[Federal Register Volume 61, Number 179 (Friday, September 13, 1996)]
[Rules and Regulations]
[Pages 48402-48403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23228]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Parts 308 and 342

RIN 3064-AB81


Rules of Practice and Procedure; Applications for a Stay or 
Review of Actions of Bank Clearing Agencies

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final rule.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) has conducted 
a review of its regulations pursuant to Section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994. As a 
result, the FDIC is deleting its rules and regulations which pertain to 
Applications for a Stay or Review of Actions of Bank Clearing Agencies, 
and replacing them with new, more concise provisions. At the same time, 
the FDIC is moving those shorter provisions to a new subpart, which 
contains the FDIC's Rules of Practice and Procedure. The changes are 
intended to streamline the FDIC's regulations and to remove duplicative 
provisions, while maintaining uniformity in approach among the other 
banking agencies and the Securities and Exchange Commission (SEC).

EFFECTIVE DATE: October 15, 1996.

FOR FURTHER INFORMATION CONTACT: John F. Harvey, Trust Review Examiner, 
(202) 898-6762, or Andrea Winkler, Counsel, (202) 736-0762, Federal 
Deposit Insurance Corporation, 550 17th Street, N.W., Washington, D.C. 
20429.

SUPPLEMENTARY INFORMATION:

I. Background

    The Securities Exchange Act of 1934 (Exchange Act) (15 U.S.C. 78 et 
seq.) requires the registration of clearing agencies and implements a 
system of self-regulation by registered clearing agencies. Registered 
clearing agencies have the authority to impose certain disciplinary 
sanctions upon participants, to deny participation in the clearing 
agency, or to prohibit or limit a participant's access to services 
provided by clearing agencies. (15 U.S.C. 78q-1 (b)(3)(g), (b)(5)(C)). 
Persons aggrieved by such adverse actions by clearing agencies may 
request a stay of such action or may appeal the action to the 
appropriate regulatory agency. The FDIC is the appropriate regulatory 
agency with regard to FDIC-insured banks (other than members of the 
Federal Reserve System), when the appropriate regulatory agency for the 
clearing agency is not the SEC. The Office of the Comptroller of the 
Currency (OCC) and the Board of Governors of the Federal Reserve System 
(FRB) have similar regulatory responsibilities with regard to banks 
under their jurisdiction.
    The FDIC's current regulations are contained in Part 342 of its 
Rules and Regulations. (12 CFR Part 342) Those regulations are 
identical in substance to the regulations of the SEC. (17 CFR 240.19d-2 
to 240.19d-3) Therefore, the FDIC is shortening its regulatory 
provisions by deleting those provisions contained in Part 342 which are 
the same as those contained in the regulations of the SEC. Instead, the 
FDIC is including a cross-reference to the SEC regulations in new 
Subpart S to Part 308 of its Rules and Regulations.

II. Section-by-Section Summary

Part 308--Rules of Practice and Procedure

Subpart S--Applications for a Stay or Review of Actions of Bank 
Clearing Agencies

Section 308.400  Scope

    This section is identical to current section 342.1 of the FDIC's 
regulations and sets forth the authority for the regulations and the 
entities to which the regulations apply.

Section 308.401  Applications for Stays of Disciplinary Sanctions or 
Summary Suspensions by a Bank Clearing Agency

    This section has been shortened to reflect that applications for a 
stay of a disciplinary action pursuant to section 17(b)(3)(G) of the 
Exchange Act, or summary suspension or limitation or prohibition of 
access to services under section 17(b)(5)(C) of the Exchange Act, may 
be filed with the Corporation according to the procedures set forth in 
the regulations of the SEC (17 CFR 240.19d-2), which are identical in 
substance to those currently contained in Sec. 342.2 of the FDIC's 
regulations. References to the Commission in the regulations of the SEC 
will be deemed to be references to the Corporation for purposes of this 
section.

Section 308.402  Applications for Review of Final Disciplinary 
Sanctions, Denials of Participation, or Prohibitions or Limitations of 
Access to Services Imposed by Bank Clearing Agencies

    This section has been shortened to reflect that an application to 
the Corporation under section 19(d)(2) of the Exchange Act for review 
of any final disciplinary sanctions, denials of participation, or 
prohibitions or limitations of access to services imposed by bank 
clearing agencies shall be conducted according to the procedures set 
forth in the regulations of the SEC (17 CFR 240.19d-3), which are 
identical in substance to those currently contained in Sec. 342.3 of 
the FDIC's regulations. References to the Commission in the regulations 
of the SEC will be deemed references to the Corporation for purposes of 
this section.

III. Regulatory Flexibility Act

    Chapter 6 of Title 5 of the United States Code which pertains to 
``The Analysis of Regulatory Functions'' does not apply to the final 
rule regarding Part 342. The revision to Part 342 is not a ``rule'' for 
purposes of that statute (see 5 U.S.C. 601(2)) as it is not a rule for 
which the FDIC is required to publish a general notice of proposed 
rulemaking under section 553(b) of Title 5 of the United States Code. 
This is because the final rule contains only technical changes and 
makes no substantive or procedural changes to existing rules, and 
therefore, the FDIC has determined for good cause that public notice 
and comment is unnecessary, and that the rule should be published in 
final form.

IV. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(Pub. L. 104-121, 104th Cong., 2d Sess. (1996)) provides generally for 
agencies to report rules to Congress and for Congress to review the 
rules. The reporting requirement is triggered in instances where the 
FDIC issues a final rule as defined by the Administrative Procedure Act 
at 5 U.S.C. 551. The FDIC will file the appropriate reports pursuant to 
the statute.
    The Office of Management and Budget has determined that this final 
revision

[[Page 48403]]

to Part 342 does not constitute a ``major'' rule as defined by the 
statute.

V. Exemption From Public Notice and Comment

    Because the FDIC finds that the new rules are the same in substance 
as those currently found in Part 342, and that the changes are purely 
technical in nature, the FDIC has determined for good cause that public 
notice and comment is unnecessary, and that the rule should be 
published in final form.

VI. Effective Date

    The Administrative Procedure Act (5 U.S.C. 551 et seq.) provides 
that regulations shall become effective thirty days after their 
publication in the Federal Register. 5 U.S.C. 553. Thus, this amendment 
to Part 308 and Part 342 of the FDIC's regulations shall become 
effective on October 15, 1996.

List of Subjects

12 CFR Part 308

    Administrative practice and procedure, Banks, banking, Claims, 
Crime, Equal access to justice, Lawyers, Penalties, State nonmember 
banks.

12 CFR Part 342

    Administrative practice and procedure, Banks, banking.

    For the reasons set out in the preamble, and under the authority of 
12 U.S.C. 1819, chapter III of title 12 of the Code of Federal 
Regulations is amended as set forth below:

PART 308--RULES OF PRACTICE AND PROCEDURE

    1. The authority citation for part 308 is revised to read as 
follows:

    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 164, 505, 
1817, 1818, 1820, 1831o, 1972, 3102, 3108(a), 3909, 4717; 15 U.S.C. 
78 (h) and (i), 78o-4(c), 78o-5, 78q-1, 78s, 78u, 78u-2, 78u-3, and 
78w; 31 U.S.C. 330, 5321; 42 U.S.C. 4012a.

    2. A new Subpart S comprising Secs. 308.400 through 308.402 is 
added to Part 308 to read as follows:
Subpart S--Applications for a Stay or Review of Actions of Bank 
Clearing Agencies
Sec.
308.400  Scope.
308.401  Applications for stays of disciplinary sanctions or summary 
suspensions by a bank clearing agency.
308.402  Applications for review of final disciplinary sanctions, 
denials of participation, or prohibitions or limitations of access 
to services imposed by bank clearing agencies.

Subpart S--Applications for a Stay or Review of Actions of Bank 
Clearing Agencies


Sec. 308.400  Scope.

    This subpart is issued by the Corporation pursuant to sections 
17A(b)(3)(g), 17A(b)(5)(C), 19 and 23 of the Securities Exchange Act of 
1934 (Exchange Act), as amended (15 U.S.C. 78q-1 (b)(3)(g), (b)(5)(C), 
78s, 78w). It applies to applications by banks insured by the 
Corporation (other than members of the Federal Reserve System) for a 
stay or review of certain actions by clearing agencies registered under 
the Exchange Act, for which the Securities and Exchange Commission 
(Commission) is not the appropriate regulatory agency under section 
3(a)(34)(B) of the Exchange Act (bank clearing agencies).


Sec. 308.401  Applications for stays of disciplinary sanctions or 
summary suspensions by a bank clearing agency.

    Applications to the Corporation for a stay of disciplinary action 
imposed by registered clearing agencies pursuant to section 17(b)(3)(G) 
of the Exchange Act, or summary suspension or limitation or prohibition 
of access under section 17(b)(5)(C) of the Exchange Act shall be made 
according to the rules adopted by the Commission (17 CFR 240.19d-2). 
References to the ``Commission'' in 17 CFR 240.19d-2 are deemed to 
refer to the ``Corporation.''


Sec. 308.402  Applications for review of final disciplinary sanctions, 
denials of participation, or prohibitions or limitations of access to 
services imposed by bank clearing agencies.

    Proceedings on an application to the Corporation under section 
19(d)(2) of the Exchange Act for review of any final disciplinary 
sanctions, denials of participation, or prohibitions or limitations of 
access to services imposed by bank clearing agencies shall be conducted 
according to the procedures set forth in rules adopted by the 
Commission (17 CFR 240.19d-3). References to the ``Commission'' in 17 
CFR 240.19d-3 are deemed to refer to the ``Corporation.''

PART 342--[REMOVED AND RESERVED]

    1. Part 342 is removed and reserved.

    By order of the Board of Directors.

    Dated at Washington, DC, this 13th day of August 1996.

Federal Deposit Insurance Corporation.
Jerry L. Langley,
Executive Secretary.
[FR Doc. 96-23228 Filed 9-12-96; 8:45 am]
BILLING CODE 6714-01-P