
[Federal Register Volume 88, Number 176 (Wednesday, September 13, 2023)]
[Notices]
[Page 62831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19790]


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SECURITIES AND EXCHANGE COMMISSION

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


Proposed Collection; Comment Request; Extension: Rule 15g-9

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

    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 existing 
collection of information provided for in Rule 15g-9 (17 CFR 240.15g-9) 
(the ``Rule''), under the Securities Exchange Act of 1934 (15 U.S. C. 
78a et seq.) (the ``Exchange Act''). The Commission plans to submit 
this existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Section 15(c)(2) of the Exchange Act (15 U.S.C. 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 15c2-6, 
which was subsequently redesignated as Rule 15g-9, 17 CFR 240.15g-9. 
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 approximately five percent of 
registered broker-dealers, or 175 broker-dealers,\1\ are subject to the 
Rule (5% x approximately 3,497 registered broker-dealers = 175 broker-
dealers). As indicated above, the burden of the Rule on a respondent 
varies widely depending on the frequency with which new customers are 
solicited. On average, for all respondents, the staff has estimated 
that respondents process three new customers per week, or approximately 
156 new customers requiring suitability determinations per year. We 
also estimate that a broker-dealer would take 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 new customers x .5 hours) obtaining the information 
required in the Rule. This would result in 27,300 annual responses per 
year for all respondents (175 respondents x 156 new customer 
suitability determinations per year). We determined, based on the 
estimate of 175 broker-dealer respondents, that the annual hour burden 
of Rule 15g-9 is 13,650 hours (175 respondents x 78 hours).
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    \1\ As of July 1, 2023, there are 3,497 registered broker-
dealers. 5% of 3,497 is 174.85, rounded up to 175.
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    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 
estimates 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 by 
November 13, 2023.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
[email protected].

    Dated: September 8, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-19790 Filed 9-12-23; 8:45 am]
BILLING CODE 8011-01-P


