
[Federal Register Volume 76, Number 8 (Wednesday, January 12, 2011)]
[Notices]
[Pages 2152-2153]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-476]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension:
    Rule 17a-4; SEC File No. 270-198; OMB Control No. 3235-0279.

    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 collection of 
information provided for in Rule 17a-4 (17 CFR 240.17a-4), 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 for extension and approval.
    Rule 17a-4 requires exchange members, brokers and dealers 
(``broker-dealers'') to preserve for prescribed periods of time certain 
records required to be made by Rule 17a-3. In addition, Rule 17a-4 
requires the preservation of records required to be made by other 
Commission rules and other kinds of records which firms make or receive 
in the ordinary course of business. These include, but are not limited 
to, bank statements, cancelled checks, bills receivable and payable, 
originals of communications, and descriptions of various transactions. 
Rule 17a-4 also permits broker-dealers to employ, under certain 
conditions, electronic storage media to maintain records required to be 
maintained under Rules 17a-3 and 17a-4.

[[Page 2153]]

    There are approximately 5,057 active, registered broker-dealers. 
The staff estimates that the average amount of time necessary to 
preserve the books and records as required by Rule 17a-4 is 254 hours 
per broker-dealer per year. Thus the staff estimates that the total 
compliance burden for 5,057 respondents is 1,284,478 hours.
    The staff believes that compliance personnel would be charged with 
ensuring compliance with Commission regulation, including Rule 17a-4. 
The staff estimates that the hourly salary of a Compliance Clerk is $67 
per hour.\1\ Based upon these numbers, the total cost of compliance for 
5,057 respondents is the dollar cost of approximately $86.1 million 
(1,284,478 yearly hours x $67). The total burden hour decrease of 
468,122 is due to a decrease in the number of respondents from 6,900 to 
5,057.
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    \1\ This figure is based on SIFMA's Office Salaries in the 
Securities Industry 2010, modified by Commission staff to account 
for an 1800-hour work-year multiplied by 2.93 to account for 
bonuses, firm size, employee benefits, and overhead.
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    Based on conversations with members of the securities industry and 
based on the Commission's experience in the area, the staff estimates 
that the average broker-dealer spends approximately $5,000 each year to 
store documents required to be retained under Rule 17a-4. Costs include 
the cost of physical space, computer hardware and software, etc., which 
vary widely depending on the size of the broker-dealer and the type of 
storage media employed. The Commission estimates that the annual 
reporting and record-keeping cost burden is $25,285,000. This cost is 
calculated by the number of active, registered broker-dealers 
multiplied by the reporting and record-keeping cost for each respondent 
(5,057 active, registered broker-dealers x $5,000).
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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.
    Please direct your written comments to: Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312 or 
send an e-mail to: PRA_Mailbox@sec.gov.

    Dated: January 6, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-476 Filed 1-11-11; 8:45 am]
BILLING CODE 8011-01-P


