Notice2023-13588
Proposed Collection; Comment Request; Extension: Rule 15c3-3
Primary source
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Published
June 27, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 122 (Tuesday, June 27, 2023)</title>
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[Federal Register Volume 88, Number 122 (Tuesday, June 27, 2023)]
[Notices]
[Page 41692]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-13588]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-087, OMB Control No. 3235-0078]
Proposed Collection; Comment Request; Extension: Rule 15c3-3
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 15c3-3 (17 CFR 240.15c3-
3), 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. Furthermore, notice is given regarding new collections of
information that were previously proposed in Rule 18a-4 (OMB No. 3235-
0700) and that were moved to this Rule 15c3-3 (OMB No. 3235-0078) based
on comments received during the rulemaking process.
With respect to the extension of the previously approved collection
of information, Rule 15c3-3 requires that a broker-dealer that holds
customer securities obtain and maintain possession and control of fully
paid and excess margin securities they hold for customers. In addition,
the Rule requires that a broker-dealer that holds customer funds make
either a weekly or monthly computation to determine whether certain
customer funds need to be segregated in a special reserve bank account
for the exclusive benefit of the firm's customers. It also requires
that a broker-dealer maintain a written notification from each bank
where a Special Reserve Bank Account is held acknowledging that all
assets in the account are for the exclusive benefit of the broker-
dealer's customers, and to provide written notification to the
Commission (and its designated examining authority) under certain,
specified circumstances. Finally, broker-dealers that sell securities
futures products (``SFP'') to customers must provide certain
notifications to customers and make a record of any changes of account
type.
A broker-dealer required to maintain the Special Reserve Bank
Account prescribed by Rule 15c3-3 must obtain and retain a written
notification from each bank in which it has a Special Reserve Bank
Account to evidence the bank's acknowledgement that assets deposited in
the Account are being held by the bank for the exclusive benefit of the
broker-dealer's customers. In addition, a broker-dealer must
immediately notify the Commission and its designated examining
authority if it fails to make a required deposit to its Special Reserve
Bank Account. Finally, a broker-dealer that effects transactions in
SFPs for customers also will have paperwork burdens to make a record of
each change in account type.
The Commission staff estimates a total annual time burden of
approximately 1,109,518 hours and a total annual cost burden of
approximately $3,516,241 to comply with the existing information
collection requirements of the rule.
In 2019, the Commission adopted amendments to establish segregation
and notice requirements for broker-dealers with respect to their
security-based swap activity. The Commission staff estimates a total
annual time burden of approximately 19,487 hours and a total annual
cost burden of approximately $13,860 to comply with the information
collection requirements of the 2019 amendments to the rule.
The Commission staff thus estimates that the aggregate annual
information collection burden associated with Rule 15c3-3 is
approximately 1,129,005 hours and $3,530,101.
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 shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information to be
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
August 28, 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#540406150b19353d38363b2c142731377a333b22"><span class="__cf_email__" data-cfemail="b4e4e6f5ebf9d5ddd8d6dbccf4c7d1d79ad3dbc2">[email protected]</span></a>.
Dated: June 22, 2023.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2023-13588 Filed 6-26-23; 8:45 am]
BILLING CODE 8011-01-P
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