Notice2023-08420
Submission for OMB Review; Comment Request: Extension: Rule 151-1
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
April 21, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 77 (Friday, April 21, 2023)</title>
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[Federal Register Volume 88, Number 77 (Friday, April 21, 2023)]
[Notices]
[Pages 24644-24645]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-08420]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-808, OMB Control No. 3235-0762]
Submission for OMB Review; Comment Request: Extension: Rule 151-1
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'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
previously approved collection of information provided for in Rule 151-
1 (17 CFR 240.151-1), under the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 151-1 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
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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
promotes efficiency, competition, and capital formation.
There are approximately 2,683 respondents that must comply with
Rule 151-1. 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 151-1, 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).
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 within 30 days of publication of this notice
by May 22, 2023 to (i) <a href="/cdn-cgi/l/email-protection#c78a859fe9888a85e9888e9586e994828498a3a2b4ac98a8a1a1aea4a2b587a8aaa5e9a2a8b7e9a0a8b1"><span class="__cf_email__" data-cfemail="a4e9e6fc8aebe9e68aebedf6e58af7e1e7fbc0c1d7cffbcbc2c2cdc7c1d6e4cbc9c68ac1cbd48ac3cbd2">[email protected]</span></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#90c0c2d1cfddf1f9fcf2ffe8d0e3f5f3bef7ffe6"><span class="__cf_email__" data-cfemail="0b5b594a54466a62676964734b786e68256c647d">[email protected]</span></a>.
Dated: April 17, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-08420 Filed 4-20-23; 8:45 am]
BILLING CODE 8011-01-P
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