[Federal Register Volume 61, Number 50 (Wednesday, March 13, 1996)]
[Notices]
[Page 10407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5962]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request; Extension: Rule 17a-13; SEC
File No. 270-27; OMB Control No. 3235-0035
Upon written request, copies available from: Securities and
Exchange Commission, Office of Filings and Information Services,
Washington, DC 20549.
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'') has submitted to the Office of Management
and Budget a request for approval of extension on the following rule:
Rule 17a-13(b) requires that at least once each calendar quarter,
brokers and dealers physically examine and count all securities held
and account for all other securities not in their possession, but
subject to the broker-dealer's control or direction. Any discrepancies
between the broker-dealer's securities count and the firm's records
must be noted and, within seven days, the unaccounted for difference
must be recorded in the firm's records. Rule 17a-13(c) provides that
under specified conditions, the securities count, examination and
verification of the broker-dealer's entire list of securities may be
conducted on a cyclical basis rather than on a certain date. Although
Rule 17a-13 does not require filing a report with the Commission, the
discrepancies must be reported on the form required by Rule 17a-5.
The information obtained from Rule 17a-13 is used as an inventory
control device to monitor a broker-dealer's ability to account for all
securities held, in transfer, in transit, pledged, loaned, borrowed,
deposited or otherwise subject to the firm's control or direction.
Discrepancies between the securities counts and the broker-dealer's
records alert the Commission and the Self Regulatory Organizations
(``SROs'') to those firms having problems in their back offices.
Because of the many variations in the amount of securities that
broker-dealers are accountable for, it is difficult to develop a
meaningful figure for the cost of compliance with Rule 17a-13. About
fifteen percent of all registered brokers and dealers are exempt from
Rule 17a-13. Another significant amount of firms have minimal
obligations under the rule because they hold, or are owed few
securities. Approximately 5,000 broker-dealers have obligations under
the rule and the average time it would take each broker-dealer to
comply with the rule is 100 hours per year, for a total estimated
annualized burden of 500,000 hours. It should be noted that most
broker-dealers would engage in the activities required by Rule 17a-13
even if they were not required to do so.
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: March 7, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-5962 Filed 3-12-96; 8:45 am]
BILLING CODE 8010-01-M
