Proposed Collection; Comment Request
| Published date | 03 December 2021 |
| Citation | 86 FR 68714 |
| Record Number | 2021-26246 |
| Section | Notices |
| Court | Securities And Exchange Commission |
Federal Register, Volume 86 Issue 230 (Friday, December 3, 2021)
[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Page 68714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26246]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rules 17h-1T and 17h-2T; SEC File No. 270-359, OMB Control No.
3235-0410
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 Rules 17h-1T and 17h-2T (17
CFR 240.17h-1T and 17 CFR 240.17h-2T), 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 17h-1T requires a covered broker-dealer to maintain and
preserve records and other information concerning certain entities that
are associated with the broker-dealer. This requirement extends to the
financial and securities activities of the holding company, affiliates
and subsidiaries of the broker-dealer that are reasonably likely to
have a material impact on the financial or operational condition of the
broker-dealer. Rule 17h-2T requires a covered broker-dealer to file
with the Commission quarterly reports and a cumulative year-end report
concerning the information required to be maintained and preserved
under Rule 17h-1T.
The collection of information required by Rules 17h-1T and 17h-2T,
collectively referred to as the ``risk assessment rules'', is necessary
to enable the Commission to monitor the activities of a broker-dealer
affiliate whose business activities are reasonably likely to have a
material impact on the financial and operational condition of the
broker-dealer. Without this information, the Commission would be unable
to assess the potentially damaging impact of the affiliate's activities
on the broker-dealer.
There are currently 235 respondents that must comply with Rules
17h-1T and 17h-2T. Each of these 235 respondents are estimated to
require 10 hours per year to maintain the records required under Rule
17h-1T, for an aggregate estimated annual burden of 2,350 hours (235
respondents x 10 hours). In addition, each of these 235 respondents
must make five annual responses under Rule 17h-2T. These five responses
are estimated to require 14 hours per respondent per year for an
aggregate estimated annual burden of 3,290 hours (235 respondents x 14
hours).
In addition, new respondents must draft an organizational chart
required under Rule 17h-1T and establish a system for complying with
the risk assessment rules. The staff estimates that drafting the
required organizational chart requires one hour and establishing a
system for complying with the risk assessment rules requires three
hours. Based on the reduction in the number of filers in recent years,
the staff estimates there will be zero new respondents, and thus, a
corresponding estimated burden of zero hours for new respondents. Thus,
the total compliance burden per year is approximately 5,640 burden
hours (2,350 hours + 3,290 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 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 within 60
days of this publication.
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: November 29, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26246 Filed 12-2-21; 8:45 am]
BILLING CODE 8011-01-P
