Notice2022-15314
Proposed Collection; Comment Request; Extension: Rule 15l-1
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 19, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 137 (Tuesday, July 19, 2022)</title>
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[Federal Register Volume 87, Number 137 (Tuesday, July 19, 2022)]
[Notices]
[Pages 43098-43099]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-15314]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-808, OMB Control No. 3235-0762]
Proposed Collection; Comment Request; Extension: Rule 15l-1
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
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 15l-1 (17 CFR 240.15l-
1), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
The Commission plans to submit this existing collection of information
to the Office of Management and Budget (``OMB'') for extension and
approval.
Rule 15l-1 established a standard of conduct for broker-dealers and
natural persons who are associated persons of a broker-dealer
(together, ``broker-dealers'') when making a recommendation of any
securities transaction or investment strategy involving securities to a
retail customer (``Regulation Best Interest''). Regulation Best
Interest requires broker-dealers, when making a recommendation of any
securities transaction or investment strategy involving securities to a
retail customer, to act in the best interest of the retail customer at
the time the recommendation is made, without placing the financial or
other interest of the broker-dealer or natural person who is an
associated person making the recommendation ahead of the interest of
the retail customer.
The information that must be collected pursuant to Regulation Best
Interest is intended to: (1) improve disclosure about the scope and
terms of the broker-dealer's relationship with the retail customer,
which would foster retail customers' understanding of their
relationship with a broker-dealer; (2) enhance the quality of
recommendations provided by establishing an express best interest
obligation under the federal securities laws; (3) enhance the
disclosure of a broker-dealer's conflicts of interest; and (4)
establish obligations that require mitigation, and not just disclosure,
of conflicts of interest arising from financial incentives associated
with broker-dealer recommendations. The information will therefore help
establish a framework that protects investors and
[[Page 43099]]
promotes efficiency, competition, and capital formation.
There are approximately 2,683 respondents that must comply with
Rule 15l-1. The aggregate annual burden for all respondents is
estimated to be 2,568,434 hours, or 957 hours per respondent (2,568,434
hours/2,683 respondents). Under Rule 15l-1, respondents will also incur
cost burdens. The aggregate annual cost burden for all respondents is
estimated to be $12,085,860, or $4,505 per respondent ($12,085,860/
2,681 respondents).
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 will
have practical utility; (b) the accuracy of the Commission's estimate
of the burden of the 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 in writing by September
19, 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#bbebe9fae4f6dad2d7d9d4c3fbc8ded895dcd4cd"><span class="__cf_email__" data-cfemail="84d4d6c5dbc9e5ede8e6ebfcc4f7e1e7aae3ebf2">[email protected]</span></a>.
Dated: July 13, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-15314 Filed 7-18-22; 8:45 am]
BILLING CODE 8011-01-P
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