[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]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 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outdated, unnecessary, or unduly burdensome regulations for insured 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are outdated, unnecessary, or unduly burdensome for insured depository 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

[[Page 32174]]

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.

[[Page 32175]]

    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