96-15450. Proposed Collection; Comment Request  

  • [Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
    [Notices]
    [Pages 31192-31193]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-15450]
    
    
    
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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 15c2-5
        SEC File No. 270-195
        OMB Control No. 3235-0198
    
        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 15c2-5 prohibits a broker-dealer from arranging a loan for a 
    customer to whom a security is sold unless, before the transaction is 
    entered into, the broker-dealer first: (1) delivers to the customer a 
    written statement setting forth certain information about the specific 
    arrangement being offered to him; (2) obtains from the customer 
    sufficient information concerning his or her financial situation and 
    needs so as to determine that the entire transaction is suitable for 
    the customer; and (3) retains in his or her files a written statement 
    setting forth the basis upon which the broker-dealer made such 
    determination. The information required by the rule is necessary for 
    the execution of the Commission's mandate under the Securities Exchange 
    Act of 1934 (``Exchange Act'') to prevent fraudulent, manipulative, and 
    deceptive acts and practices by broker-dealers. There are approximately 
    50 respondents that require an aggregate total of 600 hours to comply 
    with the rule. Each of these approximately 50 registered broker-dealers 
    makes an estimated 6 annual responses, for an aggregate total of 300 
    responses per year. Each response takes approximately 2 hours to 
    complete. Thus, the total compliance burden per year is 600 burden 
    hours. The approximate cost per hour is $20, resulting in a total cost 
    of compliance for the respondents of $12,000 (600 hours @ $20).
        Written comments are invited on: (a) whether the proposed 
    collection of
    
    [[Page 31193]]
    
    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: June 11, 1996.
    Margaret H. McFarland,
    Deputy Secretary.
    [FR Doc. 96-15450 Filed 6-18-96; 8:45 am]
    BILLING CODE 8010-01-M
    
    

Document Information

Published:
06/19/1996
Department:
Securities and Exchange Commission
Entry Type:
Notice
Document Number:
96-15450
Pages:
31192-31193 (2 pages)
PDF File:
96-15450.pdf