[Federal Register Volume 79, Number 107 (Wednesday, June 4, 2014)]
[Proposed Rules]
[Pages 32172-32191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12741]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 79, No. 107 / Wednesday, June 4, 2014 /
Proposed Rules
[[Page 32172]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Chapter I
[Docket ID FFIEC-2014-0001]
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
12 CFR Chapter II
[Docket No. OP-1491]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Chapter III
Regulatory Publication and Review Under the Economic Growth and
Regulatory Paperwork Reduction Act of 1996
AGENCIES: Office of the Comptroller of the Currency (``OCC''),
Treasury; Board of Governors of the Federal Reserve System (``Board'');
and Federal Deposit Insurance Corporation (``FDIC'').
ACTION: Notice of regulatory review; request for comments.
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SUMMARY: The OCC, Board, and FDIC (``we'' or ``Agencies'') are
conducting a review of the regulations we have issued to identify
outdated, unnecessary, or unduly burdensome regulations for insured
depository institutions. This review is required by section 2222 of the
Economic Growth and Regulatory Paperwork Reduction Act of 1996
(``EGRPRA''). To facilitate this review, the Agencies have divided
these regulations into 12 subject-matter categories and identified the
regulations within each category. At regular intervals over the next
two years, the Agencies will publish four Federal Register requests for
comment. Each will address one or more categories. We will invite the
public to identify the regulations in each category that they believe
are outdated, unnecessary, or unduly burdensome for insured depository
institutions and their regulated holding companies. This is the first
of the four Federal Register requests for comment. In it, we are
seeking comment on the regulations in the following three categories:
Applications and Reporting, Powers and Activities, and International
Operations. We will address the remaining nine categories in the three
subsequent requests for comment. To aid the public, we also are
publishing a chart that sets forth the rules addressed in this
document, as well as those that we will address in the remaining three.
DATES: Written comments must be received no later than September 2,
2014.
ADDRESSES: Comments may be submitted through the Federal eRulemaking
Portal: ``Regulations.gov.'' You can reach this portal through the
Agencies' EGRPRA Web site, http://egrpra.ffiec.gov. On this site, click
``Submit a Comment'' and follow the instructions. Alternatively, go to
http://www.regulations.gov, enter ``FFIEC-2014-0001'' in the Search
Box, click ``Search,'' and click ``Comment Now.'' Those who wish to
submit their comments by an alternate means may do so as indicated
below.
OCC
We encourage commenters to submit comments through the Federal
eRulemaking Portal, Regulations.gov, in accordance with the previous
paragraph. Alternatively, comments may be emailed to
[email protected] or sent by mail to Legislative and
Regulatory Activities Division, Office of the Comptroller of the
Currency, Mail Stop 9W-11, 400 7th Street SW., Washington, DC 20219.
Comments also may be faxed to (571) 465-4326 or hand delivered or sent
by courier to 400 7th Street SW., Washington, DC 20219. For comments
submitted by any means other than Regulations.gov, you must include
``OCC'' as the agency name and ``Docket ID FFIEC-2014-0001'' in your
comment.
In general, the OCC will enter all comments received into the
docket and publish them without change on Regulations.gov. Comments
received, including attachments and other supporting materials, as well
as any business or personal information you provide, such as your name
and address, email address, or phone number, are part of the public
record and subject to public disclosure. Therefore, please do not
include any information with your comment or supporting materials that
you consider confidential or inappropriate for public disclosure.
You may inspect and photocopy in person all comments received by
the OCC at 400 7th Street SW., Washington, DC 20219. For security
reasons, the OCC requires that visitors make an appointment to inspect
or photocopy comments. You may make an appointment by calling (202)
649-6700. Upon arrival, visitors will be required to present valid
government-issued photo identification and submit to a security
screening.
Board
We encourage commenters to submit comments regarding the Board's
regulations by any of the following methods:
Agency Web site: http://www.federalreserve.gov/apps/foia/proposedregs.aspx. Follow the instructions for submitting comments on
the Agency Web site.
Federal eRulemaking Portal, in accordance with the
directions above.
Email: [email protected]. Include
``EGRPRA'' and Docket No. OP-1491 in the subject line of the message.
FAX: (202) 452-3819.
Mail: Robert deV. Frierson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
In general, the Board will enter all comments received into the
docket and publish them without change on Regulations.gov. Comments
received, including attachments and other supporting materials, as well
as any business or personal information you provide, such as your name
and address, email address, or phone number, are part of the public
record and subject to public disclosure. Therefore, please do not
enclose any information with your comment or supporting materials that
you consider confidential or inappropriate for public disclosure.
You may inspect and photocopy in person all comments received by
the Board at 20th and Constitution Avenue NW., Washington, DC 20551.
For
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security reasons, the Board requires that visitors make an appointment
to inspect comments. You may make an appointment by calling (202) 452-
3000. Upon arrival, visitors will be required to present valid
government-issued photo identification and submit to a security
screening.
FDIC
We encourage commenters to submit comments through the Federal
eRulemaking Portal, ``Regulations.gov,'' in accordance with the
directions above. Alternatively, you may submit comments by any of the
following methods:
Agency Web site: http://www.fdic.gov/regulations/laws/federal. Follow instructions for submitting comments on the Agency Web
site.
Email: [email protected]. Include ''EGRPRA'' in the
subject line of the message.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments, Federal Deposit Insurance Corporation, 550 17th Street NW.,
Washington, DC 20429.
Hand Delivery/Courier: Guard station at the rear of the
550 17th Street Building (located on F Street) on business days between
7 a.m. and 5 p.m. (EST).
We will post all comments received to http://www.fdic.gov/regulations/laws/federal without change, including any personal
information provided. Comments may be inspected and photocopied in the
FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002,
Arlington, VA 22226, between 9 a.m. and 5 p.m. (EST) on business days.
Paper copies of public comments may be ordered from the Public
Information Center by calling (877) 275-3342.
FOR FURTHER INFORMATION CONTACT:
OCC: Karen McSweeney, Counsel (202) 649-6295; for persons who are
deaf or hard of hearing, TTY (202) 649-5597.
Board: Walter McEwen, Senior Counsel (202) 452-3321; Claudia Von
Pervieux, Counsel (202) 452-2552; Matthew Bornfreund, Attorney (202)
452-3818.
FDIC: Michelle M. Borzillo, Senior Counsel (703) 562-6083; Claude
A. Rollin, Counsel (703) 562-6327; Ann Taylor, Counsel (202) 898-3573.
SUPPLEMENTARY INFORMATION:
I. Introduction
Congress enacted section 2222 of EGRPRA \1\ to minimize unnecessary
government regulation consistent with safety and soundness, to promote
consistency between the Agencies' regulations, and to support consumer
protection. The statute requires that not less frequently than once
every 10 years, the Federal Financial Institutions Examination Council
(``FFIEC''),\2\ along with the Agencies,\3\ conduct a review of their
regulations to identify outdated, unnecessary, or unduly burdensome
requirements imposed on insured depository institutions. In conducting
this review, the FFIEC or Agencies shall (a) categorize their
regulations by type and (b) at regular intervals, provide notice and
solicit public comment on categories of regulations, requesting
commenters to identify areas of regulations that are outdated,
unnecessary, or unduly burdensome.\4\
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\1\ Public Law 104-208 (1996), codified at 12 U.S.C. 3311.
\2\ The FFIEC is an interagency body empowered to prescribe
uniform principles, standards, and report forms for the Federal
examination of financial institutions and to make recommendations to
promote uniformity in the supervision of financial institutions. The
FFIEC does not issue regulations that impose burden on financial
institutions and, therefore, we have not separately captioned the
FFIEC in this notice.
\3\ The FFIEC is comprised of the OCC, Board, FDIC, National
Credit Union Administration (``NCUA''), Consumer Financial
Protection Bureau (``CFPB''), and State Liaison Committee. Of these,
only the OCC, Board, and FDIC are statutorily required to undertake
the EGRPRA review. The NCUA elected to participate in the first
EGRPRA review ten years ago, and the NCUA Board again has elected to
participate in this review process. Consistent with its approach
during the first EGRPRA review, NCUA will separately issue notices
and requests for comment on its rules. The CFPB is required to
review its significant rules and publish a report of its review no
later than five years after they take effect. See 12 U.S.C. 5512(d).
This process is separate from the EGRPRA process.
\4\ Insured depository institutions also are subject to
regulations that are not required to be reviewed under the EGRPRA
process. Examples include rules for which rulemaking authority has
transferred to the CFPB and anti-money laundering regulations issued
by the Department of the Treasury's Financial Crimes Enforcement
Network, among others. If, during the EGRPRA process, the Agencies
receive a comment about a regulation that is not subject to the
EGRPRA review, we will forward that comment to the appropriate
agency.
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EGRPRA also requires the FFIEC or the Agencies to publish in the
Federal Register a summary of the comments received, identifying
significant issues raised and commenting on these issues. It also
directs the Agencies to eliminate unnecessary regulations to the extent
that such action is appropriate. Finally, the statute requires the
FFIEC to submit to Congress a report that summarizes any significant
issues raised in the public comments and the relative merits of such
issues. The report also must include an analysis of whether the
Agencies are able to address the regulatory burdens associated with
such issues or whether these burdens must be addressed by legislative
action.
II. The EGRPRA Review's Targeted Focus
The EGRPRA regulatory review provides an opportunity for the public
and the Agencies to look at groups of related regulations and to
identify opportunities for burden reduction. For example, the EGRPRA
review may facilitate the identification of statutes and regulations
that share similar goals or complementary methods where one or more
Agencies could eliminate overlapping requirements. Alternatively,
commenters may identify regulations or statutes that impose
requirements that are no longer consistent with the way that business
is conducted and that, therefore, the Agencies might eliminate.
The EGRPRA review also provides the Agencies and the public with an
opportunity to consider how to reduce burden on community banks and
other small, insured depository institutions or holding companies. We
are keenly aware of the role that these institutions play in providing
consumers and businesses across the nation with essential financial
services and access to credit, and we are concerned about the impact of
regulatory burden on these smaller institutions. We understand that
when an Agency issues a new regulation or amends a current regulation,
smaller institutions may have to devote considerable resources to
determine if and how the regulation will affect them. Through the
public comment process, the EGRPRA review can help the Agencies
identify and target regulatory changes to reduce burden on these
smaller institutions.
Burden reduction must, however, be compatible with the safety and
soundness of insured depository institutions, their affiliates, and the
financial system as a whole. It also must be consistent with the
Agencies' statutory mandates, many of which require the issuance of
regulations. EGRPRA recognizes that effective burden reduction may
require legislative change. Accordingly, as part of this review, we
specifically ask the public to comment on the relationship among burden
reduction, regulatory requirements, and statutory mandates.
In addition, we note that the Agencies also consider regulatory
burden each time we propose, adopt, or amend a rule. For example, under
the Paperwork Reduction Act of 1995 and the Regulatory Flexibility Act,
the Agencies assess each rulemaking with respect to the burdens the
rule might impose. Furthermore, we invite the public to comment on
every rule we propose, as
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required by the Administrative Procedure Act (``APA'').
III. The EGRPRA Review Process
Taken together for purposes of EGRPRA, the Agencies' regulations
covering insured depository institutions encompass more than 100
subjects.\5\ Consistent with the EGRPRA statute, the Agencies have
grouped these regulations into the following 12 regulatory categories:
Applications and Reporting; Banking Operations; Capital; Community
Reinvestment Act; Consumer Protection; \6\ Directors, Officers and
Employees; International Operations; Money Laundering; Powers and
Activities; Rules of Procedure; Safety and Soundness; and Securities.
To determine these categories, we divided the regulations by type and
sought to have no category be too large or broad.
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\5\ Consistent with EGRPRA's focus on reducing burden on insured
depository institutions, the Agencies have not included their
internal, organizational or operational regulations in this review.
These regulations impose minimal, if any, burden on insured
depository institutions. Furthermore, we have not included in this
review those rules that will go into effect during the EGRPRA
review, new regulations that have only recently gone into effect, or
rules that we have yet to fully implement. As previously noted, the
Agencies were required to take burden into account in adopting these
regulations.
\6\ The Agencies are seeking comment only on those consumer
protection regulations for which they retain rulemaking authority
for insured depository institutions, and regulated holding companies
following passage of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111-203, 124 Stat. 1376 (2010) (``Dodd-
Frank Act'').
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Over the next two years, the Agencies plan to publish four Federal
Register notices, each addressing one or more categories of rules. Each
Federal Register notice will have a 90-day comment period. Today, we
are publishing the first of these four notices, addressing the
following three categories of regulations: Applications and Reporting,
Powers and Activities, and International Operations. We invite the
public to identify outdated, unnecessary, or unduly burdensome
regulatory requirements imposed on insured depository institutions and
their holding companies in these three categories.
To assist the public's understanding of how we have organized the
EGRPRA review, the Agencies have prepared a chart that lists the three
categories of regulations for which we are currently requesting
comments, as well as the remaining nine categories on which we will
seek comment in the future. On the chart, the left column divides the
categories into specific subject-matter areas. The headings at the top
of the chart identify the types of institutions affected by the
regulations.
After comments have been received, the Agencies will review the
comments and decide whether further action is appropriate with respect
to the regulations. The Agencies will make this decision jointly in the
case of rules that we have issued on an interagency basis. Similarly,
we will undertake any rulemaking to amend or repeal those rules on an
interagency basis. For rules issued by a single agency, the issuing
agency will review the comments received and independently determine
whether amendments to or repeal of its rules are appropriate. If so,
that Agency will initiate a rulemaking to effect such change. In all
cases, the Agencies will provide the public with an opportunity to
comment on any proposed amendment to or repeal of a regulation, as
required by the APA.
IV. Request for Burden Reduction Comments on the First Three Categories
of Regulations: Applications and Reporting, Powers and Activities, and
International Operations
As noted previously, the Agencies are asking the public to comment
on regulations in three specific categories to identify outdated,
unnecessary, or unduly burdensome requirements imposed on insured
depository institutions and their regulated holding companies. Where
possible, we ask commenters to cite to specific regulatory language or
provisions. We also welcome suggested alternative provisions or
language in support of a comment, where appropriate. Where
implementation of a suggestion would require modification of a statute,
we ask the commenter to identify the statute and the needed change,
where possible.
Comments on Application and Reporting rules for Federal savings
associations. The Dodd-Frank Act transferred the rulewriting authority
for Federal consumer financial laws to the CFPB (with some exceptions)
and the rulewriting authority for all other Federal and state savings
association and savings and loan holding company rules to the relevant
Agency. Following this transfer, each Agency made its own decision
about how to incorporate these former Office of Thrift Supervision
(``OTS'') rules into its regulations. The OCC republished the former
OTS rules at 12 CFR parts 100 through 197. As a result, in most cases,
the OCC has one set of rules applicable to national banks and another
set of rules applicable to Federal savings associations or, where
appropriate, to all savings associations.
However, the OCC has decided to propose integrating its Application
and Reporting rules (also referred to as Licensing rules) \7\--to the
extent appropriate and consistent with statutory charter differences--
for national banks and Federal savings associations, in order to
streamline its applications processing and to facilitate improvements
in its electronic filing systems. Accordingly, on May 21, 2014, the OCC
issued a Notice of Proposed Rulemaking (``NPR'') (a) to integrate its
national bank and savings association Application and Reporting rules,
and (b) to revise some of these rules with the goal of eliminating
unnecessary requirements consistent with safety and soundness.\8\
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\7\ These rules are set forth on pages 1-2 of the chart.
\8\ http://www.occ.gov/news-issuances/bulletins/2014/bulletin-2014-22a.pdf.
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The OCC recognizes that the timing and substance of this NPR and
the EGRPRA review of the Application and Reporting rules overlap. In an
effort to provide the fullest opportunity for public comment, the OCC
invites comment on its current Application and Reporting rules pursuant
to this notice, on its proposed revisions to the Application and
Reporting rules set forth in the NPR, or on both. The OCC will consider
all comments it receives when it finalizes its integrated Application
and Reporting rules.
Comments on rules transferred from the OTS to the FDIC that involve
state savings associations. Pursuant to section 316(b) of the Dodd-
Frank Act, rules transferred from the OTS to the FDIC and other
successor agencies remain in effect ``until modified, terminated, set
aside, or superseded in accordance with applicable law'' by the
relevant successor agency, by a court of competent jurisdiction, or by
operation of law. When the FDIC republished the transferred OTS
regulations as new FDIC regulations applicable to state savings
associations, the FDIC stated in its Federal Register notice that its
staff would evaluate the transferred OTS rules and might later
recommend incorporating the transferred OTS regulations into other FDIC
rules, amending them, or rescinding them.\9\ This process began in 2013
and continues, involving publication in the Federal Register of a
series of NPRs and rulemakings.
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\9\ 76 FR 47652, 47653 (Aug. 5, 2011).
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The FDIC will consider public comments submitted either through the
EGRPRA review process or through any notice and comment rulemaking
related to the FDIC's determinations regarding the transferred OTS
regulations.
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Comments on rules transferred from the OTS to the Board on savings
and loan holding companies. In August 2011, the Board adopted interim
final rules for savings and loan holding companies as Regulations LL
and MM.\10\ In connection with the action, the Board requested comments
on the rules. Any comments received during the EGRPRA process will be
taken into account in connection with the adoption of the final rules
or in connection with any subsequent requests for comment on additional
changes to these regulations.
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\10\ 12 CFR parts 238 and 239.
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Specific issues for commenters to consider. The Agencies
specifically invite comment on the following issues as they pertain to
the Agencies' Applications and Reporting, Powers and Activities, and
International Operations rules addressed in this notice. We will ask
these same questions for each notice we issue in connection with the
EGRPRA process.
Need for statutory change. Do the statutes underlying the
regulations in these categories impose outdated, unnecessary, or unduly
burdensome requirements on insured depository institutions or their
regulated holding companies? If so, how should the statutes be amended?
Need and purpose of the regulations. Have there been
changes in the financial services industry, consumer behavior, or other
circumstances that cause any regulations in these categories to be
outdated, unnecessary, or unduly burdensome? If so, how should these
regulations be amended? Do any of these regulations impose burdens not
required by their underlying statutes? If so, what regulatory changes
do you recommend?
Overarching approaches/flexibility. With respect to the
regulations and underlying statutes in these categories, could an
Agency use a different regulatory approach to impose less regulatory
burden on the entities it supervises, while remaining faithful to
statutory intent? Are any of the regulations or underlying statutes in
these categories unnecessarily inflexible? If so, which ones and how
should they be amended?
Effect on competition. Do any of the regulations or
underlying statutes in these categories create a competitive
disadvantage for one part of the financial services industry compared
to another? If so, how should they be amended?
Reporting, recordkeeping and disclosure requirements. Do
any of the regulations or underlying statutes in these categories
impose unnecessarily burdensome reporting, recordkeeping, or disclosure
requirements on insured depository institutions and their holding
companies? Could the Agencies consolidate or eliminate any of these
requirements? Could a financial institution fulfill any of these
requirements electronically (if they are not already permitted to do
so) and experience a burden reduction? If so, please provide specific
recommendations.
Unique characteristics of a type of institution. Do any of
the regulations or underlying statutes in these categories impose
requirements that are unwarranted by the unique characteristics of a
particular type of insured depository institution or holding company?
If so, how should these regulations be amended?
Clarity. Are the regulations and underlying statutes in
these categories clear and easy to understand? Are there specific
regulations or underlying statutes in need of clarification? If so,
please identify the regulations and statutes.
Burden on community banks and other smaller, insured
depository institutions. Are there regulations or underlying statutes
in these categories that impose outdated, unnecessary, or unduly
burdensome requirements on a substantial number of community banks or
other smaller, insured depository institutions or holding companies?
Should any of these regulations be amended or repealed in order to
minimize this impact? If so, please specify the regulation(s).
Scope of rules. Is the scope of each rule in these
categories consistent with the intent of the underlying statute(s)?
Could we amend the scope of a rule to clarify its applicability or to
reduce the burden, while remaining faithful to statutory intent? If so,
specify which regulation(s) should be clarified.
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
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Dated: May 26, 2014.
Thomas J. Curry,
Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, May 22, 2014.
Robert DeV. Frierson,
Secretary of the Board.
Dated: May 23, 2014.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2014-12741 Filed 6-3-14; 8:45 am]
BILLING CODE 4810-33-C; 6210-01-C; 6714-01-C