60 day notice



[Federal Register Volume 83, Number 158 (Wednesday, August 15, 2018)]
[Notices]
[Pages 40582-40583]
From the Federal Register Online via the Government Publishing Office [http://www.gpo.gov/]
[FR Doc No: 2018-17488]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736.

Extension:
Regulation S-P. SEC File No. 270-480; OMB Control No. 3235-0537.

Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
existing collection of information provided for in the privacy notice
and opt out notice provisions of Regulation S-P--Privacy of Consumer
Financial Information (17 CFR part 248, subpart A) under the Securities
Exchange Act of 1934 (``Exchange Act'') (15 U.S.C. 78a et seq.). The
Commission plans to submit this existing collection of information to
the Office of Management and Budget (``OMB'') for extension and
approval.
The privacy notice and opt out notice provisions of Regulation S-P
(the ``Rule'') implement the privacy notice and opt out notice
requirements of Title V of the Gramm-Leach-Bliley Act (``GLBA''), which
include the requirement that at the time of establishing a customer
relationship with a consumer and not less than annually during the
continuation of such relationship, a financial institution shall
provide a clear and conspicuous disclosure to such consumer of such
financial institution's policies and practices with respect to
disclosing nonpublic personal information to affiliates and
nonaffiliated third parties (``privacy notice''). Title V of the GLBA
also provides that, unless an exception applies, a financial
institution may not disclose nonpublic personal information of a
consumer to a nonaffiliated third party unless the financial
institution clearly and conspicuously discloses to the consumer that
such information may be disclosed to such third party; the consumer is
given the opportunity, before the time that such information is
initially disclosed, to direct that such information not be disclosed
to such third party; and the consumer is given an explanation of how
the consumer can exercise that nondisclosure option (``opt out
notice''). The Rule applies to broker-dealers, investment advisers
registered with the Commission, and investment companies (``covered
entities'').
Commission staff estimates that, as of March 31, 2018, the Rule's
information collection burden applies to approximately 20,465 covered
entities (approximately 3,857 broker-dealers, 12,643 investment
advisers registered with the Commission, and 3,965 investment
companies). In view of (a) the minimal recordkeeping burden imposed by
the Rule (since the Rule has no recordkeeping requirement and records
relating to customer communications already must be made and retained
pursuant to other SEC rules); (b) the summary fashion in which
information must be provided to customers in the privacy and opt out
notices required by the Rule (the model privacy form adopted by the SEC
and the other agencies in 2009, designed to serve as both a privacy
notice and an opt out notice, is only two pages); (c) the availability
to covered entities of the model privacy form and online model privacy
form builder; and (d) the experience of covered entities' staff with
the notices, SEC staff estimates that covered entities will each spend
an average of approximately 12 hours per year complying with the Rule,
for a total of approximately 245,580 annual burden-hours (12 x 20,465 =
245,580). SEC staff understands that the vast majority of covered
entities deliver their privacy and opt out notices with other
communications such as account opening documents and account
statements. Because the other communications are already delivered to
consumers, adding a brief privacy and opt out notice should not result
in added costs for processing or for postage and materials. Also,
privacy and opt out notices may be delivered electronically to
consumers who have agreed to electronic communications, which further
reduces the costs of delivery. Because SEC staff assumes that most
paper copies of privacy and opt out notices are combined with other
required mailings, the burden-hour estimates above are based on
resources required to integrate the privacy and opt notices into
another mailing, rather than on the resources required to create and
send a separate mailing. SEC staff estimates that, of the estimated 12

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annual burden-hours incurred, approximately 8 hours would be spent by
administrative assistants at an hourly rate of $82, and approximately 4
hours would be spent by internal counsel at an hourly rate of $422, for
a total annualized internal cost of compliance of $2,344 for each of
the covered entities (8 x $82 = $656; 4 x $422 = $1,688; $656 + $1,688
= $2,344). Hourly cost of compliance estimates for administrative
assistant time are derived from the Securities Industry and Financial
Markets Association's Office Salaries in the Securities Industry 2013,
modified by SEC staff to account for an 1,800-hour work-year and
multiplied by 2.93 to account for bonuses, firm size, employee benefits
and overhead. Hourly cost of compliance estimates for internal counsel
time are derived from the Securities Industry and Financial Markets
Association's Management & Professional Earnings in the Securities
Industry 2013, modified by SEC staff to account for an 1,800-hour work-
year and multiplied by 5.35 to account for bonuses, firm size, employee
benefits, and overhead. Accordingly, SEC staff estimates that the total
annualized internal cost of compliance for the estimated total hour
burden for the approximately 20,465 covered entities subject to the
Rule is approximately $47,969,960 ($2,344 x 20,465 = $47,969,960).
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimates of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
Please direct your written comments to: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an email
to: [email protected].

Dated: August 9, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-17488 Filed 8-14-18; 8:45 am]
BILLING CODE 8011-01-P