Federal Register #2026-18006

SEC Notice: Extension of Information Collection for Rule 15g-9 (Penny Stock Transactions)

This SEC notice concerns the extension of information collection requirements under Rule 15g-9 of the Securities Exchange Act of 1934. - No procurement activity is involved; this is a regulatory information collection notice. - No OEMs, vendors, products, or services are requested. - Rule 15g-9 requires broker-dealers to: - Obtain financial and investment information from clients for penny stock transactions - Determine suitability of penny stock transactions for clients - Deliver written statements to clients prior to transactions - Approximately 162 broker-dealers are affected, with an estimated annual compliance burden of 12,636 hours. - The SEC invites public comment on the information collection extension.

Description

This notice pertains to the submission of information collection activities to the Office of Management and Budget (OMB) for review and comment, specifically regarding the extension of Rule 15g-9. Rule 15g-9 requires broker-dealers to approve accounts for penny stock transactions by obtaining financial and investment information from clients, determining suitability, and delivering a written statement prior to effecting transactions. The extension involves an estimated 162 broker-dealers engaged in penny stock transactions, with an aggregate burden of approximately 12,636 hours per year for compliance. The notice invites public comment on this information collection request.

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