APPROVED WITH
THE FOLLOWING CONDITIONS: (1) THE DEPARTMENT MUST RESUBM THESE
RECORDKEEPING AND REPORTING REQUIREMENTS FOR PAPERWORK REDUCTION
ACT (PRA) REVIEW BY OMB WHEN THE RULE IS EFFECTIVE, INCLUDING A
SUMMAR OF ALL PUBLIC COMMENTS RECEIVED ON THE REPORTING AND
RECORDKEEPING REQUIREMENTS. (2) THE NOTIFICATION TO COUNTERPARTIES
AND OTHER PAPERWO REQUIREMENTS PROPOSED AT 17 CFR 403.4(e) AND
403.5(d) ARE NOT APPROVED AS THEY ARE NOT THE LEAST BURDENSOME
NECESSARY FOR THE PROPER PERFORMANCE OF THE AGENCY'S FUNCTIONS AS
REQUIRED BY THE PRA AND ITS IMPLEMENTING REGULATION AT 5 CFR
1320.4(b). THE DEPARTMENT HAS NOT JUSTIFIED THE PRIOR AGREEMENT
NOTIFICATION REQUIREMENT, NOR HAS IT JUSTIFIED THE UTILITY OF A
$5,000,000 THRESHOLD. IN ADDITION, THE DEPARTMENT HAS NOT STATED
HOW BROKER/DEALERS ARE TO ACCOMPLISH CONTINIOUS AGGREGATIONS, AS
THE RULE SEEMS TO REQUIRE. THE LEAST BURDENSOME METHOD FOR ENSURING
THE DEPARTMENT'S FUNCTION (OF ADEQUATE CUSTOMER PROTECTION) WOULD
APPEAR TO BE REQUIRING DISCLOSURE UP FRONT (AND PERHAPS
PERIODICALLY THEREAFTER) OF SUBSTITUTION PROCEDURES. (3) THE FORM G
FIN 4 MUST BE REVISED TO DELETE THE REQUEST FOR EDUCATION
INFORMATION (QUESTION 15), AS THIS INFORMATION LACKS PRACTICAL
UTILITY (AS REQUIRED BY THE PRA AND ITS REGULATIONS AT 5 CFR
1320.4(b)) DUE TO THERE BEING NO EDUCATION QUALIFICATION REQUIRED
TO REGISTER UNDER THE GOVERNMENT SECURITIES ACT.
Inventory as of this Action
Requested
Previously Approved
04/30/1988
04/30/1988
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THESE REGULATIONS REQUIRE GOVERNMENT
SECURITIES BROKERS AND DEALERS TO MAKE AND KEEP RECORDS CONCERNING
THEIR BUSINESS ACTIVITIES AND THEI HOLDINGS OF SECURITIES, AND TO
SUBMIT FINANCIAL REPORTS. THE REGULATIO ARE DESIGNED TO ENHANCE
INVESTOR PROTECTION. THE REGULATIONS ALSO REQUIRE DEPOSITORY
INSTITUTIONS TO KEEP RECORDS CONCERNING NON-FIDUCIARY HOLDINGS OF
GOVERNMENT SECURITIES FOR CUSTOMERS.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.