Rule 15c3-1; Net Capital Requirements for Brokers and Dealers

Forms and Documents

Document Name	Status
SUPPORTING STATEMENT Rule 15c3-1 (3235-0200) Final Rule.pdf Supporting Statement A	2019-08-13

IC Document Collections

IC ID	Document Title	Status
42976	Rule 15c3-1; Notices	Unchanged
236947	NEW: 15c3-1(c)(2)(xiv): Account control agreements – Opinion of Counsel	New
236945	NEW: 15c3-1 Account Control Agreements – Outside Counsel Review (Costs)	New
236941	NEW: 15c3-1(c)(2)(xiv): Account control agreements – Outside Counsel Review (Hours)	New
236939	NEW: 15c3-1(c)(2(vi)(O)(l)(iii): Industry sector classification	New
236938	NEW: Rule 15c3-4: Risk management control system	New
208585	Rule 15c3-1 -- Reviewing procedures to determine creditworthiness to avoid 15% haircut	Unchanged
208584	Rule 15c3-1 -- Creating procedures to determine creditworthiness to avoid 15% haircut	Unchanged
207432	Rule 15c3-1; Opinion of counsel to file consolidated financial reports under Appendix C	Unchanged
206989	Rule 15c3-1; Appendix G updating risk management profile for new ANC firms	Unchanged
206988	Rule 15c3-1; Appendix G updating risk management profile for existing ANC firms	Unchanged
206987	Rule 15c3-1; Appendix G notification provision for new ANC firms	Unchanged
206986	Rule 15c3-1; Appendix G notification provision for existing ANC firms	Unchanged
206985	Rule 15c3-1; Appendix G recordkeeping for new ANY firms (ongoing)	Unchanged
206984	Rule 15c3-1; Appendix G recordkeeping for existing ANC firms	Unchanged
206983	Rule 15c3-1; Appendix G recordkeeping for new ANC firms (initial)	Unchanged
206981	Rule 15c3-1; Appendix G annual reports for new ANC firms	Unchanged
206980	Rule 15c3-1; Appendix G quarterly reports for new ANC firms	Unchanged
206979	Rule 15c3-1; Appendix G monthly reports for new ANC firms	Unchanged
206978	Rule 15c3-1; Appendix G annual reports for existing ANC firms	Unchanged
206977	Rule 15c3-1; Appendix G quarterly reports for existing ANC firms	Unchanged
206976	Rule 15c3-1; Appendix G monthly reports for existing ANC firms	Unchanged
206975	Rule 15c3-1; Reviewing and back testing models for new ANC firms	Unchanged
206974	Rule 15c3-1; Reviewing and back testing models for existing ANC firms	Unchanged
190804	Rule 15c3-1; Appendix E computations for ANC firms	Unchanged
190803	Rule 15c3-1; Paragraph (c)(2)(i)(G)(2): Capital Withdrawal Liability	Unchanged
190802	Rule 15c3-1; Paragraph (c)(2)(iv)(B): Disclosures and Agreements	Unchanged

ICR Details

OMB Control No: 3235-0200	ICR Reference No: 201907-3235-012
Status: Historical Active	Previous ICR Reference No: 201703-3235-004
Agency/Subagency: SEC	Agency Tracking No: TM-270-197
Title: Rule 15c3-1; Net Capital Requirements for Brokers and Dealers
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/09/2019
	Date Received in OIRA: 08/26/2019
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	07/31/2020	36 Months From Approved	07/31/2020
Responses	3,576	0	1,940
Time Burden (Hours)	74,675	0	65,916
Cost Burden (Dollars)	379,000	0	160,000

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Abstract: Rule 15c3-1 was adopted in 1971 to ensure that brokers and dealers maintain sufficient liquid assets in excess of liabilities to promptly satisfy the claims of customers in the event the broker or dealer fails.

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Authorizing Statute(s): US Code: 15 USC 78b, 78c, 78o, 78o-4, 78q, 78w Name of Law: Sections 2, 3, 15, 15B, 17 and 23 of the Securities Exchange Act of 1934.
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 203 701-774 Name of Law: Dodd-Frank Act
US Code: 15 USC 78o-10 Name of Law: Securities Exchange Act of 1934 (Section 15F)
US Code: 15 USC 78c-5 Name of Law: Securities Exchange Act of 1934 (Section 3E)

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AL12	Final or interim final rulemaking	84 FR 43872	08/22/2019

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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: 27

IC Title	Form No.	Form Name
Rule 15c3-1; Appendix G monthly reports for new ANC firms
Rule 15c3-1; Appendix G quarterly reports for new ANC firms
Rule 15c3-1; Appendix G annual reports for new ANC firms
Rule 15c3-1; Appendix G recordkeeping for existing ANC firms
Rule 15c3-1; Appendix G recordkeeping for new ANY firms (ongoing)
Rule 15c3-1; Appendix G notification provision for existing ANC firms
Rule 15c3-1; Appendix G notification provision for new ANC firms
Rule 15c3-1; Appendix G updating risk management profile for existing ANC firms
Rule 15c3-1; Appendix G recordkeeping for new ANC firms (initial)
Rule 15c3-1; Appendix E computations for ANC firms
Rule 15c3-1; Paragraph (c)(2)(iv)(B): Disclosures and Agreements
Rule 15c3-1; Paragraph (c)(2)(i)(G)(2): Capital Withdrawal Liability
Rule 15c3-1; Notices
Rule 15c3-1; Opinion of counsel to file consolidated financial reports under Appendix C
Rule 15c3-1 -- Creating procedures to determine creditworthiness to avoid 15% haircut
Rule 15c3-1 -- Reviewing procedures to determine creditworthiness to avoid 15% haircut
Rule 15c3-1; Reviewing and back testing models for existing ANC firms
Rule 15c3-1; Reviewing and back testing models for new ANC firms
Rule 15c3-1; Appendix G monthly reports for existing ANC firms
Rule 15c3-1; Appendix G quarterly reports for existing ANC firms
Rule 15c3-1; Appendix G annual reports for existing ANC firms
Rule 15c3-1; Appendix G updating risk management profile for new ANC firms
NEW: Rule 15c3-4: Risk management control system
NEW: 15c3-1(c)(2)(xiv): Account control agreements – Opinion of Counsel
NEW: 15c3-1(c)(2(vi)(O)(l)(iii): Industry sector classification
NEW: 15c3-1(c)(2)(xiv): Account control agreements – Outside Counsel Review (Hours)
NEW: 15c3-1 Account Control Agreements – Outside Counsel Review (Costs)

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ICR Summary of Burden

	Total Approved	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	3,576	1,940	0	1,636	0	0
Annual Time Burden (Hours)	74,675	65,916	0	8,759	0	0
Annual Cost Burden (Dollars)	379,000	160,000	0	219,000	0	0

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

Burden Increase Due to: Changing Regulations

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

Burden Reduction Due to:

Short Statement: On June 21, 2019, in accordance with Section 764 of the Dodd-Frank Act, the Commission adopted amendments to Rule 15c3-1 to set forth net capital requirements for broker-dealers that also register as nonbank security-based swap dealers. The proposal was previously submitted to OIRA in 201603-3235-008. However, based on comments received on the proposal, the Commission added several new ICs and did not adopt one. In addition, this package includes one IC that was discussed in the notice of proposed rulemaking but inadvertently left out of the Supporting Statement and the ROCIS submission for the proposed rule. NOTE: Rule 15c3-1 contains pre-existing collections of information that were not part of the notice and comment process in the recent rulemaking and, therefore, are not being revised. Only the collections of information labeled as "NEW" are changing the burden. Accordingly, we have requested an expiration date commensurate with the current expiration date of 7/31/2020.

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Annual Cost to Federal Government: $0

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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]? Yes

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: 08/26/2019

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