
[Federal Register: August 11, 2009 (Volume 74, Number 153)]
[Notices]               
[Page 40245-40246]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au09-125]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; 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'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
existing collection of information provided for in the following rule: 
Regulation S-P (17 CFR part 248) under the Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) (``Exchange Act'').
    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.

[[Page 40246]]

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.
    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.
    Comments should be directed to (1) the Desk Officer for the SEC, 
Desk Officer for the Securities and Exchange Commission, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Room 10102, New Executive Office Building, Washington, DC 20503 or by 
sending an e-mail to: shagufta_ahmed@omb.eop.gov; and (ii) 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. Comments must be 
submitted within 30 days of this notice.

    Dated: August 5, 2009.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-19121 Filed 8-10-09; 8:45 am]

BILLING CODE 8010-01-P
