[Federal Register Volume 76, Number 224 (Monday, November 21, 2011)]
[Notices]
[Pages 71975-71977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29984]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

SUMMARY: Notice is hereby given of the final approval of a proposed 
information collection by the Board of Governors of the Federal Reserve 
System (Board) under OMB delegated authority, per 5 CFR 1320.16 (OMB 
Regulations on Controlling Paperwork Burdens on the Public). Board-
approved collections of information are incorporated into the official 
OMB inventory of currently approved collections of information. Copies 
of the Paperwork Reduction Act Submission, supporting statements and 
approved collection of information instrument(s) are placed into OMB's 
public docket files. The Federal Reserve may not conduct or sponsor, 
and the respondent is not required to respond to, an information 
collection that has been extended, revised, or implemented on or after 
October 1, 1995, unless it displays a currently valid OMB control 
number.

FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance Officer--Cynthia Ayouch--Division of 
Research and Statistics, Board of Governors of the Federal Reserve 
System, Washington, DC 20551 (202) 452-3829) Telecommunications Device 
for the Deaf (TDD) users may contact (202) 263-4869), Board of 
Governors of the Federal Reserve System, Washington, DC 20551.
OMB Desk Officer--Shagufta Ahmed --Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, Room 10235, 725 17th Street NW.,Washington, DC 20503.

    Final approval under OMB delegated authority of the extension for 
three years, with revision, of the following reports:
    Report title: Report of Changes in Organizational Structure, Annual 
Report of Bank Holding Companies, and Annual Report of Foreign Banking 
Organizations.
    Agency form number: FR Y-10, FR Y-6, and FR Y-7.
    OMB control number: 7100-0297.

[[Page 71976]]

    Effective Date: The proposed changes to the FR Y-6 and FR Y-7 
reporting forms and instructions will be effective December 31, 2011. 
However, the requirement for institutions to provide the state and 
country of incorporation for each entity provided in organization chart 
of the FR Y-6 and FR Y-7 is being delayed for implementation until 
fiscal years beginning December 31, 2012. The proposed changes to the 
FR Y-10 reporting form and instructions will be effective January 1, 
2012.
    Frequency: FR Y-10: Event-generated; FR Y-6 and FR Y-7: Annual.
    Reporters: Bank holding companies (BHCs), foreign banking 
organizations (FBOs), state member banks, Edge and agreement 
corporations, and nationally chartered banks that are not controlled by 
a BHC.
    Estimated annual reporting hours: FR Y-10: 17,850 hours; FR Y-6: 
26,507 hours; FR Y-7: 694 hours.
    Estimated average hours per response FR Y-10: 1.75 hours; FR Y-6: 
5.25 hours; FR Y-7: 3.75 hours.
    Number of respondents: FR Y-10: 3,400; FR Y-6: 5,049; FR Y-7: 185.
    General description of report: These information collections are 
mandatory under the Federal Reserve Act, the Bank Holding Company Act 
(BHC Act), and the International Banking Act (12 U.S.C. 248 (a)(1), 
321, 601, 602, 611a, 615, 625, 1843(k), 1844(c)(1)(A), 3106(a), and 
3108(a)), and Regulations K and Y (12 CFR 211.13(c), 225.5(b) and 
225.87). Individual respondent data are not considered confidential. 
However, respondents may request confidential treatment for any 
information that they believe is subject to an exemption from 
disclosure under the Freedom of Information Act(FOIA), 5 U.S.C. 552(b).
    Abstract: The FR Y-10 is an event generated information collection 
submitted by FBOs; top-tier BHCs; state member banks unaffiliated with 
a BHC; Edge and agreement corporations that are not controlled by a 
state member bank, a domestic BHC, or an FBO; and nationally chartered 
banks that are not controlled by a BHC (with regard to their foreign 
investments only), to capture changes in their regulated investments 
and activities. The Federal Reserve uses the data to monitor structure 
information on subsidiaries and regulated investments of these entities 
engaged in banking and nonbanking activities. The FR Y-6 is an annual 
information collection submitted by top-tier BHCs and nonqualifying 
FBOs. It collects financial data, an organization chart, verification 
of domestic branch data, and information about shareholders. The 
Federal Reserve uses the data to monitor holding company operations and 
determine holding company compliance with the provisions of the BHC Act 
and Regulation Y (12 CFR 225). The FR Y-7 is an annual information 
collection submitted by qualifying FBOs to update their financial and 
organizational information with the Federal Reserve. The Federal 
Reserve uses information to assess an FBO's ability to be a continuing 
source of strength to its U.S. operations and to determine compliance 
with U.S. laws and regulations.
    Current Actions: On August 11, 2011, the Federal Reserve published 
a notice in the Federal Register (76 FR 49769) requesting public 
comment for 60 days on the extension, with revision, of the Report of 
Changes in Organizational Structure, Annual Report of Bank Holding 
Companies, and Annual Report of Foreign Banking Organizations. The 
comment period for this notice expired on October 11, 2011. The Federal 
Reserve received two comment letters on the proposed revisions to the 
FR Y-10 and the FR Y-6: one from a bankers' organization, the other, 
from a BHC.
    No comments were received on the following FR Y-10 revisions that 
were proposed to take effect as of January 1, 2012, and therefore the 
Federal Reserve will implement these revisions as proposed: (1) Adding 
a new business organization type for limited liability limited 
partnership, (2) adding a check box to report whether ownership is in 
the form of a general partner or limited partner, and (3) requiring the 
reporting of the representative office when there are no other 
reportable offices in the United States.
    No comments were received on the following FR Y-6 revisions that 
were proposed to take effect as of December 31, 2011, and therefore the 
Federal Reserve will implement these revisions as proposed: (1) 
Clarifying the language regarding confidentiality of the reporter's 
submission, (2) adding the rounding definition from the FR Y-10 to 
ensure the reporting of percentage ownership is consistent across all 
structure reporting forms, (3) modifying the language for securities 
holders to include persons working in concert, including families, and 
(4) revising the insiders information to include options, warrants, or 
other securities as reportable voting securities and to include 
families in the definition of a principal securities holder.
    The following section of this notice describes the remaining 
proposed FR Y-10, FR Y-7, and FR Y-6 report changes and discusses the 
Federal Reserve's evaluation of the comments received on the proposed 
changes. After considering the comments, the Federal Reserve will move 
forward with the proposed revisions after making certain modifications 
in response to the comments.

FR Y-10

    Banking and Nonbanking Schedules. The Federal Reserve proposed to 
add ``State and Country of Incorporation'' to item 3.a. In addition, 
the Federal Reserve proposed to add ``If Relocation or Correction, 
Prior State and Country of Incorporation'' in item 3.b. These revisions 
are necessary to provide more consistent data on physical location 
versus the state and country of incorporation. One commenter stated 
that reporting state of incorporation on the Banking and Nonbanking 
Schedules would be burdensome with respect to non-U.S. entities. The 
Federal Reserve did not intend for foreign respondents to provide the 
equivalent of a U.S. state. The Federal Reserve will revise the FR Y-10 
instructions to make it clear that foreign respondents should report 
only the country of incorporation.
    One commenter suggested that self-regulatory organizations, such as 
the Financial Industry Regulatory Authority (FINRA) and National 
Futures Association (NFA), be added to the list of functional 
regulators on the Nonbanking Schedule. The Federal Reserve will assess 
the need for additional regulators in a future proposal.
    4(k) Schedule. The Federal Reserve proposed to add the following 
event types for large merchant banking or insurance company 
investments: initial investment, changes to initial investment, and 
divestitures. Both commenters expressed concern about the proposed 
revisions to the large merchant banking or insurance company (LMBI) 
section of the FR Y-10 4(k) Schedule. Both commenters stated that the 
proposed revision to require reporting of changes in the ownership and 
assets of LMBIs would be burdensome and requested that these revisions 
not be made. In addition, the BHC asked the Federal Reserve to add a 
selection for ``No Longer Reportable'' to the LMBI section of the 4 (k) 
Schedule. After considering these comments, the Federal Reserve will 
add to this section of the 4(k) Schedule selections for ``No Longer 
Reportable'' and ``Name Changes'' and remove the selection for 
``Changes to Initial Investment.'' The BHC expressed concern that the 
4(k) Schedule contains both financial-in-nature activities as well as 
non-financial activities commenced by a financial holding company. The 
Federal Reserve will clarify the instructions by adding a

[[Page 71977]]

definition of a nonfinancial company in the Y-10 glossary.
    Instructional Revisions. The Federal Reserve proposed to revise and 
clarify the FR Y-10 instructions to conform with the proposed changes 
to the reporting form. On the Banking, Nonbanking, and 4(k) Schedules, 
the Federal Reserve proposed to remove Appendix B-- North American 
Industry Classification System (NAICS) Activity Codes and add the URL 
to the U.S. Census Bureau's Web site where reporters may retrieve 
current NAICS Activity Codes.
    One commenter suggested that infrequent reporters might find it 
useful to retain a modified version of the table mapping the financial-
in-nature activities of the old Federal Reserve alphanumeric codes to 
the corresponding NAICS codes. The Federal Reserve agrees and 
recommends including this table as Appendix B. A footnote would be 
added to clarify that the Federal Reserve converted from alphanumeric 
activity codes to NAICS codes in 2004.
    A bankers' organization made several comments with regard to the 
instructional revision requiring that certain entities organized to 
hold other real estate owned properties be reported on the FR Y-10 
Nonbanking Schedule. The commenter stated that reporting the entities 
holding debts previously contracted would not provide enhanced 
information to the Federal Reserve and recommended that this proposed 
revision not be included in the final FR Y-10 instructions. After 
considering these comments, the Federal Reserve will clarify the FR Y-
10 instructions to indicate that a company that holds only foreclosed 
properties should not be reported. However, a company that holds a 
mixture of foreclosed properties and non-performing loans that are not 
yet in default should be reported.

FR Y-6 and FR Y-7

    The Federal Reserve proposed to change legal address to physical 
address on the FR Y-6 and FR Y-7. Also, the Federal Reserve proposed to 
add state and country of incorporation to the FR Y-6. Both commenters 
expressed concern regarding the proposal to require institutions to 
provide the state and country of incorporation for each entity provided 
in organization chart of the FR Y-6. After considering these comments, 
the Federal Reserve continues to believe that reporting the state and 
country of incorporation at the entity level is important in connection 
with section 165(d) of the Dodd-Frank Act, which requires institutions 
to submit annual resolution plans to regulators. These plans will 
include, among other things, information on legal entities. However, 
the Federal Reserve recognizes that the reporting of the state and 
country of incorporation at the entity level may be particularly 
burdensome for some BHCs to report effective with the December 31, 
2011, as-of date. Therefore, the Federal Reserve recommends delaying 
implementation of this requirement until fiscal years beginning 
December 31, 2012.
    Although no comments were received on a similar proposed 
requirement to provide the country of incorporation for each entity 
provided in organization chart on the FR Y-7, the Federal Reserve also 
recommends delaying implementation of this requirement until fiscal 
years beginning December 31, 2012.
    Proposal to approve under OMB delegated authority the extension for 
three years, without revision of the following report:
    Report title: Supplement to the Report of Changes in Organizational 
Structure.
    Agency form number: FR Y-10E.
    OMB control number: 7100-0297.
    Frequency: Event-generated.
    Reporters: BHCs, FBOs, state member banks, Edge and agreement 
corporations, and nationally chartered banks that are not controlled by 
a BHC.
    Estimated annual reporting hours: 1,700 hours.
    Estimated average hours per response: 0.50 hours.
    Number of respondents: 3,400.
    General description of report: This information collection is 
mandatory under the Federal Reserve Act, the Bank Holding Company Act 
(BHC Act), and the International Banking Act (12 U.S.C. 248(a)(1), 321, 
601, 602, 611a, 615, and 625, 1843(k), 1844(c)(1)(A), 3106(a)) and 
Regulation K and Y (12 CFR 211.13(c), 225.5(b) and 225.87). Individual 
respondent data are not considered confidential. However, respondents 
may request confidential treatment for any information that they 
believe is subject to an exemption from disclosure under the Freedom of 
Information Act (FOIA), 5 U.S.C. 552(b).
    Abstract: The FR Y-10E is a free-form supplement that may be used 
to collect additional structural information deemed to be critical and 
needed in an expedited manner.
    Current Actions: On August 11, 2011, the Federal Reserve published 
a notice in the Federal Register (76 FR 49769) requesting public 
comment for 60 days on the extension, with revision, of the Supplement 
to the Report of Changes in Organizational Structure. The comment 
period for this notice expired on October 11, 2011. The Federal Reserve 
did not receive any comments.

    Board of Governors of the Federal Reserve System, November 16, 
2011.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. 2011-29984 Filed 11-18-11; 8:45 am]
BILLING CODE 6210-01-P