2. Examination Frequency Cycle:

a. New Membership:

If the action taken is initiation of membership what will the examination frequency cycle for this new member by this self-regulatory organization be?

( ) A

( ) B

( ) C

One examination every year or more frequently.

One examination every two years. One examination every three years. b. Continuing Membership:

If the examination frequency cycle for a continuing member will change by virtue of changes in its memberships, please indicate the new examination frequency cycle.

( ) A One examination every year or more fre

() B

( ) C

quently.

One examination every two years.
One examination every three years.

3. Signature of Person Completing Report

Title and Date

Person to Contact for Additional Information

Telephone Number

(Area Code)

(Number)

Uniform Registration Forms

The Commission wishes to take note of efforts currently underway to prepare a uniform state, federal and industry form for the registration of broker-dealers " and a uniform form for the registration of principals and agents.12 Drafts of these forms are currently under review by the Commission and will be brought to the attention of the Report Coordinating Group. The Commission believes that the development and implementation of such uniform forms on a wide scale would be significant in enhancing the flow within the securities industry of information needed for regulatory purposes while at the same time alleviating a substantial and particularly duplicative paperwork burden imposed on broker-dealers registered with more than one organization or state.

Conclusion

Interested persons may submit their comments on proposed Rule 17a-18 or on proposed Rule 17a-19 and related Form X-17A-19, in writing, by March 29, 1974 to George A. Fitzsimmons, Secretary, Securites and Exchange Commission, 500 North Capital Street, N.W., Washington, D.C. 20549. All such communications should bear File No. S7-506, or S7-507, respectively, and will be available for public inspection.

Interested persons may submit their comments on the development of a key regulatory report to George A. Fitzsimmons, Secretary, at the address noted above not later than March 29, 1974. All such communications should bear the file No. S7-508 and will be available for public inspection.

By the Commission.

GEORGE A. FITZSIMMONS, Secretary.

Drafted by a Committee composed of representatives of the North American Securities Administrators, the National Association of Securities Dealers, Inc., the Securities Industry Association, the Commission and others.

"Drafted as a joint industry effort among the New York Stock Exchange, the American Stock Exchange, the National Association of Securities Dealers, other self-regulators and the Commission.

APPENDIX C

SECURITIES AND EXCHANGE COMMISSION NOTICE; ESTABLISHMENT OF THE SEC REPORT COORDINATING GROUP (ADVISORY)

I, Ray Garrett, Jr., Chairman of the Securities and Exchange Commission with the concurrence of the members of the Commission have established an advisory committee under the Federal Advisory Committee Act to be designated as the SEC Report Coordinating Group (Advisory), described hereinafter, and hereby certify that I have considered the establishment of this Committee and, with the concurrence of the members of the Commission, find the creation of this committee to be in the public interest in connection with the performance of duties imposed on the Commission under the Federal securities laws particularly the Securities Exchange Act of 1934 and the Securities Investor Protection Act of 1970.

The advisory committee is established to advise the Commission in eliminating unnecessary duplication in the reporting requirements imposed on broker-dealers by self-regulatory orgaizations or the Commission in connection with regulatory purposes under the Federal securities laws, particularly the Securities Exchange Act of 1934 and the Securities Investor Protection Act of 1970, and in promoting uniformity in the financial and operational reporting by brokerdealers, consistent with the public interest and the protection of investors. In particular, the committee shall review forms, reports or questionnaires required of broker-dealers by the Commission or selfregulatory organizations, forwarded to the committee by the Commission and offer recommendations as to whether:

1. The report serves an appropriate and necessary regulatory purpose.

2. The data is available elsewhere or may be obtained in a less burdensome manner.

3. Standard classifications, definitions, and reporting formats have been adhered to, and whether new ones should be established.

4. The report has a fixed expiration date, or whether a mechanism has been established to periodically review its usefulness. 5. The required retention period, if any, is appropriate.

The advisory committee is also established to bring to the attention of the Commission on a continuing basis areas where the committee believes reporting requirements imposed on broker-dealers can be reduced, eliminated or made less burdensome without impairing the flow of information needed for sound regulatory programs and the protection of investors and the public. Included in such recommendations shall be indications as to whether whole or partial exemption, or reduced requirements may appropriately be applied to smaller broker-dealers who, because of the manner in which their business is

conducted or because of other threshold requirements imposed, do not create a risk of loss to the public or other broker-dealers and do not otherwise endanger the safety of customers' funds and securities.

Finally, the advisory committee at a later date, shall be asked to advise and assist the Commission in the development of a uniform key regulatory report designed to be basic reporting tool of the Commission and the securities industry and to replace a number of forms currently in use.

The Committee shall conduct its operations in accordance with Section 10 of the Federal Advisory Committee Act.

The Committee shall operate on a continuing basis until terminated by action of the Commission upon a finding that its continuance is no longer in the public interest subject to Section 14 (a) (2) of the Federal Advisory Committee Act. Pursuant to Section 14(a) (2) of the Federal Advisory Committee Act, the advisory committee shall terminate two years from the date of its establishment, unless prior to such date, the advisory committee is renewed in accordance with the Federal Advisory Committee Act.

The committee shall submit its reports and recommendations to the Securities and Exchange Commission.

The Securities and Exchange Commission shall provide any necessary support services required by the committee.

The duties of the committee shall be solely advisory and shall extend only to submitting reports and recommendations to the Securities and Exchange Commission and to reviewing materials submitted to it by the Commission. Determinations of action to be taken and policy to be expressed with respect to the recommendations of the advisory committee shall be made solely by the Commission.

The estimated annual operating costs in dollars and man years of the committee are as follows:

Dollar Costs-$4,000 travel and miscellaneous expenses for Commission personnel per year on a continuing basis.

Man years-one man-year per year for Commission personnel on a continuing basis.

The advisory committee shall meet at such intervals as are necessary to carry out its functions. It is estimated that this shall not require meetings more frequently than at weekly intervals.

The Charter of the Report Coordinating Group (Advisory) shall be filed with me 30 days from the date hereof and with the House Committee on Interstate and Foreign Commerce and with the Senate Committee on Banking, Housing, and Urban Affairs. A copy of this Charter shall be furnished to the Library of Congress and a copy shall be furnished to the Office of Public Information of the Commission and will be available for public inspection.

RAY GARRETT, Jr., Chairman, Securities and Exchange Commission.

32-879 74-4

APPENDIX D

SEC ADVISORY COMMITTEE STUDY

ON BROKER-DEALER REPORTS AND REGISTRATION REQUIREMENTS

December 15, 1972

December 15, 1972

The Honorable William J. Casey, Chairman
Securities and Exchange Commission

500 North Capitol Street

Washington, D. C. 20549

Dear Mr. Casey:

We are pleased to submit this report on the results of our Study on Broker-Dealer Reports and Registration Requirements.

Established by the Securities and Exchange Commission in September, the Committee was given the responsibility of assisting the Commission in determining whether the reporting and filing requirements of the Commission and other governmental and selfregulatory agencies are unnecessarily duplicative, and, if so, whether regulatory purposes could be better served by simplifying and standarizing reports, eliminating duplication and implementing other improvements.

The Committee's 'task, involving a review of the requirements of more than 60 government and self-regulatory bodies, could not have been performed without the substantial and valuable assistance of a professional task force volunteered by Lybrand, Ross Bros. & Montgomery, Price Waterhouse & Co., Touche, Ross & Co., Arthur Andersen & Co., Haskins & Sells and Peat, Marwick, Mitchell & Co. In addition, the Committee's work was advanced substantially by the contributions of members of the staff of the firms and organizations with which members of the Committee are associated.

The Committee assembled, cataloged and evaluated reports and other forms broker-dealers are required to file with all regulatory bodies, reviewed correspondence and held discussions with personnel of regulatory bodies and with a sample of large, medium and small broker-dealers. In addition, we reviewed efforts by related industries to deal with similar problems. The Committee wishes to acknowledge the cooperation of the Federal Reserve System, the Federal Home Loan Bank Board, the Office of Hanagement and Budget and other regulatory agencies that met or communicated with it.