[Federal Register Volume 78, Number 104 (Thursday, May 30, 2013)]
[Notices]
[Pages 32387-32389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12715]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board of Governors of the Federal Reserve System 
(Board) its approval authority under the Paperwork Reduction Act (PRA), 
pursuant to 5 CFR 1320.16, to approve of and assign OMB control numbers 
to collection of information requests and requirements conducted or 
sponsored by the Board under conditions set forth in 5 CFR part 1320 
Appendix A.1. 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 instruments 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.

DATES: Comments must be submitted on or before July 29, 2013.

ADDRESSES: You may submit comments, identified by FR 4010, FR 4011, FR 
4012, FR 4017, FR 4019, or FR 4023 by any of the following methods:
     Agency Web Site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include OMB 
number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Robert deV. Frierson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue NW., 
Washington, DC 20551.
    All public comments are available from the Board's Web site at 
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room MP-
500 of the Board's Martin Building (20th and C Streets NW.) between 
9:00 a.m. and 5:00 p.m. on weekdays.
    Additionally, commenters may send a copy of their comments to the 
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 or by 
fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission, 
including the proposed reporting form and instructions, supporting 
statement, and other documentation will be placed into OMB's public 
docket files, once approved. These documents will also be made 
available on the Federal Reserve Board's public Web site at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    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.

SUPPLEMENTARY INFORMATION:

Request for Comment on Information Collection Proposals

    The following information collection, which is being handled under 
this delegated authority, has received initial Board approval and is 
hereby published for comment. At the end of the comment period, the 
proposed information collection, along with an analysis of comments and 
recommendations received, will be submitted to the Board for final 
approval under OMB delegated authority. Comments are invited on the 
following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Federal Reserve's functions; including 
whether the information has practical utility;
    b. The accuracy of the Federal Reserve's estimate of the burden of 
the proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or start up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    Proposal to approve under OMB delegated authority the extension for 
three years, with revision, the following information collection:
    Report title: Information Collections Related to the Gramm-Leach-
Bliley (GLB) Act.
    Agency form number: FR 4010, FR 4011, FR 4012, FR 4017, FR 4019, 
and FR 4023.
    OMB control number: 7100-0292.
    Frequency: On occasion.
    Reporters: Bank Holding Companies (BHCs), foreign banking 
organizations (FBOs), state member banks (SMBs), and Savings and Loan 
Holding Companies (SLHCs).
    Annual reporting hours: 1,884 hours.
    Estimated average hours per response: FR 4010: BHC and SLHCs 3 
hours, FBOs 3.5 hours; FR 4011: 10 hours; FR 4012: BHCs decertified as 
financial holding companies (FHCs) 1 hour, SLHCs decertified as a FHC 1 
hour, FHCs back into compliance--BHC 10 hours; FHCs back into 
compliance--SLHC 10 hours, FR 4017: 4 hours; FR 4019: Regulatory relief 
requests 1 hour, Portfolio company notification 1 hour; and FR 4023: 50 
hours.
    Number of respondents: FR 4010: BHC and SLHCs 29, FBOs 5; FR 4011: 
5; FR 4012: BHCs decertified as FHCs 8, SLHCs decertified as a FHC 2, 
FHCs back into compliance--BHC 17; FHCs back into compliance--SLHC 3, 
FR 4017: 3; FR 4019: Regulatory relief

[[Page 32388]]

requests 5, Portfolio company notification 2; FR 4023: 30.
    General description of report: The FR 4010 is required to obtain a 
benefit and is authorized under Section 4(l)(1)(C) of the BHC Act, 12 
U.S.C. 1843(l)(l)(C); section 10(c)(2)(H) of the Home Owner's Loan Act 
12 U.S.C. 1467a(c)(2)(H); section 8(a) of the International Banking 
Act, 12 U.S.C. 3106(a); sections 225.82 and 225.91 of Regulation Y, 12 
CFR 225.82 and 225.91; and section 238.65 of Regulation LL, 12 CFR 
238.65.
    The FR 4011 is voluntary and is authorized under Sections 4(j) and 
4(k) of the BHC Act, 12 U.S.C. 1843(j) through (k); and sections 
225.88, and 225.89, of Regulation Y, 12 CFR 225.88, and 225.89.
    The FR 4012 is mandatory and is authorized under Section 4(l)(1) 
and 4(m) of the BHC Act, 12 U.S.C. 1843(l)(1) and (m); section 
10(c)(2)(H) of the Home Owner's Loan Act 12 U.S.C. 1467a(c)(2)(H); 
section 8(a) of the International Banking Act, 12 U.S.C. 3106(a); and 
sections 225.83 and 225.93 of Regulation Y, 12 CFR 225.83 and 225.93; 
and section 238.66(b) of Regulation LL 12 CFR 238.66(b).
    The FR 4017 is required to obtain a benefit and is authorized under 
Section 9 of the Federal Reserve Act, 12 U.S.C. 335; and section 208.76 
of Regulation H, 12 CFR 208.76.
    The FR 4019 is required to obtain a benefit and is authorized under 
Section 4(k)(7) of the BHC Act, 12 U.S.C. 1843(k)(7); and sections 
225.171(e)(3), 225.172(b)(4), and 225.173(c)(2) of Regulation Y, 12 CFR 
225.171(e)(3), 225.172(b)(4), and 225.173(c)(2).
    The FR 4023 is mandatory and is authorized under Section 4(k)(7) of 
the BHC Act, 12 U.S.C. 1843(k)(7); and sections 225.171(e)(4) and 
225.175 of Regulation Y, 12 CFR 225.171(e)(4) and 225.175.
    For the FR 4010, FR 4011, FR 4017, FR 4019, and information related 
to a failure to meet capital requirements on the FR 4012, a company may 
request confidential treatment of the information contained in these 
information collections pursuant to section (b)(4) and (b)(6) of the 
Freedom of Information Act (FOIA)(5 U.S.C. 552 (b)(4) and (b)(6)). 
Information related to a failure to meet management requirements on the 
FR 4012 is confidential and exempt from disclosure under section 
(b)(4), because the release of this information would cause substantial 
harm to the competitive position of the entity, and (b)(8) if the 
information is 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. Since the 
Federal Reserve does not collect the FR 4023, no issue of 
confidentiality under the FOIA arises. FOIA will only be implicated if 
the Board's examiners retained a copy of the records in their 
examination or supervision of the institution, and would likely be 
exempt from disclosure pursuant to FOIA (5 U.S.C. 552(b)(4), (b)(6), 
and (b)(8)).
    Abstract: President Clinton signed the GLB Act into law on November 
12, 1999. Final regulations implementing the GLB Act and mandating the 
subject information collections took effect in 2001. These data 
collections include:
    Declarations to Become a Financial Holding Company (FR 4010). The 
BHC Act requires entities to file this declaration in order to be 
treated as FHCs.\1\ The information contained in a FHC declaration is 
used by the Federal Reserve to ascertain whether the filer is eligible 
to become a FHC.
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    \1\ 12 U.S.C. 1843(l)(1)(C). Section 10(c)(2)(H) of the Home 
Owner's Loan Act, 12 U.S.C. 1467a(c)(2)(H), and Section 8(a) of the 
International Banking Act, 12 U.S.C. 3106(a), respectively, make 
this requirement applicable to SLHCs and Foreign Banking 
Organizations (FBOs) seeking to be treated as FHCs.
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    Requests for Determinations and Interpretations Regarding 
Activities Financial in Nature (FR 4011). The GLB Act authorizes the 
Federal Reserve, upon request or on its own initiative, to determine in 
conjunction with the Treasury Department that nonbanking activities are 
financial in nature, incidental to a financial activity, or 
complementary to a financial activity.\2\ In addition, Regulation Y 
permits interested parties to request the Federal Reserve to issue 
advisory opinions that specific proposed activities fall within the 
scope of (or are incidental to) financial activities.\3\ To gather 
facts necessary to make determinations or issue opinions, the Federal 
Reserve must collect information from parties making such requests.
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    \2\ 12 U.S.C. 1843(k)(1).
    \3\ 12 CFR 225.88(e).
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    Notices of Failure to Meet Capital or Management Requirements (FR 
4012). The BHC Act provides that a company is eligible for FHC status 
only if it and all of its subsidiary depository institutions (and in 
the case of a FBO, the foreign bank itself, and its U.S. branches, 
agencies, and commercial lending companies) are well managed and well 
capitalized. Regulations Y and LL require a FHC that falls out of 
compliance with these requirements to notify the Federal Reserve of the 
noncompliance.\4\ Notice of noncompliance triggers restrictions on the 
FHC's ability to engage in additional nonbanking activities and 
commences a 45-day period for the FHC to submit plans to the Federal 
Reserve for curing the deficiencies and to execute a formal cure 
agreement with the Federal Reserve.\5\
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    \4\ 12 U.S.C. 1843(l)(1); 12 CFR 225.83(b)(1), 225.93(b)(1), and 
238.66(b).
    \5\ 12 U.S.C. 1843(m)(2) and 1467a(c)(2)(H)(ii), 12 CFR 
225.83(d) and 225.93(d).
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    Notices by State Member Banks to Invest in Financial Subsidiaries 
(FR 4017). The Federal Reserve Act and Regulation H require state 
member banks to obtain approval from the Federal Reserve prior to 
establishing, acquiring control of, or acquiring an interest in a 
financial subsidiary, and prior to engaging in additional financial 
activities through an existing financial subsidiary.\6\ The information 
contained in the notice is used by the Federal Reserve to ascertain 
whether the filer is eligible to establish a financial subsidiary.
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    \6\ 12 U.S.C. 335 (applying the prior approval requirements of 
12 U.S.C. 24a(a)(2)(F)); 12 CFR 208.76(a).
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    Regulatory Relief Requests Associated with Merchant Banking 
Activities (FR 4019). Regulation Y generally limits holding periods for 
merchant banking investments to 10 years (15 years in the case of 
investments in or through private equity funds), but permits a FHC to 
request holding period extensions on a case-by-case basis.\7\ 
Information contained in the request is used to determine whether the 
request should be granted. The BHC Act also bars FHCs from routinely 
managing or operating portfolio companies held as merchant banking 
investments, except as necessary or required to obtain a reasonable 
return on investment. To help monitor compliance with this limitation, 
Regulation Y requires a FHC to notify the Federal Reserve if the FHC's 
routine management or operation of a portfolio company lasts longer 
than nine months.\8\ Information in the notice enables the Federal 
Reserve to monitor compliance with requirements for engaging in 
merchant banking activities.
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    \7\ 12 CFR 225.172(b), 225.173(c); 12 CFR 225.172(b)(4), and 
225.173(c)(2).
    \8\ 12 CFR 225.171, 225.171(e)(3).
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    Recordkeeping Requirements Associated with Merchant Banking 
Activities (FR 4023). Regulation Y requires companies engaging in 
merchant banking activities to establish and maintain policies, 
procedures, records, and systems for managing the activities and the 
risk associated with them and to make these materials available upon 
request to the Federal Reserve.\9\ Regulation Y also requires

[[Page 32389]]

FHCs to document any routine management or operation of a portfolio 
company and to make this documentation available to the Federal Reserve 
on request.\10\ Examiners use this information to assess whether the 
FHC is conducting its merchant banking activities in a safe and sound 
manner and whether the FHC is in compliance with applicable regulatory 
requirements for engaging in merchant banking activities.
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    \9\ 12 CFR 225.175.
    \10\ 12 CFR 225.171(e)(4).
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    There are no formal reporting forms for these collections of 
information, which are event generated, though in each case the type of 
information required to be filed is described in the Board's 
regulations. These collections of information are required pursuant to 
amendments made by the GLB Act to the BHC Act or the Federal Reserve 
Act, or Board regulations issued to carry out the GLB Act.
    Current Actions: The Federal Reserve proposes to revise FR 4012 to 
include SLHCs, consistent with interim final Regulation LL (CFR 
238.66(b)).\11\
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    \11\ (76 FR 56508) September 13, 2011.

    Board of Governors of the Federal Reserve System, May 23, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013-12715 Filed 5-29-13; 8:45 am]
BILLING CODE 6210-01-P