[Federal Register Volume 84, Number 209 (Tuesday, October 29, 2019)]
[Notices]
[Page 57925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23598]


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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:
    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 (``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 17a-3 (17 CFR 240.17a-
3), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
    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 are 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 December 31, 2018 there were 3,764 broker-dealers registered 
with the Commission. The Commission estimates that these broker-dealer 
respondents incur a total burden of 2,893,773 hours per year to comply 
with Rule 17a-3.
    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 45,633,482 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 $16,321,719 per year (45,633,482 x $0.35).\1\ The staff 
estimates that broker-dealers establishing liquidity, credit, and 
market risk management controls pursuant to Rule 17a-3(a)(23) incur 
one-time startup costs of $912,000, or $304,000 amortized over a three-
year approval period, to hire outside counsel to review the controls. 
The staff further estimates that the ongoing equipment and systems 
development costs relating to Rule 17a-3 for the industry would be 
about $37,446,686 per year. Consequently, the total cost burden 
associated with Rule 17a-3 would be approximately $54,072,405 per year.
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    \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.
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    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.
    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 the 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: October 24, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-23598 Filed 10-28-19; 8:45 am]
 BILLING CODE 8011-01-P