Rule 15g-5; Disclosure of Compensation of Associated Persons in Connection with Penny Stock Transactions

Forms and Documents

Document Name	Status
Submission 3235-0394 2021-22900.pdf Supplementary Document	2021-10-25
3235-0394 60 Day Notice.pdf Supplementary Document	2021-10-25
DGL REVISED 2021 Rule 15g-5 supporting statement.pdf Supporting Statement A	2021-07-21
EDGAR PIA 2016.pdf Supplementary Document	2018-10-19

IC Document Collections

IC ID	Document Title	Status
34991	Rule 15g-5; Disclosure of Compensation of Associated Persons in Connection with Penny Stock Transactions	Modified

ICR Details

OMB Control No: 3235-0394	ICR Reference No: 202107-3235-011
Status: Received in OIRA	Previous ICR Reference No: 201803-3235-012
Agency/Subagency: SEC	Agency Tracking No: TM-270-348
Title: Rule 15g-5; Disclosure of Compensation of Associated Persons in Connection with Penny Stock Transactions
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: 10/25/2021

	Requested	Previously Approved
Expiration Date	36 Months From Approved	02/28/2022
Responses	930,050	1,018,875
Time Burden (Hours)	15,486	16,964
Cost Burden (Dollars)	0	0

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Abstract: Rule 15g-5 (17 CFR 240.15g-5) requires brokers and dealers effecting transactions for or with customer in penny stocks to disclose the amount of compensation to be received by the sales agent in connection with the transaction.

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Authorizing Statute(s): US Code: 15 USC 78o(g), and 78w(a) Name of Law: Sections 15(g) and 23(a) of the Securities Exchange Act of 1934
   US Code: 15 USC 78c(a)(51)(B), 78c(b), 78o(c) Name of Law: Sections 3(a)(51)(B), 3(b), 15(c) 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:
	86 FR 41530	08/02/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 58372	10/25/2021
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 15g-5; Disclosure of Compensation of Associated Persons in Connection with Penny Stock Transactions

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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	930,050	1,018,875	0	0	-88,825	0
Annual Time Burden (Hours)	15,486	16,964	0	0	-1,478	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: The total annual hourly burden decreased from approximately 16,965 hours to approximately15,486 hours due to a change in methodology for estimating the number of broker-dealers affected. We previously estimated that 195 broker-dealers were subject to the penny stock rules. We now estimate that there are approximately 178 penny stock dealers subject to the penny stock rules.

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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: 10/25/2021

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