[Federal Register Volume 90, Number 39 (Friday, February 28, 2025)]
[Notices]
[Pages 10983-10984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-03271]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-329, OMB Control No. 3235-0371]
Submission for OMB Review; Comment Request; Extension: Rule 15a-6
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
previously approved collection of information provided for in Rule 15a-
6 (17 CFR 240.15a-6) under
[[Page 10984]]
the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
Rule 15a-6 provides conditional exemptions from the requirement to
register as a broker-dealer pursuant to Section 15 of the Securities
Exchange Act for foreign broker-dealers that engage in certain
specified activities involving U.S. persons. In particular, Rule 15a-
6(a)(3) provides an exemption from broker-dealer registration for
foreign broker-dealers that solicit and effect transactions with or for
U.S. institutional investors or major U.S. institutional investors
through a registered broker-dealer, provided that the U.S. broker-
dealer, among other things, obtains certain information about, and
consents to service of process from, the personnel of the foreign
broker-dealer involved in such transactions, and maintains certain
records in connection therewith.
These requirements are intended to ensure (a) that the registered
broker-dealer will receive notice of the identity of, and has reviewed
the background of, foreign personnel who will contact U.S. investors,
(b) that the foreign broker-dealer and its personnel effectively may be
served with process in the event enforcement action is necessary, and
(c) that the Commission has ready access to information concerning
these persons and their U.S. securities activities. Commission staff
estimates that approximately 2,000 U.S. registered broker-dealers will
spend an average of two hours of clerical staff time and one hour of
managerial staff time per year obtaining the information required by
the rule, resulting in a total aggregate time burden of 6,000 hours per
year for complying with the rule. Assuming an hourly cost of $78 \1\
for a compliance clerk and $344 \2\ for a compliance manager, the
resultant total internal labor cost of compliance for the respondents
is $1,000,000 per year (2,000 entities x ((2 hours per entity x $78/
hour) + (1 hour per entity x $344/hour)) = $1,000,000).
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\1\ The hourly rate used for a compliance clerk was from SIFMA's
Office Salaries in the Securities Industry 2013, modified by
Commission staff to account for an 1,800-hour work-year and
multiplied by 2.93 to account for bonuses, firm size, employee
benefits and overhead.
\2\ The hourly rate used for a compliance manager was from
SIFMA's Management & Professional Earnings in the Securities
Industry 2013, modified by Commission staff to account for an 1,800-
hour work-year and multiplied by 5.35 to account for bonuses, firm
size, employee benefits and overhead.
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In general, the records to be maintained under Rule 15a-6 must be
kept for the applicable time periods as set forth in Rule 17a-4 (17 CFR
240.17a-4) under the Exchange Act or, with respect to the consents to
service of process, for a period of not less than six years after the
applicable person ceases engaging in U.S. securities activities.
Reliance on the exemption set forth in Rule 15a-6 is voluntary, but if
a foreign broker-dealer elects to rely on such exemption, the
collection of information described therein is mandatory. The
collection does not involve confidential information.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB Control Number.
Written comments are invited on: (a) whether this collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden
imposed by the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information 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.
The public may view and comment on this information collection
request at: https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202412-3235-010 or send an email comment to
[email protected] within 30 days of the day
after publication of this notice by March 31, 2025.
Dated: February 25, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-03271 Filed 2-27-25; 8:45 am]
BILLING CODE 8011-01-P