Document ID: SEC-2013-0186-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals: Rule 248.30
Posted Date: 2013-01-30T05:00Z

[Federal Register Volume 78, Number 20 (Wednesday, January 30, 2013)]
[Notices]
[Pages 6361-6362]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01936]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; 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'') 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.
    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 4,695 broker-
dealers, 4,203 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 hourly burdens 
associated with documenting their safeguard policies and procedures. We 
estimate that approximately 1,500 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 (1,050) 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

[[Page 6362]]

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.
    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 will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information 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.
    Please direct your written comments to 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.

    Dated: January 24, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01936 Filed 1-29-13; 8:45 am]
BILLING CODE 8011-01-P