[Federal Register Volume 87, Number 209 (Monday, October 31, 2022)]
[Notices]
[Page 65628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23570]


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SECURITIES AND EXCHANGE COMMISSION

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


Submission for OMB Review; 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'') has submitted to the Office of 
Management and Budget (``OMB'') a request for approval of extension of 
the previously approved 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.).
    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 was 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.
    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.
    The public may view background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent by November 30, 2022 to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F 
Street NE, Washington, DC 20549, or by sending an email to: 
[email protected].

    Dated: October 25, 2022.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-23570 Filed 10-28-22; 8:45 am]
BILLING CODE 8011-01-P