[Federal Register Volume 87, Number 97 (Thursday, May 19, 2022)]
[Notices]
[Page 30550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10725]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-643, OMB Control No. 3235-0691


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Form Custody

    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 soliciting comments on the existing 
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''). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget 
(``OMB'') for extension and approval.
    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 broker-dealer's fiscal year end 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 3,534 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 169,632 
hours.\2\ Assuming an average cost per hour of approximately $319 for a 
compliance manager, the total internal cost of compliance for the 
respondents is approximately $54,112,608 per year.\3\
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    \2\ 3,534 brokers-dealers x 4 times per year x 12 hours = 
169,632 hours.
    \3\ 169,632 hours times $319 per hour = $54,112,608. $319 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, multiplied by 5.35 to 
account for bonuses, firm size, employee benefits, and overhead, and 
adjusted for inflation.
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    Written comments are invited on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's estimate of the burden of 
the collection of information; (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 collection techniques or other 
forms of information technology. Consideration will be given to 
comments and suggestions submitted in writing by July 18, 2022.
    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.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
<a href="/cdn-cgi/l/email-protection#57070516081a363e3b35382f1724323479303821"><span class="__cf_email__" data-cfemail="08585a4957456961646a6770487b6d6b266f677e">[email protected]</span></a>.

    Dated: May 13, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-10725 Filed 5-18-22; 8:45 am]
BILLING CODE 8011-01-P


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