
[Federal Register Volume 77, Number 146 (Monday, July 30, 2012)]
[Notices]
[Page 44699]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-18446]


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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 
20549-0213.

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 (44 U.S.C. 3501 et seq.) (``PRA''), 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 provided for in Rules 17h-1T and 17h-2T (17 
CFR 240.17h-1T and 17 CFR 240.17h-2T), under the Securities and 
Exchange Act of 1934 (17 U.S.C. 78a et seq.) (``Exchange Act'').
    Rule 17h-1T requires a 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 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 or 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 275 respondents that must comply with Rules 
17h-1T and 17h-2T. Each of these 275 respondents requires approximately 
10 hours per year, or 2.5 hours per quarter, to maintain the records 
required under Rule 17h-1T, for an aggregate annual burden of 2,750 
hours (275 respondents x 10 hours). In addition, each of these 275 
respondents must make five annual responses under Rule 17h-2T. These 
five responses require approximately 14 hours per respondent per year, 
or 3.5 hours per quarter, for an aggregate annual burden of 3,850 hours 
(275 respondents x 14 hours).
    In addition, there are approximately twenty-five new respondents 
per year that 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, thus requiring an 
aggregate of 100 hours (25 new respondents x 4 hours). Thus, the total 
compliance burden per year is approximately 6,700 burden hours (2,750 + 
3,850 + 100).
    Rule 17h-1T specifies that the records required to be maintained 
under the Rule must be preserved for a period of not less than three 
years. There is no specific retention period or record keeping 
requirement for Rule 17h-2T. The collection of information is mandatory 
and the information required to be provided to the Commission pursuant 
to the risk assessment rules is deemed confidential, notwithstanding 
any other provision of law under Section 17(h)(5) of the Exchange Act 
(15 U.S.C. 78q(h)(5)) and Section 552(b)(3)(B) of the Freedom of 
Information Act (5 U.S.C. 552(b)(3)(B)).
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid OMB control number.
    Background documentation for this information collection may be 
viewed at the following Web site: 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 email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 
6432 General Green Way, Alexandria, VA 22312 or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of 
this notice.

    Dated: July 24, 2012.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-18446 Filed 7-27-12; 8:45 am]
BILLING CODE 8011-01-P


