Rule 15-g2 (17 CFR 240.15g-2) Risk disclosure document relating to the Penny Stock Rules

Forms and Documents

Document Name	Status
20011 15g-2 Justification AS REVISED 26Aug11.docx Supporting Statement A	2011-08-26

IC Document Collections

IC ID	Document Title	Status
35109	Rule 15-g2 (17 CFR 240.15g-2) Risk disclosure document relating to the Penny Stock Rules	Modified

ICR Details

OMB Control No: 3235-0434	ICR Reference No: 201106-3235-013
Status: Historical Active	Previous ICR Reference No: 200804-3235-006
Agency/Subagency: SEC	Agency Tracking No: TM-270-381
Title: Rule 15-g2 (17 CFR 240.15g-2) Risk disclosure document relating to the Penny Stock Rules
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/28/2011
	Date Received in OIRA: 09/06/2011
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2014	36 Months From Approved	10/31/2011
Responses	39,468	0	37,440
Time Burden (Hours)	2,632	0	7,176
Cost Burden (Dollars)	0	0	17,000

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Abstract: Rule 17 CFR 240.15g-2, adopted Jul 12, 1992, and amended on July 13, 2005,  requires broker-dealers to provide their customers with a risk disclosure document, as set forth in Schedule 15G, prior to their first non-exempt transaction in a "penny stock."

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

Citations for New Statutory Requirements: None

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

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 37381	06/27/2011
30-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 54513	09/01/2011
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Rule 15-g2 (17 CFR 240.15g-2) Risk disclosure document relating to the Penny Stock Rules

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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	39,468	37,440	0	0	2,028	0
Annual Time Burden (Hours)	2,632	7,176	0	1	-4,545	0
Annual Cost Burden (Dollars)	0	17,000	0	0	-17,000	0

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

Burden Increase Due to: Miscellaneous Actions

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

Burden Reduction Due to:

Short Statement: There was an overall decrease in the total burden hours because this submission no longer includes the time burden associated with customers reading and signing paperwork, which was approximately 80 percent of the 2008 time burden. This decrease was offset slightly by an increase in number of registered broker-dealers. There are no costs being submitted at this time as the only costs are internal labor costs. The 2008 approval included a burden of 7,176 hours and $17,000. These numbers mistakenly included time burdens of third party customers rather than respondents, as well as internal labor costs.

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Annual Cost to Federal Government: $0

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

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? 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? 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: 09/06/2011

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