Rule 15c3-3: Customer Protection - Reserves and Custody of Securities

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
2010 Onnig Rule 15c3-3 Supporting Statmentrev..docx	Supporting Statement A	Uploaded 2010-11-15	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
34302	Rule 15c3-3:Customer Protection - Reserves and Custody of Securities		Unchanged
193311	Rule 15c3-3: Customer Protection - Reserves and Custody of Securities (Affirmative Consent Requirement)		Unchanged
193310	Rule 15c3-3: Customer Protection - Reserves and Custody of Securities (i. PAB Customer Reserve Account Recordkeeping Requirements)		Unchanged
193308	Rule 15c3-3: Customer Protection - Reserves and Custody of Securities (i. PAB Customer Reserve Account Recordkeeping Requirements)		Unchanged

ICR Details

OMB Control No: 3235-0078	ICR Reference No: 201011-3235-009
Status: Historical Inactive	Previous ICR Reference No: 201006-3235-005
Agency/Subagency: SEC	Agency Tracking No: TM-270-087
Title: Rule 15c3-3: Customer Protection - Reserves and Custody of Securities
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Preapproved	Conclusion Date: 01/21/2011
	Date Received in OIRA: 11/15/2010
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2014	36 Months From Approved	03/31/2011
Responses	5,469,084	0	344
Time Burden (Hours)	450,849	0	77,166
Cost Burden (Dollars)	780,481	0	447,148

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Abstract: Rule 15c3-3 provides for the protection of customer funds and securities in the custody of a broker-dealer. The Rule sets forth standards for (i) a broker-dealer's acceptance, custody, and use of customer securities, and (ii) the maintenance of reserves with respect to customer deposits and monies obtained from the use of customer securities. Rule 15c3-3 also contains requirements for broker-dealers that holds securities futures products for customers.

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Authorizing Statute(s): US Code: 15 USC 78q, 78w, 78mm, 80a-30(a), 80a Name of Law: Securities Exchange Act of 1934
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AJ85	Proposed rulemaking	72 FR 12862	03/19/2007

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

table that charts list of burden

IC Title	Form No.	Form Name
Rule 15c3-3: Customer Protection - Reserves and Custody of Securities (Affirmative Consent Requirement)
Rule 15c3-3: Customer Protection - Reserves and Custody of Securities (i. PAB Customer Reserve Account Recordkeeping Requirements)
Rule 15c3-3:Customer Protection - Reserves and Custody of Securities
Rule 15c3-3: Customer Protection - Reserves and Custody of Securities (i. PAB Customer Reserve Account Recordkeeping Requirements)

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ICR Summary of Burden

table that charts list of burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	5,469,084	344	0	5,468,740	0	0
Annual Time Burden (Hours)	450,849	77,166	0	373,683	0	0
Annual Cost Burden (Dollars)	780,481	447,148	0	333,333	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The changes in the reporting burden are a result of the proposed amendments to Rule 15c3-3 as discussed in the 2007 proposing release. Under the 2007 proposing release, the proposed amendments to Rule 15c3-3 would require a broker-dealer to perform a PAB reserve computation and obtain certain agreements and notices related to proprietary account of another broker-dealer (referred to as “PAB accounts”) and, therefore, would impose recordkeeping burdens on a broker-dealer to the extent it: (1) has to perform a PAB computation; (2) chooses to use PAB securities and, therefore, needs to obtain agreements from PAB accountholders; and (3) opens a PAB reserve account at a new bank. These proposed amendments to Rule 15c3-3 would add 29,080 (26,830 + 2,250) one-time burden hours to this collection of information, as well as increase the annual hour burden by 9,350 hours. In addition, the amendment to Rule 15c3-3 to add new paragraph (j) would apply to broker-dealers who choose to provide existing and new customers with the required disclosures in order to have the ability to change how their customers’ free credit balances are treated. This amendment would add 10,000 one-time burden hours, as well as 364,333 annual hours to this collection of information. Finally, the amendment to paragraph (j) to Rule 15c3-3 relating to customers’ free credit balances also would result in an increase to the total annualized cost burden of $333,333 per year.

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Annual Cost to Federal Government: $1,050

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 11/15/2010

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