83 FR 57761 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 222 (November 16, 2018)

Page Range		57761-57762
FR Document		2018-25049
Federal Register, Volume 83 Issue 222 (Friday, November 16, 2018)
[Federal Register Volume 83, Number 222 (Friday, November 16, 2018)]
[Notices]
[Pages 57761-57762]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25049]


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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-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 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 
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 19,876 covered entities subject to the 
Rule is approximately $47,969,960 ($2,344 x 20,465 = $47,969,960).
    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 website: www.reginfo.gov. Comments should 
be directed to: (i) Desk Officer for the Securities and Exchange 
Commission,

[[Page 57762]]

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) 
Charles Riddle, Acting Director/Chief Information Officer, Securities 
and Exchange Commission, c/o Candace Kenner, 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: November 13, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25049 Filed 11-15-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices 57761

proposed rule change between the V of the Gramm-Leach-Bliley Act communications such as account
Commission and any person, other than (‘‘GLBA’’), which include the opening documents and account
those that may be withheld from the requirement that, at the time of statements. Because the other
public in accordance with the establishing a customer relationship communications are already delivered
provisions of 5 U.S.C. 552, will be with a consumer and not less than to consumers, adding a brief privacy
available for website viewing and annually during the continuation of and opt out notice should not result in
printing in the Commission’s Public such relationship, a financial institution added costs for processing or for postage
Reference Room, 100 F Street NE, shall provide a clear and conspicuous and materials. Also, privacy and opt out
Washington, DC 20549 on official disclosure to such consumer of such notices may be delivered electronically
business days between the hours of financial institution’s policies and to consumers who have agreed to
10:00 a.m. and 3:00 p.m. Copies of the practices with respect to disclosing electronic communications, which
filing also will be available for nonpublic personal information to further reduces the costs of delivery.
inspection and copying at the principal affiliates and nonaffiliated third parties Because SEC staff assumes that most
office of the Exchange. All comments (‘‘privacy notice’’). Title V of the GLBA paper copies of privacy and opt out
received will be posted without change. also provides that, unless an exception notices are combined with other
Persons submitting comments are applies, a financial institution may not required mailings, the burden-hour
cautioned that we do not redact or edit disclose nonpublic personal information estimates above are based on resources
personal identifying information from of a consumer to a nonaffiliated third required to integrate the privacy and opt
comment submissions. You should party unless the financial institution notices into another mailing, rather than
submit only information that you wish clearly and conspicuously discloses to on the resources required to create and
to make available publicly. All the consumer that such information may send a separate mailing. SEC staff
submissions should refer to File be disclosed to such third party; the estimates that, of the estimated 12
Number SR–NASDAQ–2018–086, and consumer is given the opportunity, annual burden-hours incurred,
should be submitted on or before before the time that such information is approximately 8 hours would be spent
December 7, 2018. initially disclosed, to direct that such by administrative assistants at an hourly
For the Commission, by the Division of information not be disclosed to such rate of $82, and approximately 4 hours
Trading and Markets, pursuant to delegated third party; and the consumer is given would be spent by internal counsel at an
authority.12 an explanation of how the consumer can hourly rate of $422, for a total
Brent J. Fields, exercise that nondisclosure option (‘‘opt annualized internal cost of compliance
Secretary. out notice’’). The Rule applies to broker- of $2,344 for each of the covered entities
[FR Doc. 2018–25031 Filed 11–15–18; 8:45 am] dealers, investment advisers registered (8 × $82 = $656; 4 × $422 = $1,688; $656
with the Commission, and investment + $1,688 = $2,344). Hourly cost of
BILLING CODE 8011–01–P
companies (‘‘covered entities’’). compliance estimates for administrative
assistant time are derived from the
Commission staff estimates that, as of
SECURITIES AND EXCHANGE Securities Industry and Financial
March 31, 2018, the Rule’s information Markets Association’s Office Salaries in
COMMISSION collection burden applies to the Securities Industry 2013, modified
approximately 20,465 covered entities by SEC staff to account for an 1,800-
Submission for OMB Review;
(approximately 3,857 broker-dealers, hour work-year and multiplied by 2.93
Comment Request
12,643 investment advisers registered to account for bonuses, firm size,
Upon Written Request, Copies Available with the Commission, and 3,965 employee benefits and overhead. Hourly
From: Securities and Exchange investment companies). In view of (a) cost of compliance estimates for internal
Commission, Office of FOIA Services, the minimal recordkeeping burden counsel time are derived from the
100 F Street NE, Washington, DC imposed by the Rule (since the Rule has Securities Industry and Financial
20549–2736 no recordkeeping requirement and Markets Association’s Management &
Extension: records relating to customer Professional Earnings in the Securities
Regulation S–P SEC File No. 270–480, communications already must be made Industry 2013, modified by SEC staff to
OMB Control No. 3235–0537 and retained pursuant to other SEC account for an 1,800-hour work-year
Notice is hereby given that, pursuant rules); (b) the summary fashion in and multiplied by 5.35 to account for
to the Paperwork Reduction Act of 1995 which information must be provided to bonuses, firm size, employee benefits,
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the customers in the privacy and opt out and overhead. Accordingly, SEC staff
Securities and Exchange Commission notices required by the Rule (the model estimates that the total annualized
(‘‘Commission’’) has submitted to the privacy form adopted by the SEC and internal cost of compliance for the
Office of Management and Budget the other agencies in 2009, designed to estimated total hour burden for the
(‘‘OMB’’) a request for approval of serve as both a privacy notice and an approximately 19,876 covered entities
extension of the previously approved opt out notice, is only two pages); (c) the subject to the Rule is approximately
collection of information provided for in availability to covered entities of the $47,969,960 ($2,344 × 20,465 =
the privacy notice and opt out notice model privacy form and online model $47,969,960).
provisions of Regulation S–P—Privacy privacy form builder; and (d) the An agency may not conduct or
of Consumer Financial Information (17 experience of covered entities’ staff with sponsor, and a person is not required to
CFR part 248, subpart A) under the the notices, SEC staff estimates that respond to, a collection of information
Securities Exchange Act of 1934 covered entities will each spend an under the PRA unless it displays a
amozie on DSK3GDR082PROD with NOTICES

(‘‘Exchange Act’’) (15 U.S.C. 78a et seq.). average of approximately 12 hours per currently valid OMB control number.
The privacy notice and opt out notice year complying with the Rule, for a total The public may view background
provisions of Regulation S–P (the of approximately 245,580 annual documentation for this information
‘‘Rule’’) implement the privacy notice burden-hours (12 × 20,465 = 245,580). collection at the following website:
and opt out notice requirements of Title SEC staff understands that the vast www.reginfo.gov. Comments should be
majority of covered entities deliver their directed to: (i) Desk Officer for the
12 17 CFR 200.30–3(a)(12). privacy and opt out notices with other Securities and Exchange Commission,

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57762 Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices

Office of Information and Regulatory Rule 17Ad–13 as are transfer agents that be submitted to OMB within 30 days of
Affairs, Office of Management and service only their own companies’ this notice.
Budget, Room 10102, New Executive securities. Dated: November 13, 2018.
Office Building, Washington, DC 20503, Approximately 100 independent,
Eduardo A. Aleman,
or by sending an email to: professional transfer agents must file the
independent accountant’s report Assistant Secretary.
Lindsay.M.Abate@omb.eop.gov; and (ii)
annually. We estimate that the annual [FR Doc. 2018–25048 Filed 11–15–18; 8:45 am]
Charles Riddle, Acting Director/Chief
Information Officer, Securities and internal time burden for each transfer BILLING CODE 8011–01–P

Exchange Commission, c/o Candace agent to comply with Rule 17Ad–13 by
Kenner, 100 F Street NE, Washington, submitting the report prepared by the
independent accountant to the SECURITIES AND EXCHANGE
DC 20549, or by sending an email to:
Commission is minimal. The time COMMISSION
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of required for the independent accountant [Release No. 34–84572; File No. SR–BX–
this notice. to prepare the accountant’s report varies 2018–052]
with each transfer agent depending on
Dated: November 13, 2018.
the size and nature of the transfer Self-Regulatory Organizations; Nasdaq
Eduardo A. Aleman, agent’s operations. The Commission BX, Inc.; Notice of Filing and
Assistant Secretary. estimates that, on average, each report Immediate Effectiveness of Proposed
[FR Doc. 2018–25049 Filed 11–15–18; 8:45 am] can be completed by the independent Rule Change To Amend General 8 of
BILLING CODE 8011–01–P accountant in 120 hours, resulting in a the Exchange’s Rules
total of 12,000 external hours annually
(120 hours × 100 reports). The burden November 9, 2018.
SECURITIES AND EXCHANGE was estimated using Commission review Pursuant to Section 19(b)(1) of the
COMMISSION of filed Rule 17Ad–13 reports. The Securities Exchange Act of 1934
Commission estimates that, on average, (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Submission for OMB Review; 120 hours are needed to perform the notice is hereby given that on October
Comment Request study, prepare the report, and retain the 29, 2018, Nasdaq BX, Inc. (‘‘BX’’ or
Upon Written Request, Copies Available required records on an annual basis. ‘‘Exchange’’) filed with the Securities
From: Securities and Exchange Assuming an average hourly rate of an and Exchange Commission
Commission, Office of FOIA Services, independent accountant of $60, the (‘‘Commission’’) the proposed rule
100 F Street NE, Washington, DC average total annual cost of the report is change as described in Items I and II
20549–2736 $7,200. The total annual cost for the below, which Items have been prepared
approximate 100 respondents is by the Exchange. The Commission is
Extension: publishing this notice to solicit
approximately $720,000.
Rule 17Ad–13 SEC File No. 270–263; OMB
Control No. 3235–0275
The retention period for the comments on the proposed rule change
recordkeeping requirement under Rule from interested persons.
Notice is hereby given that pursuant 17Ad–13 is three years following the
to the Paperwork Reduction Act of 1995 I. Self-Regulatory Organization’s
date of a report prepared pursuant to the
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the rule. The recordkeeping requirement Statement of the Terms of Substance of
Securities and Exchange Commission under Rule 17Ad–13 is mandatory to the Proposed Rule Change
(‘‘Commission’’) has submitted to the assist the Commission and other The Exchange proposes to amend
Office of Management and Budget regulatory agencies with monitoring General 8 of the Exchange’s Rules, as
(‘‘OMB’’) a request for approval of transfer agents and ensuring compliance described below.
extension of the previously approved with the rule. This rule does not involve The text of the proposed rule change
collection of information provided for in the collection of confidential is available on the Exchange’s website at
Rule 17Ad–13 (17 CFR 240.17Ad–13), information. http://nasdaqbx.cchwallstreet.com/, at
under the Securities Exchange Act of An agency may not conduct or the principal office of the Exchange, and
1934 (15 U.S.C. 78a et seq.). sponsor, and a person is not required to at the Commission’s Public Reference
Rule 17Ad–13 requires an annual respond to, a collection of information Room.
study and evaluation of internal under the PRA unless it displays a
accounting controls under the Securities currently valid OMB control number. II. Self-Regulatory Organization’s
Exchange Act of 1934 (15 U.S.C. 78a et The public may view background Statement of the Purpose of, and
seq.). It requires approximately 100 documentation for this information Statutory Basis for, the Proposed Rule
registered transfer agents to obtain an collection at the following website: Change
annual report on the adequacy of their www.reginfo.gov. Comments should be In its filing with the Commission, the
internal accounting controls from an directed to: (i) Desk Officer for the Exchange included statements
independent accountant. In addition, Securities and Exchange Commission, concerning the purpose of and basis for
transfer agents must maintain copies of Office of Information and Regulatory the proposed rule change and discussed
any reports prepared pursuant to Rule Affairs, Office of Management and any comments it received on the
17Ad–13 plus any documents prepared Budget, Room 10102, New Executive proposed rule change. The text of these
to notify the Commission and Office Building, Washington, DC 20503 statements may be examined at the
appropriate regulatory agencies in the or by sending an email to: places specified in Item IV below. The
amozie on DSK3GDR082PROD with NOTICES

event that the transfer agent is required Lindsay.M.Abate@omb.eop.gov; and (ii) Exchange has prepared summaries, set
to take any corrective action. These Charles Riddle, Acting Director/Chief forth in sections A, B, and C below, of
recordkeeping requirements assist the Information Officer, Securities and the most significant aspects of such
Commission and other regulatory Exchange Commission, c/o Candace statements.
agencies with monitoring transfer agents Kenner, 100 F Street NE, Washington,
and ensuring compliance with the rule. DC 20549, or by sending an email to 1 15 U.S.C. 78s(b)(1).
Small transfer agents are exempt from PRA_Mailbox@sec.gov. Comments must 2 17 CFR 240.19b–4.

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Document Created: 2018-11-16 07:22:16
Document Modified: 2018-11-16 07:22:16
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 57761