[Federal Register Volume 61, Number 94 (Tuesday, May 14, 1996)]
[Notices]
[Pages 24341-24342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12036]



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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 15g-2; SEC File No. 270-381; OMB Control No. 3235-
0434.
    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 publishing the following summary of 
collection for public comment.
    Rule 15g-2 requires broker-dealers to provide their customers with 
a risk disclosure document, as set forth in Schedule 15G,\1\ prior to 
their first non-

[[Page 24342]]

exempt transaction in a ``penny stock.'' The rule requires broker-
dealers to obtain written acknowledgment from the customer that he or 
she has received the required risk disclosure document. The rule also 
requires broker-dealers to maintain a copy of the customer's written 
acknowledgment for at least three years following the date on which the 
risk disclosure document was provided to the customer, the first two 
years in an accessible place.
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    \1\ Schedule 15G explains the risks of investing in penny 
stocks; important concepts associated with the penny stock market; 
the broker-dealer's duties to customers; a toll-free telephone 
number through which a customer may inquire about the disciplinary 
history of a broker-dealer; the customer's rights and remedies in 
cases of fraud or abuse in connection with transactions in penny 
stocks; and certain other significant information.
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    Approximately 270 broker-dealers are subject to Rule 15g-2, and 
each one of these firms will process an average of approximately 156 
risk disclosure documents per year. The total ongoing respondent burden 
is approximately 4 minutes per response, or an aggregate total of 624 
minutes per respondent. Since there are 270 respondents, the annual 
burden 2808 hours.
    In addition, 270 broker-dealers will incur a recordkeeping burden 
of approximately one minute per response. Thus, respondents as a group 
will incur an aggregate annual recordkeeping burden of 702 hours. The 
total annual hour burden is 3510 hours.
    The total cost of ongoing compliance for the respondents and 
recordkeepers is $70,200.
    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 shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) way 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 within 60 days of this publication.
    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: May 3, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-12036 Filed 5-13-96; 8:45 am]
BILLING CODE 8010-01-M