[Federal Register Volume 77, Number 225 (Wednesday, November 21, 2012)]
[Notices]
[Pages 69844-69845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-28309]


-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM


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

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: Notice is hereby given of the final approval of a proposed 
information collections by the Board of Governors of the Federal 
Reserve System (Board) under OMB delegated authority, as 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.

[[Page 69845]]


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, Without Revision, of the Following Report

    Report Title: Recordkeeping Requirements Associated with the 
Interagency Statement on Complex Structured Finance Activities.
    Agency Form Number: FR 4022.
    OMB Control Number: 7100-0311.
    Frequency: Annual.
    Reporters: State member banks, bank holding companies, and U.S. 
branches and agencies of foreign banks supervised by the Federal 
Reserve.
    Estimated Annual Reporting Hours: 200 hours.
    Estimated Average Hours per Response: 10 hours.
    Estimated Number of Respondents: 20.
    General Description of Report: The FR 4022 is authorized by 
sections 11(a), 11(i), 21, and 25 of the Federal Reserve Act (12 U.S.C. 
248(a), 248(i), 483, and 602), section 5 of the Bank Holding Company 
Act (12 U.S.C. 1844), and section 13(a) of the International Banking 
Act (12 U.S.C. 3108(a)) and is voluntary guidance for supervised 
institutions. However, the Federal Reserve expects to use the Statement 
in reviewing the internal controls and risk management systems of those 
financial institutions engaged in Complex Structured Finance Activities 
(CSFTs) as part of the Federal Reserve's supervisory process. Since the 
Federal Reserve does not collect any information, no issue of 
confidentiality normally arises. However, in the event records 
generated under the guidance are obtained by the Federal Reserve during 
an examination of a state member bank or U.S. branch or agency of a 
foreign bank, or during an inspection of a bank holding company, 
confidential treatment may be afforded to the records under exemption 8 
of the Freedom of Information Act (FOIA), 5 U.S.C. 552(b)(8). FOIA 
exemption 8 exempts from disclosure matters that are contained in or 
related to examination, operating, or condition reports prepared by, on 
behalf of, or for the use of an agency responsible for the regulation 
or supervision of financial institutions.
    Abstract: The Interagency Statement on Complex Structured Finance 
Activities provides that state member banks, bank holding companies, 
and U.S. branches and agencies of foreign banks supervised by the 
Federal Reserve should establish and maintain policies and procedures 
for identifying, evaluating, assessing, documenting, and controlling 
risks associated with certain CSFTs. A financial institution engaged in 
CSFTs should maintain a set of formal, firm-wide policies and 
procedures that are designed to allow the institution to identify, 
evaluate, assess, document, and control the full range of credit, 
market, operational, legal, and reputational risks associated with 
these transactions. These policies may be developed specifically for 
CSFTs, or included in the set of broader policies governing the 
institution generally. A financial institution operating in foreign 
jurisdictions may tailor its policies and procedures as appropriate to 
account for, and comply with, the applicable laws, regulations and 
standards of those jurisdictions. A financial institution's policies 
and procedures should establish a clear framework for the review and 
approval of individual CSFTs. These policies and procedures should set 
forth the responsibilities of the personnel involved in the 
origination, structuring, trading, review, approval, documentation, 
verification, and execution of CSFTs. A financial institution should 
define what constitutes a new complex structured finance product and 
establish a control process for the approval of such new products. An 
institution's policies also should provide for new complex structured 
finance products to receive the approval of all relevant control areas 
that are independent of the profit center before the product is offered 
to customers.
    Current Actions: On August 28, 2012, the Federal Reserve published 
a notice in the Federal Register (77 FR 52031) requesting public 
comment for 60 days on the extension, without revision, of the FR 4022. 
The comment period for this notice expired on October 29, 2012. The 
Federal Reserve did not receive any comments.

    Board of Governors of the Federal Reserve System, November 16, 
2012.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2012-28309 Filed 11-20-12; 8:45 am]
BILLING CODE 6210-01-P