Submission for OMB Review; Comment Request, 20698-20699 [2013-07944]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 66 (Friday, April 5, 2013)]
[Notices]
[Pages 20698-20699]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-07944]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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'') 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 2011, there are 4695 broker-
dealers, 4203 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

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hourly burdens associated with documenting their safeguard policies and 
procedures. We estimate that approximately 1500 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 (1050) 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 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.
    The public may view the background documentation for this 
information collection at the following Web site, 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: Shagufta_Ahmed@omb.eop.gov; and (ii) 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: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of 
this notice.

    Dated: April 1, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-07944 Filed 4-4-13; 8:45 am]
BILLING CODE 8011-01-P