Document ID: SEC-2012-1026-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals: Rule 17a-11
Posted Date: 2012-06-29T04:00Z

[Federal Register Volume 77, Number 126 (Friday, June 29, 2012)]
[Notices]
[Pages 38864-38865]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15942]

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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 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'') has submitted to the Office of Management and Budget a 
request for approval of extension of the previously approved 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'').
    In response to an operational crisis in the securities industry 
between 1967 and 1970, the Commission adopted Rule 17a-11 under the 
Exchange Act on July 11, 1971. Rule 17a-11 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 240.15c3-1f).
    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

[[Page 38865]]

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 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.
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently 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.
    The public may view background documentation for this information 
collection at the following Web site, www.reginfo.gov. Comments should 
be directed to: (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 email to: Shagufta_Ahmed@omb.eop.gov; and (ii) 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. Comments must be submitted within 30 days of this 
notice.

    Dated: June 25, 2012.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-15942 Filed 6-28-12; 8:45 am]
BILLING CODE 8011-01-P