[Federal Register Volume 87, Number 162 (Tuesday, August 23, 2022)]
[Notices]
[Page 51727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18144]



[[Page 51727]]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-548, OMB Control No. 3235-0609]


Proposed Collection; Comment Request; Extension: Regulation S-AM

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street, NE, Washington, DC 
20549-2736

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (``PRA'') (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 Regulation S-AM (17 
CFR part 248, subpart B), under the Fair Credit Reporting Act (15 
U.S.C. 1681 et seq.) (``FCRA''), the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.), the Investment Company Act of 1940 (15 U.S.C. 
80a-1 et seq.), and the Investment Advisers Act of 1940 (15 U.S.C. 80b-
1 et seq.). The Commission plans to submit this existing collection of 
information to the Office of Management and Budget (``OMB'') for 
extension and approval.
    Regulation S-AM implements the requirements of Section 624 of the 
FCRA (15 U.S.C. 1681s-3) with respect to investment advisers and 
transfer agents registered with the Commission, as well as brokers, 
dealers and investment companies (collectively, ``Covered Persons''). 
Section 624 and Regulation S-AM limit a Covered Person's use of certain 
consumer financial information received from an affiliate to solicit a 
consumer for marketing purposes, unless the consumer has been given 
notice and a reasonable opportunity and a reasonable and simple method 
to opt out of such solicitations. Regulation S-AM potentially applies 
to all of the approximately 21,896 Covered Persons registered with the 
Commission, although only approximately 12,262 of them have one or more 
corporate affiliates, and the regulation requires only approximately 
2,190 to provide consumers with an affiliate marketing notice and an 
opt-out opportunity.
    The Commission staff estimates that there are approximately 12,262 
Covered Persons having one or more affiliates, and that they each spend 
an average of 0.20 hours per year to review affiliate marketing 
practices, for, collectively, an estimated annual time burden of 
approximately 2,452 hours at an annual internal compliance cost of 
approximately $1,444,228. The staff also estimates that approximately 
2,190 Covered Persons provide notice and opt-out opportunities to 
consumers, and that they each spend an average of 7.6 hours per year 
creating notices, providing notices and opt-out opportunities, 
monitoring the opt-out notice process, making and updating records of 
opt-out elections, and addressing consumer questions and concerns about 
opt-out notices, for, collectively, an estimated annual time burden of 
approximately 16,644 hours at an annual internal compliance cost of 
approximately $3,599,484. Thus, the staff estimates that the collection 
of information requires a total of approximately 12,262 respondents to 
incur an estimated total annual time burden of approximately 19,096 
hours at a total annual internal cost of compliance of approximately 
$5,043,712.
    Written comments are invited on: (a) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
estimates of the burden of the proposed 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 by October 24, 2022.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
[email protected].

    Dated: August 17, 2022.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2022-18144 Filed 8-22-22; 8:45 am]
BILLING CODE 8011-01-P


