71388 Federal Register / Vol. 88, No. 198 / Monday, October 16, 2023 / Notices 

Rule 17a–11 was adopted on July 11, 

1971 in response to an operational crisis 

in the securities industry between 1967 

and 1970. Rule 17a–11 requires brokerdealers that are experiencing financial 

or operational difficulties to provide 

notice to the Commission, the brokerdealer’s designated examining authority 

(‘‘DEA’’), and the Commodity Futures 

Trading Commission (‘‘CFTC’’) if the 

broker-dealer is registered with the 

CFTC as a futures commission 

merchant. Rule 17a–11 is an integral 

part of the Commission’s financial 

responsibility program which enables 

the Commission, a broker-dealer’s DEA, 

and the CFTC to increase surveillance of 

a broker-dealer experiencing difficulties 

and to obtain any additional 

information necessary to gauge the 

broker-dealer’s financial or operational 

condition. 

Rule 17a–11 also requires over-thecounter derivatives dealers and brokerdealers that are permitted to compute 

net capital pursuant to Appendix E to 

Exchange Act Rule 15c3–1 to notify the 

Commission when their tentative net 

capital drops below certain levels. 

To ensure the provision of these types 

of notices to the Commission, Rule 17a– 

11 requires every national securities 

exchange or national securities 

association to notify the Commission 

when it learns that a member brokerdealer has failed to send a notice or 

transmit a report required under the 

rule. 

Compliance with the rule is 

mandatory. The Commission will 

generally not publish or make available 

to any person notices or reports received 

pursuant to Rule 17a–11. The 

Commission believes that information 

obtained under Rule 17a–11 relates to a 

condition report prepared for the use of 

the Commission, other federal 

governmental authorities, and securities 

industry self-regulatory organizations 

responsible for the regulation or 

supervision of financial institutions. 

The Commission estimates that the 

total hour burden under Rule 17a–11 is 

approximately 274 hours per year. 

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 

November 15, 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: 

PRA_Mailbox@sec.gov. 

Dated: October 10, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22732 Filed 10–13–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–427, OMB Control No. 

3235–0476] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

10b–17 

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 10b–17 (17 CFR 240.10b–17), 

under the Securities Exchange Act of 

1934 (15 U.S.C. 78a et seq.). 

Rule 10b–17 requires any issuer of a 

class of securities publicly traded by the 

use of any means or instrumentality of 

interstate commerce or of the mails or 

of any facility of any national securities 

exchange to give notice of the following 

specific distributions relating to such 

class of securities: (1) a dividend or 

other distribution in cash or in kind 

other than interest payments on debt 

securities; (2) a stock split or reverse 

stock split; or (3) a rights or other 

subscription offering. Notice shall be 

either given to the Financial Industry 

Regulatory Authority, Inc. as successor 

to the National Association of Securities 

Dealers, Inc. or in accordance with the 

procedures of the national securities 

exchange upon which the securities are 

registered. The Commission may 

exempt an issuer of over-the-counter 

(but not listed) securities from the 

notice requirement. The requirements of 

Rule 10b–17 do not apply to redeemable 

securities of registered open-end 

investment companies or unit 

investment trusts. 

The information required by Rule 

10b–17 is necessary for the execution of 

the Commission’s mandate under the 

Securities Exchange Act of 1934 to 

prevent fraudulent, manipulative, and 

deceptive acts and practices. The 

Commission has found that not 

requiring formal notices of the types of 

distributions covered by Rule 10b–17 

has led to a number of abuses including 

purchasers not being aware of their 

rights to such distributions. It is only 

through formal notice of the 

distribution, including the date of the 

distribution, that current holders, 

potential buyers, or potential sellers of 

the securities at issue will know their 

rights to the distribution and make an 

informed decision as to whether to buy 

or sell a security. 

There are approximately 7,588 

respondents per year. These 

respondents make approximately 29,952 

responses per year. Each response takes 

approximately 10 minutes to complete. 

Thus, the total hour burden per year is 

approximately 4,992 hours. The total 

internal labor cost of compliance for 

respondents associated with providing 

notice under Rule 10b–17 is 

approximately $431,258.88. 

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 

November 15, 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: 

PRA_Mailbox@sec.gov. 

Dated: October 10, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22734 Filed 10–13–23; 8:45 am] 

BILLING CODE 8011–01–P 


ddrumheller on DSK120RN23PROD with NOTICES1