
[Federal Register Volume 78, Number 35 (Thursday, February 21, 2013)]
[Notices]
[Pages 12108-12109]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03972]


=======================================================================
-----------------------------------------------------------------------

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-5; SEC File No. 270-155, OMB Control No. 3235-0123.

    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 existing 
collection of information provided for in Rule 17a-5 (17 CFR 240.17a-
5), 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 17a-5 is the basic financial reporting rule for brokers and 
dealers.\1\ The Rule requires the filing of Form X-17A-5, the Financial 
and Operational Combined Uniform Single Report (``FOCUS Report''), 
which was the result of years of study and comments by representatives 
of the securities industry through advisory committees and through the 
normal rule proposal methods. The FOCUS Report was designed to 
eliminate the overlapping regulatory reports required by various self-
regulatory organizations and the Commission and to reduce reporting 
burdens as much as possible. The Rule also requires the filing of an 
annual audited report of financial statements.
---------------------------------------------------------------------------

    \1\ Rule 17a-5(c) requires a broker or dealer to furnish certain 
of its financial information to customers and is subject to a 
separate PRA filing (OMB Control Number 3235-0199).
---------------------------------------------------------------------------

    The FOCUS Report consists of: (1) Part I, which is a monthly report 
that must be filed by brokers or dealers that clear transactions or 
carry customer securities; (2) one of three alternative quarterly 
reports: Part II, which must be

[[Page 12109]]

filed by brokers or dealers that clear transactions or carry customer 
securities; Part IIA, which must be filed by brokers or dealers that do 
not clear transactions or carry customer securities; and Part IIB, 
which must be filed by specialized broker-dealers registered with the 
Commission as OTC derivatives dealers; \2\ (3) supplemental schedules, 
which must be filed annually; and (4) a facing page, which must be 
filed with the annual audited report of financial statements. Under the 
Rule, a broker or dealer that computes certain of its capital charges 
in accordance with Appendix E to Exchange Act Rule 15c3-1 must file 
additional monthly, quarterly, and annual reports with the Commission.
---------------------------------------------------------------------------

    \2\ Part IIB of Form X-17A-5 must be filed by OTC derivatives 
dealers under Exchange Act Rule 17a-12 and is subject to a separate 
PRA filing (OMB Control Number 3235-0498).
---------------------------------------------------------------------------

    The variation in the size and complexity of brokers and dealers 
subject to Rule 17a-5 and the differences in the FOCUS Report forms 
that must be filed under the Rule make it difficult to calculate the 
cost of compliance. However, we estimate that, on average, each report 
will require approximately 12 hours. At year-end 2011, the Commission 
estimates that there were approximately 4,802 brokers or dealers, and 
that of those firms there were approximately 513 brokers or dealers 
that clear transactions or carry customer securities. The Commission 
therefore estimates that approximately 513 firms filed monthly reports, 
approximately 4,134 firms filed quarterly reports, and approximately 63 
firms filed annual reports. In addition, approximately 4,650 firms 
filed annual audited reports. As a result, there were approximately 
27,405 total annual responses ((513 x 12) + (4,134 x 4) + 63 + 4,650 = 
27,405). This results in an estimated annual burden of 328,860 hours 
(27,405 annual responses x 12 hours = 328,860).
    In addition, we estimate that approximately 9 brokers or dealers 
will elect to use Appendix E to Rule 15c3-1 to compute certain of their 
capital charges (as of September 2012, six brokers or dealers have 
elected to use Appendix E). We estimate that the average amount of time 
necessary to prepare and file the additional monthly reports that must 
be filed by these firms is about 4 hours per month, or approximately 48 
hours per year; the average amount of time necessary to prepare and 
file the additional quarterly reports is about 8 hours per quarter, or 
approximately 32 hours per year; and the average amount of time 
necessary to prepare and file the additional supplemental reports with 
the annual audit required is approximately 40 hours per year. 
Consequently, we estimate that the total additional annual burden for 
these 9 brokers or dealers is approximately 1,080 hours ((48 + 32 + 40) 
x 9 = 1,080).
    The Commission therefore estimates that the total annual burden 
under Rule 17a-5 is approximately 330,000 hours (328,860 + 1,080 = 
329,940, rounded to 330,000).
    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 
shall have practical utility; (b) the accuracy of the Commission's 
estimate of the burden of the proposed 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.
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently valid 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.
    Please direct your written comments to: Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312 or 
send an email to PRA_Mailbox@sec.gov.

    Dated: February 15, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03972 Filed 2-20-13; 8:45 am]
BILLING CODE 8011-01-P


