[Federal Register Volume 87, Number 141 (Monday, July 25, 2022)]
[Notices]
[Page 44179]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15783]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-643, OMB Control No. 3235-0691]


Submission for OMB Review; Comment Request: Extension: Form 
Custody

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 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of the extension of the 
previously approved collection of information provided for in Form 
Custody (17 CFR 249.639) under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) (``Exchange Act'').
    Section 17(a)(1) of the Exchange Act provides that broker-dealers 
registered with the Commission must make and keep records, furnish 
copies of the records, and make and disseminate reports as the 
Commission, by rule, prescribes. Pursuant to this authority, the 
Commission adopted Rule 17a-5 (17 CFR 240.17a-5), which is one of the 
primary financial and operational reporting rules for broker-
dealers.\1\ Paragraph (a)(5) of Rule 17a-5 requires every broker-dealer 
registered with the Commission to file Form Custody (17 CFR 249.639) 
with its designated examining authority (``DEA'') within 17 business 
days after the end of each calendar quarter and within 17 business days 
after the date selected for the broker-dealer's annual report if that 
date is not the end of a calendar quarter. Form Custody is designed to 
elicit information about whether a broker-dealer maintains custody of 
customer and non-customer assets, and, if so, how such assets are 
maintained.
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    \1\ Rule 17a-5 is subject to a separate PRA filing (OMB Control 
Number 3235-0123).
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    The Commission estimates that there are approximately 3,534 broker-
dealers registered with the Commission. As noted above, all broker-
dealers registered with the Commission are required to file Form 
Custody with their DEA once each calendar quarter. Based on staff 
experience, the Commission estimates that, on average, it would take a 
broker-dealer approximately 12 hours to complete and file Form Custody, 
for an annual industry-wide reporting burden of approximately 169,632 
hours.\2\ Assuming an average cost per hour of approximately $319 for a 
compliance manager, the total internal cost of compliance for the 
respondents is approximately $54,112,608 per year.\3\
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    \2\ 3,534 brokers-dealers x 4 times per year x 12 hours = 
169,632 hours.
    \3\ 169,632 hours times $319 per hour = $54,112,608. $319 per 
hour for a compliance manager is from SIFMA's Management & 
Professional Earnings in the Securities Industry 2013, modified by 
Commission staff for an 1800-hour work-year, multiplied by 5.35 to 
account for bonuses, firm size, employee benefits, and overhead, and 
adjusted for inflation.
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    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 August 24, 2022 to (i) 
[email protected] 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 19, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-15783 Filed 7-22-22; 8:45 am]
BILLING CODE 8011-01-P


