Notice2023-01249
Proposed Collection; Comment Request; Extension: Rule 15c2-5
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
January 24, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 15 (Tuesday, January 24, 2023)</title>
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[Federal Register Volume 88, Number 15 (Tuesday, January 24, 2023)]
[Notices]
[Page 4276]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-01249]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-195, OMB Control No. 3235-0198]
Proposed Collection; Comment Request; Extension: Rule 15c2-5
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 15c2-5 (17 CFR 240.15c2-
5) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et 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 15c2-5 prohibits a broker-dealer from arranging or extending
certain loans to persons in connection with the offer or sale of
securities unless, before any element of the transaction is entered
into, the broker-dealer: (1) delivers to the person a written statement
containing the exact nature and extent of the person's obligations
under the loan arrangement; the risks and disadvantages of the loan
arrangement; and all commissions, discounts, and other remuneration
received and to be received in connection with the transaction by the
broker-dealer or certain related persons (unless the person receives
certain materials from the lender or broker-dealer which contain the
required information); and (2) obtains from the person information on
the person's financial situation and needs, reasonably determines that
the transaction is suitable for the person, and retains on file and
makes available to the person on request a written statement setting
forth the broker-dealer's basis for determining that the transaction
was suitable.
The collection of information required by Rule 15c2-5 is necessary
to execute the Commission's mandate under the Exchange Act to prevent
fraudulent, manipulative, and deceptive acts and practices by broker-
dealers.
The Commission estimates that there are approximately 50
respondents that require an aggregate total of 600 hours to comply with
Rule 15c2-5.\1\ Each of these approximately 50 registered broker-
dealers makes an estimated six annual responses, for an aggregate total
of 300 responses per year.\2\ Each response takes approximately two
hours to complete. Thus, the total hour burden per year is
approximately 600 hours.\3\ The approximate internal compliance cost
per hour is $66.00 for clerical labor,\4\ resulting in a total internal
compliance cost of approximately $39,600 per year.\5\ These reflect
internal labor costs; there are no external labor, capital, or start-up
costs.
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\1\ 50 respondents x 6 responses per year x 2 hours per response
= 600 hours per year.
\2\ 50 respondents x 6 responses per year = 300 responses per
year.
\3\ 300 responses per year x 2 hours per response = 600 hours
per year.
\4\ Cost per hour for a clerk is from SIFMA's Office Salaries in
the Securities Industry 2013, modified by Commission staff to
account for an 1800-hour work-year, multiplied by 2.93 to account
for bonuses, firm size, employee benefits and overhead, and adjusted
by a factor of 1.0965 to account for inflation.
\5\ 600 hours per year x $66.00 per hour = $39,600 per year.
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Written comments are invited on: (a) whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency'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 by March 27, 2023.
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#e1b1b3a0beac80888d838e99a1928482cf868e97"><span class="__cf_email__" data-cfemail="306062716f7d51595c525f48704355531e575f46">[email protected]</span></a>.
Dated: January 18, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01249 Filed 1-23-23; 8:45 am]
BILLING CODE 8011-01-P
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