PRA Supporting Statement (8-30-10)

SUPPORTING STATEMENT

Transitional Registration of Municipal Advisors

FORM MA-T

This submission pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. Section 3501 et seq., consists of this supporting statement and the following exhibits:

1. Statutory Authority

2. Written Statement Supporting Need for Emergency Consideration

A. JUSTIFICATION

1. Necessity for the Information Collection

On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act requires municipal advisors to register with the Commission by October 1, 2010. The Commission staff expects that the Commission will adopt on August 31, 2010, interim final temporary Rule 15Ba2-6T under the Exchange Act establishing a means for municipal advisors to satisfy temporarily the registration requirement by filing Form MA-T with the Commission. The rule will expire on December 31, 2011.

2. Purpose of the Information Collection

The information collection requirement of interim final temporary rule 15Ba2-6T and Form MA-T is designed to provide information about municipal advisors to investors and issuers, as well as the Commission.

3. Role of Improved Information Technology

Municipal advisors will file Form MA-T using the Commission’s public web site.

4. Efforts to Identify Duplication

In designing Form MA-T, the Commission has taken steps to minimize the compliance burden on municipal advisors, primarily by permitting municipal advisors to reference disciplinary action previously reported in connection with other regulatory filings.

5. Effect on Small Entities

All municipal advisors, regardless of size, are required to disclose the information requested in Form MA-T. As discussed above in response to Item 4, the Commission has taken steps to minimize the compliance burdens on all municipal advisors.

6. Consequences of Less Frequent Collection

Municipal advisors generally are required to file Form MA-T only once to register and are required to file amendments to Form MA-T only when the disciplinary information originally reported in Form MA-T changes or becomes inaccurate. Therefore, less frequent collection for Form MA-T information would impair the accuracy of the information available to investors, issuers and the Commission.

7. Inconsistencies with Guidelines in 5 CFR 1320.5(d)(2)

Pursuant to the Dodd-Frank Act, municipal advisors must be registered by October 1, 2010. Due to the short time between enactment of the statute and registration deadline, respondents may have fewer than 30 days after the Commission adopts the rule to complete and submit Form MA-T.

8. Consultation Outside the Agency

Due to the short time between enactment of the statute and the registration deadline, the Commission is unable to solicit public comment on the collection and estimated burden. Commission staff consulted with representatives of the Municipal Securities Rulemaking Board, the self-regulatory organization responsible for overseeing the municipal securities market.

9. Payment or Gift to Respondents

Not applicable.

10. Assurance of Confidentiality

The information provided on Form MA-T is not confidential, and is available to the public.

11. Sensitive Questions

Not applicable.

12. Estimate of Reporting Burden

Commission staff estimates that approximately 1,000 municipal advisors will file Form MA-T. Commission staff estimates that each of the approximately 1,000 municipal advisors will spend an average of 2.5 hours preparing each Form MA-T. Therefore the estimated total reporting burden associated with completing Form MA-T is 2,500 hours (1,000 respondents x 2.5 hours per form). Additionally, Commission staff estimates that approximately 1,000 municipal advisors will amend their Form MA-T once during the period September 1, 2010 through December 31, 2011 and that it will take approximately 30 minutes to amend their form. Therefore, the total annual burden of completing Form MA-T is 3,000 hours.¹

13. Estimate of Total Annual Cost Burden

The Commission believes that some municipal advisors will seek outside counsel to help them comply with the requirements of Rule 15Ba2-6T and Form MA-T. For PRA purposes, the Commission assumes that all 1,000 municipal advisors will consult counsel for one hour to help them comply with the requirements. The Commission estimates that the total cost for all municipal advisors to hire outside counsel to review their compliance with the requirements of Rule 15Ba2-6T and Form MA-T to be approximately $400,000.²

14. Estimate of Cost to the Federal Government

Form MA-T is received electronically, via the Commission’s public web site. While there were some costs associated with system changes to allow the Commission’s public web site to accept Form MA-T, those costs were not significant.

15. Explanation of Changes in Burden

Not applicable. This is the first request for approval of the collection of information for this rule.

16. Information Collection Planned for Statistical Purposes

Not applicable.

17. Approval to not Display Expiration Date

Not applicable.

18. Exceptions to Certification Statement

Not applicable.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS

Not applicable.

1 3,000 = 2,500 hours (total estimated burden to complete Form MA-T for all municipal advisors) + 500 hours (total estimated burden to complete amendments to Form MA-T for all municipal advisors).

2 $400,000 = 1,000 (estimated number municipal advisors that hire outside attorney) x 1 hour (estimated time spent by outside attorney to help municipal advisor comply with rule) x $400 (hourly rate for a Attorney). The $400 per hour figure for an Attorney is from the Securities Industry and Financial Markets Association’s publication titled Management & Professional Earnings in the Securities Industry 2009, as modified by Commission staff to account for a 1,800 hour work year and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead.