Notice2023-16546
Submission for OMB Review; Comment Request; Extension: Rule 17Ab2-1 and Form CA-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
August 3, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 148 (Thursday, August 3, 2023)</title>
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[Federal Register Volume 88, Number 148 (Thursday, August 3, 2023)]
[Notices]
[Page 51391]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16546]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-203, OMB Control No. 3235-0195]
Submission for OMB Review; Comment Request; Extension: Rule
17Ab2-1 and Form CA-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
17Ab2-1 (17 CFR 240.17Ab2-1) and Form CA-1: Registration of Clearing
Agencies (17 CFR 249b.200) under the Securities Exchange Act of 1934
(``Exchange Act'') (15 U.S.C. 78a et seq.).
Rule 17Ab2-1 and Form CA-1 require clearing agencies to register
with the Commission and to meet certain requirements with regard to,
among other things, the clearing agency's organization, capacities, and
rules. The information is collected from the clearing agency upon the
initial application for registration on Form CA-1. Thereafter,
information is collected by amendment to the initial Form CA-1 when
changes in circumstances that render certain information on Form CA-1
inaccurate, misleading, or incomplete necessitate modification of the
information previously provided to the Commission.
The Commission uses the information disclosed on Form CA-1 to (i)
determine whether an applicant meets the standards for registration set
forth in Section 17A of the Exchange Act, (ii) enforce compliance with
the Exchange Act's registration requirement, and (iii) provide
information about specific registered clearing agencies for compliance
and investigatory purposes. Without Rule 17Ab2-1, the Commission could
not perform these duties as statutorily required.
The Commission staff estimates that the average Form CA-1 requires
approximately 340 hours to complete and submit for approval, and that
on average, the Commission receives one application each year. The
Commission staff estimates that completion of an initial Form CA-1 will
result in an internal cost of compliance of approximately $145,360 per
year. The Commission staff estimates that it receives one amendment per
year, and that an amendment requires approximately 60 hours of the
exempt or registered clearing agency's staff time. The Commission staff
estimates that amendment of a filed Form CA-1 will result in an
internal cost of compliance of approximately $28,020 per year.
Therefore, the aggregate hour burden is approximately 400 hours per
year (340 + 60) and the aggregate internal cost of compliance is
approximately $173,380 per year ($145,360 + $28,020).
The external costs associated with work on Form CA-1 include fees
charged by outside lawyers and accountants to assist the applicant or
registrant to collect and prepare the information sought by the form
(though such consultations are not required by the Commission). The
Commission staff estimates that these external costs are more likely
when novel questions arise under a new application, rather than under
periodic review and amendment. The staff estimates an annual external
cost of 45 hours of an Attorney's time (estimated at $462 per hour) and
10 hours of a Senior Accountant's time (estimated at $241 per hour) for
preparation of the Form CA-1, resulting in an aggregate external cost
of approximately $23,200 per year ($20,790 + $2,410).
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information 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 September 5, 2023 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#1c4c4e5d43517d75707e73645c6f797f327b736a"><span class="__cf_email__" data-cfemail="f6a6a4b7a9bb979f9a94998eb6859395d8919980">[email protected]</span></a>.
Dated: July 31, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-16546 Filed 8-2-23; 8:45 am]
BILLING CODE 8011-01-P
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