Proposed Collection; Comment Request

[Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
[Notices]
[Pages 31192-31193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15450]



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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549

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 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is publishing the following summary of 
collection for public comment.
    Rule 15c2-5 prohibits a broker-dealer from arranging a loan for a 
customer to whom a security is sold unless, before the transaction is 
entered into, the broker-dealer first: (1) delivers to the customer a 
written statement setting forth certain information about the specific 
arrangement being offered to him; (2) obtains from the customer 
sufficient information concerning his or her financial situation and 
needs so as to determine that the entire transaction is suitable for 
the customer; and (3) retains in his or her files a written statement 
setting forth the basis upon which the broker-dealer made such 
determination. The information required by the rule is necessary for 
the execution of the Commission's mandate under the Securities Exchange 
Act of 1934 (``Exchange Act'') to prevent fraudulent, manipulative, and 
deceptive acts and practices by broker-dealers. 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 $20, resulting in a total cost 
of compliance for the respondents of $12,000 (600 hours @ $20).
    Written comments are invited on: (a) whether the proposed 
collection of

[[Page 31193]]

information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (c) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (d) ways 
to minimize the burden of the collection of information on respondents, 
including through the use of automated collection techniques or other 
forms of information technology. Consideration will be given to 
comments and suggestions submitted in writing within 60 days of this 
publication.
    Direct your written comments to Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 5th Street, N.W. Washington, DC 20549.

    Dated: June 11, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-15450 Filed 6-18-96; 8:45 am]
BILLING CODE 8010-01-M