (17
CFR 249.639) with its designated examining authority (``DEA'') within
17 business days after the end of each calendar quarter and within 17
business days after the broker-dealer's fiscal year end if that date is
not the end of a calendar quarter. Form Custody is designed to elicit
information about whether a broker-dealer maintains custody of customer
and non-customer assets, and, if so, how such assets are maintained.
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\1\ Rule 17a-5 is subject to a separate PRA filing (OMB Control
Number 3235-0123).
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The Commission estimates that there are approximately 3,747 broker-
dealers registered with the Commission. As noted above, all broker-
dealers registered with the Commission are required to file Form
Custody with their DEA once each calendar quarter. Based on staff
experience, the Commission estimates that, on average, it would take a
broker-dealer approximately 12 hours to complete and file Form Custody,
for an annual industry-wide reporting burden of approximately 179,856
hours.\2\ Assuming an average cost per hour of approximately $314 for a
compliance manager, the total internal cost of compliance for the
respondents is approximately $56,474,784 per year.\3\
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\2\ 3,747 brokers-dealers x 4 times per year x 12 hours =
179,856 hours.
\3\ 179,856 hours times $314 per hour = $56,474,784. $314 per
hour for a compliance manager is from SIFMA's Management &
Professional Earnings in the Securities Industry 2013, modified by
Commission staff for an 1,800-hour work-year, multiplied by 5.35 to
account for bonuses, firm size, employee benefits, and overhead, and
adjusted for inflation.
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Written comments are invited on: (a) Whether the 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 Commission's estimate of the burden of
the 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.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
Please direct your written comments to: Charles Riddle, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an
email to: [email protected].
Dated: May 2, 2019.
Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-09290 Filed 5-6-19; 8:45 am]
BILLING CODE 8011-01-P