Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 15g-2

[Federal Register Volume 91, Number 106 (Wednesday, June 3, 2026)]

[Notices]

[Page 33283]

From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ]

[FR Doc No: 2026-11129]

[[Page 33283]]

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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0434]

Agency Information Collection Activities; Proposed Collection;

Comment Request; Extension: Rule 15g-2

Upon Written Request, Copies Available From: Securities and

Exchange Commission, Office of FOIA Services, 100 F Street NE,

Washington, DC 20549-2736

Notice is hereby given that pursuant to the Paperwork Reduction Act

of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange

Commission (``SEC'' or ``Commission'') is soliciting comments on the

proposed collection of information provided for in Rule 15g-2 (17 CFR

240.15g-2) under the Securities Exchange Act of 1934 (15 U.S.C 78a et

seq.) (``Exchange Act'').

In adopting Rule 15g-2, the Commission sought to combat the

unscrupulous, high-pressure sales tactics of certain broker-dealers by

imposing objective and readily reviewable requirements on the process

by which customers are induced to purchase low-priced stocks: \1\

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\1\ See Exchange Act Release No. 51983 (Jul. 7, 2005), 70 FR

40613 (Jul. 13, 2005).

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Rule 15g-2(a) prohibits a broker-dealer from effecting a

transaction in a penny stock for, or with, the account of a customer

unless, prior to effecting the first such transaction, the broker-

dealer: (1) provides to the customer a disclosure document containing,

among other things, the information set forth in Schedule 15G under the

Exchange Act (``penny stock disclosure document''); and (2) receives a

signed and dated acknowledgement of receipt of that document by the

customer. The penny stock disclosure document gives several important

warnings to investors concerning the penny stock market, and cautions

investors against making a hurried investment decision;

Rule 15g-2(b) prohibits a broker-dealer from effecting a

transaction in any penny stock for, or with, the account of a customer

less than two business days after the broker-dealer sends the customer

the penny stock disclosure document;

Rule 15g-2(c) requires broker-dealers to maintain a copy

of a customer's written acknowledgement for at least three years

following the date on which the risk disclosure document was provided

to the customer, the first two years in an accessible place; and

Rule 15g-2(d) requires a broker-dealer, upon request of a

customer, to furnish the customer with a copy of certain information

set forth on the Commission's website.

The Commission estimates that approximately 162 broker-dealers are

engaged in penny stock transactions and that each of these firms

processes an average of three new customers for penny stocks per week

(52 weeks per year x 3 transactions per week = 156 transactions per

year). The Commission further estimates that half (or 81) of the

broker-dealers send the penny stock disclosure documents by mail, and

the other half send them through electronic means such as email.

Because the Commission estimates that the copying and mailing of the

penny stock disclosure document takes approximately two minutes, there

is an aggregate annual burden of approximately 421.2 hours (2 minutes

per response x 1 hour per 60 minutes x 156 responses per respondent x

81 respondents) for this third-party disclosure burden. Additionally,

because the Commission estimates that sending the penny stock

disclosure document electronically takes approximately one minute,

there is an aggregate annual burden of approximately 210.6 hours (1

minutes per response x 1 hour per 60 minutes x 156 responses per

respondent x 81 respondents) for this third-party disclosure burden.

Broker-dealers also incur a recordkeeping burden of approximately

two minutes per response when processing penny stock disclosure

documents as required pursuant to Rule 15g-2(c). As such, respondents

incur an aggregate annual recordkeeping burden of approximately 842.4

hours (2 minutes per response x 1 hour per 60 minutes x 156 responses

per respondent x 162 respondents) for this recordkeeping burden.

In addition, approximately 25% of the 156 customers who receive a

penny stock disclosure document from their broker-dealer each year also

request that their broker-dealer provides them with the additional

information under Rule 15g-2(d), for a total of 39 customers per year

(156 respondents per year x 0.25). Because the Commission estimates

that the copying and mailing of the disclosure document containing the

additional information takes approximately two minutes, there is an

aggregate annual burden of approximately 210.6 hours (2 minutes per

customer x 1 hour per 60 minutes x 39 customers per respondent x 162

respondents) for this third-party disclosure burden.

An agency may not conduct or sponsor, and a person is not required

to respond to, a collection of information unless it displays a

currently valid OMB Control Number.

Written comments are invited on: (a) whether this proposed

collection of information is necessary for the proper performance of

the functions of the SEC, including whether the information will have

practical utility; (b) the accuracy of the SEC's estimate of the burden

imposed by the proposed collection of information, including the

validity of the methodology and the assumptions used; (c) ways to

enhance the quality, utility, and clarity of the information to be

collected; and (d) ways to minimize the burden of the collection of

information on respondents, including through the use of automated,

electronic collection techniques or other forms of information

technology.

Please direct your written comments on this 60-Day Collection

Notice to Austin Gerig, Director/Chief Data Officer, Securities and

Exchange Commission, c/o Tanya Ruttenberg via email to

[email protected] by August 3, 2026.

Dated: June 1, 2026.

Sherry R. Haywood,

Assistant Secretary.

[FR Doc. 2026-11129 Filed 6-2-26; 8:45 am]

BILLING CODE 8011-01-P