
[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Pages 15009-15010]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6317]


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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-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'') has submitted to the Office of Management 
and Budget a request for extension of the previously approved 
collection of information discussed below.

[[Page 15010]]

    Rule 17a-4 requires approximately 5,057 active, registered exchange 
members, brokers and dealers (``broker-dealers'') to preserve for 
prescribed periods of time certain records required to be made by Rule 
17a-3 and other Commission rules, and other kinds of records which 
firms make or receive in the ordinary course of business. Rule 17a-4 
also permits broker-dealers to employ, under certain conditions, 
electronic storage media to maintain these required records. The 
records required to be maintained under Rule 17a-4 are used by 
examiners and other representatives of the Commission to determine 
whether broker-dealers are in compliance with, and to enforce their 
compliance with, the Commission's rules.
    The staff estimates that the average number of hours necessary for 
each broker-dealer to comply with Rule 17a-4 is 254 hours annually. 
Thus, the total burden for broker-dealers is 1,284,478 hours annually. 
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 results from the 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 1,800-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).
    The public may view the background documentation for this 
information collection at the following Web site, http://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 e-
mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send an 
e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB 
within 30 days of this notice.

    Dated: March 14, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-6317 Filed 3-17-11; 8:45 am]
BILLING CODE 8011-01-P


