The Securities and Exchange Commission (SEC) is collecting comments on its existing Form Custody, as required by the Paperwork Reduction Act. This form is used by broker-dealers to report how they handle customer and non-customer assets. There are approximately 3,470 broker-dealers who must file this form every quarter, taking about 12 hours to complete each time. The SEC estimates the total cost for all broker-dealers to comply is nearly $57.3 million annually. The public has until June 30, 2025, to submit comments on the usefulness and burden of this information collection.
Simple Explanation
The SEC wants to know what people think about their form that helps check if financial helpers (like broker-dealers) are keeping everyone's money safe. They're asking for ideas until the end of June 2025, and they say doing this takes a lot of time and money.