[Federal Register: August 20, 2008 (Volume 73, Number 162)]
[Notices]
[Page 49224-49225]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20au08-92]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: U.S. Securities and
Exchange Commission, Office of Investor Education and Advocacy,
Washington, DC 20549-0213.
Extension: Rule 15c2-5, OMB Control No. 3235-0198, SEC File No. 270-
195.
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. The Code of Federal
Regulations citation to this collection of information is the
following: 17 CFR 240.15c2-5.
Rule 15c2-5 prohibits a broker-dealer from arranging or extending
certain loans to persons in connection with the offer or sale of
securities unless, before any element of the transaction is entered
into, the broker-dealer: (1) Delivers to the person a written statement
containing the exact nature and extent of the person's obligations
under the loan arrangement; the risks and disadvantages of the loan
arrangement; and all commissions, discounts, and other remuneration
received and to be
[[Page 49225]]
received in connection with the transaction by the broker-dealer or
certain related persons (unless the person receives certain materials
from the lender or broker-dealer which contain the required
information); and (2) obtains from the person information on the
person's financial situation and needs, reasonably determines that the
transaction is suitable for the person, and retains on file and makes
available to the person on request a written statement setting forth
the broker-dealer's basis for determining that the transaction was
suitable. The collection of information required by the rule is
necessary to execute the Commission's mandate under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange Act'') to
prevent fraudulent, manipulative, and deceptive acts and practices by
broker-dealers.
The Commission estimates that there are approximately 50
respondents that require an aggregate total of 600 hours to comply with
the Rule. Each of these approximately 50 registered broker-dealers
makes an estimated 6 annual responses, for an aggregate total of 300
responses per year. Each response takes approximately 2 hours to
complete. Thus, the total compliance burden per year is 600 burden
hours. The approximate cost per hour is $40.00 for clerical labor,
resulting in a total compliance cost of $24,000 (600 hours @ $40.00 per
hour).
Although Rule 15c2-5 does not specify a retention period or record
keeping requirement under the Rule, nevertheless broker-dealers are
required to preserve the records for a period no less than six years
pursuant to Rule 17a-4(c). The information required under Rule 15c2-5
is necessary for broker-dealers to engage in the lending activities
prescribed in the Rule. Rule 15c2-5 does not assure confidentiality for
the information retained under the Rule.\1\ 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.
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\1\ The records required by Rule 15c2-5 would be available only
to the examination of the Commission staff, state securities
authorities and the SROs. Subject to the provisions of the Freedom
of Information Act, 5 U.S.C. 522, and the Commission's rules
thereunder (17 CFR 200.80(b)(4)(iii)), the Commission does not
generally publish or make available information contained in any
reports, summaries, analyses, letters, or memoranda arising out of,
in anticipation of, or in connection with an examination or
inspection of the books and records of any person or any other
investigation.
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Written comments regarding the above information 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 10102, New Executive Office
Building, Washington, DC 20503 or by sending an e-mail to Alexander_
T._Hunt@omb.eop.gov; and (ii) Lewis W. Walker, Acting Director/Chief
Information Officer, Securities and Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-
mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within
30 days of this notice.
Dated: August 13, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19231 Filed 8-19-08; 8:45 am]
BILLING CODE 8010-01-P