Proposed Collection; Comment Request, 4549-4551 [2019-01368]
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Federal Register / Vol. 84, No. 32 / Friday, February 15, 2019 / Notices
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routinely edited to remove identifying
or contact information.
If you are requesting or aggregating
comments from other persons for
submission to the OMB, then you
should inform those persons not to
include identifying or contact
information that they do not want to be
publicly disclosed in their comment
submission. Your request should state
that comment submissions are not
routinely edited to remove such
information before making the comment
submissions available to the public or
entering the comment into ADAMS.
II. Background
Under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. chapter 35), the NRC recently
submitted a request for renewal of an
existing collection of information to
OMB for review entitled, NRC Form
664, ‘‘General Licensee Registration.’’
The NRC hereby informs potential
respondents that an agency may not
conduct or sponsor, and that a person is
not required to respond to, a collection
of information unless it displays a
currently valid OMB control number.
The NRC published a Federal
Register notice with a 60-day comment
period on this information collection on
September 7, 2018 (83 FR 45471).
1. The title of the information
collection: NRC Form 664, ‘‘General
Licensee Registration.’’
2. OMB approval number: 3150–0198.
3. Type of submission: Extension.
4. The form number if applicable:
NRC Form 664.
5. How often the collection is required
or requested: Annually.
6. Who will be required or asked to
respond: General Licensees of the NRC
who possess certain generally licensed
devices subject to annual registration
authorized pursuant to section 31.5 of
Title 10 of the Code of Federal
Regulations (10 CFR).
7. The estimated number of annual
responses: 525.
8. The estimated number of annual
respondents: 525.
9. AAn estimate of the total number
of hours needed annually to comply
with the information collection
requirement or request: 175 hours (525
annual responses × 1⁄3 hours).
10. Abstract: NRC Form 664 is used
by NRC general licensees to make
reports regarding certain generally
licensed devices subject to annual
registration. The registration program
allows NRC to better track general
licensees, so that they can be contacted
or inspected as necessary, and to make
sure that generally licensed devices can
be identified even if lost or damaged.
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Also, the registration program ensures
that general licensees are aware of and
understand the requirements for the
possession, use, and disposal of devices
containing byproduct material. Greater
awareness helps to ensure that general
licensees will comply with the
regulatory requirements for proper
handling and disposal of generally
licensed devices and would reduce the
potential for incidents that could result
in unnecessary radiation exposure to the
public and contamination of property.
Dated at Rockville, Maryland, this 11th day
of February 2019.
For the Nuclear Regulatory Commission.
Kristen E. Benney,
Acting NRC Clearance Officer, Office of the
Chief Information Officer.
[FR Doc. 2019–02458 Filed 2–14–19; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; 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:
Regulation S–ID, SEC File No. 270–644,
OMB Control No. 3235–0692
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.
Regulation S–ID (17 CFR 248),
including the information collection
requirements thereunder, is designed to
better protect investors from the risks of
identity theft. Under Regulation S–ID,
SEC-regulated entities are required to
develop and implement reasonable
policies and procedures to identify,
detect, and respond to relevant red flags
(the ‘‘Identity Theft Red Flags Rules’’)
and, in the case of entities that issue
credit or debit cards, to assess the
validity of, and communicate with
cardholders regarding, address changes.
Section 248.201 of Regulation S–ID
includes the following information
collection requirements for each SECregulated entity that qualifies as a
‘‘financial institution’’ or ‘‘creditor’’
under Regulation S–ID and that offers or
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4549
maintains covered accounts: (i) Creation
and periodic updating of an identity
theft prevention program (‘‘Program’’)
that is approved by the board of
directors, an appropriate committee
thereof, or a designated senior
management employee; (ii) periodic
staff reporting to the board of directors
on compliance with the Identity Theft
Red Flags Rules and related guidelines;
and (iii) training of staff to implement
the Program. Section 248.202 of
Regulation S–ID includes the following
information collection requirements for
each SEC-regulated entity that is a credit
or debit card issuer: (i) Establishment of
policies and procedures that assess the
validity of a change of address
notification if a request for an additional
or replacement card on the account
follows soon after the address change;
and (ii) notification of a cardholder,
before issuance of an additional or
replacement card, at the previous
address or through some other
previously agreed-upon form of
communication, or alternatively,
assessment of the validity of the address
change request through the entity’s
established policies and procedures.
SEC staff estimates of the hour
burdens associated with section 248.201
under Regulation S–ID include the onetime burden of complying with this
section for newly-formed SEC-regulated
entities, as well as the ongoing costs of
compliance for all SEC-regulated
entities.
All newly-formed financial
institutions and creditors would be
required to conduct an initial
assessment of covered accounts, which
SEC staff estimates would entail a onetime burden of 2 hours. Staff estimates
that this burden would result in a cost
of $802 to each newly-formed financial
institution or creditor.1 To the extent a
financial institution or creditor offers or
maintains covered accounts, SEC staff
estimates that the financial institution
or creditor also would also incur a onetime burden of 25 hours to develop and
obtain board approval of a Program, and
a one-time burden of 4 hours to train the
financial institution’s or creditor’s staff,
for a total of 29 additional burden hours.
Staff estimates that these burdens would
result in additional costs of $14,266 for
each financial institution or creditor
that offers or maintains covered
accounts.2
1 This estimate is based on the following
calculation: 2 hours × $401 (hourly rate for internal
counsel) = $802. See infra note 2 (discussing the
methodology for estimating the hourly rate for
internal counsel).
2 SEC staff estimates that, of the 29 hours incurred
to develop and obtain board approval of a Program
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Federal Register / Vol. 84, No. 32 / Friday, February 15, 2019 / Notices
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SEC staff estimates that approximately
613 SEC-regulated financial institutions
and creditors are newly formed each
year.3 Each of these 613 entities will
need to conduct an initial assessment of
covered accounts, for a total of 1,226
hours at a total cost of $491,626.4 Of
these 613 entities, staff estimates that
approximately 90% (or 552) maintain
covered accounts.5 Accordingly, staff
estimates that the additional initial
burden for SEC-regulated entities that
are likely to qualify as financial
institutions or creditors and maintain
covered accounts is 16,008 hours at an
additional cost of $7,874,832.6 Thus, the
total initial estimated burden for all
newly-formed SEC-regulated entities is
and train the financial institution’s or creditor’s
staff, 10 hours will be spent by internal counsel at
an hourly rate of $401, 17 hours will be spent by
administrative assistants at an hourly rate of $78,
and 2 hours will be spent by the board of directors
as a whole at an hourly rate of $4,465. Thus, the
estimated $13,858 in additional costs is based on
the following calculation: (10 hours × $401 =
$4,010) + (17 hours × $78 = $1,326) + (2 hours ×
$4,465 = $8,930) = $14,266.
The cost estimate for internal counsel is derived
from SIFMA’s Management & Professional Earnings
in the Securities Industry 2013, modified to account
for an 1800-hour work-year and multiplied by 5.35
to account for bonuses, entity size, employee
benefits, and overhead, and adjusted for inflation.
The cost estimate for administrative assistants is
derived from SIFMA’s Office Salaries in the
Securities Industry 2013, modified to account for an
1800-hour work-year and multiplied by 2.93 to
account for bonuses, entity size, employee benefits,
and overhead, and adjusted for inflation. The cost
estimate for the board of directors is derived from
estimates made by SEC staff regarding typical board
size and compensation that is based on information
received from fund representatives and publiclyavailable sources, and adjusted for inflation.
3 Based on a review of new registrations typically
filed with the SEC each year, SEC staff estimates
that approximately 1,218 investment advisers, 109
broker dealers, 96 investment companies, and 2
ESCs typically apply for registration with the SEC
or otherwise are newly formed each year, for a total
of 1,425 entities that could be financial institutions
or creditors. Of these, staff estimates that all of the
investment companies, ESCs, and broker-dealers are
likely to qualify as financial institutions or
creditors, and 33% of investment advisers (or 406)
are likely to qualify. See Adopting Release, supra
note at n.190 (discussing the staff’s analysis
supporting its estimate that 33% of investment
advisers are likely to qualify as financial
institutions or creditors). We therefore estimate that
a total of 613 total financial institutions or creditors
will bear the initial one-time burden of assessing
covered accounts under Regulation S–ID.
4 These estimates are based on the following
calculations: 613 entities × 2 hours = 1,226 hours;
613 entities × $802 = $491,626.
5 In the Proposing Release, the SEC requested
comment on the estimate that approximately 90%
of all financial institutions and creditors maintain
covered accounts; the SEC received no comments
on this estimate.
6 These estimates are based on the following
calculations: 552 financial institutions and creditors
that maintain covered accounts × 29 hours = 16,008
hours; 552 financial institutions and creditors that
maintain covered accounts × $14,266 = $7,874,832.
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17,234 hours at a total estimated cost of
$8,366,458.7
Each financial institution and creditor
would be required to conduct periodic
assessments to determine if the entity
offers or maintains covered accounts,
which SEC staff estimates would entail
an annual burden of 1 hour per entity.
Staff estimates that this burden would
result in an annual cost of $401 to each
financial institution or creditor.8 To the
extent a financial institution or creditor
offers or maintains covered accounts,
staff estimates that the financial
institution or creditor also would incur
an annual burden of 2.5 hours to
prepare and present an annual report to
the board, and an annual burden of 7
hours to periodically review and update
the Program (including review and
preservation of contracts with service
providers, as well as review and
preservation of any documentation
received from service providers). Staff
estimates that these burdens would
result in additional annual costs of
$7,874 for each financial institution or
creditor that offers or maintains covered
accounts.9
SEC staff estimates that there are
9,922 SEC-regulated entities that are
either financial institutions or creditors,
and that all of these will be required to
periodically review their accounts to
determine if they offer or maintain
covered accounts, for a total of 9,922
hours for these entities at a total cost of
$3,978,722.10 Of these 9,922 entities,
7 These estimates are based on the following
calculations: 1,226 hours + 16,008 hours = 17,234
hours; $491,626 + $7,874,832 = $8,366,458.
8 This estimate is based on the following
calculation: 1 hour × $401 (hourly rate for internal
counsel) = $401. See supra note 2 (discussing the
methodology for estimating the hourly rate for
internal counsel).
9 Staff estimates that, of the 9.5 hours incurred to
prepare and present the annual report to the board
and periodically review and update the Program,
8.5 hours will be spent by internal counsel at an
hourly rate of $401, and 1 hour will be spent by
the board of directors as a whole at an hourly rate
of $4,465. Thus, the estimated $7,874 in additional
annual costs is based on the following calculation:
(8.5 hours × $401 = $3,409) + (1 hour × $4,465 =
$4,465) = $7,874. See supra note 2 (discussing the
methodology for estimating the hourly rate for
internal counsel and the board of directors).
10 Based on a review of entities that the SEC
regulates, SEC staff estimates that, as of September
1, 2018, there are approximately 13,181 investment
advisers, 3,839 broker-dealers, 1,589 active openend investment companies, and 100 ESCs. Of these,
staff estimates that all of the broker-dealers, openend investment companies and ESCs are likely to
qualify as financial institutions or creditors. We
also estimate that approximately 33% of investment
advisers, or 4,394 investment advisers, are likely to
qualify. See Adopting Release, supra note at n.190
(discussing the staff’s analysis supporting its
estimate that 33% of investment advisers are likely
to qualify as financial institutions or creditors). We
therefore estimate that a total of 9,922 financial
institutions or creditors will bear the ongoing
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staff estimates that approximately 90
percent, or 8,930, maintain covered
accounts, and thus will need the
additional burdens related to complying
with the rules.11 Accordingly, staff
estimates that the additional annual
burden for SEC-regulated entities that
qualify as financial institutions or
creditors and maintain covered accounts
is 84,835 hours at an additional cost of
$70,314,820.12 Thus, the total estimated
ongoing annual burden for all SECregulated entities is 94,757 hours at a
total estimated annual cost of
$74,293,542.13
The collections of information
required by section 248.202 under
Regulation S–ID will apply only to SECregulated entities that issue credit or
debit cards. SEC staff understands that
SEC-regulated entities generally do not
issue credit or debit cards, but instead
partner with other entities, such as
banks, that issue cards on their behalf.
These other entities, which are not
regulated by the SEC, are already subject
to substantially similar change of
address obligations pursuant to other
federal regulators’ identity theft red
flags rules. Therefore, staff does not
expect that any SEC-regulated entities
will be subject to the information
collection requirements of section
248.202, and accordingly, staff estimates
that there is no hour burden related to
section 248.202 for SEC-regulated
entities.
In total, SEC staff estimates that the
aggregate annual information collection
burden of Regulation S–ID is 111,991
hours (17,234 hours + 94,757 hours).
This estimate of burden hours is made
solely for the purposes of the Paperwork
Reduction Act and is not derived from
a quantitative, comprehensive, or even
representative survey or study of the
burdens associated with Commission
rules and forms. Compliance with
burden of assessing covered accounts under
Regulation S–ID. (The SEC staff estimates that the
other types of entities that are covered by the scope
of the SEC’s rules will not be financial institutions
or creditors and therefore will not be subject to the
rules’ requirements.)
The estimates of 9,922 hours and $3,784,800 are
based on the following calculations: 9,922 financial
institutions and creditors × 1 hour = 9,922 hours;
9,922 financial institutions and creditors × $401 =
$3,978,722.
11 See supra note 5 and accompanying text. If a
financial institution or creditor does not maintain
covered accounts, there would be no ongoing
annual burden for purposes of the PRA.
12 These estimates are based on the following
calculations: 8,930 financial institutions and
creditors that maintain covered accounts × 9.5
hours = 84,835 hours; 8,930 financial institutions
and creditors that maintain covered accounts ×
$7,874 = $70,314,820.
13 These estimates are based on the following
calculations: 9,922 hours + 84,835 hours = 94,757
hours; $3,978,722 + $70,314,820 = $74,293,542.
E:\FR\FM\15FEN1.SGM
15FEN1
Federal Register / Vol. 84, No. 32 / Friday, February 15, 2019 / Notices
Regulation S–ID, including compliance
with the information collection
requirements thereunder, is mandatory
for each SEC-regulated entity that
qualifies as a ‘‘financial institution’’ or
‘‘creditor’’ under Regulation S–ID (as
discussed above, certain collections of
information under Regulation S–ID are
mandatory only for financial
institutions or creditors that offer or
maintain covered accounts). Responses
will not be kept confidential. 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.
Written comments are invited on: (i)
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;
(ii) the accuracy of the agency’s estimate
of the burden of the collection of
information; (iii) ways to enhance the
quality, utility, and clarity of the
information collected; and (iv) 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 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: PRA_
Mailbox@sec.gov.
Dated: February 1, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–01368 Filed 2–14–19; 8:45 am]
khammond on DSKBBV9HB2PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85098; File No. SR–
CboeEDGA–2019–001]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating To
Amend the Exchange’s Ninth Amended
and Restated Bylaws (the ‘‘Exchange
Bylaws’’) the Fourth Amended and
Restated Bylaws (the ‘‘Parent Bylaws’’)
of Its Parent Corporation, Cboe Global
Markets, Inc. (‘‘Cboe’’ or the ‘‘Parent’’)
February 11, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
28, 2019, Cboe EDGA Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGA’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) proposes to
amend the Exchange’s Ninth Amended
and Restated Bylaws (the ‘‘Exchange
Bylaws’’) the Fourth Amended and
Restated Bylaws (the ‘‘Parent Bylaws’’)
of its parent corporation, Cboe Global
Markets, Inc. (‘‘Cboe’’ or the ‘‘Parent’’).
The text of the proposed amendments to
the Exchange Bylaws is included in
Exhibit 5A, and the text of the proposed
amendments to the Parent Bylaws is
included in Exhibit 5B.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegalRegulatory
Home.aspx), at the Exchange’s Office of
the Secretary, and at the Commission’s
Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The proposed rule change amends the
Exchange Bylaws to (1) amend the
provision regarding which offices may
be held by the same person and (2)
amend the description of the duties of
President of the Exchange. The
proposed rule change also amends the
Parent Bylaws to (1) amend the
description of the duties of President of
the Parent, (2) amend language relating
to the definition of ‘‘director
independence,’’ and (3) make a nonsubstantive update to the zip code for
the registered office the Corporation.
Offices Held by Same Person
Section 5.1(b) of the Exchange Bylaws
currently provides that two or more
offices may be held by the same person,
except the offices of Chief Executive
Officer and President.5 The Exchange
proposes to amend Section 5.1(b) of the
Exchange Bylaws to eliminate this
restriction, and thus permit the same
person to hold the offices of Chief
Executive Officer and President. This
proposal will provide the Exchange
with the flexibility to appoint the
person or persons it deems qualified
and appropriate to perform the duties of
both Chief Executive Officer and the
President.
Description of President
Section 5.3 of the Parent Bylaws and
Section 5.3 of the Exchange Bylaws each
provide that the President of the Parent
or Exchange, as applicable, shall be the
chief operating officer of the Parent or
Exchange, as applicable. The Exchange
proposes to amend Section 5.3 of each
of the Parent Bylaws and Section 5.3 of
5 Section 5.1(b) also prohibits the Chief Executive
Officer and President from also being the Secretary
or Assistant Secretary, which prohibition the
proposal does not substantively amend.
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]]>Agencies
[Federal Register Volume 84, Number 32 (Friday, February 15, 2019)]
[Notices]
[Pages 4549-4551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01368]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; 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:
Regulation S-ID, SEC File No. 270-644, OMB Control No. 3235-0692
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.
Regulation S-ID (17 CFR 248), including the information collection
requirements thereunder, is designed to better protect investors from
the risks of identity theft. Under Regulation S-ID, SEC-regulated
entities are required to develop and implement reasonable policies and
procedures to identify, detect, and respond to relevant red flags (the
``Identity Theft Red Flags Rules'') and, in the case of entities that
issue credit or debit cards, to assess the validity of, and communicate
with cardholders regarding, address changes. Section 248.201 of
Regulation S-ID includes the following information collection
requirements for each SEC-regulated entity that qualifies as a
``financial institution'' or ``creditor'' under Regulation S-ID and
that offers or maintains covered accounts: (i) Creation and periodic
updating of an identity theft prevention program (``Program'') that is
approved by the board of directors, an appropriate committee thereof,
or a designated senior management employee; (ii) periodic staff
reporting to the board of directors on compliance with the Identity
Theft Red Flags Rules and related guidelines; and (iii) training of
staff to implement the Program. Section 248.202 of Regulation S-ID
includes the following information collection requirements for each
SEC-regulated entity that is a credit or debit card issuer: (i)
Establishment of policies and procedures that assess the validity of a
change of address notification if a request for an additional or
replacement card on the account follows soon after the address change;
and (ii) notification of a cardholder, before issuance of an additional
or replacement card, at the previous address or through some other
previously agreed-upon form of communication, or alternatively,
assessment of the validity of the address change request through the
entity's established policies and procedures.
SEC staff estimates of the hour burdens associated with section
248.201 under Regulation S-ID include the one-time burden of complying
with this section for newly-formed SEC-regulated entities, as well as
the ongoing costs of compliance for all SEC-regulated entities.
All newly-formed financial institutions and creditors would be
required to conduct an initial assessment of covered accounts, which
SEC staff estimates would entail a one-time burden of 2 hours. Staff
estimates that this burden would result in a cost of $802 to each
newly-formed financial institution or creditor.\1\ To the extent a
financial institution or creditor offers or maintains covered accounts,
SEC staff estimates that the financial institution or creditor also
would also incur a one-time burden of 25 hours to develop and obtain
board approval of a Program, and a one-time burden of 4 hours to train
the financial institution's or creditor's staff, for a total of 29
additional burden hours. Staff estimates that these burdens would
result in additional costs of $14,266 for each financial institution or
creditor that offers or maintains covered accounts.\2\
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\1\ This estimate is based on the following calculation: 2 hours
x $401 (hourly rate for internal counsel) = $802. See infra note 2
(discussing the methodology for estimating the hourly rate for
internal counsel).
\2\ SEC staff estimates that, of the 29 hours incurred to
develop and obtain board approval of a Program and train the
financial institution's or creditor's staff, 10 hours will be spent
by internal counsel at an hourly rate of $401, 17 hours will be
spent by administrative assistants at an hourly rate of $78, and 2
hours will be spent by the board of directors as a whole at an
hourly rate of $4,465. Thus, the estimated $13,858 in additional
costs is based on the following calculation: (10 hours x $401 =
$4,010) + (17 hours x $78 = $1,326) + (2 hours x $4,465 = $8,930) =
$14,266.
The cost estimate for internal counsel is derived from SIFMA's
Management & Professional Earnings in the Securities Industry 2013,
modified to account for an 1800-hour work-year and multiplied by
5.35 to account for bonuses, entity size, employee benefits, and
overhead, and adjusted for inflation. The cost estimate for
administrative assistants is derived from SIFMA's Office Salaries in
the Securities Industry 2013, modified to account for an 1800-hour
work-year and multiplied by 2.93 to account for bonuses, entity
size, employee benefits, and overhead, and adjusted for inflation.
The cost estimate for the board of directors is derived from
estimates made by SEC staff regarding typical board size and
compensation that is based on information received from fund
representatives and publicly-available sources, and adjusted for
inflation.
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[[Page 4550]]
SEC staff estimates that approximately 613 SEC-regulated financial
institutions and creditors are newly formed each year.\3\ Each of these
613 entities will need to conduct an initial assessment of covered
accounts, for a total of 1,226 hours at a total cost of $491,626.\4\ Of
these 613 entities, staff estimates that approximately 90% (or 552)
maintain covered accounts.\5\ Accordingly, staff estimates that the
additional initial burden for SEC-regulated entities that are likely to
qualify as financial institutions or creditors and maintain covered
accounts is 16,008 hours at an additional cost of $7,874,832.\6\ Thus,
the total initial estimated burden for all newly-formed SEC-regulated
entities is 17,234 hours at a total estimated cost of $8,366,458.\7\
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\3\ Based on a review of new registrations typically filed with
the SEC each year, SEC staff estimates that approximately 1,218
investment advisers, 109 broker dealers, 96 investment companies,
and 2 ESCs typically apply for registration with the SEC or
otherwise are newly formed each year, for a total of 1,425 entities
that could be financial institutions or creditors. Of these, staff
estimates that all of the investment companies, ESCs, and broker-
dealers are likely to qualify as financial institutions or
creditors, and 33% of investment advisers (or 406) are likely to
qualify. See Adopting Release, supra note at n.190 (discussing the
staff's analysis supporting its estimate that 33% of investment
advisers are likely to qualify as financial institutions or
creditors). We therefore estimate that a total of 613 total
financial institutions or creditors will bear the initial one-time
burden of assessing covered accounts under Regulation S-ID.
\4\ These estimates are based on the following calculations: 613
entities x 2 hours = 1,226 hours; 613 entities x $802 = $491,626.
\5\ In the Proposing Release, the SEC requested comment on the
estimate that approximately 90% of all financial institutions and
creditors maintain covered accounts; the SEC received no comments on
this estimate.
\6\ These estimates are based on the following calculations: 552
financial institutions and creditors that maintain covered accounts
x 29 hours = 16,008 hours; 552 financial institutions and creditors
that maintain covered accounts x $14,266 = $7,874,832.
\7\ These estimates are based on the following calculations:
1,226 hours + 16,008 hours = 17,234 hours; $491,626 + $7,874,832 =
$8,366,458.
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Each financial institution and creditor would be required to
conduct periodic assessments to determine if the entity offers or
maintains covered accounts, which SEC staff estimates would entail an
annual burden of 1 hour per entity. Staff estimates that this burden
would result in an annual cost of $401 to each financial institution or
creditor.\8\ To the extent a financial institution or creditor offers
or maintains covered accounts, staff estimates that the financial
institution or creditor also would incur an annual burden of 2.5 hours
to prepare and present an annual report to the board, and an annual
burden of 7 hours to periodically review and update the Program
(including review and preservation of contracts with service providers,
as well as review and preservation of any documentation received from
service providers). Staff estimates that these burdens would result in
additional annual costs of $7,874 for each financial institution or
creditor that offers or maintains covered accounts.\9\
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\8\ This estimate is based on the following calculation: 1 hour
x $401 (hourly rate for internal counsel) = $401. See supra note 2
(discussing the methodology for estimating the hourly rate for
internal counsel).
\9\ Staff estimates that, of the 9.5 hours incurred to prepare
and present the annual report to the board and periodically review
and update the Program, 8.5 hours will be spent by internal counsel
at an hourly rate of $401, and 1 hour will be spent by the board of
directors as a whole at an hourly rate of $4,465. Thus, the
estimated $7,874 in additional annual costs is based on the
following calculation: (8.5 hours x $401 = $3,409) + (1 hour x
$4,465 = $4,465) = $7,874. See supra note 2 (discussing the
methodology for estimating the hourly rate for internal counsel and
the board of directors).
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SEC staff estimates that there are 9,922 SEC-regulated entities
that are either financial institutions or creditors, and that all of
these will be required to periodically review their accounts to
determine if they offer or maintain covered accounts, for a total of
9,922 hours for these entities at a total cost of $3,978,722.\10\ Of
these 9,922 entities, staff estimates that approximately 90 percent, or
8,930, maintain covered accounts, and thus will need the additional
burdens related to complying with the rules.\11\ Accordingly, staff
estimates that the additional annual burden for SEC-regulated entities
that qualify as financial institutions or creditors and maintain
covered accounts is 84,835 hours at an additional cost of
$70,314,820.\12\ Thus, the total estimated ongoing annual burden for
all SEC-regulated entities is 94,757 hours at a total estimated annual
cost of $74,293,542.\13\
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\10\ Based on a review of entities that the SEC regulates, SEC
staff estimates that, as of September 1, 2018, there are
approximately 13,181 investment advisers, 3,839 broker-dealers,
1,589 active open-end investment companies, and 100 ESCs. Of these,
staff estimates that all of the broker-dealers, open-end investment
companies and ESCs are likely to qualify as financial institutions
or creditors. We also estimate that approximately 33% of investment
advisers, or 4,394 investment advisers, are likely to qualify. See
Adopting Release, supra note at n.190 (discussing the staff's
analysis supporting its estimate that 33% of investment advisers are
likely to qualify as financial institutions or creditors). We
therefore estimate that a total of 9,922 financial institutions or
creditors will bear the ongoing burden of assessing covered accounts
under Regulation S-ID. (The SEC staff estimates that the other types
of entities that are covered by the scope of the SEC's rules will
not be financial institutions or creditors and therefore will not be
subject to the rules' requirements.)
The estimates of 9,922 hours and $3,784,800 are based on the
following calculations: 9,922 financial institutions and creditors x
1 hour = 9,922 hours; 9,922 financial institutions and creditors x
$401 = $3,978,722.
\11\ See supra note 5 and accompanying text. If a financial
institution or creditor does not maintain covered accounts, there
would be no ongoing annual burden for purposes of the PRA.
\12\ These estimates are based on the following calculations:
8,930 financial institutions and creditors that maintain covered
accounts x 9.5 hours = 84,835 hours; 8,930 financial institutions
and creditors that maintain covered accounts x $7,874 = $70,314,820.
\13\ These estimates are based on the following calculations:
9,922 hours + 84,835 hours = 94,757 hours; $3,978,722 + $70,314,820
= $74,293,542.
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The collections of information required by section 248.202 under
Regulation S-ID will apply only to SEC-regulated entities that issue
credit or debit cards. SEC staff understands that SEC-regulated
entities generally do not issue credit or debit cards, but instead
partner with other entities, such as banks, that issue cards on their
behalf. These other entities, which are not regulated by the SEC, are
already subject to substantially similar change of address obligations
pursuant to other federal regulators' identity theft red flags rules.
Therefore, staff does not expect that any SEC-regulated entities will
be subject to the information collection requirements of section
248.202, and accordingly, staff estimates that there is no hour burden
related to section 248.202 for SEC-regulated entities.
In total, SEC staff estimates that the aggregate annual information
collection burden of Regulation S-ID is 111,991 hours (17,234 hours +
94,757 hours). This estimate of burden hours is made solely for the
purposes of the Paperwork Reduction Act and is not derived from a
quantitative, comprehensive, or even representative survey or study of
the burdens associated with Commission rules and forms. Compliance with
[[Page 4551]]
Regulation S-ID, including compliance with the information collection
requirements thereunder, is mandatory for each SEC-regulated entity
that qualifies as a ``financial institution'' or ``creditor'' under
Regulation S-ID (as discussed above, certain collections of information
under Regulation S-ID are mandatory only for financial institutions or
creditors that offer or maintain covered accounts). Responses will not
be kept confidential. 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.
Written comments are invited on: (i) 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; (ii) the accuracy of the agency's estimate of
the burden of the collection of information; (iii) ways to enhance the
quality, utility, and clarity of the information collected; and (iv)
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 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: PRA_Mailbox@sec.gov.
Dated: February 1, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-01368 Filed 2-14-19; 8:45 am]
BILLING CODE 8011-01-P
