[Federal Register Volume 87, Number 1 (Monday, January 3, 2022)]
[Notices]
[Pages 126-127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28430]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-562, OMB Control No. 3235-0624]


Submission for OMB Review; Comment Request; Extension: Regulation 
R, Rule 701

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 
Regulation R, Rule 701 (17 CFR 247.701) under the Securities Exchange 
Act of 1934 (15 U.S.C. 78a et seq.).
    Regulation R, Rule 701 requires a broker or dealer (as part of a 
written agreement between the bank and the broker or dealer) to notify 
the bank if the broker or dealer makes certain determinations regarding 
the financial status of the customer, a bank employee's statutory 
disqualification status, and compliance with suitability or 
sophistication standards.
    The Commission estimates there are 3,560 registered brokers or 
dealers that would, on average, notify 1,000 banks approximately two 
times annually about a determination regarding a customer's high net 
worth or institutional status or suitability or sophistication standing 
as well as a bank employee's statutory disqualification status. Based 
on these estimates, the Commission anticipates that Regulation R, Rule 
701 would result in brokers or dealers making approximately 2,000 
notifications to banks per year. The Commission further estimates 
(based on the level of difficulty and complexity of the applicable 
activities) that a broker or dealer would spend approximately 15 
minutes per notice to a bank. Therefore, the estimated total annual 
third party disclosure burden for the requirements in Regulation R, 
Rule 701 is 500 \1\ hours for brokers or dealers.
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    \1\ 1,000 banks x 2 notices = 2,000 notices; (2,000 notices x 15 
minutes) = 30,000 minutes/60 minutes = 500 hours.
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    The retention period for the recordkeeping requirement under Rule 
17Ad-2(c), (d), and (h) is not less than two years following the date 
the notice is submitted. The recordkeeping requirement under this rule 
is mandatory to assist the Commission in monitoring transfer agents who 
fail to meet the minimum performance standards set by the Commission 
rule. This rule does not involve the collection of confidential 
information. Please note that a transfer agent is not required to file 
under the rule unless it does not meet the minimum performance 
standards for turnaround, processing or forwarding items received for 
transfer during a month.
    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

[[Page 127]]

search function. Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to (i) www.reginfo.gov/public/do/PRAMain and (ii) David 
Bottom, Director/Chief Information Officer, Securities and Exchange 
Commission, c/o John R. Pezzullo, 100 F Street NE, Washington, DC 
20549, or by sending an email to: <a href="/cdn-cgi/l/email-protection#94c4c6d5cbd9f5fdf8f6fbecd4e7f1f7baf3fbe2"><span class="__cf_email__" data-cfemail="99c9cbd8c6d4f8f0f5fbf6e1d9eafcfab7fef6ef">[email protected]</span></a>.

    Dated: December 28, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-28430 Filed 12-30-21; 8:45 am]
BILLING CODE 8011-01-P


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