Notice2024-09849
Proposed Collection; Comment Request; Extension: Rules 17g-8 and 17g-9
Primary source
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Published
May 7, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 89 (Tuesday, May 7, 2024)</title>
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[Federal Register Volume 89, Number 89 (Tuesday, May 7, 2024)]
[Notices]
[Page 38203]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09849]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-563, OMB Control No. 3235-0693]
Proposed Collection; Comment Request; Extension: Rules 17g-8 and
17g-9
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 (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 Rules 17g-8 and 17g-9 (17 CFR
240.17g-8 and 17 CFR 240.17g-9) 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 for extension and approval.
Rules 17g-8 and 17g-9 set forth collection of information
requirements. Specifically, Rule 17g-8 requires nationally recognized
statistical rating organizations (``NRSROs'') to establish, maintain,
enforce, and document policies and procedures that are reasonably
designed to achieve the objectives articulated in the rule. Generally,
these policies and procedures pertain to (i) the procedures and
methodologies NRSROs use to determine credit ratings, and (ii) the
symbols, numbers, or scores NRSROs use to denote credit ratings.\1\
Rule 17g-8 also requires that the policies and procedures an NRSRO is
required to establish, maintain, and enforce pursuant to Section
15E(h)(4)(A) of the Securities Exchange Act of 1934 must, at a minimum,
include policies and procedures reasonably designed to achieve the
objectives articulated in the rule.\2\ Rule 17g-9 requires each NRSRO
to establish, maintain, enforce, and document standards of training,
experience, and competence for the individuals it employs to
participate in the determination of credit ratings that are reasonably
designed to achieve the objective that the NRSRO produces accurate
credit ratings.\3\
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\1\ See 240.17g-8(a) and (b).
\2\ See 240.17g-8(c).
\3\ See 240.17g-9.
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Currently, there are 10 credit rating agencies registered as NRSROs
with the Commission. The Commission estimates that the total annual
hour burden for NRSROs to comply with Rule 17g-8 and Rule 17g-9 is
1,450 hours and 34,658 hours, respectively. The Commission further
estimates that these annual hour burdens will result in a total annual
cost with respect to Rule 17g-8 of $539,400 and with respect to Rule
17g-9 of $12,951,746. These costs are attributable to costs NRSROs may
incur in completing updates and other activities relating to the
policies and procedures adopted pursuant to Rule 17g-8 and the
standards adopted pursuant to Rule 17g-9, and in conducting the
periodic testing of credit analysts pursuant to standards adopted under
Rule 17g-9.
Written comments are invited on: (a) whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimates of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information on
respondents; 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
July 8, 2024.
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.
Please direct your written comments to: Dave Bottom, Director/Chief
Information Officer, Securities and Exchange Commission, c/o John
Pezzullo, 100 F St NE, Washington, DC 20549 or send an email to:
<a href="/cdn-cgi/l/email-protection#5a0a081b05173b33363835221a293f39743d352c"><span class="__cf_email__" data-cfemail="93c3c1d2ccdef2fafff1fcebd3e0f6f0bdf4fce5">[email protected]</span></a>.
Dated: May 1, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-09849 Filed 5-6-24; 8:45 am]
BILLING CODE 8011-01-P
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