Submission for OMB Review; Comment Request
| Published date | 24 June 2019 |
| Citation | 84 FR 29562 |
| Record Number | 2019-13298 |
| Section | Notices |
| Court | Securities And Exchange Commission |
Federal Register, Volume 84 Issue 121 (Monday, June 24, 2019)
[Federal Register Volume 84, Number 121 (Monday, June 24, 2019)]
[Notices]
[Pages 29562-29563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13298]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-549, OMB Control No. 3235-0610]
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: Rule 248.30
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'') has submitted to the Office of
Management and Budget a request for extension of the previously
approved collection of information discussed below.
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 2018, there are 3,926 broker-
dealers, 4,095 investment companies, and 13,230 investment advisers
registered with the Commission, for a total of 21,251 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 1,350 broker-dealers, investment companies,
or investment advisers register with the Commission annually. However,
we also expect that approximately 55% of these newly registered covered
institutions, or 743 institutions, 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 11,145
hours. We expect that half of this time would be incurred by inside
counsel at an hourly rate of $401, and half would be by a compliance
officer at an hourly rate of $352, for a total cost of $4,196,093.
Finally, we expect that the 607 newly registered entities that are
not affiliated with an existing institution will incur a significantly
higher hourly burden in reviewing and documenting their safeguard
policies and procedures. We expect that virtually all of the newly
registered covered entities that do not
[[Page 29563]]
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 36,420 hours
for all newly registered unaffiliated entities. We expect that half of
this time would be incurred by inside counsel at an hourly rate of
$401, and half would be by a compliance officer at an hourly rate of
$352, for a total cost of $13,712,130.
Therefore, we estimate that the total annual hourly burden
associated with the safeguards rule is 47,565 hours at a total hourly
cost of $17,908,223. We also estimate that all covered institutions
will be respondents each year, for a total of 21,251 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.
The public may view the 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, 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 Lindsay.M.
[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 send an email to
[email protected]. Comments must be submitted to OMB within 30 days
of this notice.
Dated: June 18, 2019.
Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-13298 Filed 6-21-19; 8:45 am]
BILLING CODE 8011-01-P
