Submission for OMB Review; Comment Request

[Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
[Notices]
[Page 31193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15574]



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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 Filings and Information Services, Washington, DC 
20549
Extension:
    Rule 17a-11
    SEC File No. 270-94
    OMB Control No. 3235-0085

    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 requests for approval of extension on the following rule:
    Rule 17a-11 requires broker-dealers to give notice when certain 
specified events occur. Specifically, the rule requires broker-dealers 
to send notice promptly (but within 24 hours) after the broker-dealer's 
aggregate indebtedness is in excess of 1,200 percent of its net 
capital, its net capital is less than 5 percent of aggregate debt items 
or its total net capital is less than 120 percent of the broker-
dealer's required minimum net capital. In addition, broker-dealers are 
required to give notice if they fail to make and keep current books and 
records required by Rule 17a-3 or if they discover any material 
inadequacy as defined in Rule 17a-5(g).
    The notice required by the rule alerts the Commission and self-
regulatory organizations (``SROs''), which have oversight 
responsibility over broker-dealers, to those firms having financial or 
operational problems.
    Because broker-dealers are required to file pursuant to Rule 17a-11 
only when certain specified events occur, it is difficult to develop a 
meaningful figure for the cost of compliance with Rule 17a-11. It is 
anticipated that approximately 650 broker-dealers will spend 1 hour per 
year complying with Rule 17a-11. The total cost is estimated to be 
approximately 650 hours. With respect to those broker-dealers that must 
give notice under Rule 17a-11, the cost is approximately $10 per 
response for a total annual expense for all broker-dealers of $6,500.
    General comments regarding the estimated burden hours should be 
directed to the Desk Officer for the Securities and Exchange Commission 
at the address below. Any comments concerning the accuracy of the 
estimated average burden hours for compliance with Commission rules and 
forms should be directed to Michael E. Bartell, Associate Executive 
Director, Office of Information Technology, Securities and Exchange 
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549 and Desk 
Officer for the Securities and Exchange Commission, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Room 3208, New Executive Office Building, Washington, D.C. 20503.

    Dated: June 11, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-15574 Filed 6-18-96; 8:45 am]
BILLING CODE 8010-01-M