[Federal Register Volume 88, Number 169 (Friday, September 1, 2023)]
[Notices]
[Page 60521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18968]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-087, OMB Control No. 3235-0078]
Submission for OMB Review; Comment Request; Extension: Rule 15c3-
3
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736.
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 approval of extension of the
previously approved 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.). Furthermore, notice is given regarding new
collections of information that were previously proposed in Rule 18a-4
(OMB No. 3235-0700) and that were 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 will also have paperwork burdens to make a record of
each change in account type.
The Commission staff estimates a total annual time burden of
approximately 1,109,518 hours and a total annual cost burden of
approximately $3,516,241 to comply with the existing information
collection requirements of the rule.
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 19,487 hours and a total annual
cost burden of approximately $13,860 to comply with the information
collection requirements of the 2019 amendments to the rule.
The Commission staff thus estimates that the aggregate annual
information collection burden associated with Rule 15c3-3 is
approximately 1,129,005 hours and $3,530,101.
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. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent by October 2, 2023 to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, Director/Chief Information
Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F
Street NE, Washington, DC 20549, or by sending an email to:
[email protected].
Dated: August 29, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-18968 Filed 8-31-23; 8:45 am]
BILLING CODE 8011-01-P