Notice2022-15785
Submission for OMB Review; Comment Request Extension: Rule 15Ba2-1 and Form MSD
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 25, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 141 (Monday, July 25, 2022)</title>
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[Federal Register Volume 87, Number 141 (Monday, July 25, 2022)]
[Notices]
[Pages 44162-44163]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-15785]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-0088, OMB Control No. 3235-0083]
Submission for OMB Review; Comment Request Extension: Rule 15Ba2-
1 and Form MSD
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'') has submitted to the Office of Management
and Budget (``OMB'') a request for extension of the previously approved
collection of information provided for in Rule 15Ba2-1 (17 CFR
240.15Ba2-1) and Form MSD (17 CFR 249.1100) under the Securities
Exchange Act of 1934 (``Exchange Act'') (15 U.S.C. 78a et seq.).
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
[[Page 44163]]
information obtained from Form MSD filings to 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 Exchange Act, to make information about particular bank
municipal securities dealers available to customers and members of the
public, 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.
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 website: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent by August 24, 2022 to (i) <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a> and (ii) David Bottom, Director/Chief Information
Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F
Street NE, Washington, DC 20549, or by sending an email to:
<a href="/cdn-cgi/l/email-protection#eebebcafb1a38f87828c8196ae9d8b8dc0898198"><span class="__cf_email__" data-cfemail="9ececcdfc1d3fff7f2fcf1e6deedfbfdb0f9f1e8">[email protected]</span></a>.
Dated: July 19, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-15785 Filed 7-22-22; 8:45 am]
BILLING CODE 8011-01-P
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