[Federal Register Volume 61, Number 143 (Wednesday, July 24, 1996)]
[Notices]
[Page 38483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18713]
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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.
Approval:
Rule 10b-18, SEC File No. 270-416; OMB Control No. 3235-new.
Rule 15c1-5, SEC File No. 270-422, OMB Control No. 3235-new.
Rule 15c1-6, SEC File No. 270-423, OMB Control No. 3235-new.
Rule 17Ad-3 (b), SEC File No. 270-424, 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 summaries of
collections for public comment.
Rule 10b-18 under the Securities Exchange Act of 1934 (``Exchange
Act'') provides that an issuer or any affiliated purchaser of an issuer
will not incur liability under Section 9(a)(2) of the Exchange Act, or
Rule 10b-5 under the Exchange Act, if its purchases of the issuer's
common stock are effected in compliance with the manner, timing, price,
and volume limitations of the rule.
The rule implicitly requires an issuer or any affiliated purchaser
seeking to avail itself of the safe harbor to collect information
regarding the manner, time, price, and volume of its purchases of the
issuer's common stock, on a transaction by transaction basis, in order
to verify compliance with the rule's safe harbor conditions. Each year
there are approximately 820 share repurchase programs conducted in
accordance with Rule 10b-18.
For each such repurchase program, an average of approximately 8
hours is spent collecting the requisite information. Thus, the total
compliance burden per year is approximately 6,560 burden hours.
Rule 15c1-5 requires that broker-dealers, who are under the control
of the issuer of any security, shall disclose, in writing, the
existence of such control to customers before entering into any
contract for the purchase or sale of such security. The information
required by the rule is necessary for the execution of the Commission's
mandate under the Exchange Act to prevent fraudulent, manipulative, and
deceptive acts and practices by broker-dealers.
For Rule 15c1-5 there are approximately 425 respondents (5% of the
approximately 8500 registered broker-dealers), each response takes
approximately 10 hours to complete for an aggregate total of 4,250
burden hours.
Rule 15c1-6 requires that broker-dealers, who are participating in
the primary or secondary distribution of a security, shall disclose
their interests in the distribution, in writing, at or before the
completion of any transaction when entering into a contract for the
purchase or sale of such security. The information required by the rule
is necessary for the execution of the Commission's mandate under the
Exchange Act to prevent fraudulent, manipulative, and deceptive acts
and practices by broker-dealers.
For Rule 15c1-6 there are approximately 850 respondents (10% of the
registered broker-dealers), each response takes approximately 10 hours
to complete for an aggregate total of 8,500 hours to comply with this
rule.
Rule 17Ad-3(b) requires registered transfer agents, which for each
of two consecutive months fails to turn around at least 75% of all
routine items in accordance with the requirements of Rule 17Ad-2(a) or
to process at least 75% of all items in accordance with the
requirements of Rule 17Ad-2(b) to send to the chief executive officer
of each issuer for which such registered transfer agents acts a copy of
the written notice required under Rule 17Ad-2(c), (d), and (h). The
issuer may use the information contained in the notices in several
ways: (1) To provide an early warning to the issuer of the transfer
agent's non-compliance with the Commission's minimum performance
standards regarding registered transfer agents, and (2) to assure that
issuers are aware of certain problems and poor performances with
respect to the transfer agents that are servicing the issuer's
securities. If the issuer does not receive notice of a registered
transfer agent's failure to comply with the Commission's minimum
performance standards then the issuer will be unable to take remedial
action to correct the problem or to find another registered transfer
agent. The Commission estimates that the annual cost to respondents is
minimal. Pursuant to Rule 17Ad-3(b), a transfer agent that has already
filed a Notice of Non-Compliance with the Commission pursuant to Rule
17Ad-2 will only be required to send a copy of that notice to issuers
for which it acts when that transfer agent fails to turnaround 75% of
all routine items or to process 75% of all items. The Commission
estimates that of the 8 transfer agents that file the Notice of Non-
Compliance pursuant Rule 17Ad-2, only 2 transfer agents will meet the
requirements of Rule 17Ad-3(b). If a transfer agent fails to meet the
minimum requirements under 17Ad-3(b), such transfer agent is simply
sending a copy of a form that had already been produced for the
Commission. The Commission estimates a cost of approximately $30.00 for
each half hour; therefore, each year transfer agents will spend
approximately 2 hours and $120 complying with the provisions of the
rule.
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.
July 15, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-18713 Filed 7-23-96; 8:45 am]
BILLING CODE 8010-01-M
