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

Forms and Documents

Document Name	Status
2015 15g-5 justification (final) DGL REDLINE.pdf Supporting Statement A	2015-07-01

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: 201501-3235-009
Status: Historical Active	Previous ICR Reference No: 201202-3235-010
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
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/22/2015
	Date Received in OIRA: 07/01/2015
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2018	36 Months From Approved	10/31/2015
Responses	1,154,725	0	1,090,980
Time Burden (Hours)	19,245	0	18,183
Cost Burden (Dollars)	0	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:
	80 FR 394	03/12/2015
30-day Notice:	Federal Register Citation:	Citation Date:
	80 FR 28021	05/15/2015
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 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	1,154,725	1,090,980	0	0	63,745	0
Annual Time Burden (Hours)	19,245	18,183	0	0	1,062	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 of compliance has increased from approximately 18,183 to approximately 19,245 hours due to a change in methodology for estimating the number of broker-dealers affected. Since the identities of penny stock dealers are not readily available, the staff of the Commission developed a methodology to identify them. The change was made in order to be consistent in methodology among the various penny stock rules. We previously estimated that 209 broker-dealers were subject to the penny stock rules. We now estimate that there are approximately 221 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

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: 07/01/2015

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