[Federal Register Volume 73, Number 162 (Wednesday, August 20, 2008)]
[Notices]
[Pages 49224-49225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19231]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213.

Extension: Rule 15c2-5, OMB Control No. 3235-0198, SEC File No. 270-
195.

    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 a request for extension of the previously approved 
collection of information discussed below. The Code of Federal 
Regulations citation to this collection of information is the 
following: 17 CFR 240.15c2-5.
    Rule 15c2-5 prohibits a broker-dealer from arranging or extending 
certain loans to persons in connection with the offer or sale of 
securities unless, before any element of the transaction is entered 
into, the broker-dealer: (1) Delivers to the person a written statement 
containing the exact nature and extent of the person's obligations 
under the loan arrangement; the risks and disadvantages of the loan 
arrangement; and all commissions, discounts, and other remuneration 
received and to be

[[Page 49225]]

received in connection with the transaction by the broker-dealer or 
certain related persons (unless the person receives certain materials 
from the lender or broker-dealer which contain the required 
information); and (2) obtains from the person information on the 
person's financial situation and needs, reasonably determines that the 
transaction is suitable for the person, and retains on file and makes 
available to the person on request a written statement setting forth 
the broker-dealer's basis for determining that the transaction was 
suitable. The collection of information required by the rule is 
necessary to execute the Commission's mandate under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange Act'') to 
prevent fraudulent, manipulative, and deceptive acts and practices by 
broker-dealers.
    The Commission estimates that there are approximately 50 
respondents that require an aggregate total of 600 hours to comply with 
the Rule. Each of these approximately 50 registered broker-dealers 
makes an estimated 6 annual responses, for an aggregate total of 300 
responses per year. Each response takes approximately 2 hours to 
complete. Thus, the total compliance burden per year is 600 burden 
hours. The approximate cost per hour is $40.00 for clerical labor, 
resulting in a total compliance cost of $24,000 (600 hours @ $40.00 per 
hour).
    Although Rule 15c2-5 does not specify a retention period or record 
keeping requirement under the Rule, nevertheless broker-dealers are 
required to preserve the records for a period no less than six years 
pursuant to Rule 17a-4(c). The information required under Rule 15c2-5 
is necessary for broker-dealers to engage in the lending activities 
prescribed in the Rule. Rule 15c2-5 does not assure confidentiality for 
the information retained under the Rule.\1\ Please note that an agency 
may not conduct or sponsor, and a person is not required to respond to, 
a collection of information unless it displays a currently valid 
control number.
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    \1\ The records required by Rule 15c2-5 would be available only 
to the examination of the Commission staff, state securities 
authorities and the SROs. Subject to the provisions of the Freedom 
of Information Act, 5 U.S.C. 522, and the Commission's rules 
thereunder (17 CFR 200.80(b)(4)(iii)), the Commission does not 
generally publish or make available information contained in any 
reports, summaries, analyses, letters, or memoranda arising out of, 
in anticipation of, or in connection with an examination or 
inspection of the books and records of any person or any other 
investigation.
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    Written comments regarding the above information should be directed 
to the following persons: (i) Desk Officer 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 or by sending an e-mail to <a href="/cdn-cgi/l/email-protection#6c2d0009140d0208091e33384233241902182c03010e4209031c420b031a"><span class="__cf_email__" data-cfemail="3978555c4158575d5c4b666d1766714c574d7956545b175c5649175e564f">[email protected]</span></a>; and (ii) Lewis W. Walker, Acting Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-
mail to: <a href="/cdn-cgi/l/email-protection#86d6d4c7d9cbe7efeae4e9fec6f5e3e5a8e1e9f0"><span class="__cf_email__" data-cfemail="06565447594b676f6a64697e4675636528616970">[email protected]</span></a>. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: August 13, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19231 Filed 8-19-08; 8:45 am]
BILLING CODE 8010-01-P


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