2011 19d-2 just (1)[1]

SUPPORTING STATEMENT
for the Paperwork Reduction Act
Information Collection
“Rule 19d-2”

A.

Justification
1.

Necessity for Information Collection

Rule 19d-2 under the Securities Exchange Act of 1934 (the “Act”) prescribes the form and
content of applications to the Commission by persons desiring stays of final disciplinary sanctions
and summary action of self-regulatory organizations (“SROs”) for which the Commission is the
appropriate regulatory agency. Under the rule, persons desiring stays of final disciplinary sanctions
and summary actions of SROs are required to file applications pursuant to Rule 19d-2 because
sanctions imposed by SROs become effective upon the dates set by the SRO unless a stay is
ordered by the Commission. Rule 19d-2 was adopted on July 8, 1977, pursuant to authority granted
the Commission in Sections 6, 11A, 15, 15A, 17, 17A, 19 and 23 of the Act, 15 U.S.C. 78f, 78k-1,
78o, 78o-3, 78q, 78q-1, 78s and 78w.
2.

Purpose of, and Consequences of Not Requiring, the Information Collection

The Commission uses the information provided in the application filed pursuant to Rule
19d-2 to exercise its jurisdictional review of stays of final disciplinary sanctions and summary
action of SROs.
3.

Role of Improved Information Technology and Obstacles to Reducing Burden

Submission of a written application for stays is the least burdensome and most effective
means of giving the Commission notice of the applicant's intent. No improved information
technology is generally available to applicants.
4.

Efforts to Identify Duplication

Not applicable; there is no duplication of information.
5.

Effect on Small Entities

Not applicable. Submission of a written application for stays is the least burdensome means
of giving notice generally available to small businesses or other small entities.
6.

Consequences of Less Frequent Collection

The filing of an application is discretionary for the applicants; therefore a less frequent
collection is not available to the Commission.

7.

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

This collection is consistent with the guidelines in 5 CFR 1320.5(d)(2).
8.

Consultations Outside the Agency

The required Federal Register notice with a 60-day comment period soliciting comments
on this collection on information was published. No public comments were received.
9.

Payment or Gift to Respondents

Not applicable.
10.

Assurance of Confidentiality

No assurance of confidentiality is provided to applicants.
11.

Sensitive Questions

The form of the application does not impose the burden of any questions of a sensitive
nature.
12.

Estimate of Respondent Reporting Burden

Based upon past submissions, it is estimated that approximately 15 respondents will utilize
this application procedure annually. It is estimated that it will take approximately 3 hours to
comply with Rule 19d-2 for each submission, with a total burden of 45 hours.
Based on the most recent available information, the Commission staff estimates that the
cost to respondents of complying with the requirements of Rule 19d-2 is $876 per response. The
staff computed such cost as follows:
2 hour of attorney time @ $354/hour
1 hour of paralegal time @ $168/hour

= $708
= $168
Total = $876

Therefore, the Commission staff estimates that the total annual reporting cost per
respondent is $876, for a total annual related cost to all respondents of $13,140.
13.

Estimates of Total Annualized Cost Burden

Not applicable; (a) it is not anticipated that respondents will have to incur any capital and
start up cost to comply with the rule; (b) it is not anticipated that the respondents will have to incur
any additional operational or maintenance cost (other than provided for in item no. 12) to comply
with the rule.
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14.

Estimate of Cost to Federal Government

From past experience, it is estimated that the operational costs of reviewing and processing
applications filed pursuant to Rule 19d-2 amounted to approximately $450. This amount is based
on our computation of the value of staff time devoted to those activities and the related overhead
valued at 35% of the staff time and is based on the GSA, Guide to Estimating Reporting Costs
(1973).
15.

Changes in Burden

The Commission staff’s estimate of the total burden on respondents increased from 24
hours to the current 45 hours due to an increase in the number respondents to reflect the increase in
the number of self-regulatory organizations from 8 to the current number of 15. At the same time,
the Commission’s staff’s estimates of the costs for submitting the response to comply with Rule
19d-2 were updated to provide for addition itemized detail to more accurately reflect the cost
burden on respondents. The Commission’s staff’s estimates for the cost of respondents per
response and total annual cost to all respondents reflect the inclusion of the more specific hourly
cost estimates to respondents.
16.

Information Collections Planned for Statistical Purposes

The information received is not collected for statistical use.
17.

Explanation as to Why Expiration Date Will Not Be Displayed

Not applicable.
18.

Exceptions to Certification

Not applicable.
B.

Collection of Information Employing Statistical Methods
Not applicable.

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