[Federal Register Volume 85, Number 98 (Wednesday, May 20, 2020)]
[Notices]
[Pages 30759-30760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10875]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-087, OMB Control No. 3235-0078]
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:
Rule 15c3-3
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'') is soliciting comments on the existing
collection of information provided for in Rule 15c3-3 (17 CFR 240.15c3-
3), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
The Commission plans to submit this existing collection of information
to the Office of Management and Budget (``OMB'') for extension and
approval. Furthermore, notice is given regarding new collections of
information that were previously proposed in Rule 18a-4 (OMB No. 3235-
0700) and that are being moved to this Rule 15c3-3 (OMB No. 3235-0078)
based on comments received during the rulemaking process.
With respect to the extension of the previously approved collection
of information, Rule 15c3-3 requires that a broker-dealer that holds
customer securities obtain and maintain possession and control of
fully-paid and excess margin securities they hold for customers. In
addition, the Rule requires that a broker-dealer that holds customer
funds make either a weekly or monthly computation to determine whether
certain customer funds need to be segregated in a special reserve bank
account for the exclusive benefit of the firm's customers. It also
requires that a broker-dealer maintain a written notification from each
bank where a Special Reserve Bank Account is held acknowledging that
all assets in the account are for the exclusive benefit of the broker-
dealer's customers, and to provide written notification to the
Commission (and its designated examining authority) under certain,
specified circumstances. Finally, broker-dealers that sell securities
futures products (``SFP'') to customers must provide certain
notifications to customers and make a record of any changes of account
type.
A broker-dealer required to maintain the Special Reserve Bank
Account prescribed by Rule 15c3-3 must obtain and retain a written
notification from each bank in which it has a Special Reserve Bank
Account to evidence the bank's acknowledgement that assets deposited in
the Account are being held by the bank for the exclusive benefit of the
broker-dealer's customers. In addition, a broker-dealer must
immediately notify the Commission and its designated examining
authority if it fails to make a required deposit to its Special Reserve
Bank Account. Finally, a broker-dealer that effects transactions in
SFPs for customers also will have paperwork burdens to make a record of
each change in account type.
The Commission staff estimates a total annual time burden of
approximately 625,490 hours and a total annual cost burden of
approximately $1,440,513 to comply with the existing information
collection requirements of the rule.
With respect to the new collections of information, in 2019, the
Commission adopted amendments to establish segregation and notice
requirements for broker-dealers with respect to their security-based
swap activity. The Commission staff estimates a total annual time
burden of approximately 96,601 hours and a total annual cost
[[Page 30760]]
burden of approximately $65,334 to comply with the new information
collection requirements of the rule.
The Commission staff thus estimates that the aggregate annual
information collection burden associated with Rule 15c3-3 is
approximately 722,091 hours and $1,505,847.
Written comments are invited on: (a) Whether the proposed
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 agency's estimate of
the burden of the proposed 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: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or send an email
to: [email protected].
Dated: May 15, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-10875 Filed 5-19-20; 8:45 am]
BILLING CODE 8011-01-P