[Federal Register Volume 90, Number 128 (Tuesday, July 8, 2025)]
[Notices]
[Page 30183]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12687]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0691]


Submission for OMB Review; Comment Request; Extension: Form 
Custody

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 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange 
Commission (``Commission'') is submitting to the Office of Management 
and Budget (``OMB'') this request for extension of the proposed 
collection of information provided for in Form Custody (17 CFR 249.639) 
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
(``Exchange Act'').
    Section 17(a)(1) of the Exchange Act provides that broker-dealers 
registered with the Commission must make and keep records, furnish 
copies of the records, and make and disseminate reports as the 
Commission, by rule, prescribes. Pursuant to this authority, the 
Commission adopted Rule 17a-5 (17 CFR 240.17a-5), which is one of the 
primary financial and operational reporting rules for broker-
dealers.\1\ Paragraph (a)(5) of Rule 17a-5 requires every broker-dealer 
registered with the Commission to file Form Custody (17 CFR 249.639) 
with its designated examining authority (``DEA'') within 17 business 
days after the end of each calendar quarter and within 17 business days 
after the end of the broker-dealer's fiscal year if that date is not 
the end of a calendar quarter. Form Custody is designed to elicit 
information about whether a broker-dealer maintains custody of customer 
and non-customer assets, and, if so, how such assets are maintained.
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    \1\ Rule 17a-5 is subject to a separate PRA filing (OMB Control 
Number 3235-0123).
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    The Commission estimates that there are approximately 3,470 broker-
dealers registered with the Commission. As noted above, all broker-
dealers registered with the Commission are required to file Form 
Custody with their DEA once each calendar quarter. Based on staff 
experience, the Commission estimates that, on average, it would take a 
broker-dealer approximately 12 hours to complete and file Form Custody, 
for an annual industry-wide reporting burden of approximately 166,560 
hours.\2\ Assuming an average cost per hour of approximately $344 for a 
compliance manager, the total internal cost of compliance for the 
respondents is approximately $57,296,640 per year.\3\
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    \2\ 3,470 brokers-dealers x 4 times per year x 12 hours = 
166,560 hours.
    \3\ 166,560 hours x $344 per hour = $57,296,640. $344 per hour 
for a compliance manager is from SIFMA's Management & Professional 
Earnings in the Securities Industry 2013, modified by Commission 
staff for an 1800-hour work-year and to account for bonuses, firm 
size, employee benefits, and overhead, and adjusted for inflation.
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    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB Control Number.
    Written comments are invited on: (a) whether this proposed 
collection of information is necessary for the proper performance of 
the functions of the SEC, including whether the information will have 
practical utility; (b) the accuracy of the SEC's estimate of the burden 
imposed by the proposed collection of information, including the 
validity of the methodology and the assumptions used; (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, 
electronic collection techniques or other forms of information 
technology.
    The public may view and comment on this information collection 
request at: https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202504-3235-022 or email comment to 
[email protected] within 30 days of the day 
after publication of this notice, by August 8, 2025.

    Dated: July 3, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-12687 Filed 7-7-25; 8:45 am]
BILLING CODE 8011-01-P