80 FR 37032 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 124 (June 29, 2015)

Page Range		37032-37032
FR Document		2015-15816
Federal Register, Volume 80 Issue 124 (Monday, June 29, 2015)
[Federal Register Volume 80, Number 124 (Monday, June 29, 2015)]
[Notices]
[Page 37032]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15816]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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'') has submitted to the Office of 
Management and Budget (``OMB'') a request for approval of extension of 
the previously approved 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 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).
    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.
    The public may view background documentation for this information 
collection at the following Web site: www.reginfo.gov. Comments should 
be directed to: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, New Executive Office Building, 
Washington, DC 20503, or by sending an email to: 
[email protected]; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an 
email to: [email protected]. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: June 23, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-15816 Filed 6-26-15; 8:45 am]
BILLING CODE 8011-01-P
37032 Federal Register / Vol. 80, No. 124 / Monday, June 29, 2015 / Notices

100 F Street NE., Washington, DC consumer is given the opportunity, annual burden-hours incurred,
20549, or by sending an email to: PRA_ before the time that such information is approximately 8 hours would be spent
Mailbox@sec.gov. Comments must be initially disclosed, to direct that such by administrative assistants at an hourly
submitted to OMB within 30 days of information not be disclosed to such rate of $74, and approximately 4 hours
this notice. third party; and the consumer is given would be spent by internal counsel at an
Dated: June 23, 2015. an explanation of how the consumer can hourly rate of $380, for a total
Robert W. Errett,
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
Deputy Secretary.
dealers, investment advisers registered (8 × $74 = $592; 4 × $380 = $1,520; $592
[FR Doc. 2015–15814 Filed 6–26–15; 8:45 am]
with the Commission, and investment + $1,520 = $2,112). Hourly cost of
BILLING CODE 8011–01–P companies (‘‘covered entities’’). compliance estimates for administrative
Commission staff estimates that, as of assistant time are derived from the
SECURITIES AND EXCHANGE December 31, 2014, the Rule’s Securities Industry and Financial
COMMISSION information collection burden applies to Markets Association’s Office Salaries in
approximately 19,876 covered entities the Securities Industry 2013, modified
Submission for OMB Review; (approximately 4,267 broker-dealers, by SEC staff to account for an 1,800-
Comment Request 11,508 investment advisers registered hour work-year and multiplied by 2.93
with the Commission, and 4,101 to account for bonuses, firm size,
Upon Written Request, Copies Available investment companies). In view of (a) employee benefits and overhead. Hourly
From: Securities and Exchange the minimal recordkeeping burden cost of compliance estimates for internal
Commission, Office of FOIA Services, imposed by the Rule (since the Rule has counsel time are derived from the
100 F Street NE., Washington, DC no recordkeeping requirement and Securities Industry and Financial
20549–2736. records relating to customer Markets Association’s Management &
Extension: communications already must be made Professional Earnings in the Securities
Regulation S–P; and retained pursuant to other SEC Industry 2013, modified by SEC staff to
SEC File No. 270–480, OMB Control No. rules); (b) the summary fashion in account for an 1,800-hour work-year
3235–0537. which information must be provided to and multiplied by 5.35 to account for
Notice is hereby given that, pursuant customers in the privacy and opt out bonuses, firm size, employee benefits,
to the Paperwork Reduction Act of 1995 notices required by the Rule (the model and overhead. Accordingly, SEC staff
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the privacy form adopted by the SEC and estimates that the total annualized
Securities and Exchange Commission the other agencies in 2009, designed to internal cost of compliance for the
(‘‘Commission’’) has submitted to the serve as both a privacy notice and an estimated total hour burden for the
Office of Management and Budget opt out notice, is only two pages); (c) the approximately 19,876 covered entities
(‘‘OMB’’) a request for approval of availability to covered entities of the subject to the Rule is approximately
extension of the previously approved model privacy form and online model $41,978,112 ($2,112 × 19,876 =
collection of information provided for in privacy form builder; and (d) the $41,978,112).
the privacy notice and opt out notice experience of covered entities’ staff with
An agency may not conduct or
provisions of Regulation S–P—Privacy the notices, SEC staff estimates that
sponsor, and a person is not required to
of Consumer Financial Information (17 covered entities will each spend an
respond to, a collection of information
CFR part 248, subpart A) under the average of approximately 12 hours per
under the PRA unless it displays a
Securities Exchange Act of 1934 year complying with the Rule, for a total
currently valid OMB control number.
(‘‘Exchange Act’’) (15 U.S.C. 78a et seq.). of approximately 238,512 annual
The privacy notice and opt out notice burden-hours (12 × 19,876 = 238,512). The public may view background
provisions of Regulation S–P (the SEC staff understands that the vast documentation for this information
‘‘Rule’’) implement the privacy notice majority of covered entities deliver their collection at the following Web site:
and opt out notice requirements of Title privacy and opt out notices with other www.reginfo.gov. Comments should be
V of the Gramm-Leach-Bliley Act communications such as account directed to: (i) Desk Officer for the
(‘‘GLBA’’), which include the opening documents and account Securities and Exchange Commission,
requirement that, at the time of statements. Because the other Office of Information and Regulatory
establishing a customer relationship communications are already delivered Affairs, Office of Management and
with a consumer and not less than to consumers, adding a brief privacy Budget, Room 10102, New Executive
annually during the continuation of and opt out notice should not result in Office Building, Washington, DC 20503,
such relationship, a financial institution added costs for processing or for postage or by sending an email to: Shagufta_
shall provide a clear and conspicuous and materials. Also, privacy and opt out Ahmed@omb.eop.gov; and (ii) Pamela
disclosure to such consumer of such notices may be delivered electronically Dyson, Director/Chief Information
financial institution’s policies and to consumers who have agreed to Officer, Securities and Exchange
practices with respect to disclosing electronic communications, which Commission,c/o Remi Pavlik-Simon,
nonpublic personal information to further reduces the costs of delivery. 100 F Street NE., Washington, DC
affiliates and nonaffiliated third parties Because SEC staff assumes that most 20549, or by sending an email to: PRA_
(‘‘privacy notice’’). Title V of the GLBA paper copies of privacy and opt out Mailbox@sec.gov. Comments must be
mstockstill on DSK4VPTVN1PROD with NOTICES

also provides that, unless an exception notices are combined with other submitted to OMB within 30 days of
applies, a financial institution may not required mailings, the burden-hour this notice.
disclose nonpublic personal information estimates above are based on resources Dated: June 23, 2015.
of a consumer to a nonaffiliated third required to integrate the privacy and opt
Robert W. Errett,
party unless the financial institution notices into another mailing, rather than
clearly and conspicuously discloses to on the resources required to create and Deputy Secretary.
the consumer that such information may send a separate mailing. SEC staff [FR Doc. 2015–15816 Filed 6–26–15; 8:45 am]
be disclosed to such third party; the estimates that, of the estimated 12 BILLING CODE 8011–01–P

VerDate Sep<11>2014 17:13 Jun 26, 2015 Jkt 235001 PO 00000 Frm 00072 Fmt 4703 Sfmt 9990 E:\FR\FM\29JNN1.SGM 29JNN1
Document Created: 2015-12-15 14:25:23
Document Modified: 2015-12-15 14:25:23
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 37032