[Federal Register Volume 61, Number 166 (Monday, August 26, 1996)]
[Notices]
[Page 43795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21605]
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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 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'') has submitted to the Office of Management
and Budget a request for approval of extension on the following rule:
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).
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: August 19, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-21605 Filed 8-23-96; 8:45 am]
BILLING CODE 8010-01-M
