

[Federal Register: November 27, 2007 (Volume 72, Number 227)]
[Notices]               
[Page 66201-66202]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27no07-118]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549

Extension:
    Rule 17a-3; SEC File No. 270-026; OMB Control No. 3235-0033

    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 (``OMB'') a request for extension of the previously approved 
collection of information discussed below. The Code of Federal 
Regulations citation to this collection of information is: 17 CFR 
240.17a-3.
    Rule 17a-3 under the Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.) establishes minimum standards with respect to business records 
that broker-dealers registered with the Commission must make and keep 
current. These records are maintained by the broker-dealer (in 
accordance with a separate rule), so they can be used by the broker-
dealer and reviewed by

[[Page 66202]]

Commission examiners, as well as other regulatory authority examiners, 
during inspections of the broker-dealer.
    The collection of information included in Rule 17a-3 is necessary 
to provide Commission, self-regulatory organization, and State 
examiners to conduct effective and efficient examinations to determine 
whether broker-dealers are complying with relevant laws, rules, and 
regulations. If broker-dealers were not required to create these 
baseline, standardized records, Commission, self-regulatory 
organization, and State examiners could be unable to determine whether 
broker-dealers are in compliance with the Commission's antifraud and 
anti-manipulation rules, financial responsibility program, and other 
Commission, self-regulatory organization, and State laws, rules, and 
regulations.
    As of July 30, 2007 there were 5,850 broker-dealers registered with 
the Commission. The Commission estimates that these broker-dealer 
respondents incur a total burden of 2,984,760 hours per year to comply 
with Rule 17a-3. Approximately 1,524,210 of those hours are 
attributable to Rule 17a-3(a)(17), and about 1,460,550 hours are 
attributable to the rest of Rule 17a-3. Rule 17a-3(a)(17) contains 
requirements to provide customers with account information 
(approximately 975,809 hours) and requirements to update customer 
account information (approximately 548,401 hours).
    In addition, Rule 17a-3 contains ongoing operation and maintenance 
costs for broker-dealers including the cost of postage to provide 
customers with account information, and costs for equipment and systems 
development. The Commission estimates that under Rule 17a-3(a)(17), 
approximately 36,365,553 customers will need to be provided with 
information regarding their account on a yearly basis. The Commission 
estimates that the postage costs associated with providing those 
customers with copies of their account record information would be 
approximately $8,176,435 per year (28,390,400 x $0.288).\1\ Based on 
comments provided in response to the 2001 Amendments (as adjusted to 
account for inflation), the staff believes that the ongoing equipment 
and systems development costs relating to Rule 17a-3 for the industry 
would be about $23,362,847 per year. Consequently, the total cost 
burden associated with Rule 17a-3 would be approximately $31,539,282 
per year.
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    \1\ Estimates of postage costs are derived from past 
conversations with industry representatives and have been adjusted 
to account for inflation.
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    Rule 17a-3 does not contain record retention requirements. 
Compliance with the rule is mandatory. The required records are 
available only to the staffs of the Commission, self-regulatory 
organizations of which the broker-dealer is a member, and the States 
during examinations, inspections and investigations. An agency may not 
conduct or sponsor and a person is not required to respond to a 
collection of information unless it displays a currently valid control 
number.
    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 e-mail to: 
Alexander_T._Hunt@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief 

Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-
mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 30 
days of this notice.

    Dated: November 19, 2007.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-22981 Filed 11-26-07; 8:45 am]

BILLING CODE 8011-01-P
