[Federal Register Volume 65, Number 86 (Wednesday, May 3, 2000)]
[Notices]
[Pages 25775-25776]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11001]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, DC 20549.

Extension:

Rule 17f-1(b)--SEC File No. 270-28--OMB Control No. 3235-0032
Rule 17f-1(c) and Form X-17F-1A--SEC File No. 270-29--OMB Control 
No. 3235-0037
Rule 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 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission 
(``Commission'') is soliciting comments on the collections of 
information summarized below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget for extension and approval.
    Rule 17f-1(b) requires approximately 1,150 entities in the 
securities industry to register in the Lost and Stolen Securities 
Program. Registration fulfills a statutory requirement that entities 
report and inquire about missing, lost, counterfeit, or stolen 
securities. Registration also allows entities in the securities 
industry to gain access to a confidential database that stores 
information for the program.
    It is estimated that 1,150 entities will register in the Lost and 
Stolen Securities Program annually. It is also estimated that each 
respondent will register one time. The staff estimates that the average 
number of hours necessary to comply with the Rule 17f-1(b) is one-half 
hour. The total burden in 575 hours annually for respondents, based 
upon past submissions. The average cost per hour is approximately $50. 
Therefore, the total cost of compliance for respondents is $28,750.
    Rule 17f-1(b) is a reporting rule and does not specify a retention 
period. The rule requires a one-time registration for reporting 
institutions. Registering under Rule 17f-1(b) is mandatory to obtain 
the benefit of a central database that stores information about 
missing, lost, counterfeit, or stolen securities for the Lost and 
Stolen Securities Program. Reporting institutions required to 
registered under Rule 17f-1(b) will not be kept confidential, however, 
the Lost and Stolen Securities Program database will be kept 
confidential.
    Rule 17f-1(c) and Form X-17F-1A requires approximately 23,000 
entities in the securities industry to report lost, stolen, missing, or 
counterfeit securities to a central database. Form X-17F-1A facilitates 
the accurate reporting and precise and immediate data entry into the 
central database. Reporting to the central database fulfills a 
statutory requirement that reporting institutions report and inquire 
about missing, lost, counterfeit, or stolen securities. Reporting to 
the central database also allows reporting institutions to gain access 
to the database that stores information for the Lost and Stolen 
Securities Program.
    It is estimated that 23,000 reporting institutions will report that 
securities are either missing, lost, counterfeit, or stolen annually. 
It is also estimated that each reporting institution will submit this 
report 56 times each year. The staff estimates that the average amount 
of time necessary to comply with Rule 17f-1(c) and Form X-17F-1A is 
five minutes. The total burden is 107,333 hours annually for 
respondents, based upon past submissions. The average cost per hour is 
approximately $50. Therefore, the total cost of compliance for 
respondent is $5,366,666.
    Rule 17f-1(c) is a reporting rule and does not specify a retention 
period. The rule requires an incident-based reporting requirement by 
the reporting institutions when securities are discovered missing, 
lost, counterfeit, or stolen. Registering under Rule 17f-1(c) is 
mandatory to obtain the benefit of a central database that stores 
information about missing, lost, counterfeit, or stolen securities for 
the Lost and Stolen Securities Program. Reporting institutions required 
to register under Rule 17f-1(c) will not be kept confidential, however, 
the Lost and Stolen Securities Program database will be kept 
confidential.
    Rules 17h-1T requires a broker-dealer to maintain and preserve 
records and other information concerning certain entities that are 
associated with the

[[Page 25776]]

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 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 
are 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 215 respondents that must comply with Rules 
17h-1T and 17h-2T. Each of these 215 respondents require approximately 
10 hours per year, or 2.5 hours per quarter, to maintain the records 
required under Rule 17h-1T, for an aggregate annual burden of 2,150 
hours (215 respondents  x  10 hours). In addition, each of these 215 
respondents must make five annual responses under Rule 17h-2T. These 
five responses require approximately 14 hours per respondent per year, 
or 3.5 hours per quarter, for an aggregate annual burden of 3,010 hours 
(215 respondents  x  14 hours). Thus, the total compliance burden per 
year is approximately 5,160 burden hours (2,150 + 3,010).
    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 will 
have practical utility; (b) the accuracy of the agency'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.
    Please direct your written comments to Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, NW., Washington, DC 
20549.

    Dated: April 19, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-11001 Filed 5-2-00; 8:45 am]
BILLING CODE 8010-01-M