81 FR 68069 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 191 (October 3, 2016)

[Federal Register Volume 81, Number 191 (Monday, October 3, 2016)]
[Notices]
[Page 68069]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-23758]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

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

Extension: Form Custody
    SEC File No. 270-643, OMB Control No. 3235-0691

    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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    There are approximately 4,113 broker-dealers registered with the 
Commission. 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 197,424 hours.\2\ Assuming an average cost per 
hour of approximately $291for a compliance manager, the total internal 
cost of compliance for the respondents is approximately $57,450,384 per 
year.\3\
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    \2\ 4,113 brokers-dealers x 4 times per year x 12 hours = 
197,424 hours.
    \3\ 197,424 hours times $291 per hour = 57,450,384. $291 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 Web site: www.reginfo.gov. Comments should 
be directed to (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 email to: 
[email protected]; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or by sending an 
email to: [email protected]. Comments must be submitted within 30 
days of this notice.

    Dated: September 27, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-23758 Filed 9-30-16; 8:45 am]
 BILLING CODE 8011-01-P