Notice2024-20134
Submission for OMB Review; Comment Request; Extension: Regulation S-P
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
September 6, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 173 (Friday, September 6, 2024)</title>
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[Federal Register Volume 89, Number 173 (Friday, September 6, 2024)]
[Notices]
[Pages 72916-72917]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-20134]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-480, OMB Control No. 3235-0537]
Submission for OMB Review; Comment Request; Extension: Regulation
S-P
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services,
[[Page 72917]]
100 F Street NE, Washington, DC 20549-2736
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
requires 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 April 1, 2024, the Rule's
information collection burden applies to approximately 32,707 covered
entities (approximately 3,410 broker-dealers, 15,531 investment
advisers registered with the Commission, and 13,766 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 392,484 annual burden hours (12 x 32,707 =
392,484). 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 $90, and approximately 4
hours would be spent by internal counsel at an hourly rate of $518, for
a total annual internal cost of compliance of approximately $2,792 for
each of the covered entities (8 x $90 = $720; 4 x $518 = $2,072; $720 +
$2,072 = $2,792). 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 annual internal cost of compliance for the
estimated total hour burden for the approximately 32,707 covered
entities subject to the Rule is approximately $91,371,944 ($2,792 x
32,707 = $91,317,944).
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 by October 7, 2024 to (i) <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a> and (ii) Austin Gerig, Director/Chief Data Officer,
Securities and Exchange Commission, c/o Oluwaseun Ajayi, 100 F Street
NE, Washington, DC 20549, or by sending an email to:
<a href="/cdn-cgi/l/email-protection#401012011f0d21292c222f38003325236e272f36"><span class="__cf_email__" data-cfemail="d8888a998795b9b1b4bab7a098abbdbbf6bfb7ae">[email protected]</span></a>.
Dated: September 3, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-20134 Filed 9-5-24; 8:45 am]
BILLING CODE 8011-01-P
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