Notice2022-10418

Proposed Collection; Comment Request

Primary source

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Published
May 16, 2022

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 87 Issue 94 (Monday, May 16, 2022)</title>
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[Federal Register Volume 87, Number 94 (Monday, May 16, 2022)]
[Notices]
[Pages 29774-29775]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-10418]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-0088, OMB Control No. 3235-0083]


Proposed Collection; 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 15Ba2-1 and Form MSD

    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'') is soliciting comments on the existing 
collection of information provided for in Rule 15Ba2-1 (17 CFR 
240.15Ba2-1) and Form MSD (17 CFR 249.1100), under the Securities and 
Exchange Act of 1934 (15 U.S.C. 78a et

[[Page 29775]]

seq.) (``Exchange Act''). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget 
(``OMB'') for extension and approval.
    Rule 15Ba2-1 provides that an application for registration with the 
Commission by a bank municipal securities dealer must be filed on Form 
MSD. The Commission uses the information obtained from Form MSD filings 
to determine whether bank municipal securities dealers meet the 
standards for registration set forth in the Act, to maintain a central 
registry where members of the public may obtain information about 
particular bank municipal securities dealers, and to develop risk 
assessment information about bank municipal securities dealers.
    Form MSD is a one-time registration form that must be amended only 
if it becomes inaccurate. Based upon past submissions of zero initial 
filings and 14 amendments in 2019, zero initial filings and three 
amendments in 2020, zero initial filings and one amendment in 2021, and 
zero initial filings and zero amendments so far in 2022, the Commission 
estimates that on an annual basis approximately one respondent will use 
Form MSD for an initial registration application, and that 
approximately six respondents will utilize Form MSD for an amendment, 
for a total of seven respondents per year. The time required to 
complete Form MSD varies with the size and complexity of the bank 
municipal securities dealer's proposed operations. Bank personnel that 
prepare Form MSD filings previously indicated that it can take up to 15 
hours for a bank with a large operation and many employees to complete 
the form, but that smaller banks with fewer personnel can complete the 
form in one to two hours. We believe that most recent applications have 
come from smaller banks. Also, amendments to form MSD are likely to 
require significantly less time. We estimate that the total annual 
burden is currently approximately 11 hours at an average of 1.5 hours 
per respondent. (7 respondents/year x 1.5 hours/respondent = 10.5 
hours/year rounded up to 11). The staff estimates that the average 
internal compliance cost per hour is approximately $406.\1\ Therefore, 
the estimated total annual internal cost of compliance is approximately 
$4,263 per year (10.5 hours/year x $406/hour = $4,263/year).
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    \1\ The estimate of $406 per hour is for a compliance attorney, 
based on the Securities Industry and Financial Markets Association's 
Management & Professional Earnings in the Securities Industry 2013, 
modified by Commission staff to account for an 1,800-hour work-year 
and inflation, and multiplied by 5.35 to account for bonuses, firm 
size, employee benefits and overhead.
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    Rule 15Ba2-1 does not contain an explicit recordkeeping 
requirement, but the rule does require the prompt correction of any 
information on Form MSD that becomes inaccurate, meaning that bank 
municipal securities dealers need to maintain a current copy of Form 
MSD indefinitely. In addition, the instructions for filing Form MSD 
state that an exact copy should be retained by the registrant. 
Providing the information on the application is mandatory in order to 
register with the Commission as a bank municipal securities dealer. The 
information contained in the application will not be kept confidential.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
estimates of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information 
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 by 
July 15, 2022.
    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.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
<a href="/cdn-cgi/l/email-protection#69393b2836240800050b0611291a0c0a470e061f"><span class="__cf_email__" data-cfemail="025250435d4f636b6e606d7a427167612c656d74">[email&#160;protected]</span></a>.

    Dated: May 10, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-10418 Filed 5-13-22; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on May 16, 2022.

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