Rule 17a-5(c); Customer Financial Statements for Brokers and Dealers.

Forms and Documents

Document Name	Status
3235-0199.pdf Supplementary Document	2022-01-03
3235-0199 Jan 3, 2022.pdf Supplementary Document	2022-01-03
2021 Rule 17a-5(c) Supporting Statement.pdf Supporting Statement A	2021-10-26

IC Document Collections

IC ID	Document Title	Status
34552	Rule 17a-5(c): Exempt firms sending financial disclosure statements to customers	Unchanged
214424	Rule 17a-5(c): Non-exempt firms sending balance sheet to the SEC	Modified
214422	Rule17a-5(c): Non-exempt broker-dealers sending balance sheet to SROs	Modified
214410	Rule 17a-5(c): Non-exempt firms sending balance sheets to customers	Modified
199353	Rule 17a-5(c): Exempt firms sending balance sheets to SROs	Unchanged
199352	Rule 17a-5(c): Exempt firms sending financial disclosure statements to the SEC	Unchanged
199297	Rule 17a-5(c): Exempt firms sending balance sheets to customers	Unchanged

ICR Details

OMB Control No: 3235-0199	ICR Reference No: 202110-3235-009
Status: Received in OIRA	Previous ICR Reference No: 201804-3235-017
Agency/Subagency: SEC	Agency Tracking No: TM-270-199
Title: Rule 17a-5(c); Customer Financial Statements for Brokers and Dealers.
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 01/03/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	02/28/2022
Responses	55,640,957	54,004,571
Time Burden (Hours)	228,024	161,158
Cost Burden (Dollars)	0	0

---

Abstract: Rule 17a-5(c) sets forth requirements for broker-dealers that carry customer accounts to provide financial statements to their customers. The purpose of the Rule is to ensure that customers of broker-dealers are provided with information concerning the financial condition of the firm that may be holding the customers' cash and securities so that the customers can judge whether the broker or dealer is financially sound.

---

Authorizing Statute(s): US Code: 15 USC 78q Name of Law: Securities Exchange Act of 1934
  

Citations for New Statutory Requirements: None

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

---

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 61372	11/05/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 133	01/03/2022
Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 7

IC Title	Form No.	Form Name
Rule 17a-5(c): Non-exempt firms sending balance sheet to the SEC
Rule 17a-5(c): Exempt firms sending balance sheets to SROs
Rule 17a-5(c): Exempt firms sending balance sheets to customers
Rule 17a-5(c): Exempt firms sending financial disclosure statements to customers
Rule 17a-5(c): Exempt firms sending financial disclosure statements to the SEC
Rule 17a-5(c): Non-exempt firms sending balance sheets to customers
Rule17a-5(c): Non-exempt broker-dealers sending balance sheet to SROs

---

ICR Summary 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	55,640,957	54,004,571	0	0	1,636,386	0
Annual Time Burden (Hours)	228,024	161,158	0	0	66,866	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: Since the time of the last submission, there has been modest increase in the Commission’s estimate of the number of broker-dealers that carry customer accounts, from 162 to 163, and an increase in the total number of public customer accounts, from 132 million to 186 million. Further, the Commission previously estimated that 129 broker-dealers took advantage of the exemption of paragraph (c)(5) of Rule 17a-5 and that 33 broker-dealers carrying approximately 27 million customer accounts did not take advantage of the exemption. The Commission now estimates that 129 broker-dealers take advantage of the exemption and that 34 broker-dealers carrying 39 million customer accounts do not take advantage of the exemption.

---

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]? No

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

Is this ICR related to the Pandemic Response? No

---

Common Form ICR:  No

---

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: 01/03/2022

---