[Federal Register Volume 84, Number 189 (Monday, September 30, 2019)]
[Notices]
[Pages 51667-51668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21078]
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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 FOIA Services, 100 F Street NE, Washington, DC
20549-2736.
Extension:
[[Page 51668]]
Rule 15Ba2-1 and Form MSD, SEC File No. 270-0088, OMB Control
No. 3235-0083.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (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 provided for in Rule 15Ba2-1 (17 CFR
240.15Ba2-1) and Form MSD (17 CFR 249.1100) under the Securities
Exchange Act of 1934 (``Exchange Act'') (15 U.S.C. 78a et seq.).
Rule 15Ba2-1 provides that an application for registration with the
Commission by a bank municipal securities dealer must be filed on Form
MSD. The Commission uses the information obtained from Form MSD filings
to determine whether bank municipal securities dealers meet the
standards for registration set forth in the Exchange Act, to make
information about particular bank municipal securities dealers
available to customers and members of the public, and to develop risk
assessment information about bank municipal securities dealers.
Form MSD is a one-time registration form that must be amended only
if it becomes inaccurate. Based upon past submissions of two initial
filings and 11 amendments in 2016, zero initial filings and 22
amendments in 2017, zero initial filings and 18 amendments in 2018, and
zero initial filings and zero amendments so far in 2019, the Commission
estimates that on an annual basis approximately 1 respondent will
utilize Form MSD for an initial registration application, and that
approximately 13 respondents will utilize Form MSD for an amendment,
for a total of 14 respondents per year. The time required to complete
Form MSD varies with the size and complexity of the bank municipal
securities dealer's proposed operations. Bank personnel that prepare
Form MSD filings previously indicated that it can take up to 15 hours
for a bank with a large operation and many employees to complete the
form, but that smaller banks with fewer personnel can complete the form
in one to two hours. We believe that most recent applications have come
from smaller banks. Also, amendments to form MSD are likely to require
significantly less time. We estimate that the total annual burden is
currently 21 hours at an average of 1.5 hours per respondent. (14
respondents/year x 1.5 hours/respondent = 21 hours/year). The staff
estimates that the average internal compliance cost per hour is
approximately $417.\1\ Therefore, the estimated total annual cost of
compliance is approximately $8,757 per year (21 hours/year x $417/hour
= $8,757/year).
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\1\ The estimate of $417 per hour is for a compliance attorney,
based on the Securities Industry and Financial Markets Association's
Management & Professional Earnings in the Securities Industry 2013,
modified by Commission staff to account for an 1800-hour work-year
and inflation, and multiplied by 5.35 to account for bonuses, firm
size, employee benefits and
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Rule 15Ba2-1 does not contain an explicit recordkeeping
requirement, but the rule does require the prompt correction of any
information on Form MSD that becomes inaccurate, meaning that bank
municipal securities dealers need to maintain a current copy of Form
MSD indefinitely. In addition, the instructions for filing Form MSD
state that an exact copy should be retained by the registrant.
Providing the information on the application is mandatory in order to
register with the Commission as a bank municipal securities dealer. The
information contained in the application will not be kept confidential.
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.
The public may view background documentation for this information
collection at the following website: 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 email to:
[email protected]; and (ii) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Candace Kenner, 100 F Street NE, Washington, DC 20549, or by sending an
email to: [email protected]. Comments must be submitted to OMB within
30 days of this notice.
Dated: September 24, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-21078 Filed 9-27-19; 8:45 am]
BILLING CODE 8011-01-P