83 FR 40582 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 158 (August 15, 2018)

Page Range		40582-40583
FR Document		2018-17488
Federal Register, Volume 83 Issue 158 (Wednesday, August 15, 2018)
[Federal Register Volume 83, Number 158 (Wednesday, August 15, 2018)]
[Notices]
[Pages 40582-40583]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17488]


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SECURITIES AND EXCHANGE COMMISSION


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. 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'') 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 March 31, 2018, the Rule's 
information collection burden applies to approximately 20,465 covered 
entities (approximately 3,857 broker-dealers, 12,643 investment 
advisers registered with the Commission, and 3,965 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 245,580 annual burden-hours (12 x 20,465 = 
245,580). 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

[[Page 40583]]

annual burden-hours incurred, approximately 8 hours would be spent by 
administrative assistants at an hourly rate of $82, and approximately 4 
hours would be spent by internal counsel at an hourly rate of $422, for 
a total annualized internal cost of compliance of $2,344 for each of 
the covered entities (8 x $82 = $656; 4 x $422 = $1,688; $656 + $1,688 
= $2,344). 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 20,465 covered entities subject to the 
Rule is approximately $47,969,960 ($2,344 x 20,465 = $47,969,960).
    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; (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.
    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 
Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an email 
to: [email protected].

    Dated: August 9, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-17488 Filed 8-14-18; 8:45 am]
 BILLING CODE 8011-01-P
40582 Federal Register / Vol. 83, No. 158 / Wednesday, August 15, 2018 / Notices

the public interest; (ii) for the protection be submitted on or before September 5, consumer is given the opportunity,
of investors; or (iii) otherwise in 2018. before the time that such information is
furtherance of the purposes of the Act. For the Commission, by the Division of initially disclosed, to direct that such
If the Commission takes such action, the Trading and Markets, pursuant to delegated information not be disclosed to such
Commission shall institute proceedings authority.25 third party; and the consumer is given
to determine whether the proposed rule Eduardo A. Aleman, an explanation of how the consumer can
should be approved or disapproved. Assistant Secretary. exercise that nondisclosure option (‘‘opt
IV. Solicitation of Comments [FR Doc. 2018–17492 Filed 8–14–18; 8:45 am] out notice’’). The Rule applies to broker-
BILLING CODE 8011–01–P
dealers, investment advisers registered
Interested persons are invited to with the Commission, and investment
submit written data, views, and companies (‘‘covered entities’’).
arguments concerning the foregoing,
SECURITIES AND EXCHANGE Commission staff estimates that, as of
including whether the proposed rule
COMMISSION March 31, 2018, the Rule’s information
change is consistent with the Act.
collection burden applies to
Comments may be submitted by any of Proposed Collection; Comment approximately 20,465 covered entities
the following methods: Request (approximately 3,857 broker-dealers,
Electronic Comments Upon Written Request, Copies Available 12,643 investment advisers registered
• Use the Commission’s internet From: Securities and Exchange with the Commission, and 3,965
comment form (http://www.sec.gov/ Commission, Office of FOIA Services, investment companies). In view of (a)
rules/sro.shtml); or 100 F Street NE, Washington, DC the minimal recordkeeping burden
• Send an email to rule-comments@ 20549–2736. imposed by the Rule (since the Rule has
sec.gov. Please include File Number SR– no recordkeeping requirement and
Extension:
Phlx–2018–53 on the subject line. Regulation S–P. SEC File No. 270–480; records relating to customer
OMB Control No. 3235–0537. communications already must be made
Paper Comments and retained pursuant to other SEC
• Send paper comments in triplicate Notice is hereby given that, pursuant rules); (b) the summary fashion in
to Secretary, Securities and Exchange to the Paperwork Reduction Act of 1995 which information must be provided to
Commission, 100 F Street NE, (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the customers in the privacy and opt out
Washington, DC 20549–1090. Securities and Exchange Commission notices required by the Rule (the model
(‘‘Commission’’) is soliciting comments
All submissions should refer to File privacy form adopted by the SEC and
on the existing collection of information
Number SR–Phlx–2018–53. This file the other agencies in 2009, designed to
provided for in the privacy notice and
number should be included on the serve as both a privacy notice and an
opt out notice provisions of Regulation
subject line if email is used. To help the opt out notice, is only two pages); (c) the
S–P—Privacy of Consumer Financial
Commission process and review your availability to covered entities of the
Information (17 CFR part 248, subpart
comments more efficiently, please use model privacy form and online model
A) under the Securities Exchange Act of
only one method. The Commission will privacy form builder; and (d) the
1934 (‘‘Exchange Act’’) (15 U.S.C. 78a et
post all comments on the Commission’s experience of covered entities’ staff with
seq.). The Commission plans to submit
internet website (http://www.sec.gov/ the notices, SEC staff estimates that
this existing collection of information to
rules/sro.shtml). Copies of the the Office of Management and Budget covered entities will each spend an
submission, all subsequent (‘‘OMB’’) for extension and approval. average of approximately 12 hours per
amendments, all written statements The privacy notice and opt out notice year complying with the Rule, for a total
with respect to the proposed rule provisions of Regulation S–P (the of approximately 245,580 annual
change that are filed with the ‘‘Rule’’) implement the privacy notice burden-hours (12 x 20,465 = 245,580).
Commission, and all written and opt out notice requirements of Title SEC staff understands that the vast
communications relating to the V of the Gramm-Leach-Bliley Act majority of covered entities deliver their
proposed rule change between the (‘‘GLBA’’), which include the privacy and opt out notices with other
Commission and any person, other than requirement that at the time of communications such as account
those that may be withheld from the establishing a customer relationship opening documents and account
public in accordance with the with a consumer and not less than statements. Because the other
provisions of 5 U.S.C. 552, will be annually during the continuation of communications are already delivered
available for website viewing and such relationship, a financial institution to consumers, adding a brief privacy
printing in the Commission’s Public shall provide a clear and conspicuous and opt out notice should not result in
Reference Room, 100 F Street NE, disclosure to such consumer of such added costs for processing or for postage
Washington, DC 20549 on official financial institution’s policies and and materials. Also, privacy and opt out
business days between the hours of practices with respect to disclosing notices may be delivered electronically
10:00 a.m. and 3:00 p.m. Copies of the nonpublic personal information to to consumers who have agreed to
filing also will be available for affiliates and nonaffiliated third parties electronic communications, which
inspection and copying at the principal (‘‘privacy notice’’). Title V of the GLBA further reduces the costs of delivery.
office of the Exchange. All comments also provides that, unless an exception Because SEC staff assumes that most
received will be posted without change. applies, a financial institution may not paper copies of privacy and opt out
Persons submitting comments are disclose nonpublic personal information notices are combined with other
daltland on DSKBBV9HB2PROD with NOTICES

cautioned that we do not redact or edit of a consumer to a nonaffiliated third required mailings, the burden-hour
personal identifying information from party unless the financial institution estimates above are based on resources
comment submissions. You should clearly and conspicuously discloses to required to integrate the privacy and opt
submit only information that you wish the consumer that such information may notices into another mailing, rather than
to make available publicly. All be disclosed to such third party; the on the resources required to create and
submissions should refer to File send a separate mailing. SEC staff
Number SR–Phlx–2018–53 and should 25 17 CFR 200.30–3(a)(12). estimates that, of the estimated 12

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Document Created: 2018-08-15 01:25:58
Document Modified: 2018-08-15 01:25:58
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		83 FR 40582