[Federal Register Volume 75, Number 106 (Thursday, June 3, 2010)]
[Notices]
[Page 31481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13332]


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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: 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 provided for in Regulation S-AM (17 CFR part 248, subpart 
B), under the Fair and Accurate Credit Transactions Act of 2003 (Pub. 
L. 108-159, Section 214, 117 Stat. 1952 (2003)) (``FACT Act''), the 
Securities and 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 for extension and approval.
    Regulation S-AM implements the requirements of Section 214 of the 
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 21,466 Covered Persons 
registered with the Commission, although only approximately 12,021 of 
them have one or more corporate affiliates, and the regulation would 
require only approximately 2,147 of them to provide consumers with 
notice and an opt-out opportunity.
    The Commission staff estimates that there are approximately 12,021 
Covered Persons having one or more affiliates, and that they would 
require an average one-time burden of 1 hour to review affiliate 
marketing practices, for a total of 12,021 hours, at a total staff cost 
of approximately $2,524,410. The staff also estimates that 
approximately 2,147 Covered Persons would be required to provide notice 
and opt-out opportunities to consumers, and would incur an average 
first-year burden of 18 hours in doing so, for a total estimated first-
year burden of 38,646 hours, at a total staff cost of approximately 
$10,279,836. With regard to continuing notice burdens, the staff 
estimates that each of the approximately 2,147 Covered Persons required 
to provide notice and opt-out opportunities to consumers would incur a 
burden of approximately 4 hours per year to create and deliver notices 
to new consumers and record any opt outs that are received on an 
ongoing basis, for a total of 8,588 hours, at a total staff cost of 
approximately $489,516 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 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 on 
respondents; 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 submitted in writing to: Charles Boucher, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312, or 
by e-mail to: [email protected].

    Dated: May 26, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-13332 Filed 6-2-10; 8:45 am]
BILLING CODE 8010-01-P