
[Federal Register Volume 81, Number 164 (Wednesday, August 24, 2016)]
[Notices]
[Pages 57985-57986]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20258]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736.

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 (``PRA'') (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 (``OMB'') for extension and approval.
    Rule 17a-4 requires exchange members, brokers and dealers 
(``broker-

[[Page 57986]]

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.
    There are approximately 4,104 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. In addition, the Commission is moving into 
this information collection the annual burden hours for paragraph 
(b)(11) of Rule 17a-4, which requires any broker-dealer that sponsors 
an internal broker-dealer system to maintain certain records relating 
to such system for at least three years. The Commission estimates that 
paragraph (b)(11) of Rule 17a-4 imposes an annual burden of 3 hours per 
year to maintain the requisite records. The Commission estimates that 
there are approximately 150 internal broker-dealer systems, resulting 
in an annual recordkeeping burden of 450 hours. Therefore, the 
Commission estimates that compliance with Rule 17a-4 requires 1,042,866 
hours each year ((4,104 broker-dealers x 254 hours) + (150 broker-
dealers x 3 hours). These burdens are recordkeeping burdens.
    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 $65 
per hour.\1\ Based upon these numbers, the total internal cost of 
compliance for 4,104 respondents is the dollar cost of approximately 
$67.8 million (1,042,416 yearly hours x $65). The total burden hour 
decrease of 242,062 is due to a decrease in the number of respondents 
from 5,057 to 4,104.
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    \1\ This figure is based on SIFMA's Office Salaries in the 
Securities Industry 2016, 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 
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 recordkeeping cost burden is $20,520,000. This cost is 
calculated by the number of active, registered broker-dealers 
multiplied by the reporting and recordkeeping cost for each respondent 
(4,104 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 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: August 19, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-20258 Filed 8-23-16; 8:45 am]
 BILLING CODE 8011-01-P


