Notice2024-22402
Submission for OMB Review; Comment Request; Extension: Regulation R, Rule 701
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
October 1, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 190 (Tuesday, October 1, 2024)</title>
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[Federal Register Volume 89, Number 190 (Tuesday, October 1, 2024)]
[Notices]
[Pages 79984-79985]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-22402]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-562, OMB Control No. 3235-0624]
Submission for OMB Review; Comment Request; Extension: Regulation
R, Rule 701
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
[[Page 79985]]
Office of Management and Budget (``OMB'') a request for approval of
extension of the previously approved collection of information provided
for in Regulation R, Rule 701 (17 CFR 247.701) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.).
Regulation R, Rule 701 requires a broker or dealer (as part of a
written agreement between the bank and the broker or dealer) to notify
the bank if the broker or dealer makes certain determinations regarding
the financial status of the customer, a bank employee's statutory
disqualification status, and compliance with suitability or
sophistication standards.
The Commission estimates there are 3,402 registered brokers or
dealers that would, on average, notify 1,000 banks approximately two
times annually about a determination regarding a customer's high net
worth or institutional status or suitability or sophistication standing
as well as a bank employee's statutory disqualification status. Based
on these estimates, the Commission anticipates that Regulation R, Rule
701 would result in brokers or dealers making approximately 2,000
notifications to banks per year. The Commission further estimates
(based on the level of difficulty and complexity of the applicable
activities) that a broker or dealer would spend approximately 15
minutes per notice to a bank. Therefore, the estimated total annual
third-party disclosure burden for the requirements in Regulation R,
Rule 701 is 500 \1\ hours for brokers or dealers.
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\1\ 1,000 banks x 2 notices = 2,000 notices; (2,000 notices x 15
minutes) = 30,000 minutes/60 minutes = 500 hours.
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The retention period for the recordkeeping requirement under Rule
17Ad-2(c), (d), and (h) is not less than two years following the date
the notice is submitted. The recordkeeping requirement under this rule
is mandatory to assist the Commission in monitoring transfer agents who
fail to meet the minimum performance standards set by the Commission
rule. This rule does not involve the collection of confidential
information. Please note that a transfer agent is not required to file
under the rule unless it does not meet the minimum performance
standards for turnaround, processing or forwarding items received for
transfer during a month.
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 by October 31, 2024 to: (i) <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a> and (ii) Austin Gerig, Director/Chief Data Officer,
Securities and Exchange Commission, c/o Oluwaseun Ajayi, 100 F Street
NE, Washington, DC 20549, or by sending an email to:
<a href="/cdn-cgi/l/email-protection#4d1d1f0c12002c24212f22350d3e282e632a223b"><span class="__cf_email__" data-cfemail="6d3d3f2c32200c04010f02152d1e080e430a021b">[email protected]</span></a>.
Dated: September 25, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-22402 Filed 9-30-24; 8:45 am]
BILLING CODE 8011-01-P
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