[Federal Register Volume 61, Number 75 (Wednesday, April 17, 1996)]
[Notices]
[Page 16813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9404]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Filings and Information Services, Washington,
DC 20549
Extension: Rule 17a-11, SEC File No. 270-94, OMB Control No. 3235-
0085
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 summaries of
collections for public comment.
Rule 17a-11 requires broker-dealers to give notice when certain
specified events occur. Specifically, the rule requires broker-dealers
to send notice promptly (but within 24 hours) after the broker-dealer's
aggregate indebtedness is in excess of 1,200 percent of its net
capital, its net capital is less than 5 percent of aggregate debt items
or its total net capital is less than 120 percent of the broker-
dealer's required minimum net capital. In addition, broker-dealers are
required to give notice that if they fail to make and keep current
books and records required by Rule 17a-3 or if they discover any
material inadequacy as defined in Rule 17a-5(g).
The notice required by the rule alerts the Commission and self-
regulatory organizations (``SROs''), which have oversight
responsibility over broker-dealers, to those firms having financial or
operational problems.
Because broker-dealers are required to file pursuant to Rule 17a-11
only when certain specified events occur, it is difficult to develop a
meaningful figure for the cost of compliance with Rule 17a-11. It is
anticipated that approximately 650 broker-dealers will each spend 1
hour per year complying with Rule 17a-11. The total cost is estimated
to be approximately 650 hours. With respect to those broker-dealers
that must give notice under Rule 17a-11, the cost is approximately $10
per response for a total annual expense for all broker-dealers of
$6,500.
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, NW., Washington, DC 20549.
Dated: April 9, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-9404 Filed 4-16-96; 8:45 am]
BILLING CODE 8010-01-M
