81 FR 14151 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 51 (March 16, 2016)

Page Range		14151-14152
FR Document		2016-05858
Federal Register, Volume 81 Issue 51 (Wednesday, March 16, 2016)
[Federal Register Volume 81, Number 51 (Wednesday, March 16, 2016)]
[Notices]
[Pages 14151-14152]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05858]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-549, OMB Control No. 3235-0610]


Proposed Collection; Comment Request

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

Extension:
    Rule 248.30.

    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 (the ``Commission'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this existing collection of information to the Office of 
Management and Budget for extension and approval.
    Rule 248.30 (17 CFR 248.30), under Regulation S-P is titled 
``Procedures to Safeguard Customer Records and Information; Disposal of 
Consumer Report Information.'' Rule 248.30 (the ``safeguard rule'') 
requires brokers, dealers, investment companies, and investment 
advisers registered with the Commission (``registered investment 
advisers'') (collectively ``covered institutions'') to adopt written 
policies and procedures for administrative, technical, and physical 
safeguards to protect customer records and information. The safeguards 
must be reasonably designed to ``insure the security and 
confidentiality of customer records and information,'' ``protect 
against any anticipated threats or hazards to the security and 
integrity'' of those records, and protect against unauthorized access 
to or use of those records or information, which ``could result in 
substantial harm or inconvenience to any customer.'' The safeguard 
rule's requirement that covered institutions' policies and procedures 
be documented in writing constitutes a collection of information and 
must be maintained on an ongoing basis. This requirement eliminates 
uncertainty as to required employee actions to protect customer records 
and information and promotes more systematic and organized reviews of 
safeguard policies and procedures by institutions. The information 
collection also assists the Commission's examination staff in assessing 
the existence and adequacy of covered institutions' safeguard policies 
and procedures.
    We estimate that as of the end of 2015, there are 4,176 broker-
dealers, 4,041 investment companies, and 11,956 investment advisers 
registered with the Commission, for a total of 20,173 covered 
institutions. We believe that all of these covered institutions have 
already documented their safeguard policies and procedures in writing 
and therefore will incur no hourly burdens related to the initial 
documentation of policies and procedures.
    Although existing covered institutions would not incur any initial 
hourly burden in complying with the safeguards rule, we expect that 
newly registered institutions would incur some hourly burdens 
associated with documenting their safeguard policies and procedures. We 
estimate that approximately 1200 broker-dealers, investment companies, 
or investment advisers register with the Commission annually. However, 
we also expect that approximately 70% of these newly registered covered 
institutions (840) are affiliated with an existing covered institution, 
and will rely on an

[[Page 14152]]

organization-wide set of previously documented safeguard policies and 
procedures created by their affiliates. We estimate that these 
affiliated newly registered covered institutions will incur a 
significantly reduced hourly burden in complying with the safeguards 
rule, as they will need only to review their affiliate's existing 
policies and procedures, and identify and adopt the relevant policies 
for their business. Therefore, we expect that newly registered covered 
institutions with existing affiliates will incur an hourly burden of 
approximately 15 hours in identifying and adopting safeguard policies 
and procedures for their business, for a total hourly burden for all 
affiliated new institutions of 12,600 hours. We expect that half of 
this time would be incurred by inside counsel at an hourly rate of 
$380, and half would be by a compliance officer at an hourly rate of 
$334, for a total cost of $4,498,200.
    Finally, we expect that the 360 newly registered entities that are 
not affiliated with an existing institution will incur a significantly 
higher hourly burden in reviewing and documenting their safeguard 
policies and procedures. We expect that virtually all of the newly 
registered covered entities that do not have an affiliate are likely to 
be small entities and are likely to have smaller and less complex 
operations, with a correspondingly smaller set of safeguard policies 
and procedures to document, compared to other larger existing 
institutions with multiple affiliates. We estimate that it will take a 
typical newly registered unaffiliated institution approximately 60 
hours to review, identify, and document their safeguard policies and 
procedures, for a total of 21,600 hours for all newly registered 
unaffiliated entities. We expect that half of this time would be 
incurred by inside counsel at an hourly rate of $380, and half would be 
by a compliance officer at an hourly rate of $334, for a total cost of 
$7,711,200.
    Therefore, we estimate that the total annual hourly burden 
associated with the safeguards rule is 34,200 hours at a total hourly 
cost of $12,209,400. We also estimate that all covered institutions 
will be respondents each year, for a total of 20,173 respondents.
    These estimates of average burden hours are made solely for the 
purposes of the Paperwork Reduction Act. 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 control number. The 
safeguard rule does not require the reporting of any information or the 
filing of any documents with the Commission. The collection of 
information required by the safeguard rule is mandatory.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the 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.
    Please direct your written comments to Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, C/O Remi 
Pavlik-Simon, 100 F St. NE., Washington DC, 20549 to: 
[email protected].

    Dated: March 10, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-05858 Filed 3-15-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices 14151

effective before any securities are sold. purposes of the Paperwork Reduction Safeguard Customer Records and
Section 5(b) of the Securities Act Act, and are not derived from a Information; Disposal of Consumer
requires that investors be provided with comprehensive or even representative Report Information.’’ Rule 248.30 (the
a prospectus containing the information survey or study of the costs of ‘‘safeguard rule’’) requires brokers,
required in a registration statement prior Commission rules and forms. dealers, investment companies, and
to the sale or at the time of confirmation Compliance with the collection of investment advisers registered with the
or delivery of the securities. information requirements of Form S–6 Commission (‘‘registered investment
Section 10(a)(3) of the Securities Act is mandatory. Responses to the advisers’’) (collectively ‘‘covered
(15 U.S.C. 77j(a)(3)) provides that when collection of information will not be institutions’’) to adopt written policies
a prospectus is used more than nine kept confidential. An agency may not and procedures for administrative,
months after the effective date of the conduct or sponsor, and a person is not technical, and physical safeguards to
registration statement, the information required to respond to a collection of protect customer records and
therein shall be as of a date not more information unless it displays a information. The safeguards must be
than sixteen months prior to such use. currently valid OMB control number. reasonably designed to ‘‘insure the
As a result, most UITs update their The public may view the background security and confidentiality of customer
registration statements under the documentation for this information records and information,’’ ‘‘protect
Securities Act on an annual basis in collection at the following Web site: against any anticipated threats or
order that their sponsors may continue www.reginfo.gov. Comments should be hazards to the security and integrity’’ of
to maintain a secondary market in the directed to: (i) Desk Officer for the those records, and protect against
units. UITs that are registered under the Securities and Exchange Commission, unauthorized access to or use of those
Investment Company Act on Form N– Office of Information and Regulatory records or information, which ‘‘could
8B–2 file post-effective amendments to Affairs, Office of Management and result in substantial harm or
their registration statements on Form S– Budget, Room 10102, New Executive inconvenience to any customer.’’ The
6 in order to update their prospectuses. Office Building, Washington, DC 20503, safeguard rule’s requirement that
The purpose of Form S–6 is to meet or by sending an email to: Shagufta_ covered institutions’ policies and
the filing and disclosure requirements of Ahmed@omb.eop.gov; and (ii) Pamela procedures be documented in writing
the Securities Act and to enable filers to Dyson, Chief Information Officer, constitutes a collection of information
provide investors with information Securities and Exchange Commission, and must be maintained on an ongoing
necessary to evaluate an investment in c/o Remi Pavlik-Simon, 100 F Street basis. This requirement eliminates
the security. This information collection NE., Washington, DC 20549 or by uncertainty as to required employee
differs significantly from many other sending an email to: PRA_Mailbox@ actions to protect customer records and
federal information collections, which sec.gov. Comments must be submitted to information and promotes more
are primarily for the use and benefit of OMB within 30 days of this notice. systematic and organized reviews of
the collecting agency. The information safeguard policies and procedures by
Dated: March 11, 2016.
required to be filed with the institutions. The information collection
Commission permits verification of Lynn M. Powalski,
also assists the Commission’s
compliance with securities law Deputy Secretary.
examination staff in assessing the
requirements and assures the public [FR Doc. 2016–05878 Filed 3–15–16; 8:45 am] existence and adequacy of covered
availability and dissemination of the BILLING CODE 8011–01–P institutions’ safeguard policies and
information. procedures.
The Commission estimates that there We estimate that as of the end of
are approximately 1,340 initial SECURITIES AND EXCHANGE 2015, there are 4,176 broker-dealers,
registration statements filed on Form S– COMMISSION 4,041 investment companies, and
6 annually and approximately 1,158 [SEC File No. 270–549, OMB Control No. 11,956 investment advisers registered
annual post-effective amendments to 3235–0610] with the Commission, for a total of
previously effective registration 20,173 covered institutions. We believe
statements filed on Form S–6. The Proposed Collection; Comment that all of these covered institutions
Commission estimates that the hour Request have already documented their
burden for preparing and filing an safeguard policies and procedures in
Upon Written Request, Copy Available
initial registration statement on Form S– writing and therefore will incur no
From: Securities and Exchange
6 is 45 hours and for preparing and hourly burdens related to the initial
Commission, Office of FOIA Services,
filing a post-effective amendment to a documentation of policies and
100 F Street NE., Washington, DC
previously effective registration procedures.
20549–2736.
statement filed on Form S–6 is 40 hours. Although existing covered institutions
Therefore, we estimate that the total Extension: would not incur any initial hourly
hour burden of preparing and filing Rule 248.30. burden in complying with the
registration statements on Form S–6 for Notice is hereby given that, pursuant safeguards rule, we expect that newly
all affected UITs is 106,620 hours. We to the Paperwork Reduction Act of 1995 registered institutions would incur some
estimate that the cost burden of (44 U.S.C. 3501 et seq.), the Securities hourly burdens associated with
preparing and filing an initial and Exchange Commission (the documenting their safeguard policies
registration statement on Form S–6 is ‘‘Commission’’) is soliciting comments and procedures. We estimate that
mstockstill on DSK4VPTVN1PROD with NOTICES

$33,104 and for preparing and filing a on the collection of information approximately 1200 broker-dealers,
post-effective amendment is $19,862. summarized below. The Commission investment companies, or investment
Therefore, we estimate that the total cost plans to submit this existing collection advisers register with the Commission
burden of preparing and filing of information to the Office of annually. However, we also expect that
registration statements on Form S–6 for Management and Budget for extension approximately 70% of these newly
all affected UITs is $67,359,556. and approval. registered covered institutions (840) are
Estimates of average burden hours Rule 248.30 (17 CFR 248.30), under affiliated with an existing covered
and costs are made solely for the Regulation S–P is titled ‘‘Procedures to institution, and will rely on an

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14152 Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices

organization-wide set of previously Commission. The collection of disclosure requirements imposed by
documented safeguard policies and information required by the safeguard Section 30 of the Investment Company
procedures created by their affiliates. rule is mandatory. Act of 1940 (15 U.S.C. 80a–1 et seq.)
We estimate that these affiliated newly Written comments are invited on: (a) (‘‘Investment Company Act’’), and of
registered covered institutions will Whether the proposed collection of rules 30a–1 and 30b1–1 thereunder (17
incur a significantly reduced hourly information is necessary for the proper CFR 270.30a–1 and 17 CFR 270.30b1–1).
burden in complying with the performance of the functions of the The information required to be filed
safeguards rule, as they will need only agency, including whether the with the Commission assures the public
to review their affiliate’s existing information will have practical utility; availability of the information and
policies and procedures, and identify (b) the accuracy of the agency’s estimate permits verification of compliance with
and adopt the relevant policies for their of the burden of the collection of Investment Company Act requirements.
business. Therefore, we expect that information; (c) ways to enhance the Registered unit investment trusts are
newly registered covered institutions quality, utility, and clarity of the required to provide this information on
with existing affiliates will incur an information collected; and (d) ways to an annual report filed with the
hourly burden of approximately 15 minimize the burden of the collection of Commission on Form N–SAR pursuant
hours in identifying and adopting information on respondents, including to rule 30a–1 under the Investment
safeguard policies and procedures for through the use of automated collection Company Act, and registered
their business, for a total hourly burden techniques or other forms of information management investment companies
for all affiliated new institutions of technology. Consideration will be given must submit the required information
12,600 hours. We expect that half of this to comments and suggestions submitted on a semi-annual report on Form N–
time would be incurred by inside in writing within 60 days of this SAR pursuant to rule 30b1–1 under the
counsel at an hourly rate of $380, and publication. Investment Company Act.
half would be by a compliance officer at Please direct your written comments The Commission estimates that the
an hourly rate of $334, for a total cost to Pamela Dyson, Director/Chief total number of respondents is 3,168
of $4,498,200. Information Officer, Securities and and the total annual number of
Finally, we expect that the 360 newly Exchange Commission, C/O Remi responses is 5,564 ((2,396 management
registered entities that are not affiliated Pavlik-Simon, 100 F St. NE., investment company respondents × 2
with an existing institution will incur a Washington DC, 20549 to: PRA_ responses per year) + (772 unit
significantly higher hourly burden in Mailbox@sec.gov. investment trust respondents × 1
reviewing and documenting their Dated: March 10, 2016. response per year)). The Commission
safeguard policies and procedures. We estimates that each registrant filing a
Robert W. Errett,
expect that virtually all of the newly report on Form N–SAR would spend, on
Deputy Secretary.
registered covered entities that do not average, approximately 14.21 hours in
have an affiliate are likely to be small [FR Doc. 2016–05858 Filed 3–15–16; 8:45 am] preparing and filing reports on Form N–
entities and are likely to have smaller BILLING CODE 8011–01–P SAR and that the total hour burden for
and less complex operations, with a all filings on Form N–SAR would be
correspondingly smaller set of safeguard 79,064 hours.
policies and procedures to document, SECURITIES AND EXCHANGE The collection of information under
compared to other larger existing COMMISSION Form N–SAR is mandatory. Responses
institutions with multiple affiliates. We [SEC File No. 270–292, OMB Control No. to the collection of information will not
estimate that it will take a typical newly 3235–0330] be kept confidential. An agency may not
registered unaffiliated institution conduct or sponsor, and a person is not
approximately 60 hours to review, Proposed Collection; Comment required to respond to a collection of
identify, and document their safeguard Request information unless it displays a
policies and procedures, for a total of Upon Written Request, Copies Available currently valid control number.
21,600 hours for all newly registered Written comments are invited on: (a)
From: Securities and Exchange
unaffiliated entities. We expect that half Whether the proposed collection of
Commission, Office of FOIA Services,
of this time would be incurred by inside information is necessary for the proper
100 F Street NE., Washington, DC
counsel at an hourly rate of $380, and performance of the functions of the
20549–2736.
half would be by a compliance officer at agency, including whether the
an hourly rate of $334, for a total cost Extension: information will have practical utility;
Form N–SAR. (b) the accuracy of the agency’s estimate
of $7,711,200.
Therefore, we estimate that the total Notice is hereby given that, pursuant of the burden of the collection of
annual hourly burden associated with to the Paperwork Reduction Act of 1995 information; (c) ways to enhance the
the safeguards rule is 34,200 hours at a (44 U.S.C. 3501 et seq.), the Securities quality, utility, and clarity of the
total hourly cost of $12,209,400. We also and Exchange Commission (the information collected; and (d) ways to
estimate that all covered institutions ‘‘Commission’’) is soliciting comments minimize the burden of the collection of
will be respondents each year, for a total on the collection of information information on respondents, including
of 20,173 respondents. summarized below. The Commission through the use of automated collection
These estimates of average burden plans to submit this existing collection techniques or other forms of information
hours are made solely for the purposes of information to the Office of technology. Consideration will be given
mstockstill on DSK4VPTVN1PROD with NOTICES

of the Paperwork Reduction Act. An Management and Budget (‘‘OMB’’) for to comments and suggestions submitted
agency may not conduct or sponsor, and extension and approval. in writing within 60 days of this
a person is not required to respond to Form N–SAR (OMB Control No. publication.
a collection of information unless it 3235–0330, 17 CFR 249.330) is the form Please direct your written comments
displays a currently valid control used by all registered investment to Pamela Dyson, Director/Chief
number. The safeguard rule does not companies with the exception of face Information Officer, Securities and
require the reporting of any information amount certificate companies, to Exchange Commission, C/O Remi
or the filing of any documents with the comply with the periodic filing and Pavlik-Simon, 100 F Street NE.,

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Document Created: 2016-03-15 23:43:55
Document Modified: 2016-03-15 23:43:55
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		81 FR 14151