Proposed Rule 17a-4(b)(17)

Forms and Documents

Document Name	Status
Supporting Statement (3235-0806) (2023 Final Rule).pdf Supporting Statement A	2023-08-24

IC Document Collections

IC ID	Document Title	Status
259454	Preserving the written probability of default calculation (Rule 17a-4)-Ongoing	Modified
259453	Preserving the written probability of default calculation (Rule 17a-4)-Initial	Modified

ICR Details

OMB Control No: 3235-0806	ICR Reference No: 202308-3235-024
Status: Received in OIRA	Previous ICR Reference No: 202304-3235-001
Agency/Subagency: SEC	Agency Tracking No:
Title: Proposed Rule 17a-4(b)(17)
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 08/24/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	602	0
Time Burden (Hours)	5,518	0
Cost Burden (Dollars)	0	0

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Abstract: The Commission recently adopted amendments to Rules 101 and 102 of Regulation M that remove the Investment Grade Exceptions and add, in their place, new exceptions for Nonconvertible Securities. Certain provisions of the final amendments contain “collection of information” requirements, which were submitted to OMB in a revision to 3235-0464. In addition, and to facilitate Commission examinations of broker-dealers who rely on the new exception in Rule 101 or Rule 102 of Regulation M, the Commission adopted a new paragraph (17) of Rule 17a-4(b) that requires broker-dealers to preserve the written probability of default determination relied upon pursuant to Rule 101(c)(2)(i) or Rule 102(d)(2)(i), as applicable. The new collection of information in Rule 17a-4(b)(17) is in this control number 3235-0806.

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Authorizing Statute(s): US Code: 15 USC 78c(b) Name of Law: Securities Exchange Act of 1934
   US Code: 15 USC 78o Name of Law: Securities Exchange Act of 1934
   US Code: 15 USC 78w(a) Name of Law: Securities Exchange Act of 1934
   US Code: 15 USC 78a et seq. Name of Law: Securities Exchange Act of 1934
   US Code: 15 USC 78mm Name of Law: Securities Exchange Act of 1934
   PL: Pub.L. 111 - 203 939A Name of Law: Dodd Frank Wall Street Reform and Consumer Protection Act
   Statute at Large: 124 Stat. 1376 Name of Statute: Dodd Frank Wall Street Reform and Consumer Protection Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AL14	Final or interim final rulemaking	88 FR 39962	06/20/2023

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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: 2

IC Title	Form No.	Form Name
Preserving the written probability of default calculation (Rule 17a-4)-Initial
Preserving the written probability of default calculation (Rule 17a-4)-Ongoing

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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	602	0	0	602	0	0
Annual Time Burden (Hours)	5,518	0	0	5,518	0	0
Annual Cost Burden (Dollars)	0	0	0	0	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: The Commission recently adopted amendments that would add a new collection of information requirement in Rule 17a-4(b)(17). These are discussed in more detail in the attached Supporting Statement. NOTE: Rule 17a-4 is currently assigned OMB Control No. 3235-0279, but due to the timing of other submissions for that control number, we submitted (b)(17) of Rule 17a-4 under a new control number.

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Annual Cost to Federal Government:

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? No

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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: 08/24/2023

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