[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
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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