80 FR 23059 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 79 (April 24, 2015)

Page Range		23059-23060
FR Document		2015-09496
Federal Register, Volume 80 Issue 79 (Friday, April 24, 2015)
[Federal Register Volume 80, Number 79 (Friday, April 24, 2015)]
[Notices]
[Pages 23059-23060]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-09496]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-480, OMB Control No. 3235-0537]


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.

    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 December 31, 2014, the 
Rule's information collection burden applies to approximately 19,876 
covered entities (approximately 4,267 broker-dealers, 11,508 investment 
advisers registered with the Commission and 4,101 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 238,512 annual burden-hours (12 x 19,876 = 
238,512). 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 
annual burden-hours incurred, approximately 8 hours would be spent by 
administrative assistants at an hourly rate of $74, and approximately 4 
hours would be spent by internal counsel at an hourly rate of $380, for 
a total annualized internal cost of compliance of $2,112 for each of 
the covered entities (8 x $74 = $592; 4 x $380 = $1,520; $592 + $1,520 
= $2,112). 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 19,876 covered entities subject to the 
Rule is approximately $41,978,112 ($2,112 x 19,876 = $41,978,112).
    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 on 
respondents; (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 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 Remi 
Pavlik-Simon, 100 F Street NE., Washington,

[[Page 23060]]

DC 20549, or send an email to: [email protected].

    Dated: April 20, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-09496 Filed 4-23-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 79 / Friday, April 24, 2015 / Notices 23059

be disclosed to such third party; the estimates that, of the estimated 12
For the Commission, by the Division of consumer is given the opportunity, annual burden-hours incurred,
Trading and Markets, pursuant to delegated before the time that such information is approximately 8 hours would be spent
authority.10 initially disclosed, to direct that such by administrative assistants at an hourly
Brent J. Fields, information not be disclosed to such rate of $74, and approximately 4 hours
Secretary. third party; and the consumer is given would be spent by internal counsel at an
[FR Doc. 2015–09497 Filed 4–23–15; 8:45 am] an explanation of how the consumer can hourly rate of $380, for a total
BILLING CODE 8011–01–P exercise that nondisclosure option (‘‘opt annualized internal cost of compliance
out notice’’). The Rule applies to broker- of $2,112 for each of the covered entities
dealers, investment advisers registered (8 × $74 = $592; 4 × $380 = $1,520; $592
SECURITIES AND EXCHANGE with the Commission, and investment + $1,520 = $2,112). Hourly cost of
COMMISSION companies (‘‘covered entities’’). compliance estimates for administrative
[SEC File No. 270–480, OMB Control No. Commission staff estimates that, as of assistant time are derived from the
3235–0537] December 31, 2014, the Rule’s Securities Industry and Financial
information collection burden applies to Markets Association’s Office Salaries in
Proposed Collection; Comment approximately 19,876 covered entities the Securities Industry 2013, modified
Request (approximately 4,267 broker-dealers, by SEC staff to account for an 1,800-
11,508 investment advisers registered hour work-year and multiplied by 2.93
Upon Written Request, Copies Available to account for bonuses, firm size,
with the Commission and 4,101
From: Securities and Exchange employee benefits and overhead. Hourly
investment companies). In view of (a)
Commission, Office of FOIA Services, cost of compliance estimates for internal
the minimal recordkeeping burden
100 F Street NE., Washington, DC counsel time are derived from the
imposed by the Rule (since the Rule has
20549–2736. Securities Industry and Financial
no recordkeeping requirement and
Extension: records relating to customer Markets Association’s Management &
Regulation S–P. communications already must be made Professional Earnings in the Securities
Notice is hereby given that, pursuant and retained pursuant to other SEC Industry 2013, modified by SEC staff to
to the Paperwork Reduction Act of 1995 rules); (b) the summary fashion in account for an 1,800-hour work-year
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the which information must be provided to and multiplied by 5.35 to account for
Securities and Exchange Commission customers in the privacy and opt out bonuses, firm size, employee benefits,
(‘‘Commission’’) is soliciting comments notices required by the Rule (the model and overhead. Accordingly, SEC staff
on the existing collection of information privacy form adopted by the SEC and estimates that the total annualized
provided for in the privacy notice and the other agencies in 2009, designed to internal cost of compliance for the
opt out notice provisions of Regulation serve as both a privacy notice and an estimated total hour burden for the
S–P—Privacy of Consumer Financial opt out notice, is only two pages); (c) the approximately 19,876 covered entities
Information (17 CFR part 248, subpart availability to covered entities of the subject to the Rule is approximately
A) under the Securities Exchange Act of model privacy form and online model $41,978,112 ($2,112 × 19,876 =
1934 (‘‘Exchange Act’’) (15 U.S.C. 78a et privacy form builder; and (d) the $41,978,112).
seq.). The Commission plans to submit experience of covered entities’ staff with Written comments are invited on: (a)
this existing collection of information to the notices, SEC staff estimates that Whether the proposed collection of
the Office of Management and Budget covered entities will each spend an information is necessary for the proper
(‘‘OMB’’) for extension and approval. average of approximately 12 hours per performance of the functions of the
The privacy notice and opt out notice year complying with the Rule, for a total Commission, including whether the
provisions of Regulation S–P (the of approximately 238,512 annual information shall have practical utility;
‘‘Rule’’) implement the privacy notice burden-hours (12 × 19,876 = 238,512). (b) the accuracy of the Commission’s
and opt out notice requirements of Title SEC staff understands that the vast estimates of the burden of the proposed
V of the Gramm-Leach-Bliley Act majority of covered entities deliver their collection of information on
(‘‘GLBA’’), which include the privacy and opt out notices with other respondents; (c) ways to enhance the
requirement that at the time of communications such as account quality, utility, and clarity of the
establishing a customer relationship opening documents and account information to be collected; and (d)
with a consumer and not less than statements. Because the other ways to minimize the burden of the
annually during the continuation of communications are already delivered collection of information on
such relationship, a financial institution to consumers, adding a brief privacy respondents, including through the use
shall provide a clear and conspicuous and opt out notice should not result in of automated collection techniques or
disclosure to such consumer of such added costs for processing or for postage other forms of information technology.
financial institution’s policies and and materials. Also, privacy and opt out Consideration will be given to
practices with respect to disclosing notices may be delivered electronically comments and suggestions submitted in
nonpublic personal information to to consumers who have agreed to writing within 60 days of this
affiliates and nonaffiliated third parties electronic communications, which publication.
(‘‘privacy notice’’). Title V of the GLBA further reduces the costs of delivery. An agency may not conduct or
also provides that, unless an exception Because SEC staff assumes that most sponsor, and a person is not required to
applies, a financial institution may not paper copies of privacy and opt out respond to, a collection of information
tkelley on DSK3SPTVN1PROD with NOTICES

disclose nonpublic personal information notices are combined with other under the PRA unless it displays a
of a consumer to a nonaffiliated third required mailings, the burden-hour currently valid OMB control number.
party unless the financial institution estimates above are based on resources Please direct your written comments
clearly and conspicuously discloses to required to integrate the privacy and opt to: Pamela Dyson, Director/Chief
the consumer that such information may notices into another mailing, rather than Information Officer, Securities and
on the resources required to create and Exchange Commission, c/o Remi Pavlik-
10 17 CFR 200.30–3(a)(12). send a separate mailing. SEC staff Simon, 100 F Street NE., Washington,

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23060 Federal Register / Vol. 80, No. 79 / Friday, April 24, 2015 / Notices

DC 20549, or send an email to: PRA_ Extension: assessment rules. The staff estimates
Mailbox@sec.gov. Rules 17h–1T and 17h–2T; SEC File No. that drafting the required organizational
270–359, OMB Control No. 3235–0410. chart requires one hour and establishing
Dated: April 20, 2015.
Brent J. Fields,
Notice is hereby given that pursuant a system for complying with the risk
to the Paperwork Reduction Act of 1995 assessment rules requires three hours.
Secretary.
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Based on the unchanged number of
[FR Doc. 2015–09496 Filed 4–23–15; 8:45 am] filers in recent years, the staff estimates
Securities and Exchange Commission
BILLING CODE 8011–01–P (‘‘Commission’’) is soliciting comments there will be zero new respondents, and
on the existing collection of information thus, a corresponding estimated burden
provided for in Rules 17h–1T and 17h– of zero hours for new respondents.
SECURITIES AND EXCHANGE 2T (17 CFR 240.17h–1T and 17 CFR Thus, the total compliance burden per
COMMISSION 240.17h–2T), under the Securities year is approximately 7,344 burden
[File No. 500–1] Exchange Act of 1934 (17 U.S.C. 78a et hours (3,060 hours + 4,284 hours).
seq.). The Commission plans to submit Written comments are invited on: (a)
In the Matter of First American this existing collection of information to Whether the proposed collection of
Scientific Corp., Order of Suspension the Office of Management and Budget information is necessary for the proper
of Trading (‘‘OMB’’) for extension and approval. performance of the functions of the
Rule 17h–1T requires a covered Commission, including whether the
April 22, 2015. broker-dealer to maintain and preserve information will have practical utility;
It appears to the Securities and records and other information (b) the accuracy of the Commission’s
Exchange Commission that there is a concerning certain entities that are estimate of the burden of the collection
lack of current and accurate information associated with the broker-dealer. This of information; (c) ways to enhance the
concerning the securities of First requirement extends to the financial and quality, utility, and clarity of the
American Scientific Corp. (CIK No. securities activities of the holding information collected; and (d) ways to
1002822), a Nevada corporation with its company, affiliates and subsidiaries of minimize the burden of the collection of
principal place of business listed as the broker-dealer that are reasonably information on respondents, including
Abbotsford, British Columbia, Canada, likely to have a material impact on the through the use of automated collection
with stock quoted on OTC Link financial or operational condition of the techniques or other forms of information
(previously, ‘‘Pink Sheets’’) operated by broker-dealer. Rule 17h–2T requires a technology. Consideration will be given
OTC Markets Group, Inc. (‘‘OTC Link’’) covered broker-dealer to file with the to comments and suggestions submitted
under the ticker symbol FASC, because Commission quarterly reports and a in writing within 60 days of this
it has not filed any periodic reports cumulative year-end report concerning publication.
since the period ended March 31, 2012. the information required to be An agency may not conduct or
On May 2, 2014, First American maintained and preserved under Rule sponsor, and a person is not required to
Scientific Corp. received a delinquency 17h–1T. respond to, a collection of information
letter sent by the Division of The collection of information required under the PRA unless it displays a
Corporation Finance requesting by Rules 17h–1T and 17h–2T, currently valid OMB control number.
compliance with their periodic filing collectively referred to as the ‘‘risk Please direct your written comments
obligations. assessment rules’’, is necessary to to: Pamela Dyson, Director/Chief
The Commission is of the opinion that enable the Commission to monitor the Information Officer, Securities and
the public interest and the protection of activities of a broker-dealer affiliate Exchange Commission, c/o Remi Pavlik-
investors require a suspension of trading whose business activities are reasonably Simon, 100 F Street NE., Washington,
in the securities of the above-listed likely to have a material impact on the DC 20549, or send an email to: PRA_
company. financial and operational condition of Mailbox@sec.gov.
Therefore, it is ordered, pursuant to the broker-dealer. Without this Dated: April 20, 2015.
Section 12(k) of the Securities Exchange information, the Commission would be Brent J. Fields,
Act of 1934, that trading in the unable to assess the potentially Secretary.
securities of the above-listed company is damaging impact of the affiliate’s
[FR Doc. 2015–09495 Filed 4–23–15; 8:45 am]
suspended for the period from 9:30 a.m. activities on the broker-dealer.
BILLING CODE 8011–01–P
EDT on April 22, 2015, through 11:59 There are currently 306 respondents
p.m. EDT on May 5, 2015. that must comply with Rules 17h–1T
By the Commission. and 17h–2T. Each of these 306
SECURITIES AND EXCHANGE
Jill M. Peterson,
respondents are estimated to require 10
COMMISSION
hours per year to maintain the records
Secretary.
required under Rule 17h–1T, for an [Release No. 34–74767; File No. SR–BATS–
[FR Doc. 2015–09685 Filed 4–22–15; 4:15 pm] 2015–33]
aggregate estimated annual burden of
BILLING CODE 8011–01–P 3,060 hours (306 respondents × 10
hours). In addition, each of these 306 Self-Regulatory Organizations; BATS
respondents must make five annual Exchange, Inc.; Notice of Filing and
SECURITIES AND EXCHANGE responses under Rule 17h–2T. These Immediate Effectiveness of a Proposed
COMMISSION five responses are estimated to require Rule Change Related to Fees for Use
14 hours per respondent per year for an of BATS Exchange, Inc.
Proposed Collection; Comment
tkelley on DSK3SPTVN1PROD with NOTICES

Request aggregate estimated annual burden of April 20, 2015.
4,284 hours (306 respondents × 14 Pursuant to Section 19(b)(1) of the
Upon Written Request, Copies Available hours). Securities Exchange Act of 1934
From: Securities and Exchange In addition, new respondents must (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission, Office of FOIA Services, draft an organizational chart required
100 F Street NE., Washington, DC under Rule 17h–1T and establish a 1 15 U.S.C. 78s(b)(1).
20549–2736. system for complying with the risk 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 17:30 Apr 23, 2015 Jkt 235001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\24APN1.SGM 24APN1
Document Created: 2015-12-16 08:43:00
Document Modified: 2015-12-16 08:43:00
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 23059