Regulation Best Execution

Forms and Documents

Document Name	Status
Best Execution Supporting Statement (2023 Proposed Rule).pdf Supporting Statement A	2023-11-13

IC Document Collections

IC ID	Document Title	Status
263377	Small Broker-Dealer Compliance Procedures under Rule 1102- Ongoing	New
263376	Small Broker-Dealer Compliance Procedures under Rule 1102 - Initial	New
263375	Large Broker-Dealer Compliance Procedures under Rule 1102 - Ongoing	New
263374	Large Broker-Dealer Compliance Procedures under Rule 1102 - Initial	New
263373	Small Broker-Dealer Regular Review and Documentation under Rule 1101 (b) and (c) - Ongoing	New
263372	Large Broker-Dealer Regular Review and Documentation under Rule 1101(b) and (c) - Ongoing	New
263371	Small Broker-Dealer Policies and Procedures under Rule 1101 - Ongoing	New
263370	Small Broker-Dealer Policies and Procedures under Rule 1101 - Initial	New
263369	Large Broker-Dealer Policies and Procedures under Rule 1101 - Ongoing	New
263306	Large Broker-Dealer Policies and Procedures under Rule 1101 - Initial	New

ICR Details

OMB Control No:	ICR Reference No: 202311-3235-009
Status: Received in OIRA	Previous ICR Reference No:
Agency/Subagency: SEC	Agency Tracking No:
Title: Regulation Best Execution
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 11/14/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	27,984	0
Time Burden (Hours)	642,369	0
Cost Burden (Dollars)	35,384,769	0

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Abstract: The Securities and Exchange Commission is proposing new rules under the Securities Exchange Act of 1934 relating to a broker-dealer’s duty of best execution. Proposed Regulation Best Execution would enhance the existing regulatory framework concerning the duty of best execution by requiring detailed policies and procedures for all broker-dealers and more robust policies and procedures for broker-dealers engaging in certain conflicted transactions with retail customers, as well as related review and documentation requirements.

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Authorizing Statute(s): US Code: 15 USC 78a et seq Name of Law: 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:
3235-AN24	Proposed rulemaking	88 FR 5440	01/28/2023

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 10

IC Title	Form No.	Form Name
Large Broker-Dealer Compliance Procedures under Rule 1102 - Initial
Large Broker-Dealer Compliance Procedures under Rule 1102 - Ongoing
Large Broker-Dealer Policies and Procedures under Rule 1101 - Initial
Large Broker-Dealer Policies and Procedures under Rule 1101 - Ongoing
Large Broker-Dealer Regular Review and Documentation under Rule 1101(b) and (c) - Ongoing
Small Broker-Dealer Compliance Procedures under Rule 1102 - Initial
Small Broker-Dealer Compliance Procedures under Rule 1102- Ongoing
Small Broker-Dealer Policies and Procedures under Rule 1101 - Initial
Small Broker-Dealer Policies and Procedures under Rule 1101 - Ongoing
Small Broker-Dealer Regular Review and Documentation under Rule 1101 (b) and (c) - Ongoing

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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	27,984	0	0	27,984	0	0
Annual Time Burden (Hours)	642,369	0	0	642,369	0	0
Annual Cost Burden (Dollars)	35,384,769	0	0	35,384,769	0	0

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

Burden Increase Due to: Changing Regulations

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

Burden Reduction Due to:

Short Statement: The Commission recently proposed new regulations that would add information collections with hour and cost burdens. These are discussed in more detail in the attached Supporting Statement.

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Annual Cost to Federal Government:

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: 11/14/2023

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