82 FR 40612 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 164 (August 25, 2017)

Page Range		40612-40613
FR Document		2017-18073
Federal Register, Volume 82 Issue 164 (Friday, August 25, 2017)
[Federal Register Volume 82, Number 164 (Friday, August 25, 2017)]
[Notices]
[Pages 40612-40613]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18073]


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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:
    Rule 15c2-5, SEC File No. 270-195; OMB Control No. 3235-0198

    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 
15c2-5 (17 CFR 240.15c2-5), under the Securities Exchange Act of 1934 
(15 U.S.C. 78 et seq.) (``Exchange Act'').
    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 received in connection with the

[[Page 40613]]

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 Rule 15c2-5 is necessary to execute the 
Commission's mandate under the 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 
Rule 15c2-5.\1\ Each of these approximately 50 registered broker-
dealers makes an estimated six annual responses, for an aggregate total 
of 300 responses per year.\2\ Each response takes approximately two 
hours to complete. Thus, the total compliance burden per year is 600 
burden hours.\3\ The approximate internal compliance cost per hour is 
$57.00 for clerical labor,\4\ resulting in a total internal compliance 
cost of $34,200.\5\ These reflect internal labor costs; there are no 
external labor, capital, or start-up costs.
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    \1\ 50 respondents x 6 responses per year x 2 hours per response 
= 600 hours per year.
    \2\ 50 respondents x 6 responses per year = 300 responses per 
year.
    \3\ 300 responses per year x 2 hours per response = 600 hours 
per year.
    \4\ Cost per hour for a clerk is from SIFMA's Office Salaries in 
the Securities Industry 2013, modified by Commission staff to 
account for an 1800-hour work-year and multiplied by 2.93 to account 
for bonuses, firm size, employee benefits and overhead.
    \5\ 600 hours per year x $57.00 per hour = $34,200 per year.
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    Although Rule 15c2-5 does not specify a retention period or record-
keeping requirement under the rule, 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.\6\
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    \6\ The records required by Rule 15c2-5 would be available only 
for examination purposes of the Commission staff, state securities 
authorities, and the self-regulatory organizations. Subject to the 
provisions of the Freedom of Information Act, 5 U.S.C. 552, 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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    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: August 22, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-18073 Filed 8-24-17; 8:45 am]
 BILLING CODE 8011-01-P
40612 Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices

that the proposed rule change would not distributions were to be ex-dividend on printing in the Commission’s Public
impose any additional costs on the that date. Accordingly, the Commission Reference Room, 100 F Street NE.,
industry. As noted above, the proposed hereby waives the 30-day operative Washington, DC 20549, on official
rule change does not change the text to delay requirement and designates the business days between the hours of
Rule 11140(b). Instead, the proposed proposed rule change as operative upon 10:00 a.m. and 3:00 p.m. Copies of the
rule change interprets the application of filing.25 filing also will be available for
the rule solely to refrain from At any time within 60 days of the inspection and copying at the principal
designating September 5, 2017 as an ex- filing of the proposed rule change, the office of FINRA. All comments received
dividend date for ‘‘regular’’ or ‘‘large’’ Commission summarily may will be posted without change; the
distributions. temporarily suspend such rule change if Commission does not edit personal
it appears to the Commission that such identifying information from
C. Self-Regulatory Organization’s action is necessary or appropriate in the submissions. You should submit only
Statement on Comments on the public interest, for the protection of information that you wish to make
Proposed Rule Change Received From investors, or otherwise in furtherance of available publicly. All submissions
Members, Participants, or Others the purposes of the Act. If the should refer to File Number SR–FINRA–
Written comments were neither Commission takes such action, the 2017–026, and should be submitted on
solicited nor received. Commission shall institute proceedings or before September 15, 2017.
III. Date of Effectiveness of the to determine whether the proposed rule For the Commission, by the Division of
Proposed Rule Change and Timing for should be approved or disapproved. Trading and Markets, pursuant to delegated
Commission Action IV. Solicitation of Comments authority.26
Robert W. Errett,
Because the proposed rule change Interested persons are invited to
Deputy Secretary.
does not (i) significantly affect the submit written data, views, and
protection of investors or the public [FR Doc. 2017–18000 Filed 8–24–17; 8:45 am]
arguments concerning the foregoing,
interest; (ii) impose any significant including whether the proposed rule BILLING CODE 8011–01–P
burden on competition; and (iii) become change is consistent with the Act.
operative for 30 days from the date on Comments may be submitted by any of
which it was filed, or such shorter time SECURITIES AND EXCHANGE
the following methods:
as the Commission may designate, the COMMISSION
proposed rule change has become Electronic Comments
Submission for OMB Review;
effective pursuant to Section 19(b)(3)(A) • Use the Commission’s Internet
Comment Request
of the Act 21 and Rule 19b–4(f)(6) comment form (http://www.sec.gov/
thereunder.22 rules/sro.shtml); or Upon Written Request, Copies Available
A proposed rule change filed under • Send an email to rule-comments@ From: Securities and Exchange
Rule 19b–4(f)(6) 23 normally does not sec.gov. Please include File Number SR– Commission, Office of FOIA Services,
become operative for 30 days after the FINRA–2017–026 on the subject line. 100 F Street NE., Washington, DC
date of filing. However, pursuant to Paper Comments 20549–2736.
Rule 19b–4(f)(6)(iii),24 the Commission Extension:
may designate a shorter time if such • Send paper comments in triplicate
Rule 15c2–5, SEC File No. 270–195; OMB
action is consistent with the protection to Secretary, Securities and Exchange Control No. 3235–0198
of investors and the public interest. Commission, 100 F Street NE.,
Washington, DC 20549–1090. Notice is hereby given that pursuant
FINRA has asked the Commission to to the Paperwork Reduction Act of 1995
waive the 30-day operative delay so that All submissions should refer to File
Number SR–FINRA–2017–026. This file (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
the proposal may become operative Securities and Exchange Commission
upon filing. FINRA has stated that the number should be included on the
(‘‘Commission’’) has submitted to the
purpose of the proposed rule change is subject line if email is used. To help the
Office of Management and Budget
to minimize confusion about proper Commission process and review your
(‘‘OMB’’) a request for approval of
settlement that may arise during the comments more efficiently, please use
extension of the previously approved
transition to the T+2 settlement cycle on only one method. The Commission will
collection of information provided for in
September 5, 2017. The Commission post all comments on the Commission’s
Rule 15c2–5 (17 CFR 240.15c2–5),
believes that waiving the 30-day Internet Web site (http://www.sec.gov/
under the Securities Exchange Act of
operative delay is consistent with the rules/sro.shtml). Copies of the
1934 (15 U.S.C. 78 et seq.) (‘‘Exchange
protection of investors and the public submission, all subsequent
Act’’).
interest to avoid the confusion that amendments, all written statements Rule 15c2–5 prohibits a broker-dealer
could arise in connection with the with respect to the proposed rule from arranging or extending certain
transition to the T+2 settlement cycle on change that are filed with the loans to persons in connection with the
September 5, 2017, if normal or large Commission, and all written offer or sale of securities unless, before
communications relating to the any element of the transaction is entered
September 4, 2017) and trades that occur on proposed rule change between the into, the broker-dealer: (1) Delivers to
September 5, 2017 (under T+2). Commission and any person, other than the person a written statement
21 15 U.S.C. 78s(b)(3)(A).
those that may be withheld from the containing the exact nature and extent
22 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
public in accordance with the
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4(f)(6)(iii) requires FINRA to give the Commission of the person’s obligations under the
written notice of FINRA’s intent to file the proposed provisions of 5 U.S.C. 552, will be loan arrangement; the risks and
rule change, along with a brief description and text available for Web site viewing and disadvantages of the loan arrangement;
of the proposed rule change, at least five business and all commissions, discounts, and
days prior to the date of filing of the proposed rule 25 For purposes only of waiving the 30-day
change, or such shorter time as designated by the other remuneration received and to be
operative delay, the Commission has also
Commission. FINRA has satisfied this requirement. considered the proposed rule’s impact on received in connection with the
23 17 CFR 240.19b–4(f)(6).
efficiency, competition, and capital formation. See
24 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 26 17 CFR 200.30–3(a)(12).

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Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices 40613

transaction by the broker-dealer or An agency may not conduct or U.S. Small Business Administration,
certain related persons (unless the sponsor, and a person is not required to 409 3rd Street SW., Suite 6050,
person receives certain materials from respond to, a collection of information Washington, DC 20416, (202) 205–6734.
the lender or broker-dealer which under the PRA unless it displays a
contain the required information); and currently valid OMB control number. SUPPLEMENTARY INFORMATION: Notice is
(2) obtains from the person information The public may view background hereby given that as a result of the
on the person’s financial situation and documentation for this information President’s major disaster declaration on
needs, reasonably determines that the collection at the following Web site: 08/18/2017, applications for disaster
transaction is suitable for the person, www.reginfo.gov. Comments should be loans may be filed at the address listed
and retains on file and makes available directed to: (i) Desk Officer for the above or other locally announced
to the person on request a written Securities and Exchange Commission, locations. The following areas have been
statement setting forth the broker- Office of Information and Regulatory determined to be adversely affected by
dealer’s basis for determining that the Affairs, Office of Management and the disaster:
transaction was suitable. The collection Budget, Room 10102, New Executive
Office Building, Washington, DC 20503, Primary Counties (Physical Damage and
of information required by Rule 15c2–5
or by sending an email to: Shagufta_ Economic Injury Loans): Harrison,
is necessary to execute the
Ahmed@omb.eop.gov; and (ii) Pamela Marion, Marshall, Wetzel
Commission’s mandate under the
Exchange Act to prevent fraudulent, Dyson, Director/Chief Information Contiguous Counties (Economic Injury
manipulative, and deceptive acts and Officer, Securities and Exchange Loans Only):
practices by broker-dealers. Commission, c/o Remi Pavlik-Simon, West Virginia: Barbour, Doddridge,
The Commission estimates that there 100 F Street NE., Washington, DC Lewis, Monongalia, Ohio, Taylor,
are approximately 50 respondents that 20549, or by sending an email to: PRA_ Tyler, Upshur.
require an aggregate total of 600 hours Mailbox@sec.gov. Comments must be
to comply with Rule 15c2–5.1 Each of submitted to OMB within 30 days of Ohio: Belmont, Monroe
these approximately 50 registered this notice. Pennsylvania: Greene, Washington
broker-dealers makes an estimated six Dated: August 22, 2017. The Interest Rates are:
annual responses, for an aggregate total Eduardo A. Aleman,
of 300 responses per year.2 Each Assistant Secretary. Percent
response takes approximately two hours [FR Doc. 2017–18073 Filed 8–24–17; 8:45 am]
to complete. Thus, the total compliance For Physical Damage:
BILLING CODE 8011–01–P
burden per year is 600 burden hours.3 Homeowners with Credit Avail-
The approximate internal compliance able Elsewhere ...................... 3.500
cost per hour is $57.00 for clerical Homeowners without Credit
labor,4 resulting in a total internal SMALL BUSINESS ADMINISTRATION Available Elsewhere .............. 1.750
compliance cost of $34,200.5 These [Disaster Declaration #15255 and #15256; Businesses with Credit Avail-
reflect internal labor costs; there are no WEST VIRGINIA Disaster Number WV– able Elsewhere ...................... 6.610
external labor, capital, or start-up costs. 00046] Businesses without Credit
Although Rule 15c2–5 does not Available Elsewhere .............. 3.305
Presidential Declaration of a Major Non-Profit Organizations with
specify a retention period or record-
Disaster for the State of West Virginia Credit Available Elsewhere ... 2.500
keeping requirement under the rule,
broker-dealers are required to preserve Non-Profit Organizations with-
AGENCY: U.S. Small Business out Credit Available Else-
the records for a period no less than six Administration. where ..................................... 2.500
years pursuant to Rule 17a–4(c). The ACTION: Notice. For Economic Injury:
information required under Rule 15c2– Businesses & Small Agricultural
5 is necessary for broker-dealers to SUMMARY: This is a Notice of the Cooperatives without Credit
engage in the lending activities Presidential declaration of a major Available Elsewhere .............. 3.305
prescribed in the Rule. Rule 15c2–5 disaster for the State of West Virginia Non-Profit Organizations With-
does not assure confidentiality for the (FEMA–4331–DR), dated 08/18/2017. out Credit Available Else-
information retained under the rule.6 Incident: Severe Storms, Flooding, where ..................................... 2.500
Landslides, and Mudslides. The number assigned to this
1 50 respondents × 6 responses per year × 2 hours Incident Period: 07/28/2017 through disaster for physical damage
per response = 600 hours per year. 07/29/2017. is 152556 and for economic
2 50 respondents × 6 responses per year = 300 injury is 152560..
DATES: Issued on 08/18/2017.
responses per year. Physical Loan Application Deadline
3 300 responses per year × 2 hours per response
Date: 10/17/2017. (Catalog of Federal Domestic Assistance
= 600 hours per year.
4 Cost per hour for a clerk is from SIFMA’s Office Economic Injury (EIDL) Loan Number 59008)
Salaries in the Securities Industry 2013, modified Application Deadline Date: 05/18/2018.
James E. Rivera,
by Commission staff to account for an 1800-hour ADDRESSES: Submit completed loan
work-year and multiplied by 2.93 to account for Associate Administrator for Disaster
applications to: U.S. Small Business
bonuses, firm size, employee benefits and overhead. Assistance.
5 600 hours per year × $57.00 per hour = $34,200 Administration, Processing and
[FR Doc. 2017–18039 Filed 8–24–17; 8:45 am]
per year. Disbursement Center, 14925 Kingsport
sradovich on DSK3GMQ082PROD with NOTICES

6 The records required by Rule 15c2–5 would be Road, Fort Worth, TX 76155. BILLING CODE 8025–01–P
available only for examination purposes of the FOR FURTHER INFORMATION CONTACT: A.
Commission staff, state securities authorities, and
the self-regulatory organizations. Subject to the Escobar, Office of Disaster Assistance,
provisions of the Freedom of Information Act, 5
U.S.C. 552, and the Commission’s rules thereunder letters, or memoranda arising out of, in anticipation
(17 CFR 200.80(b)(4)(iii)), the Commission does not of, or in connection with an examination or
generally publish or make available information inspection of the books and records of any person
contained in any reports, summaries, analyses, or any other investigation.

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Document Created: 2018-10-24 12:40:12
Document Modified: 2018-10-24 12:40:12
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 40612