Document ID: SEC-2009-0749-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2009-06-08T04:00Z

[Federal Register: June 8, 2009 (Volume 74, Number 108)]
[Notices]               
[Page 27206-27207]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jn09-108]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Extension of Existing Request; Comment Request

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

Extension:
    Regulation S-P, OMB Control No. 3235-0537, SEC File No. 270-480.

    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 
(``Commission'') is soliciting comments on the existing collection of 
information provided for in the following rule:

[[Page 27207]]

Regulation S-P--Privacy of Consumer Financial Information (17 CFR Part 
248) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
(``Exchange Act''). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget for 
extension and approval.
    The Commission adopted Regulation S-P (17 CFR Part 248) under the 
authority set forth in section 504 of the Gramm-Leach-Bliley Act (15 
U.S.C. 6804), sections 17 and 23 of the Securities Exchange Act of 1934 
(15 U.S.C. 78q, 78w), sections 31 and 38 of the Investment Company Act 
of 1940 (15 U.S.C. 80a-30(a), 80a-37), and sections 204 and 211 of the 
Investment Advisers Act of 1940 (15 U.S.C. 80b-4, 80b-11). Regulation 
S-P implements the requirements of Title V of the Gramm-Leach-Bliley 
Act (``GLBA''), which include the requirement that at the time of 
establishing a customer relationship with a consumer and not less than 
annually during the continuation of such relationship, a financial 
institution shall provide a clear and conspicuous disclosure to such 
consumer of such financial institution's policies and practices with 
respect to disclosing nonpublic personal information to affiliates and 
nonaffiliated third parties (``privacy notice''). Title V of the GLBA 
also provides that, unless an exception applies, a financial 
institution may not disclose nonpublic personal information of a 
consumer to a nonaffiliated third party unless the financial 
institution clearly and conspicuously discloses to the consumer that 
such information may be disclosed to such third party; the consumer is 
given the opportunity, before the time that such information is 
initially disclosed, to direct that such information not be disclosed 
to such third party; and the consumer is given an explanation of how 
the consumer can exercise that nondisclosure option (``opt out 
notice''). The privacy notices required by the GLBA are mandatory. The 
opt out notices are not mandatory for financial institutions that do 
not share nonpublic personal information with nonaffiliated third 
parties except as permitted under an exception to the statute's opt out 
provisions. Regulation S-P implements the statute's privacy notice 
requirements with respect to broker-dealers, investment companies, and 
registered investment advisers (``covered entities''). The Act and 
Regulation S-P also contain consumer reporting requirements. In order 
for consumers to opt out, they must respond to opt out notices. At any 
time during their continued relationship, consumers have the right to 
change or update their opt out status. Most covered entities do not 
share nonpublic personal information with nonaffiliated third parties 
and therefore are not required to provide opt out notices to consumers 
under Regulation S-P. Therefore, few consumers are required to respond 
to opt out notices under the rule.
    Compliance with Regulation S-P is necessary for covered entities to 
achieve compliance with the consumer financial privacy notice 
requirements of Title V of the GLBA. The required consumer notices are 
not submitted to the Commission. Because the notices do not involve a 
collection of information by the Commission, Regulation S-P does not 
involve the collection of confidential information. Regulation S-P does 
not have a record retention requirement per se, although the notices to 
consumers it requires are subject to the recordkeeping requirements of 
Rules 17a-3 and 17a-4 (17 CFR 240.17a-3 and 17a-4).
    The Commission estimates that approximately 20,065 covered entities 
(approximately 5,326 registered broker-dealers, 4,571 investment 
companies, and, out of a total of 11,266 registered investment 
advisers, 10,168 registered investment advisers that are not also 
registered broker-dealers) that must prepare or revise their annual and 
initial privacy notices will spend an average of approximately 12 hours 
per year complying with Regulation S-P. Thus, the total compliance 
burden is estimated to be approximately 240,780 burden-hours per year.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimates of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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.
    Comments should be directed to Charles Boucher, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-
mail to: PRA_Mailbox@sec.gov.

    Dated: June 1, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-13254 Filed 6-5-09; 8:45 am]

BILLING CODE 8010-01-P