[Federal Register Volume 61, Number 215 (Tuesday, November 5, 1996)]
[Notices]
[Pages 56977-56978]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28317]
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SECURITIES AND EXCHANGE COMMISSION
Request for Public Comment
Upon Written Request, Copies Available From Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549.
Existing Collection In Use Without an OMB Number
Rule 15c2-1--SEC File No. 270-418--OMB Control No. 3235--new.
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 publishing the following summary of
collection for public comment.
Rule 15c2-1 prohibits the commingling under the same lien of
securities of margin customers: (a) with other customers without their
written consent; and (b) with the broker or dealer. The rule also
prohibits the rehypothecation of customers' margin securities for a sum
in excess of the customer's aggregate indebtedness. See
[[Page 56978]]
Securities Exchange Act Release No. 2690 (November 15, 1940);
Securities Exchange Act Release No. 9428 (December 29, 1971). Pursuant
to Rule 15c2-1, respondents must collect information necessary to
prevent the rehypothecation of customer account in contravention of the
rule, issue and retain copies of notices of hypothecation of customer
accounts in accordance with the rule, and collect written consents from
customers in accordance with the rule. The information is necessary to
ensure compliance with the rule, and to advise customers of the rule's
protections.
There are approximately 258 respondents per year (i.e., broker-
dealers that carry or clear customer accounts that also have bank
loans) that require an aggregate total of 5,805 hours to comply with
the rule. Each of these approximately 258 registered broker-dealers
makes an estimated 45 annual responses, for an aggregate total of
11,610 responses per year. Each response takes approximately 0.5 hours
to complete. Thus, the total compliance burden per year is 5,805 burden
hours. The approximate cost per hour is $20, resulting in a total cost
of compliance for the respondents of $116,100 (5,805 hours @ $20 per
hour).
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information; (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
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
Direct your written comments to Michael E. Bartell, Associate
Executive Director, Office of Information Technology, Securities and
Exchange Commission, 450 5th Street, N.W., Washington, DC 20549.
Dated: October 29, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-28317 Filed 11-4-96; 8:45 am]
BILLING CODE 8010-01-M
