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lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 86, No. 228 / Wednesday, December 1, 2021 / Proposed Rules The Commission believes that the change, in the case of broker-dealers, from a third party to a senior officer requirement and, in the case of SBSDs, the addition of a senior officer requirement, would result in a one-time initial burden of one hour per firm, for a total of 3,373 hours for an initial cost of $1,676,381 under Rule 17a4f and 25 hours for an initial cost of $12,425
for SBSDs under Rule 18a6e.185 The Commission also believes that the senior officer requirement would add an annual burden of one hour per firm, for a total of 3,373 hours for broker-dealers collectively 186 for a total ongoing cost of $1,676,381, and 25 hours for a total ongoing cost of $12,425 for SBSDs collectively.187
The proposed amendments would move existing requirements for brokerdealers using micrographic media from paragraph f3i of Rule 17a4 to proposed new paragraph f4 of Rule 17a4, but do not change the substantive requirements. The proposed amendments do not propose a micrographic media alternative for SBS
Entities for the reasons described above.
The Commission does not believe the proposed amendments relating to micrographic media would have any impact on the burden experienced by broker-dealers.
The Commission anticipates that eliminating the application of paragraph e2 of Rule 18a6 to the 21 SBSDs that have a prudential regulator and are subject to Rule 18a6 would result in a decrease of 100 hours per firm on an annual basis, or 2,100 hours per year for all firms affected by the proposed amendment, for an ongoing cost savings
of $663,000 per year for all affected firms.188
Finally, based upon information provided to the Commission from FINRA staff, the Commission believes that the elimination of the DEA
notification requirement would decrease the industry-wide burden of compliance by one hour per broker-dealer submitting the notice to its DEA, or approximately 433 hours per year, for an ongoing cost savings of $136,828 189
per year for the industry.

undertakings with the Commission. See paragraph f of Rule 18a6.
185 Throughout this section, to monetize the internal costs the Commission staff used data from the SIFMA publications, Management and Professional Earnings in the Securities Industry 2013, and Office Salaries in the Securities Industry2013, modified by the Commission staff to account for an 1800 hour work-year and multiplied by 5.35 professionals or 2.93 office to account for bonuses, firm size, employee benefits and overhead. These figures have been adjusted for inflation through the end of 2020 using data published by the Bureau of Labor Statistics.
One-time initial cost for broker-dealers: 3,373
hours $497 per hour at the controller hourly rate = $1,676,381. One time initial cost for SBSDs: 25
hours $497 per hour at the controller hourly rate = $12,425.
186 The Commission believes that while the existing third-party requirement is an external burden, the proposed senior officer requirement would be an internal burden required to be accounted for in this section.
187 Ongoing cost for broker-dealers: 3,373 hours
$497 per hour at the controller hourly rate =
$1,676,381. Ongoing cost for SBSDs: 25 hours
$497 per hour at the controller hourly rate =
$12,425.

F. Confidentiality of Responses to Collection of Information
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2. Proposed Amendments to Rules 17a 4j and 18a6g The proposed amendments to Rules 17a4j and 18a6g would require a broker-dealer or SBS Entity, respectively, to furnish a record and its audit trail if applicable preserved on an electronic recordkeeping system pursuant to Rules 17a4f and 18a6g, respectively, in a reasonably usable electronic format, if requested by a representative of the Commission. The Commission does not believe that these proposed amendments will change the initial or annual hourly burden for broker-dealers or SBS Entities. The Commission solicits comment on what the estimated initial and annual burden is for broker-dealers and SBS Entities to comply with current versions Rule 17a 4j and Rule 18a6g and for those firms to comply with those rules, as proposed to be amended.
E. Collection of Information Is Mandatory The collections of information pursuant to the proposed amendments are mandatory, as applicable, for brokerdealers and SBS Entities.

A broker-dealer or SBS Entity requested by the Commission to produce records retained electronically pursuant to the requirements of Rules 17a4 or 18a6 can request confidential treatment of the information.190 If such confidential treatment request is made, the Commission anticipates that it will keep the information confidential subject to applicable law.191
188 2,100 hours $316 per hour at the compliance manager rate = $663,000.
189 433 hours $316 per hour at the compliance manager rate = $136,828.
190 See 17 CFR 200.83. Information regarding requests for confidential treatment of information submitted to the Commission is available on the Commissions website at http www.sec.gov/foia/
howfo2.htmprivacy.
191 See, e.g., 5 U.S.C. 552 et seq.; 15 U.S.C. 78x governing the public availability of information obtained by the Commission.

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G. Retention Period for Recordkeeping Requirements Rule 17a4, as proposed to be amended, specifies the required retention periods for records required to be made and preserved by a brokerdealer, whether electronically or otherwise.192 Rule 18a6, as proposed to be amended, specifies the required retention periods for records required to be made and preserved by an SBS
Entity, whether electronically or otherwise.193 Many of the required records must be retained for three years;
certain other records must be retained for longer periods.194
H. Request for Comments Pursuant to 44 U.S.C. 3506c2B, the Commission solicits comment on the proposed collections of information in order to:
Evaluate whether the proposed collections of information are necessary for the proper performance of the functions of the Commission, including whether the information would have practical utility;
Evaluate the accuracy of the Commissions estimates of the burden of the proposed collections of information;
Determine whether there are ways to enhance the quality, utility, and clarity of the information to be collected; and Evaluate whether there are ways to minimize the burden of the collection of information on those who respond, including through the use of automated collection techniques or other forms of information technology.
Persons submitting comments on the collection of information requirements should direct them to the Office of Management and Budget, Attention:
Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Washington, DC 20503, and should also send a copy of their comments to Vanessa A. Countryman, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC
205491090, with reference to File Number S71921. Requests for materials submitted to OMB by the Commission with regard to this collection of information should be in writing, with reference to File Number S71921 and be submitted to the Securities and Exchange Commission, Office of FOIA/PA Services, 100 F Street NE, Washington, DC 205492736. As OMB is required to make a decision 192 See
Rule 17a4, as proposed to be amended.
Rule 18a6, as proposed to be amended.
194 See Rules 17a4 and 18a6, as proposed to be amended.
193 See
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