Document ID: SEC-2007-1298-0001
Agency: sec
Document Type: Notice
Title: Agency information collection activities; proposals, submissions, and approvals
Posted Date: 2007-09-21T04:00Z

[Federal Register: September 21, 2007 (Volume 72, Number 183)]
[Notices]               
[Page 54085-54086]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21se07-143]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

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

Extension:
    Rule 17a-3; SEC File No. 270-026; OMB Control No. 3235-0033.

    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'') intends to submit to the Office of 
Management and Budget (``OMB'') a request for extension of the 
previously approved collection of information discussed below. The Code

[[Page 54086]]

of Federal Regulations citation to this collection of information: 17 
CFR 240.17a-3.
    Rule 17a-3 under the Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.) establishes minimum standards with respect to business records 
that broker-dealers registered with the Commission must make and keep 
current. These records are maintained by the broker-dealer (in 
accordance with a separate rule), so they can be used by the broker-
dealer and reviewed by Commission examiners, as well as other 
regulatory authority examiners, during inspections of the broker-
dealer.
    The collections of information included in Rule 17a-3 is necessary 
to provide Commission, self-regulatory organizations and state 
examiners to conduct effective and efficient examinations to determine 
whether broker-dealers are complying with relevant laws, rules, and 
regulations. If broker-dealers were not required to create these 
baseline, standardized records, Commission, self-regulatory 
organizations and state examiners could be unable to determine whether 
broker-dealers are in compliance with the Commission's antifraud and 
anti-manipulation rules, financial responsibility program, and other 
Commission, self-regulatory organizations, and State laws, rules, and 
regulations.
    As of July 30, 2007 there were 5,850 broker-dealers registered with 
the Commission. The Commission estimates that these broker-dealer 
respondents incur a total burden of 2,984,760 hours per year to comply 
with Rule 17a-3. Approximately 1,524,210 of those hours are 
attributable to Rule 17a-3(a)(17), and about 1,460,550 hours are 
attributable to the rest of Rule 17a-3. Rule 17a-3(a)(17) contains 
requirements to provide customers with account information 
(approximately 975,809 hours) and requirements to update customer 
account information (approximately 548,401 hours).
    In addition, Rule 17a-3 contains ongoing operation and maintenance 
costs for broker-dealers including the cost of postage to provide 
customers with account information, and costs for equipment and systems 
development. The Commission estimates that under Rule 17a-3(a)(17), 
approximately 36,365,553 customers will need to be provided with 
information regarding their account on a yearly basis. The Commission 
estimates that the postage costs associated with providing those 
customers with copies of their account record information would be 
approximately $8,176,435 per year (28,390,400 x $0.288).\1\ Based on 
comments provided in response to the 2001 Amendments (as adjusted to 
account for inflation), the staff believes that the ongoing equipment 
and systems development costs relating to Rule 17a-3 for the industry 
would be about $23,362,847 per year. Consequently, the total cost 
burden associated with Rule 17a-3 would be approximately $31,539,282 
per year.
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    \1\ Estimates of postage costs are derived from past 
conversations with industry representatives and have been adjusted 
to account for inflation.
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    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) 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 within 60 days of this publication.
    Comments should be directed to: R. Corey Booth, Director/Chief 
Information Officer, Securities and Exchange Commission, C/O Shirley 
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send 
an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 
60 days of this notice.

     Dated: September 17, 2007.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-18550 Filed 9-20-07; 8:45 am]

BILLING CODE 8010-01-P