Document ID: SEC-2012-0652-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals: Rule 17a-11
Posted Date: 2012-04-25T04:00Z

[Federal Register Volume 77, Number 80 (Wednesday, April 25, 2012)]
[Notices]
[Pages 24746-24747]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9938]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; 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 17a-11; SEC File. No. 270-94; OMB Control No. 3235-0085.

    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 soliciting comments on the existing 
collection of information provided for in Rule 17a-11 (17 CFR 240.17a-
11) 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

[[Page 24747]]

Office of Management and Budget for extension and approval.
    In response to an operational crisis in the securities industry 
between 1967 and 1970, the Commission adopted Rule 17a-11 (17 CFR 
240.17a-11) under the Exchange Act on July 11, 1971. The Rule requires 
broker-dealers that are experiencing financial or operational 
difficulties to provide notice to the Commission, the broker-dealer's 
designated examining authority (``DEA''), and the Commodity Futures 
Trading Commission (``CFTC'') if the broker-dealer is registered with 
the CFTC as a futures commission merchant. Rule 17a-11 is an integral 
part of the Commission's financial responsibility program which enables 
the Commission, a broker-dealer's DEA, and the CFTC to increase 
surveillance of a broker-dealer experiencing difficulties and to obtain 
any additional information necessary to gauge the broker-dealer's 
financial or operational condition.
    Rule 17a-11 also requires over-the-counter (``OTC'') derivatives 
dealers and broker-dealers that are permitted to compute net capital 
pursuant to Appendix E to Exchange Act Rule 15c3-1 to notify the 
Commission when their tentative net capital drops below certain levels. 
OTC derivatives dealers must also provide notice to the Commission of 
backtesting exceptions identified pursuant to Appendix F of Rule 15c3-1 
(17 CFR 15c3-1f).
    Compliance with the Rule is mandatory. The Commission will 
generally not publish or make available to any person notices or 
reports received pursuant to Rule 17a-11. The Commission believes that 
information obtained under Rule 17a-11 relates to a condition report 
prepared for the use of the Commission, other federal governmental 
authorities, and securities industry self-regulatory organizations 
responsible for the regulation or supervision of financial 
institutions.
    Only broker-dealers whose capital declines below certain specified 
levels or who are otherwise experiencing financial or operational 
problems have a reporting burden under Rule 17a-11. In 2011, the 
Commission received approximately 465 notices under this Rule, 
including one notice from an OTC derivatives dealer permitted to 
compute net capital pursuant to Appendix E to Exchange Act Rule 15c3-1.
    Each broker-dealer reporting pursuant to Rule 17a-11 will spend 
approximately one hour preparing and transmitting the notice required 
by the rule. Accordingly, the total estimated annualized burden under 
Rule 17a-11 is 465 hours.
    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 
shall have practical utility; (b) the accuracy of the Commission's 
estimate of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information on 
respondents; 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.
    The Commission may not conduct or sponsor a collection of 
information unless it displays a current valid control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid Office of Management and Budget (OMB) control number.
    Please direct your written comments to: Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an 
email to: PRA_Mailbox@sec.gov.

    Dated: April 19, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-9938 Filed 4-24-12; 8:45 am]
BILLING CODE 8011-01-P