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

Forms and Documents

Document Name	Status
3235-0434 30 Day Notice.pdf Supplementary Document	2020-11-09
3235-0434 60 Day Notice.pdf Supplementary Document	2020-11-09
2020 15g-2 Support Statement.pdf Supporting Statement A	2020-07-31

IC Document Collections

IC ID	Document Title	Status
35109	15g-2(a) - Mailing documents	Modified
242925	15g-2(d)	New
242924	15g-2(c)	New
242923	15g-2(a) - E-mailing documents	New

ICR Details

OMB Control No: 3235-0434	ICR Reference No: 202007-3235-020
Status: Received in OIRA	Previous ICR Reference No: 201707-3235-004
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	Date Submitted to OIRA: 11/09/2020

	Requested	Previously Approved
Expiration Date	36 Months From Approved	01/31/2021
Responses	63,882	30,888
Time Burden (Hours)	1,893	2,060
Cost Burden (Dollars)	0	0

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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:
	85 FR 50844	08/18/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 71374	11/09/2020
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
15g-2(a) - Mailing documents
15g-2(c)
15g-2(a) - E-mailing documents
15g-2(d)

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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	63,882	30,888	0	0	32,994	0
Annual Time Burden (Hours)	1,893	2,060	0	0	-167	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: There was an overall decrease in the total burden hours because the number of registered broker-dealers we expect will be engaged in penny stock transactions decreased from 198 to 182.

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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]? 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

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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: 11/09/2020

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