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[Federal Register: March 16, 2001 (Volume 66, Number 52)]
[Notices]               
[Page 15305]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16mr01-93]                         


[[Page 15305]]

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SECURITIES AND EXCHANGE COMMISSION

[Extension: Rule 15g-9; SEC File No. 270-325; OMB Control No. 3235-
0385]

 
Submission for OMB Review; Comment Request

    Upon written request, copies available from: Securities and 
Exchange Commission Office of Filings and Information Services 450 
Fifth Street, NW. Washington, DC 20549.
    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 a request for extension of the previously approved 
collection of information discussed below.
    <bullet> Rule 15g-9, Sales Practice Requirements for Certain Low-
Priced Securities Section 15(c)(2) of the Securities Exchange Act of 
1934 (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 (the ``Rule''), 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 low-priced stocks that are not registered on a national 
securities exchange or authorized for trading on NASDAQ, 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 low-priced 
securities to unsophisticated customers.
    The staff estimates that approximately 270 broker-dealers incur an 
average burden of 78 hours per year to comply with this rule. Thus, the 
total burden hours to comply with the Rule is estimated at 21,060 hours 
(270  x  78).
    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. Please 
note that 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 control number.
    General comments regarding the estimated burden hours should be 
directed to the following persons: (i) Desk Officer for the Securities 
and Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 3208, New Executive Office 
Building, Washington, DC 20503; and (ii) Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Comments must be submitted to OMB within 30 days of this notice.

    Dated: March 12, 2001.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-6562 Filed 3-15-01; 8:45 am]
BILLING CODE 8010-01-M

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