

[Federal Register: May 18, 2007 (Volume 72, Number 96)]
[Notices]               
[Page 28085-28086]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18my07-120]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.

Extension:
    Regulation S-AM; SEC File No. 270-548; OMB Control No. 3235-
0609.

    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 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-AM: Limitations on Affiliate Marketing

    Regulation S-AM implements the requirements of Section 214 of the 
Fair and Accurate Credit Transactions Act of 2003 (Pub. L. 108-159) 
(``FACT Act'') as applied to brokers, dealers, and investment 
companies, as well as investment advisers and transfer agents that are 
registered with the Commission (collectively, ``Covered Persons''). As 
directed by Section 214 of the FACT Act, before a receiving affiliate 
may make marketing solicitations based on the communication of certain 
consumer financial information from a Covered Person, the Covered 
Person must provide a notice to each affected individual informing the 
individual of his or her right to prohibit such marketing. The 
regulation potentially applies to all of the approximately 22,106 
Covered Persons registered with the Commission, although only 
approximately 15,474 of them have one or more corporate affiliates, and 
the regulation would require only approximately 2,211 of them to 
provide

[[Page 28086]]

consumers with notice and an opt-out opportunity.
    The Commission has estimated that each of the approximately 15,474 
Covered Persons having one or more affiliates would require an average 
one-time burden of 1 hour to review affiliate marketing practices, for 
a total of 15,474 hours, at a total staff cost of approximately 
$3,791,130. Approximately 2,211 Covered Persons would be required to 
provide notice and opt-out and would incur an average first-year burden 
of 6 hours in doing so, for a total estimated first-year burden of 
13,266 hours, at a total staff cost of approximately $2,510,590.50. 
With regard to continuing notice burdens, each of the approximately 
2,211 Covered Persons required to provide notice and opt-out would 
incur a one-time first-year burden of 2 hours to develop notices for 
new consumers and an annual burden of 2 hours to deliver the notices 
and record any opt-outs, at a total staff cost of approximately 
$1,673,727. Averaged across the first three years for which compliance 
would be required, the total average yearly burden would be 
approximately 12,528 hours and $7,975,447.50 in staff costs.
    Direct your written comments to R. Corey Booth, Director/Chief 
Information Officer, Securities and Exchange Commission, C/O Shirley 
Martinson, 6432 General Green Way, Alexandria, Va. VA 22312 or send an 
e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB 
within 60 days of this notice.

    Dated: May 11, 2007.
Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E7-9568 Filed 5-17-07; 8:45 am]

BILLING CODE 8010-01-P
