81 FR 34387 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 104 (May 31, 2016)

Page Range		34387-34388
FR Document		2016-12676
Federal Register, Volume 81 Issue 104 (Tuesday, May 31, 2016)
[Federal Register Volume 81, Number 104 (Tuesday, May 31, 2016)]
[Notices]
[Pages 34387-34388]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-12676]


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SECURITIES AND EXCHANGE COMMISSION

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


Submission for OMB Review; 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'') has submitted to the Office of 
Management and Budget a request for extension of the previously 
approved collection of information discussed below.
    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 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

[[Page 34388]]

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.
    The public may view the 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 send 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 send an email 
to: [email protected]. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: May 24, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-12676 Filed 5-27-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 104 / Tuesday, May 31, 2016 / Notices 34387

any particular vendor or subscriber Commission and any person, other than and procedures for administrative,
would achieve through the purchase. those that may be withheld from the technical, and physical safeguards to
public in accordance with the protect customer records and
C. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be information. The safeguards must be
Statement on Comments on the
available for Web site viewing and reasonably designed to ‘‘insure the
Proposed Rule Change Received From security and confidentiality of customer
printing in the Commission’s Public
Members, Participants, or Others records and information,’’ ‘‘protect
Reference Room, 100 F Street NE.,
The Exchange has neither solicited Washington, DC 20549, on official against any anticipated threats or
nor received written comments on the business days between the hours of hazards to the security and integrity’’ of
proposed rule change. 10:00 a.m. and 3:00 p.m. Copies of the those records, and protect against
filing also will be available for unauthorized access to or use of those
III. Date of Effectiveness of the
inspection and copying at the principal records or information, which ‘‘could
Proposed Rule Change and Timing for
office of the Exchange. All comments result in substantial harm or
Commission Action
received will be posted without change; inconvenience to any customer.’’ The
The foregoing rule change has become the Commission does not edit personal safeguard rule’s requirement that
effective pursuant to section 19(b)(3)(A) identifying information from covered institutions’ policies and
of the Act 25 and paragraph (f) of Rule submissions. You should submit only procedures be documented in writing
19b–4 thereunder.26 At any time within information that you wish to make constitutes a collection of information
60 days of the filing of the proposed rule available publicly. All submissions and must be maintained on an ongoing
change, the Commission summarily may should refer to File No. SR–BatsEDGX– basis. This requirement eliminates
temporarily suspend such rule change if 2016–18, and should be submitted on or uncertainty as to required employee
it appears to the Commission that such before June 21, 2016. actions to protect customer records and
action is necessary or appropriate in the information and promotes more
For the Commission, by the Division of
public interest, for the protection of systematic and organized reviews of
Trading and Markets, pursuant to delegated
investors, or otherwise in furtherance of authority.27 safeguard policies and procedures by
the purposes of the Act. Robert W. Errett, institutions. The information collection
also assists the Commission’s
IV. Solicitation of Comments Deputy Secretary.
examination staff in assessing the
Interested persons are invited to [FR Doc. 2016–12665 Filed 5–27–16; 8:45 am]
existence and adequacy of covered
submit written data, views, and BILLING CODE 8011–01–P
institutions’ safeguard policies and
arguments concerning the foregoing, procedures.
including whether the proposal is We estimate that as of the end of
consistent with the Act. Comments may SECURITIES AND EXCHANGE 2015, there are 4,176 broker-dealers,
be submitted by any of the following COMMISSION 4,041 investment companies, and
methods: [SEC File No. 270–549, OMB Control No. 11,956 investment advisers registered
3235–0610] with the Commission, for a total of
Electronic Comments
20,173 covered institutions. We believe
• Use the Commission’s Internet Submission for OMB Review; that all of these covered institutions
comment form (http://www.sec.gov/ Comment Request have already documented their
rules/sro.shtml); or Upon Written Request, Copy Available safeguard policies and procedures in
• Send an email to rule-comments@ writing and therefore will incur no
From: Securities and Exchange
sec.gov. Please include File No. SR– hourly burdens related to the initial
Commission, Office of FOIA Services,
BatsEDGX–2016–18 on the subject line. documentation of policies and
100 F Street NE., Washington, DC
Paper Comments 20549–2736. procedures.
Although existing covered institutions
• Send paper comments in triplicate Extension: would not incur any initial hourly
to Secretary, Securities and Exchange Rule 248.30. burden in complying with the
Commission, 100 F Street NE., Notice is hereby given that pursuant safeguards rule, we expect that newly
Washington, DC 20549–1090. to the Paperwork Reduction Act of 1995 registered institutions would incur some
All submissions should refer to File No. (44 U.S.C. 3501 et seq.), the Securities hourly burdens associated with
SR–BatsEDGX–2016–18. This file and Exchange Commission (the documenting their safeguard policies
number should be included on the ‘‘Commission’’) has submitted to the and procedures. We estimate that
subject line if email is used. To help the Office of Management and Budget a approximately 1200 broker-dealers,
Commission process and review your request for extension of the previously investment companies, or investment
comments more efficiently, please use approved collection of information advisers register with the Commission
only one method. The Commission will discussed below. annually. However, we also expect that
post all comments on the Commission’s Rule 248.30 (17 CFR 248.30) under approximately 70% of these newly
Internet Web site (http://www.sec.gov/ Regulation S–P, is titled ‘‘Procedures to registered covered institutions (840) are
rules/sro.shtml). Copies of the Safeguard Customer Records and affiliated with an existing covered
submission, all subsequent Information; Disposal of Consumer institution, and will rely on an
amendments, all written statements Report Information.’’ Rule 248.30 (the organization-wide set of previously
‘‘safeguard rule’’) requires brokers, documented safeguard policies and
sradovich on DSK3TPTVN1PROD with NOTICES

with respect to the proposed rule
change that are filed with the dealers, investment companies, and procedures created by their affiliates.
Commission, and all written investment advisers registered with the We estimate that these affiliated newly
communications relating to the Commission (‘‘registered investment registered covered institutions will
proposed rule change between the advisers’’) (collectively ‘‘covered incur a significantly reduced hourly
institutions’’) to adopt written policies burden in complying with the
25 15 U.S.C. 78s(b)(3)(A). safeguards rule, as they will need only
26 17 CFR 240.19b–4(f). 27 17 CFR 200.30–3(a)(12). to review their affiliate’s existing

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Document Created: 2016-05-28 03:57:45
Document Modified: 2016-05-28 03:57:45
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 34387