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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[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&#160;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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Indexed from Federal Register on May 7, 2024.

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