82 FR 11958 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 37 (February 27, 2017)
Federal Register Volume 82, Issue 37 (February 27, 2017)
| Page Range | 11958-11958 | |
| FR Document | 2017-03772 |
[Federal Register Volume 82, Number 37 (Monday, February 27, 2017)] [Notices] [Page 11958] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-03772] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: U.S. Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549-2736. Extension: Rule 17a-13, SEC File No. 270- 27, OMB Control No. 3235-0035. 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 approval of extension of the previously approved collection of information provided for in Rule 17a-13 (17 CFR 240.17a-13) under the Securities Exchange Act of 1934 (15 U.S. C. 78a et seq.) (``Exchange Act''). Rule 17a-13(b) (17 CFR 240.17a-13(b)) generally requires that at least once each calendar quarter, all registered brokers-dealers physically examine and count all securities held, and that they account for all other securities not in their possession, but subject to the broker-dealer's control or direction. Any discrepancies between the broker-dealer's securities count and the firm's records must be noted and, within seven days, the unaccounted for difference must be recorded in the firm's records. Rule 17a-13(c) (17 CFR 240.17a-13(c)) provides that under specified conditions, the count, examination, and verification of the broker-dealer's entire list of securities may be conducted on a cyclical basis rather than on a certain date. Although Rule 17a-13 does not require broker-dealers to file a report with the Commission, discrepancies between a broker-dealer's records and the securities counts may be required to be reported, for example, as a loss on Form X-17a-5 (17 CFR 248.617), which must be filed with the Commission under Exchange Act Rule 17a-5 (17 CFR 240.17a-5). Rule 17a- 13 exempts broker-dealers that limit their business to the sale and redemption of securities of registered investment companies and interests or participation in an insurance company separate account and those who solicit accounts for federally insured savings and loan associations, provided that such persons promptly transmit all funds and securities and hold no customer funds and securities. Rule 17a-13 also does not apply to certain broker-dealers required to register only because they effect transactions in securities futures products. The information obtained from Rule 17a-13 is used as an inventory control device to monitor a broker-dealer's ability to account for all securities held in transfer, in transit, pledged, loaned, borrowed, deposited, or otherwise subject to the firm's control or direction. Discrepancies between the securities counts and the broker-dealer's records alert the Commission and the self-regulatory organizations (``SROs'') to those firms experiencing back-office operational issues. Currently, there are approximately 4,067 broker-dealers registered with the Commission. However, given the variability in their businesses, it is difficult to quantify how many hours per year each broker-dealer spends complying with Rule 17a-13. As noted, Rule 17a-13 requires a broker-dealer to account for all securities in its possession or subject to its control or direction. Many broker-dealers hold few, if any, securities; while others hold large quantities. Therefore, the time burden of complying with Rule 17a-13 will depend on respondent-specific factors, including a broker-dealer's size, number of customers, and proprietary trading activity. The staff estimates that the average time spent per respondent is 100 hours per year on an ongoing basis to maintain the records required under Rule 17a-13. This estimate takes into account the fact that more than half of the 4,067 respondents--according to financial reports filed with the Commission-- may spend little or no time complying with Rule 17a-13, given that they do not do a public securities business or do not hold inventories of securities. For these reasons, the staff estimates that the total compliance burden per year is 406,700 hours (4,067 respondents x 100 hours/respondent). The records required to be made by Rule 17a-13 are available only to Commission examination staff, state securities authorities, and applicable 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. 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 to OMB within 30 days of this notice. Dated: February 17, 2017. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-03772 Filed 2-24-17; 8:45 am] BILLING CODE 8011-01-P
![11958 Federal Register / Vol. 82, No. 37 / Monday, February 27, 2017 / Notices
statement information interactive data and that they account for all other number of customers, and proprietary
that is currently available only to securities not in their possession, but trading activity. The staff estimates that
investment companies and certain other subject to the broker-dealer’s control or the average time spent per respondent is
entities. direction. Any discrepancies between 100 hours per year on an ongoing basis
• The Commission will consider the broker-dealer’s securities count and to maintain the records required under
whether to propose amendments to Rule the firm’s records must be noted and, Rule 17a–13. This estimate takes into
15c2–12 under the Securities Exchange within seven days, the unaccounted for account the fact that more than half of
Act of 1934, which would amend the difference must be recorded in the the 4,067 respondents—according to
list of event notices that a broker, dealer, firm’s records. Rule 17a–13(c) (17 CFR financial reports filed with the
or municipal securities dealer acting as 240.17a–13(c)) provides that under
Commission—may spend little or no
an underwriter in a primary offering of specified conditions, the count,
time complying with Rule 17a–13, given
municipal securities, must reasonably examination, and verification of the
broker-dealer’s entire list of securities that they do not do a public securities
determine that an issuer or an obligated
may be conducted on a cyclical basis business or do not hold inventories of
person has undertaken, in a written
agreement or contract for the benefit of rather than on a certain date. Although securities. For these reasons, the staff
holders of the municipal securities, to Rule 17a–13 does not require broker- estimates that the total compliance
provide to the Municipal Securities dealers to file a report with the burden per year is 406,700 hours (4,067
Rulemaking Board. The proposed Commission, discrepancies between a respondents x 100 hours/respondent).
amendments would add two event broker-dealer’s records and the The records required to be made by
notices relating to certain financial securities counts may be required to be Rule 17a–13 are available only to
obligations incurred by issuers and reported, for example, as a loss on Form Commission examination staff, state
obligated persons. X–17a–5 (17 CFR 248.617), which must securities authorities, and applicable
At times, changes in Commission be filed with the Commission under SROs. Subject to the provisions of the
priorities require alterations in the Exchange Act Rule 17a–5 (17 CFR Freedom of Information Act, 5 U.S.C.
scheduling of meeting items. 240.17a–5). Rule 17a–13 exempts 522, and the Commission’s rules
For further information and to broker-dealers that limit their business
thereunder (17 CFR 200.80(b)(4)(iii)),
ascertain what, if any, matters have been to the sale and redemption of securities
of registered investment companies and the Commission does not generally
added, deleted, or postponed, please publish or make available information
contact Brent J. Fields in the Office of interests or participation in an
insurance company separate account contained in any reports, summaries,
the Secretary at (202) 551–5400.
and those who solicit accounts for analyses, letters, or memoranda arising
Dated: February 22, 2017. out of, in anticipation of, or in
federally insured savings and loan
Brent J. Fields, associations, provided that such persons connection with an examination or
Secretary. promptly transmit all funds and inspection of the books and records of
[FR Doc. 2017–03849 Filed 2–23–17; 11:15 am] securities and hold no customer funds any person or any other investigation.
BILLING CODE 8011–01–P and securities. Rule 17a–13 also does An agency may not conduct or
not apply to certain broker-dealers sponsor, and a person is not required to
required to register only because they respond to, a collection of information
SECURITIES AND EXCHANGE effect transactions in securities futures
COMMISSION under the PRA unless it displays a
products. currently valid OMB control number.
The information obtained from Rule
Submission for OMB Review; 17a–13 is used as an inventory control The public may view background
Comment Request device to monitor a broker-dealer’s documentation for this information
Upon Written Request, Copies Available ability to account for all securities held collection at the following Web site:
From: U.S. Securities and Exchange in transfer, in transit, pledged, loaned, www.reginfo.gov. Comments should be
Commission, Office of FOIA Services, borrowed, deposited, or otherwise directed to: (i) Desk Officer for the
100 F Street NE., Washington, DC subject to the firm’s control or direction. Securities and Exchange Commission,
20549–2736. Discrepancies between the securities Office of Information and Regulatory
counts and the broker-dealer’s records Affairs, Office of Management and
Extension: alert the Commission and the self-
Rule 17a–13, SEC File No. 270- 27, OMB Budget, Room 10102, New Executive
Control No. 3235–0035.
regulatory organizations (‘‘SROs’’) to Office Building, Washington, DC 20503,
those firms experiencing back-office or by sending an email to: Shagufta_
Notice is hereby given that, pursuant operational issues.
to the Paperwork Reduction Act of 1995 Ahmed@omb.eop.gov; and (ii) Pamela
Currently, there are approximately
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Dyson, Director/Chief Information
4,067 broker-dealers registered with the
Securities and Exchange Commission Commission. However, given the Officer, Securities and Exchange
(‘‘Commission’’) has submitted to the variability in their businesses, it is Commission, c/o Remi Pavlik-Simon,
Office of Management and Budget difficult to quantify how many hours 100 F Street NE., Washington, DC
(‘‘OMB’’) a request for approval of per year each broker-dealer spends 20549, or by sending an email to: PRA_
extension of the previously approved complying with Rule 17a–13. As noted, Mailbox@sec.gov. Comments must be
collection of information provided for in Rule 17a–13 requires a broker-dealer to submitted to OMB within 30 days of
Rule 17a–13 (17 CFR 240.17a–13) under account for all securities in its this notice.
mstockstill on DSK3G9T082PROD with NOTICES
the Securities Exchange Act of 1934 (15 possession or subject to its control or Dated: February 17, 2017.
U.S. C. 78a et seq.) (‘‘Exchange Act’’). direction. Many broker-dealers hold
Eduardo A. Aleman,
Rule 17a–13(b) (17 CFR 240.17a– few, if any, securities; while others hold
13(b)) generally requires that at least large quantities. Therefore, the time Assistant Secretary.
once each calendar quarter, all burden of complying with Rule 17a–13 [FR Doc. 2017–03772 Filed 2–24–17; 8:45 am]
registered brokers-dealers physically will depend on respondent-specific BILLING CODE 8011–01–P
examine and count all securities held, factors, including a broker-dealer’s size,
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Document Created: 2017-02-25 01:05:34
Document Modified: 2017-02-25 01:05:34
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 11958 |
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