SEC Solicits Comments on Information Regarding Broker-Dealer Risk Assessment Rules

The SEC issued a notice soliciting comments regarding the extension and approval of its "risk assessment rules". These rules address the collection of information required by Exchange Act Rules 17h-1T and 17h-2T. The SEC plans to submit the collection of information rules to the Office of Management and Budget ("OMB") for extension and approval.

According to the SEC, the collection of information required by Exchange Act Rules 17h-1T and 17h-2T, referred to as the "risk assessment rules," is necessary to enable the SEC to "monitor the activities of a broker-dealer affiliate whose business activities are reasonably likely to have a material impact on the financial and operational condition of the broker-dealer." Without this information, the SEC explained, it would be unable to assess the "potentially damaging impact of the affiliate's activities on the broker-dealer."

Therefore, the SEC is inviting comment on:

• whether the proposed collection of information is necessary for the proper performance of the functions of the SEC, including whether the information will have practical utility;
• the accuracy of the SEC's estimate of the burden of the collection of information;
• ways to enhance the quality, utility, and clarity of the information collected; and
• ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.

Comments must be submitted by June 23, 2015.

See: 80 FR 23060.