[Federal Register Volume 87, Number 138 (Wednesday, July 20, 2022)]
[Notices]
[Pages 43348-43349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15439]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-0088, OMB Control No. 3235-0083]


Submission for OMB Review; Comment Request: Extension: Rule 
15Ba2-1 and Form MSD

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'') has submitted to the Office of Management 
and Budget (``OMB'') a request for extension of the previously approved 
collection of information provided for in Rule 15Ba2-1 (17 CFR 
240.15Ba2-1) and Form MSD (17 CFR 249.1100) under the Securities 
Exchange Act of 1934 (``Exchange Act'') (15 U.S.C. 78a et seq.).
    Rule 15Ba2-1 provides that an application for registration with the 
Commission by a bank municipal securities dealer must be filed on Form 
MSD. The Commission uses the information obtained from Form MSD filings 
to The Commission uses the information obtained from Form MSD filings 
to determine whether bank municipal securities dealers meet the 
standards for registration set forth in the Exchange Act, to make 
information about particular bank municipal securities dealers 
available to customers and members of the public, and to develop risk 
assessment information about bank municipal securities dealers.
    Form MSD is a one-time registration form that must be amended only 
if it becomes inaccurate. Based upon past submissions of zero initial 
filings and 14 amendments in 2019, zero initial filings and three 
amendments in 2020, zero initial filings and one amendment in 2021, and 
zero initial filings and zero amendments so far in 2022, the Commission 
estimates that on an annual basis approximately one respondent will use 
Form MSD for an initial registration application, and that 
approximately six respondents will utilize Form MSD for an amendment, 
for a total of seven respondents per year. The time required to 
complete Form MSD varies with the size and complexity of the bank 
municipal securities dealer's proposed operations. Bank personnel that 
prepare Form MSD filings previously indicated that it can take up to 15 
hours for a bank with a large operation and many employees to complete 
the form, but that smaller banks with fewer personnel can complete the 
form in one to two hours. We believe that most recent applications have 
come from smaller banks. Also, amendments to form MSD are likely to 
require significantly less time. We estimate that the total annual 
burden is currently approximately 11 hours at an average of 1.5 hours 
per respondent. (7 respondents/year x 1.5 hours/respondent = 10.5 
hours/year rounded up to 11). The staff estimates that the average 
internal compliance cost per hour is approximately $406.\1\ Therefore, 
the estimated total annual internal cost of compliance is approximately 
$4,263 per year (10.5 hours/year x $406/hour = $4,263/year).
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    \1\ The estimate of $406 per hour is for a compliance attorney, 
based on the Securities Industry and Financial Markets Association's 
Management & Professional Earnings in the Securities Industry 2013, 
modified by Commission staff to account for an 1800-hour work-year 
and inflation, and multiplied by 5.35 to account for bonuses, firm 
size, employee benefits and
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    Rule 15Ba2-1 does not contain an explicit recordkeeping 
requirement, but the rule does require the prompt correction of any 
information on Form MSD that becomes inaccurate, meaning that bank 
municipal securities dealers need to maintain a current copy of Form 
MSD indefinitely. In addition, the instructions for filing Form MSD 
state that an exact copy should be retained by the registrant. 
Providing the information on the application is mandatory in order to 
register with the Commission as a bank municipal securities dealer. The 
information contained in the application will not be kept confidential.
    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 by

[[Page 43349]]

August 19, 2022 to (i) www.reginfo.gov/public/do/PRAMain and (ii) David 
Bottom, Director/Chief Information Officer, Securities and Exchange 
Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, 
or by sending an email to: [email protected].

    Dated: July 14, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-15439 Filed 7-19-22; 8:45 am]
BILLING CODE 8011-01-P


