Notice2021-24140
Submission for OMB Review; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 5, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 212 (Friday, November 5, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 212 (Friday, November 5, 2021)]
[Notices]
[Pages 61369-61370]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24140]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-480, OMB Control No. 3235-0537]
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
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 June 30, 2021, the Rule's
information collection burden applies to approximately 21,875 covered
entities (approximately 3,560 broker-dealers, 14,381 investment
advisers registered with the Commission, and 3,934 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 262,500 annual burden hours (12 x 21,875 =
262,500). 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 $83, and approximately 4
hours would be spent by internal counsel at an hourly rate of $428, for
a total annual internal cost of compliance of approximately $2,376 for
each of the covered entities (8 x $83 = $664; 4 x $428 = $1,712; $664 +
$1,712 = $2,376). Hourly cost of compliance estimates for
[[Page 61370]]
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 annual internal cost of compliance for the
estimated total hour burden for the approximately 21,875 covered
entities subject to the Rule is approximately $51,975,000 ($2,376 x
21,875 = $51,975,000).
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: ><a href="http://www.reginfo.gov">www.reginfo.gov</a><. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to (i) ><a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>< and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John R. Pezzullo, 100 F Street NE, Washington, DC 20549, or by
sending an email to: <a href="/cdn-cgi/l/email-protection#ce9e9c8f9183afa7a2aca1b68ebdabade0a9a1b8"><span class="__cf_email__" data-cfemail="ebbbb9aab4a68a8287898493ab988e88c58c849d">[email protected]</span></a>.
Dated: November 1, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-24140 Filed 11-4-21; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on November 5, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.