Proposed Collection; Comment Request

CourtSecurities And Exchange Commission
Citation86 FR 68714
Record Number2021-26246
Publication Date03 December 2021
Federal Register, Volume 86 Issue 230 (Friday, December 3, 2021)
[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
                [Page 68714]
                From the Federal Register Online via the Government Publishing Office []
                [FR Doc No: 2021-26246]
                Proposed Collection; Comment Request
                Upon Written Request, Copies Available From: Securities and Exchange
                Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
                 Rules 17h-1T and 17h-2T; SEC File No. 270-359, OMB Control No.
                 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
                 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

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