Agency Information Collection Activities; Proposals, Submissions, and Approvals

Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 15l-1

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 15 l -1 (17 CFR 240.15 l -1), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq. ).

Rule 15 l -1 established a standard of conduct for broker-dealers and natural persons who are associated persons of a broker-dealer (together, "broker-dealers") when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer ("Regulation Best Interest"). Regulation Best Interest requires broker-dealers, when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer, to act in the best interest of the retail customer at the time the recommendation is made, without placing the financial or other interest of the broker-dealer or natural person who is an associated person making the recommendation ahead of the interest of the retail customer.

The information that must be collected pursuant to Regulation Best Interest is intended to: (1) improve disclosure about the scope and terms of the broker-dealer's relationship with the retail customer, which would foster retail customers' understanding of their relationship with a broker-dealer; (2) enhance the quality of recommendations provided by establishing an express best interest obligation under the federal securities laws; (3) enhance the disclosure of a broker-dealer's conflicts of interest; and (4) establish obligations that require mitigation, and not just disclosure, of conflicts of interest arising from financial incentives associated with broker-dealer recommendations. The information will therefore help establish a framework that protects investors and promotes efficiency, competition, and capital formation.

There are approximately 2,183 respondents that must comply with Rule 15 l -1. The aggregate annual burden for all respondents is estimated to be 4,939,905 hours, or 2,262.9 hours per respondent (4,939,905 hours/2,183 respondents). Under Rule 15 l -1, respondents will also incur cost burdens. The aggregate annual cost burden for all respondents is estimated to be $2,036,820, or $933.04 per respondent ($2,036,820/2,183 respondents).

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 comment 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 May 5, 2026. There will be a second opportunity to comment on this SEC request following the Federal Register publishing a 30-Day Submission Notice.