Notice2025-17590
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rules 17h-1T and 17h-2T
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
September 12, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 175 (Friday, September 12, 2025)</title>
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[Federal Register Volume 90, Number 175 (Friday, September 12, 2025)]
[Notices]
[Page 44277]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17590]
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SECURITIES AND EXCHANGE COMMISSION
[OMB Control No. 3235-0410]
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension: Rules 17h-1T and 17h-2T
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 (``SEC'' or ``Commission'') is soliciting comments on the
proposed collection of information provided for in Rules 17h-1T and
17h-2T (17 CFR 240.17h-1T and 17 CFR 240.17h-2T), 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.
Rule 17h-1T requires a covered broker-dealer to maintain and
preserve records and other information concerning certain entities that
are associated with the broker-dealer. This requirement extends to the
financial and securities activities of the holding company, affiliates
and subsidiaries of the broker-dealer that are reasonably likely to
have a material impact on the financial or operational condition of the
broker-dealer. Rule 17h-2T requires a covered broker-dealer to file
with the Commission quarterly reports and a cumulative year-end report
concerning the information required to be maintained and preserved
under Rule 17h-1T.
The collection of information required by Rules 17h-1T and 17h-2T,
collectively referred to as the ``risk assessment rules'', is mandatory
and is necessary to enable the Commission to monitor the activities of
a broker-dealer affiliate whose business activities are reasonably
likely to have a material impact on the financial and operational
condition of the broker-dealer. Without this information, the
Commission would be unable to assess the potentially damaging impact of
the affiliate's activities on the broker-dealer.
There are currently 238 respondents that must comply with Rules
17h-1T and 17h-2T. Each of these 238 respondents are estimated to
require 10 hours per year to maintain the records required under Rule
17h-1T, for an aggregate estimated annual burden of 2,380 hours (238
respondents x 10 hours). In addition, each of these 238 respondents
must make five annual responses under Rule 17h-2T. These five responses
are estimated to require 14 hours per respondent per year for an
aggregate estimated annual burden of 3,332 hours (238 respondents x 14
hours).
In addition, new respondents must draft an organizational chart
required under Rule 17h-1T and establish a system for complying with
the risk assessment rules. The staff estimates that drafting the
required organizational chart requires one hour and establishing a
system for complying with the risk assessment rules requires three
hours. Based on the reduction in the number of filers in recent years,
the staff estimates there will be four new respondents, and thus, a
corresponding estimated burden of four hours for new respondents.
In addition, the Commission adopted amendments in 2024 that require
broker-dealers subject to Rule 17h-2T to file Form 17h-2T
electronically on EDGAR and that would require a portion of the form to
be filed using Inline XBRL. Thus, the Commission estimates an average
additional burden of 2 hour per response four times a year (quarterly)
for 238 respondents, resulting in a total industrywide burden of 1,904
hours \1\ per year for Form 17-H filers to structure their financial
statements (Item 4 of Form 17-H) in Inline XBRL. The total compliance
burden per year is approximately 7,620 burden hours (2,380 hours +
3,332 hours + 4 hours + 1,904 hours).
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\1\ (238 respondents x 8 hours = 1,904 hours.)
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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.
Written comments are invited on: (a) whether this proposed
collection of information is necessary for the proper performance of
the functions of the SEC, including whether the information will have
practical utility; (b) the accuracy of the SEC's estimate of the burden
imposed by the proposed collection of information, including the
validity of the methodology and the assumptions used; (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,
electronic collection techniques or other forms of information
technology.
Please direct your written comments on this 60-Day Collection
Notice to Austin Gerig, Director/Chief Data Officer, Securities and
Exchange Commission, c/o Tanya Ruttenberg via email to
<a href="/cdn-cgi/l/email-protection#b8e8d9c8ddcacfd7cad3eadddccddbccd1d7d6f9dbccf8cbdddb96dfd7ce"><span class="__cf_email__" data-cfemail="90c0f1e0f5e2e7ffe2fbc2f5f4e5f3e4f9fffed1f3e4d0e3f5f3bef7ffe6">[email protected]</span></a> by November 12, 2025. There will be a
second opportunity to comment on this SEC request following the Federal
Register publishing a 30-Day Submission Notice.
Dated: September 9, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-17590 Filed 9-11-25; 8:45 am]
BILLING CODE 8011-01-P
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