[Federal Register Volume 65, Number 128 (Monday, July 3, 2000)]
[Notices]
[Pages 41112-41113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16742]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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(c), 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
    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 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission 
(``Commission'') has submitted to the Office of Management and Budget 
requests for extension of the previously approved collections of 
information discussed below.
    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 is 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 register 
under Rule 17f-(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 
respondents 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.
    Rule 17h-1T requires a 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 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 asses 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,

[[Page 41113]]

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 response 
under Rule 17h-2T. These five responses require approximately 14 hours 
per responder per year, or 3.5 hours per quarter, for an aggregate 
annual burden of 3,010 hours (215 respondents  x  14 hours). In 
addition, there are approximately seven new respondents per year, which 
must draft an organizational chart required under Rule 17h-1T and 
establish a system for complying with the rules. The staff estimates 
that drafting the required organizational chart requires one hour and 
establishing a system for complying with the rules requires three 
hours, thus requiring an aggregate of 28 hours (7 new respondents  x  4 
hours). The total compliance burden per year is approximately 5,188 
burden hours (2,150 + 3,010 + 28).
    Rule 17h-1T specifies that the records required to be maintained 
under the rule must be preserved for a period of not less than three 
years. There is no specific retention period or record keeping 
requirement for Rule 17h-2T. The collection of information is mandatory 
and the information required to be provided to the Commission pursuant 
to these rules are deemed confidential, notwithstanding any other 
provision of law under Section 17(h)(5) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78a(h)(5)) and Section 552(b)(3)(B) of the Freedom 
of Information Act (15 U.S.C. 552(b)(3)(B)).
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless its displays a 
currently valid control number.
    Written comments regarding the above information should be directed 
to the following persons: (i) Desk Office for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503; and (ii) Michael E. Bartell, Associate 
Executive Directive, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549.

    Dated: June 26, 2000.
Margaret H. McFarland.
Deputy Secretary.
[FR Doc. 00-16742 Filed 6-30-00; 8:45 am]
BILLING CODE 8010-01-M