81 FR 8765 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 34 (February 22, 2016)

Page Range		8765-8766
FR Document		2016-03519
Federal Register, Volume 81 Issue 34 (Monday, February 22, 2016)
[Federal Register Volume 81, Number 34 (Monday, February 22, 2016)]
[Notices]
[Pages 8765-8766]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-03519]


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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-ID, SEC File No. 270-644, OMB Control No. 3235-
0692.

    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.
    Regulation S-ID (17 CFR 248), including the information collection 
requirements thereunder, is designed to better protect investors from 
the risks of identity theft. Under Regulation S-ID, SEC-regulated 
entities are required to develop and implement reasonable policies and 
procedures to identify, detect, and respond to relevant red flags (the 
``Identity Theft Red Flags Rules'') and, in the case of entities that 
issue credit or debit cards, to assess the validity of, and communicate 
with cardholders regarding, address changes. Section 248.201 of 
Regulation S-ID includes the following information collection 
requirements for each SEC-regulated entity that qualifies as a 
``financial institution'' or ``creditor'' under Regulation S-ID and 
that offers or maintains covered accounts: (i) Creation and periodic 
updating of an identity theft prevention program (``Program'') that is 
approved by the board of directors, an appropriate committee thereof, 
or a designated senior management employee; (ii) periodic staff 
reporting to the board of directors on compliance with the Identity 
Theft Red Flags Rules and related guidelines; and (iii) training of 
staff to implement the Program. Section 248.202 of Regulation S-ID 
includes the following information collection requirements for each 
SEC-regulated entity that is a credit or debit card issuer: (i) 
Establishment of policies and procedures that assess the validity of a 
change of address notification if a request for an additional or 
replacement card on the account follows soon after the address change; 
and (ii) notification of a cardholder, before issuance of an additional 
or replacement card, at the previous address or through some other 
previously agreed-upon form of communication, or alternatively, 
assessment of the validity of the address change request through the 
entity's established policies and procedures.
    SEC staff estimates of the hour burdens associated with section 
248.201 under Regulation S-ID include the one-time burden of complying 
with this section for newly-formed SEC-regulated entities, as well as 
the ongoing costs of compliance for all SEC-regulated entities. With 
respect to the one-time burden hours, staff estimates that each newly-
formed financial institution or creditor would incur a burden of 2 
hours to conduct an initial assessment of covered accounts. Staff 
estimates that approximately 644 SEC-regulated financial institutions 
and creditors are newly formed each year, and the total estimated one-
time burden to initially assess covered accounts is therefore 1,288 
hours. Staff also estimates that each financial institution or creditor 
that maintains covered accounts would incur an additional initial 
burden of 29 hours to develop and obtain board approval of a Program 
and to train the staff of the financial institution or creditor. Staff 
estimates that approximately 580 SEC-regulated financial institutions 
and creditors that maintain covered accounts are newly formed each 
year, and thus the total estimated one-time burden to develop and 
obtain board approval of a Program and train staff is 16,820 hours. 
Thus, the total initial estimated burden for all newly-formed SEC-
regulated entities is 18,108 hours (1,288 hours + 16,820 hours).
    With respect to ongoing annual burden hours, SEC staff estimates 
that each financial institution or creditor would incur a burden of 1 
hour to periodically assess whether it offers or maintains covered 
accounts. Staff estimates that there are approximately 9,960 SEC-
regulated entities that are either financial institutions or creditors, 
and the total estimated annual burden to periodically assess covered 
accounts is therefore 9,960 hours. Staff also estimates that each 
financial institution or creditor that maintains covered accounts would 
incur an additional annual burden of 9.5 hours to prepare and present 
an annual report to the board and to periodically review and update the 
Program. Staff estimates that there are approximately 8,964 SEC-
regulated entities that are financial institutions or creditors that 
offer or maintain covered accounts, and thus the total estimated 
additional annual burden for these entities is 85,158 hours. Thus, the 
total ongoing annual estimated burden for all SEC-regulated entities is 
95,118 hours (9,960 hours + 85,158 hours).
    The collections of information required by section 248.202 under 
Regulation S-ID will apply only to SEC-regulated entities that issue 
credit or debit cards. SEC staff understands that SEC-regulated 
entities generally do not issue credit or debit cards, but instead 
partner with other entities, such as banks, that issue cards on their 
behalf. These other entities, which are not regulated by the SEC, are 
already subject to substantially similar change of address obligations 
pursuant to other federal regulators' identity theft red flags rules. 
Therefore, staff does not expect that any SEC-regulated entities will 
be subject to the information collection requirements of section 
248.202, and accordingly, staff estimates that there is no hour burden 
related to section 248.202 for SEC-regulated entities.
    In total, SEC staff estimates that the aggregate annual information 
collection burden of Regulation S-ID is 113,226 hours (18,108 hours + 
95,118 hours). This estimate of burden hours is made solely for the 
purposes of the Paperwork Reduction Act and is not derived from a 
quantitative, comprehensive, or even representative survey or study of 
the burdens associated with Commission rules and forms. Compliance with 
Regulation S-ID, including compliance with the information collection 
requirements thereunder, is mandatory for each SEC-regulated entity 
that

[[Page 8766]]

qualifies as a ``financial institution'' or ``creditor'' under 
Regulation S-ID (as discussed above, certain collections of information 
under Regulation S-ID are mandatory only for financial institutions or 
creditors that offer or maintain covered accounts). Responses will not 
be kept confidential. 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 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 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 send an email 
to: [email protected]. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: February 16, 2016.
 Brent J. Fields,
Secretary.
[FR Doc. 2016-03519 Filed 2-19-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Notices 8765

The Commission appoints Natalie R. collection requirements for each SEC- newly-formed SEC-regulated entities is
Ward to represent the interests of the regulated entity that qualifies as a 18,108 hours (1,288 hours + 16,820
general public (Public Representative) ‘‘financial institution’’ or ‘‘creditor’’ hours).
in this docket. under Regulation S–ID and that offers or With respect to ongoing annual
maintains covered accounts: (i) Creation burden hours, SEC staff estimates that
III. Ordering Paragraphs each financial institution or creditor
and periodic updating of an identity
It is ordered: theft prevention program (‘‘Program’’) would incur a burden of 1 hour to
1. The Commission reopens Docket that is approved by the board of periodically assess whether it offers or
No. CP2014–1 for consideration of directors, an appropriate committee maintains covered accounts. Staff
matters raised by the Postal Service’s thereof, or a designated senior estimates that there are approximately
Notice. management employee; (ii) periodic 9,960 SEC-regulated entities that are
2. Pursuant to 39 U.S.C. 505, the staff reporting to the board of directors either financial institutions or creditors,
Commission appoints Natalie R. Ward on compliance with the Identity Theft and the total estimated annual burden to
to serve as an officer of the Commission Red Flags Rules and related guidelines; periodically assess covered accounts is
(Public Representative) to represent the and (iii) training of staff to implement therefore 9,960 hours. Staff also
interests of the general public in this the Program. Section 248.202 of estimates that each financial institution
proceeding. Regulation S–ID includes the following or creditor that maintains covered
3. Comments are due no later than information collection requirements for accounts would incur an additional
February 23, 2016. each SEC-regulated entity that is a credit annual burden of 9.5 hours to prepare
4. The Secretary shall arrange for or debit card issuer: (i) Establishment of and present an annual report to the
publication of this order in the Federal policies and procedures that assess the board and to periodically review and
Register. validity of a change of address update the Program. Staff estimates that
By the Commission. notification if a request for an additional there are approximately 8,964 SEC-
Stacy L. Ruble, or replacement card on the account regulated entities that are financial
follows soon after the address change; institutions or creditors that offer or
Secretary.
and (ii) notification of a cardholder, maintain covered accounts, and thus the
[FR Doc. 2016–03495 Filed 2–19–16; 8:45 am]
before issuance of an additional or total estimated additional annual
BILLING CODE 7710–FW–P
replacement card, at the previous burden for these entities is 85,158
address or through some other hours. Thus, the total ongoing annual
previously agreed-upon form of estimated burden for all SEC-regulated
SECURITIES AND EXCHANGE entities is 95,118 hours (9,960 hours +
COMMISSION communication, or alternatively,
assessment of the validity of the address 85,158 hours).
The collections of information
Submission for OMB Review; change request through the entity’s
required by section 248.202 under
Comment Request established policies and procedures.
Regulation S–ID will apply only to SEC-
SEC staff estimates of the hour regulated entities that issue credit or
Upon Written Request, Copies Available burdens associated with section 248.201
From: Securities and Exchange debit cards. SEC staff understands that
under Regulation S–ID include the one- SEC-regulated entities generally do not
Commission, Office of FOIA Services, time burden of complying with this
100 F Street NE., Washington, DC issue credit or debit cards, but instead
section for newly-formed SEC-regulated partner with other entities, such as
20549–2736. entities, as well as the ongoing costs of banks, that issue cards on their behalf.
Extension: compliance for all SEC-regulated These other entities, which are not
Regulation S–ID, SEC File No. 270–644, entities. With respect to the one-time regulated by the SEC, are already subject
OMB Control No. 3235–0692. burden hours, staff estimates that each to substantially similar change of
Notice is hereby given that, pursuant newly-formed financial institution or address obligations pursuant to other
to the Paperwork Reduction Act of 1995 creditor would incur a burden of 2 federal regulators’ identity theft red
(44 U.S.C. 3501 et seq.), the Securities hours to conduct an initial assessment flags rules. Therefore, staff does not
and Exchange Commission (the of covered accounts. Staff estimates that expect that any SEC-regulated entities
‘‘Commission’’) has submitted to the approximately 644 SEC-regulated will be subject to the information
Office of Management and Budget a financial institutions and creditors are collection requirements of section
request for extension of the previously newly formed each year, and the total 248.202, and accordingly, staff estimates
approved collection of information estimated one-time burden to initially that there is no hour burden related to
discussed below. assess covered accounts is therefore section 248.202 for SEC-regulated
Regulation S–ID (17 CFR 248), 1,288 hours. Staff also estimates that entities.
including the information collection each financial institution or creditor In total, SEC staff estimates that the
requirements thereunder, is designed to that maintains covered accounts would aggregate annual information collection
better protect investors from the risks of incur an additional initial burden of 29 burden of Regulation S–ID is 113,226
identity theft. Under Regulation S–ID, hours to develop and obtain board hours (18,108 hours + 95,118 hours).
SEC-regulated entities are required to approval of a Program and to train the This estimate of burden hours is made
develop and implement reasonable staff of the financial institution or solely for the purposes of the Paperwork
policies and procedures to identify, creditor. Staff estimates that Reduction Act and is not derived from
mstockstill on DSK4VPTVN1PROD with NOTICES

detect, and respond to relevant red flags approximately 580 SEC-regulated a quantitative, comprehensive, or even
(the ‘‘Identity Theft Red Flags Rules’’) financial institutions and creditors that representative survey or study of the
and, in the case of entities that issue maintain covered accounts are newly burdens associated with Commission
credit or debit cards, to assess the formed each year, and thus the total rules and forms. Compliance with
validity of, and communicate with estimated one-time burden to develop Regulation S–ID, including compliance
cardholders regarding, address changes. and obtain board approval of a Program with the information collection
Section 248.201 of Regulation S–ID and train staff is 16,820 hours. Thus, the requirements thereunder, is mandatory
includes the following information total initial estimated burden for all for each SEC-regulated entity that

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8766 Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Notices

qualifies as a ‘‘financial institution’’ or ‘‘Investment Company Act’’) 1 give the application. We estimate a total annual
‘‘creditor’’ under Regulation S–ID (as Commission the authority to issue hour burden to all respondents of 5,340
discussed above, certain collections of orders granting exemptions from the hours [(50 hours × 25 applications) + (30
information under Regulation S–ID are Act’s provisions. The section that grants hours × 125 applications) + (10 hours ×
mandatory only for financial broadest authority is section 6(c), which 34 applications)].
institutions or creditors that offer or provides the Commission with authority
Much of the work of preparing an
maintain covered accounts). Responses to conditionally or unconditionally
exempt persons, securities or application is performed by outside
will not be kept confidential. An agency
may not conduct or sponsor, and a transactions from any provision of the counsel. The cost outside counsel
person is not required to respond to, a Investment Company Act, or the rules or charges applicants depends on the
collection of information unless it regulations thereunder, if and to the complexity of the issues covered by the
displays a currently valid control extent that such exemption is necessary application and the time required for
number. or appropriate in the public interest and preparation. Based on conversations
consistent with the protection of with attorneys who serve as outside
The public may view the background
investors and the purposes fairly counsel, the cost ranges from
documentation for this information
intended by the policy and provisions of approximately $10,000 for preparing a
collection at the following Web site:
the Act.2 well-precedented, routine application to
www.reginfo.gov. Comments should be Rule 0–2 under the Investment
directed to: (i) Desk Officer for the approximately $150,000 to prepare a
Company Act,3 entitled ‘‘General complex and/or novel application. This
Securities and Exchange Commission, Requirements of Papers and
Office of Information and Regulatory distribution gives a total estimated
Applications,’’ prescribes general annual cost burden to applicants of
Affairs, Office of Management and instructions for filing an application
Budget, Room 10102, New Executive filing all applications of $14,090,000
seeking exemptive relief with the [(25 × $150,000) + (125 × $80,000) + (34
Office Building, Washington, DC 20503, Commission for which a form is not
or by sending an email to: Shagufta_ × $10,000)].
specifically prescribed. Rule 0–2
Ahmed@omb.eop.gov; and (ii) Pamela requires that each application filed with We request written comment on: (a)
Dyson, Director/Chief Information the commission have (a) a statement of Whether the collections of information
Officer, Securities and Exchange authorization to file and sign the are necessary for the proper
Commission, c/o Remi Pavlik-Simon, application on behalf of the applicant, performance of the functions of the
100 F Street NE., Washington, DC 20549 (b) a verification of application and Commission, including whether the
or send an email to: PRA_Mailbox@ statements of fact, (c) a brief statement information has practical utility; (b) the
sec.gov. Comments must be submitted to of the grounds for application, and (d) accuracy of the Commission’s estimate
OMB within 30 days of this notice. the name and address of each applicant of the burdens of the collection of
Dated: February 16, 2016. and of any person to whom questions information; (c) ways to enhance the
Brent J. Fields, should be directed. The Commission quality, utility, and clarity of the
Secretary. uses the information required by rule 0– information collected; and (d) ways to
[FR Doc. 2016–03519 Filed 2–19–16; 8:45 am]
2 to decide whether the applicant minimize the burden of the collection of
should be deemed to be entitled to the information on respondents, including
BILLING CODE 8011–01–P
action requested by the application. through the use of automated collection
Applicants for orders can include
techniques or other forms of information
registered investment companies,
SECURITIES AND EXCHANGE technology. Consideration will be given
affiliated persons of registered
COMMISSION to comments and suggestions submitted
investment companies, and issuers
seeking to avoid investment company in writing within 60 days of this
Proposed Collection; Comment publication.
Request; status, among other entities.
Commission staff estimates that it Please direct your written comments
Upon Written Request, Copies Available receives approximately 184 applications to Pamela Dyson, Director/Chief
From: Securities and Exchange per year under the Act. Although each Information Officer, Securities and
Commission, Office of FOIA Services, application typically is submitted on Exchange Commission, C/O Remi
100 F Street NE., Washington, DC behalf of multiple entities, the entities Pavlik-Simon, 100 F Street NE.,
20549–2736. in the vast majority of cases are related Washington, DC 20549; or send an email
companies and are treated as a single to: PRA_Mailbox@sec.gov.
Extension:
respondent for purposes of this analysis.
Rule 0–2, SEC File No. 270–572, OMB Dated: February 16, 2016.
The time to prepare an application
Control No. 3235–0636. Brent J. Fields,
depends on the complexity and/or
Notice is hereby given that, pursuant novelty of the issues covered by the Secretary.
to the Paperwork Reduction Act of 1995 application. We estimate that the [FR Doc. 2016–03520 Filed 2–19–16; 8:45 am]
(44 U.S.C. 3501–3520), the Securities Commission receives 25 of the most BILLING CODE P
and Exchange Commission (the time-consuming applications annually,
‘‘Commission’’) is soliciting comments 125 applications of medium difficulty,
on the collections of information and 34 of the least difficult applications.
mstockstill on DSK4VPTVN1PROD with NOTICES

summarized below. The Commission Based on conversations with applicants,
plans to submit this existing collection we estimate that in-house counsel
of information to the Office of would spend from ten to fifty hours
Management and Budget for extension helping to draft and review an
and approval.
1 15 U.S.C. 80a–1 et seq.
Several sections of the Investment 2 15 U.S.C. 80a–6(c).
Company Act of 1940 (‘‘Act’’ or 3 17 CFR 270.0–2.

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Document Created: 2016-02-19 23:56:58
Document Modified: 2016-02-19 23:56:58
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 8765