SECURITIES AND EXCHANGE COMMISSION

     [Release Nos. 34-39016; PA-21; File No. S7-23-97]   

     Privacy Act of 1974:     Major alterations to the Agency Correspondence
                              Tracking System (ACTS) (SEC-29) and the Office of
                              Personnel Training Files (SEC-40)


     AGENCY:   Securities and Exchange Commission.

     ACTION:   Notice of major alterations.

     SUMMARY:  In accordance with the requirements of the Privacy Act of 1974,

     as amended, 5 U.S.C. 552a, the Securities and Exchange Commission gives

     notice of major alterations to the Agency Correspondence Tracking System

     (ACTS) (SEC-29) and the Office of Personnel Training Files (SEC-40). 

     DATES:  Comments must be received no later than [30 days after publication

     in the Federal Register].  The changes to these systems of records will

     take effect [40 days after publication in the Federal Register] unless the

     Commission receives comments which would result in a contrary

     determination.

     ADDRESSES:  Persons wishing to submit comments should file three (3) copies

     thereof with Jonathan G. Katz, Secretary, Securities and Exchange

     Commission, 450 Fifth Street, NW, Washington, DC 20549.  Reference should

     be made to File No. S7-23-97.  Copies of the comments will be available for

     public inspection and copying at the Commission's Public Reference Room,

     450 Fifth Street, NW, Washington, DC 20549.

     FOR FURTHER INFORMATION CONTACT:  Hannah R. Hall, Privacy Act Officer (202)

     942-4320, Office of the Executive Director, Freedom of Information Act and

     Privacy Act Operations, Securities and








     Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop

     O-5, Alexandria, VA 22312-2413.

     SUPPLEMENTARY INFORMATION:  This report is to give notice of major

     alterations to the Agency Correspondence Tracking System (ACTS) (SEC-29)

     and the Office of Personnel Training Files 

     (SEC-40), which are subject to the Privacy Act of 1974, 5 U.S.C. 552a.   As

     revised, ACTS will have subsystems for records collected and maintained by

     the Office of Investor Education and Assistance (Subsystem A), the Office

     of the Chairman (Subsystem B), the Office of Filings and Information

     Services (Subsystem C), and the Office of Information Technology (Subsystem

     D).  The Office of Personnel Training Files (SEC-40), as revised, will be

     called "Personnel Management Training Files" and incorporate information

     about its automated files.  Additional changes proposed for both systems of

     records include revisions to the systems' location, categories of

     individuals and records, authority for maintenance, purpose, routine uses,

     storage, retrievability, safeguards, retention and disposal schedules,

     manager(s) and address(es), notification, record access, and contesting

     record procedures, and record source categories.  The altered system of

     records reports, as required by 5 U.S.C. 552a(r) of the Privacy Act, has

     been submitted to the Committee on Government Operations of the House of

     Representatives, the Committee on Government Affairs of the Senate, and the

     Office of








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     Management and Budget, pursuant to Appendix I to OMB Circular 

     A-130, "Federal Agency Responsibilities for Maintaining Records About

     Individuals," as amended on July 15, 1994.














































                              ======END OF PAGE 3======






     

                                        SEC-29

     SEC-29 is revised as follows:

     System name:   Agency Correspondence Tracking System (ACTS)-SEC.

       Subsystem A:  Investor/Consumer Correspondence Files.

       Subsystem B:  Chairman Correspondence Files.

       Subsystem C:  Public Reference Branch Correspondence Files.

       Subsystem D:  ACTS Computerized Records.

     System location:  Records in this system are located at Headquarters,

     Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC

     20549.  Also, records covered by Subsystem A are received by and maintained

     in the Commission's Regional and District Offices, whose addresses are

     listed below under System Manager(s) and Address(es).

     Categories of individuals covered by the system:  

       Subsystem A:  Records are maintained on members of the public and others

     who submit inquiries or make complaints to the Commission, generally, or

     who address their correspondence to the Office of Investor Education and

     Assistance or the Commission's Regional or District Offices.

       Subsystem B:  Records are maintained on members of the public, members of

     Congress or their staff, and others who address their inquiries or

     complaints to the Commission's Chairman.

       Subsystem C:  Records are maintained on members of the public who submit

     requests for copies of, or review of records accessible through the

     Commission's Public Reference Branch.






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       Subsystem D:  Computerized records are comprised of data collected in all

     of the above subsystems.

     Categories of records in the system:  Both electronic and paper records in

     this system/subsystems contain the name of the

     complainant/inquirer/requester or their representative, the name of the

     entity and/or subject of the complaint/inquiry/request, the date relating

     to the disposition of the

     complaint/inquiry/request and, where applicable, the type of

     complaint/inquiry/request and other information derived from or relating to

     the complaint/inquiry/request.  Paper records may include, but are not

     limited to letters of

     complaint/inquiry/request, responses, and related documentation. 

     Authority for maintenance of the system:  15 U.S.C. 77s, 77sss, 78d, 78d-1,

     78d-2, 78w, 78ll(d), 79t, 80a-37, and 80b-11. 

     Purpose:  The records will be used by the staff to track and process

     complaints/inquiries/requests from members of the public and others.

     Routine uses of records maintained in the system, including categories of

     users and the purposes of such uses:  These records and the information

     contained in these records may be used as follows:  

     (1) to respond to inquiries from individuals who have submitted

     complaints/inquiries/requests, or from their representatives, concerning

     the status of the particular complaint/inquiry/request; 










                              ======END OF PAGE 5======





     

     (2) to provide information to entities against whom complaints/inquiries

     are directed when Commission staff requests

     them to research the issues raised and report back to the staff; (3) to

     respond to inquiries from the White House, Congressional committees, the

     General Accounting Office, General Services Administration or the National

     Archives and Records Administration, or others charged with monitoring the

     work of the Commission or conducting records management inspections under

     authority of 44 U.S.C. 2904 and 2906; 

     (4) to provide information to other Federal or State government agencies,

     or securities self-regulatory organizations which have more direct

     jurisdiction over the subject matter of the complaint/inquiry/request; 

     (5) to coordinate with or assist in law enforcement and regulatory

     activities of the Commission and other Federal, State, local, or foreign

     law enforcement or regulatory agencies, securities self-regulatory

     organizations, and foreign securities authorities;

     (6) to respond to a subpoena, court order, or request for discovery, in

     connection with any relevant litigation or proceeding where the Federal

     securities laws are at issue or in which the Commission, or past or present

     members of its staff, is a party or otherwise involved in an official

     capacity; and 

     (7) to provide information to a Federal, State, local, or foreign

     government or foreign securities authority, in response to its request, in

     connection with civil, criminal, or other enforcement








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     information, the hiring or retention of an employee, the issuance of a

     security clearance, the reporting of an investigation of an employee, the

     letting of a contract, or the issuance of a license, grant, or other

     benefit by the requesting agency, to the extent that the information is

     relevant and necessary to the requesting agency's decision on the matter. 

     Policies and practices for storing, retrieving, accessing, retaining, and

     disposing of records in the system.

     Storage:  

       Subsystems A, B, and C:  These records are maintained in hard copy form

     by assigned file number, and certain elements of the data are extracted and

     tracked in computerized form through ACTS.  The computerized records can be

     accessed by the individual's name or other indexed criteria.

       Subsystem D:  These records are maintained in an on-line database and on

     data cartridges.

     Retrievability:  By use of the computerized records in Subsystem D, the

     paper files in Subsystems A, B, and C are retrievable by the name of the

     complainant/inquirer/requester, receipt date of the

     complaint/inquiry/request, name of the registered representative or

     associated person named in the

     complaint/inquiry/request, or the name of the entity/issuer that is the

     subject of the complaint/inquiry/request.

     Safeguards:  Access to and use of these records are limited to those

     persons whose official duties require such access.  Personnel screening is

     employed to prevent unauthorized






                              ======END OF PAGE 7======





     

     disclosure.  These records are maintained in office files in a building

     that has a 24-hour security guard.

     Retention and disposal:  

       Subsystem A:  Electronic records are purged after six (6) years.  Paper

     records maintained at SEC Headquarters are retained in-house for three (3)

     years from the office's date of receipt of the complaint/inquiry/request or

     its related subsequent submission(s), then transferred to the Federal

     Records Center for storage.  Records sent to the Federal Records Center

     that do not relate to law enforcement matters are maintained for one (1)

     additional year (for a total of four (4) years from the office's date of

     receipt), and destroyed thereafter.  Records sent to the Federal Records

     Center that do relate to law enforcement matters are maintained for three

     (3) additional years (for a total of six (6) years from the office's date

     of receipt), and destroyed thereafter.  Paper records maintained in the

     Regional and District Offices are retained for three (3) years, and

     destroyed thereafter.

       Subsystem B:  Electronic records are purged after six (6) years.  Paper

     records are maintained in-house for at least three (3) years from the

     office's date of receipt, or upon expiration of the Chairman's appointment. 

     Files are forwarded to the Federal Records Center and retained in

     accordance with the Commission's records retention schedule, published at

     17 CFR 200.80f. 










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       Subsystem C:  Paper records are maintained in-house for six months from

     the office's date of receipt, and destroyed periodically thereafter. 

     Electronic records are purged after one (1) year.

       Subsystem D:  A computerized record of searches and transactions is

     maintained in an on-line database and on data cartridges.  Retention of the

     electronic records is contingent upon the retention of the paper records,

     maintained and determined by each office that utilizes ACTS.  Cartridges

     are sent to the Commission's off-site storage vendor.  Also, all database

     files are saved on the cartridges and sent to the off-site storage vendor. 

     System manager(s) and address:  

     Subsystem A:  Office of Investor Education and Assistance, Securities and

     Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549;

     Assistant Regional Director, Northeast Regional Office, 7 World Trade

     Center, Suite 1300, New York, NY 10048; District Administrator, Boston

     District Office, 73 Tremont Street, Suite 600, Boston, MA 02108-3912;

     District Administrator, Philadelphia District Office, The Curtis Center,

     601 Walnut Street, Suite 1005 East, Philadelphia, PA 19106-3322; 

     Assistant Regional Director, Southeast Regional Office, 1401 Brickell

     Avenue, Suite 200, Miami, FL 33131; District Administrator, Atlanta

     District Office, 3475 Lenox Road, NE, Suite 1000, Atlanta, GA 30326-1232; 














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     Assistant Regional Director, Midwest Regional Office, Northwestern Atrium

     Center, 500 W. Madison Street, Suite 1400, Chicago, IL 60661-2511; 

     Assistant Regional Administrator, Central Regional Office, 1801 California

     Street, Suite 4800, Denver, CO 80202-2648; District

     Administrator, Fort Worth District Office, 801 Cherry Street, Suite 1900,

     Fort Worth, TX 76102; District Administrator, Salt Lake District Office,

     500 Key Bank Tower, 50 South Main Street, Salt Lake City, UT 84144-0402; 

     Assistant Regional Administrator, Pacific Regional Office, 5670 Wilshire

     Boulevard, Suite 1100, Los Angeles, CA 90036-3648; and District

     Administrator, San Francisco District Office, 44 Montgomery Street, 11th

     Floor, San Francisco, CA 94103-1735. 

     Subsystem B:  Office of the Chairman, Securities and Exchange Commission,

     450 Fifth Street, NW, Washington, DC 20549.

     Subsystem C:  Office of Filings and Information Services, Securities and

     Exchange Commission, Operations Center, Mail Stop A-1, 6432 General Green

     Way, Alexandria, VA 22312.

     Subsystem D:  Office of Information Technology, Securities and Exchange

     Commission, Operations Center, Mail Stop O-4, 6432 General Green Way,

     Alexandria, VA 22312.

     Notification procedure:  All requests to determine whether this system of

     records contains a record pertaining to the requesting individual may be

     directed to the Privacy Act Officer, Securities and Exchange Commission,

     Operations Center, 6432 General Green Way, Mail Stop O-5, Alexandria, VA

     22312-2413.






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     Record access procedures:  Persons wishing to obtain information on the

     procedures for gaining access to or contesting the contents of these

     records may contact the Privacy Act Officer, Securities and Exchange

     Commission, Operations Center, 6432 General Green Way, Mail Stop O-5,

     Alexandria, VA 22312-2413.

     Contesting record procedures:  See Record access procedures above.

     Record source categories:  Information collected in all subsystems is

     received from individuals primarily through letters, telephone calls, or

     personal visits to the Commission's offices.

     Exemptions claimed for the system:  None.


































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                                        SEC-40

     SEC-40 is revised as follows:

     System name:  Personnel Management Training Files-SEC. 

     System location:  Securities and Exchange Commission, Operations Center,

     6432 General Green Way, Mail Stop O-1, Alexandria, VA 22312-2413.

     Categories of individuals covered by the system:  Records are maintained on

     SEC employees, present and past.

     Categories of records in the system:  Both automated and paper records fall

     within the following categories:  (a) information on internal and external

     training provided to employees; (b) budget tracking information; (c)

     training sources used/considered; and

     (d) class rosters, notices, and certificates.

     Authority for maintenance of the system:  5 U.S.C. 1302, 2951, 3301, 3372,

     4103, 4113, and 4118; and 5 CFR Part 410. 

     Purpose:  The records are used for statistical reports and employee career

     counseling, for determining whether mandatory training has been received,

     and for assessing whether the cost, quality, and appropriateness of courses

     and sources merit consideration for fulfilling future agency training

     needs. 

     Routine uses of records maintained in the system, including categories of

     users and the purpose of such uses:  These records and the information

     contained in these records may be used as follows: 

     (1) to provide information to Government training facilities (Federal,

     State, or local) and to non-Government training






                              ======END OF PAGE 12======





     

     facilities (private contractors of training courses or programs, private

     schools, etc.), their representatives, or volunteers working on a contract,

     service, grant, or cooperative agreement,

     for training purposes;

     (2) to respond to inquiries from the White House, Congressional committees,

     the General Accounting Office, General Services Administration or the

     National Archives and Records Administration, or others charged with

     monitoring the work of the Commission or conducting records management

     inspections under authority of 44 U.S.C. 2904 and 2906; 

     (3) to respond to a subpoena, request for discovery, or the appearance of a

     witness, in connection with any relevant litigation or proceeding where the

     Commission, or past or present members of its staff, is a party or

     otherwise involved in an official capacity; 

     (4) to provide information to a Federal, State, or local governmental

     entity or agency in response to its request, in connection with the

     potential violation of civil or criminal law or other regulation, the

     hiring or retention of an employee, the issuance of a security clearance,

     the reporting of an investigation of an employee, the letting of a

     contract, or the issuance of a license, grant, or other benefit by the

     requesting agency, to the extent that the information is relevant and

     necessary to the requesting agency's decision on the matter; and (5) to any

     source from which additional information is requested, when necessary to

     obtain information relevant to an agency








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     decision to hire or retain an employee, issue a security clearance, conduct

     a security or suitability investigation of an individual, classify jobs,

     let a contract, or issue a license, grant, or other benefits.

     Policies and practices for storing, retrieving, accessing, retaining, and

     disposing of records in the system:

     Storage:  Electronic media is maintained in a database, paper records are

     kept in binders and folders. 

     Retrievability:  Records are retrievable by employee name, social security

     number, organization, and the assigned training form number; vendor name;

     instructor name; category of training; date(s) of training; and course

     title and location.

     Safeguards:  Records are available to authorized agency staff.  Both paper

     and electronic media are kept in a secure facility with 24 hour security

     guard surveillance.  Personnel access to the database records is restricted

     by passwords.

     Retention and disposal:  Records are retained for three (3) fiscal years

     and destroyed after completion of any applicable reporting requirements by

     the Office of Personnel Management.

     System manager(s) and address:  Associate Executive Director, Office of

     Administrative and Personnel Management, Securities and Exchange

     Commission, Operations Center, 6432 General Green Way, Mail Stop O-1,

     Alexandria, VA 22312-2413.

     Notification procedure:  All requests to determine whether this system of

     records contains a record pertaining to the requesting individual may be

     directed to the Privacy Act Officer, Securities




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     and Exchange Commission, Operations Center, 6432 General Green Way, Mail

     Stop O-5, Alexandria, VA 22312-2413.

     Record access procedures:  Persons wishing to obtain information on the

     procedures for gaining access to or contesting the contents of these

     records may contact the Privacy Act Officer,

     Securities and Exchange Commission, Operations Center, 6432 General Green

     Way, Mail Stop O-5, Alexandria, VA 22312-2413. 

     Contesting record procedures:

     See Record Access procedures above.

     Record source categories:  Records that comprise the information in the

     system are provided by: the individual on whom the record is maintained;

     agency supervisors and/or administrative staff on employees being nominated

     for training; vendors or potential vendor sources for training; and other

     agency records.

     Exemptions claimed for the system:  None.



     By the Commission.





                                        Jonathan G. Katz
                                        Secretary


     September 4, 1997










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