[Federal Register Volume 78, Number 178 (Friday, September 13, 2013)]
[Page 56759]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22257]



Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, 100 F Street 
NE., Washington, DC 20549-0213.

    Regulation S-AM; SEC File No. 270-548, OMB Control No. 3235-

    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 Regulation S-AM (17 CFR Part 
248, Subpart B), under the Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) (``FCRA''), the Securities Exchange Act of 1934 (15 U.S.C. 78a et 
seq.), the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), 
and the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.). The 
Commission plans to submit this existing collection of information to 
the Office of Management and Budget (``OMB'') for extension and 
    Regulation S-AM implements the requirements of Section 624 of the 
FCRA (15 U.S.C. 1681s-3) as applied to brokers, dealers, and investment 
companies, as well as investment advisers and transfer agents that are 
registered with the Commission (collectively, ``Covered Persons''). 
Under Section 624 and the regulation, before a receiving affiliate may 
make marketing solicitations based on the communication of certain 
consumer financial information from a Covered Person, the Covered 
Person must provide a notice to each affected individual informing the 
individual of his or her right to prohibit such marketing. The 
regulation potentially applies to all of the approximately 19,856 
Covered Persons registered with the Commission, although only 
approximately 11,119 of them have one or more corporate affiliates, and 
the regulation requires only approximately 1,986 to provide consumers 
with an affiliate marketing notice and an opt-out opportunity.
    The Commission staff estimates that there are approximately 11,119 
Covered Persons having one or more affiliates, and that they each spend 
an average of 0.20 hours per year to review affiliate marketing 
practices, for, collectively, an estimated annual time burden of 2,224 
hours at an annual internal staff cost of approximately $980,784. The 
staff also estimates that approximately 1,986 Covered Persons provide 
notice and opt-out opportunities to consumers, and that they each spend 
an average of 7.6 hours per year creating notices, providing notices 
and opt-out opportunities, monitoring the opt-out notice process, 
making and updating records of opt-out elections, and addressing 
consumer questions and concerns about opt-out notices, for, 
collectively, an estimated annual time burden of 15,094 hours at an 
annual internal staff cost of approximately $2,705,054. Thus, the staff 
estimates that the collection of information requires a total of 
approximately 11,119 respondents to incur an estimated annual burden of 
a total of 17,318 hours at a total annual internal cost of compliance 
of approximately $3,339,438.
    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: Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email 
to: [email protected].

    Dated: September 9, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-22257 Filed 9-12-13; 8:45 am]