[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Page 68714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26246]


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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:
    Rules 17h-1T and 17h-2T; SEC File No. 270-359, OMB Control No. 
3235-0410

    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 Rules 17h-1T and 17h-2T (17 
CFR 240.17h-1T and 17 CFR 240.17h-2T), 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.
    Rule 17h-1T requires a covered broker-dealer to maintain and 
preserve records and other information concerning certain entities that 
are associated with the broker-dealer. This requirement extends to the 
financial and securities activities of the holding company, affiliates 
and subsidiaries of the broker-dealer that are reasonably likely to 
have a material impact on the financial or operational condition of the 
broker-dealer. Rule 17h-2T requires a covered broker-dealer to file 
with the Commission quarterly reports and a cumulative year-end report 
concerning the information required to be maintained and preserved 
under Rule 17h-1T.
    The collection of information required by Rules 17h-1T and 17h-2T, 
collectively referred to as the ``risk assessment rules'', is necessary 
to enable the Commission to monitor the activities of a broker-dealer 
affiliate whose business activities are reasonably likely to have a 
material impact on the financial and operational condition of the 
broker-dealer. Without this information, the Commission would be unable 
to assess the potentially damaging impact of the affiliate's activities 
on the broker-dealer.
    There are currently 235 respondents that must comply with Rules 
17h-1T and 17h-2T. Each of these 235 respondents are estimated to 
require 10 hours per year to maintain the records required under Rule 
17h-1T, for an aggregate estimated annual burden of 2,350 hours (235 
respondents x 10 hours). In addition, each of these 235 respondents 
must make five annual responses under Rule 17h-2T. These five responses 
are estimated to require 14 hours per respondent per year for an 
aggregate estimated annual burden of 3,290 hours (235 respondents x 14 
hours).
    In addition, new respondents must draft an organizational chart 
required under Rule 17h-1T and establish a system for complying with 
the risk assessment rules. The staff estimates that drafting the 
required organizational chart requires one hour and establishing a 
system for complying with the risk assessment rules requires three 
hours. Based on the reduction in the number of filers in recent years, 
the staff estimates there will be zero new respondents, and thus, a 
corresponding estimated burden of zero hours for new respondents. Thus, 
the total compliance burden per year is approximately 5,640 burden 
hours (2,350 hours + 3,290 hours).
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information will 
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 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 John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
[email protected].

    Dated: November 29, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26246 Filed 12-2-21; 8:45 am]
BILLING CODE 8011-01-P