[Federal Register Volume 85, Number 217 (Monday, November 9, 2020)]
[Notices]
[Page 71364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24838]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-325, OMB Control No. 3235-0385]


Submission for OMB Review; Comment Request

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

Extension:
    Rule 15g-9

    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 (``OMB'') a request for extension of the previously approved 
collection of information discussed below.
    Section 15(c)(2) of the Securities Exchange Act of 1934 (15 U.S. C. 
78a et seq.) (the ``Exchange Act'') authorizes the Commission to 
promulgate rules that prescribe means reasonably designed to prevent 
fraudulent, deceptive, or manipulative practices in connection with 
over-the-counter (``OTC'') securities transactions. Pursuant to this 
authority, the Commission in 1989 adopted Rule 15a&6, which was 
subsequently redesignated as Rule 15g-9, 17 CFR 240.15g-9 (the 
``Rule''). The Rule requires broker-dealers to produce a written 
suitability determination for, and to obtain a written customer 
agreement to, certain recommended transactions in penny stocks that are 
not registered on a national securities exchange, and whose issuers do 
not meet certain minimum financial standards. The Rule is intended to 
prevent the indiscriminate use by broker-dealers of fraudulent, high 
pressure telephone sales campaigns to sell penny stocks to 
unsophisticated customers.
    The Commission staff estimates that there are approximately 182 
broker-dealers subject to the Rule. The burden of the Rule on a 
respondent varies widely depending on the frequency with which new 
customers are solicited. On the average for all respondents, the staff 
has estimated that respondents process three new customers per week, or 
approximately 156 new customer suitability determinations per year. We 
also estimate that a broker-dealer would expend approximately one-half 
hour per new customer in obtaining, reviewing, and processing 
(including transmitting to the customer) the information required by 
Rule 15g-9, and each respondent would consequently spend 78 hours 
annually (156 customers x .5 hours) obtaining the information required 
in the rule. We determined, based on the estimate of 182 broker-dealer 
respondents, that the current annual burden of Rule 15g-9 is 14,196 
hours (182 respondents x 78 hours).
    The broker-dealer must keep the written suitability determination 
and customer agreement required by the Rule for at least three years. 
Completing the suitability determination and obtaining the customer 
agreement in writing is mandatory for broker-dealers who effect 
transactions in penny stocks and do not qualify for an exemption, but 
does not involve the collection of confidential information.
    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.
    The public may view background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) MBX.OMB.OIRA.SEC_desk_officer@omb.eop.gov and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by 
sending an email to: PRA_Mailbox@sec.gov.

    Dated: November 4, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-24838 Filed 11-6-20; 8:45 am]
BILLING CODE 8011-01-P


