Document ID: SEC-2022-0957-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2022-07-19T04:00Z

[Federal Register Volume 87, Number 137 (Tuesday, July 19, 2022)]
[Notices]
[Pages 43098-43099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15314]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-808, OMB Control No. 3235-0762]

Proposed Collection; Comment Request; Extension: Rule 15l-1

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'') is soliciting comments on the existing 
collection of information provided for in Rule 15l-1 (17 CFR 240.15l-
1), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). 
The Commission plans to submit this existing collection of information 
to the Office of Management and Budget (``OMB'') for extension and 
approval.
    Rule 15l-1 established a standard of conduct for broker-dealers and 
natural persons who are associated persons of a broker-dealer 
(together, ``broker-dealers'') when making a recommendation of any 
securities transaction or investment strategy involving securities to a 
retail customer (``Regulation Best Interest''). Regulation Best 
Interest requires broker-dealers, when making a recommendation of any 
securities transaction or investment strategy involving securities to a 
retail customer, to act in the best interest of the retail customer at 
the time the recommendation is made, without placing the financial or 
other interest of the broker-dealer or natural person who is an 
associated person making the recommendation ahead of the interest of 
the retail customer.
    The information that must be collected pursuant to Regulation Best 
Interest is intended to: (1) improve disclosure about the scope and 
terms of the broker-dealer's relationship with the retail customer, 
which would foster retail customers' understanding of their 
relationship with a broker-dealer; (2) enhance the quality of 
recommendations provided by establishing an express best interest 
obligation under the federal securities laws; (3) enhance the 
disclosure of a broker-dealer's conflicts of interest; and (4) 
establish obligations that require mitigation, and not just disclosure, 
of conflicts of interest arising from financial incentives associated 
with broker-dealer recommendations. The information will therefore help 
establish a framework that protects investors and

[[Page 43099]]

promotes efficiency, competition, and capital formation.
    There are approximately 2,683 respondents that must comply with 
Rule 15l-1. The aggregate annual burden for all respondents is 
estimated to be 2,568,434 hours, or 957 hours per respondent (2,568,434 
hours/2,683 respondents). Under Rule 15l-1, respondents will also incur 
cost burdens. The aggregate annual cost burden for all respondents is 
estimated to be $12,085,860, or $4,505 per respondent ($12,085,860/
2,681 respondents).
    Written comments are invited on: (a) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information will 
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 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 September 
19, 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: 
[email protected].

    Dated: July 13, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-15314 Filed 7-18-22; 8:45 am]
BILLING CODE 8011-01-P