[Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
[Notices]
[Page 31193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15574]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; 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'') has submitted to the Office of Management
and Budget requests for approval of extension on the following rule:
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 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 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.
General comments regarding the estimated burden hours should be
directed to the Desk Officer for the Securities and Exchange Commission
at the address below. Any comments concerning the accuracy of the
estimated average burden hours for compliance with Commission rules and
forms should be directed to Michael E. Bartell, Associate Executive
Director, Office of Information Technology, Securities and Exchange
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549 and Desk
Officer for the Securities and Exchange Commission, Office of
Information and Regulatory Affairs, Office of Management and Budget,
Room 3208, New Executive Office Building, Washington, D.C. 20503.
Dated: June 11, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-15574 Filed 6-18-96; 8:45 am]
BILLING CODE 8010-01-M
