[Federal Register Volume 78, Number 20 (Wednesday, January 30, 2013)]
[Notices]
[Pages 6361-6362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-01936]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 248.30; OMB Control No. 3235-0610, SEC File No. 270-549.
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'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit this existing collection of information to the Office of
Management and Budget for extension and approval.
Rule 248.30 (17 CFR 248.30), under Regulation S-P is titled
``Procedures to Safeguard Customer Records and Information; Disposal of
Consumer Report Information.'' Rule 248.30 (the ``safeguard rule'')
requires brokers, dealers, investment companies, and investment
advisers registered with the Commission (``registered investment
advisers'') (collectively ``covered institutions'') to adopt written
policies and procedures for administrative, technical, and physical
safeguards to protect customer records and information. The safeguards
must be reasonably designed to ``insure the security and
confidentiality of customer records and information,'' ``protect
against any anticipated threats or hazards to the security and
integrity'' of those records, and protect against unauthorized access
to or use of those records or information, which ``could result in
substantial harm or inconvenience to any customer.'' The safeguard
rule's requirement that covered institutions' policies and procedures
be documented in writing constitutes a collection of information and
must be maintained on an ongoing basis. This requirement eliminates
uncertainty as to required employee actions to protect customer records
and information and promotes more systematic and organized reviews of
safeguard policies and procedures by institutions. The information
collection also assists the Commission's examination staff in assessing
the existence and adequacy of covered institutions' safeguard policies
and procedures.
We estimate that as of the end of 2011, there are 4,695 broker-
dealers, 4,203 investment companies, and 11,658 investment advisers
currently registered with the Commission, for a total of 20,556 covered
institutions. We believe that all of these covered institutions have
already documented their safeguard policies and procedures in writing
and therefore will incur no hourly burdens related to the initial
documentation of policies and procedures.
Although existing covered institutions would not incur any initial
hourly burden in complying with the safeguards rule, we expect that
newly registered institutions would incur some hourly burdens
associated with documenting their safeguard policies and procedures. We
estimate that approximately 1,500 broker-dealers, investment companies,
or investment advisers register with the Commission annually. However,
we also expect that approximately 70% of these newly registered covered
institutions (1,050) are affiliated with an existing covered
institution, and will rely on an organization-wide set of previously
documented safeguard policies and procedures created by their
affiliates. We estimate that these affiliated newly registered covered
institutions will incur a significantly reduced hourly burden in
complying with the safeguards rule, as they will need only to review
their affiliate's existing policies and procedures, and identify and
adopt the relevant policies for their business. Therefore, we expect
that newly registered covered institutions with existing affiliates
will incur an hourly burden of approximately 15 hours in identifying
and adopting safeguard policies and procedures for their business, for
a total hourly burden for all affiliated new institutions of 15,750
hours.
Finally, we expect that the 450 newly registered entities that are
not affiliated with an existing institution will incur a significantly
higher hourly burden in
[[Page 6362]]
reviewing and documenting their safeguard policies and procedures. We
expect that virtually all of the newly registered covered entities that
do not have an affiliate are likely to be small entities and are likely
to have smaller and less complex operations, with a correspondingly
smaller set of safeguard policies and procedures to document, compared
to other larger existing institutions with multiple affiliates. We
estimate that it will take a typical newly registered unaffiliated
institution approximately 60 hours to review, identify, and document
their safeguard policies and procedures, for a total of 27,000 hours
for all newly registered unaffiliated entities.
Therefore, we estimate that the total annual hourly burden
associated with the safeguards rule is 42,750 hours. We also estimate
that all covered institutions will be respondents each year, for a
total of 20,556 respondents.
These estimates of average burden hours are made solely for the
purposes of the Paperwork Reduction Act. 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
safeguard rule does not require the reporting of any information or the
filing of any documents with the Commission. The collection of
information required by the safeguard rule is mandatory.
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the 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.
Please direct your written comments to Thomas Bayer, Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an
email to: [email protected].
Dated: January 24, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01936 Filed 1-29-13; 8:45 am]
BILLING CODE 8011-01-P