[Federal Register Volume 80, Number 207 (Tuesday, October 27, 2015)]
[Rules and Regulations]
[Pages 65612-65614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27292]


=======================================================================
-----------------------------------------------------------------------

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 390

RIN 3064-AE19


Removal of Transferred OTS Regulations Regarding Electronic 
Operations

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Final rule.

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

SUMMARY: The Federal Deposit Insurance Corporation (``FDIC'') is 
adopting a final rule to rescind and remove from the Code of Federal 
Regulations the transferred regulation entitled ``Electronic 
Operations.'' This regulation was included in the regulations that were 
transferred to the FDIC from the Office of Thrift Supervision (``OTS'') 
on July 21, 2011, in connection with the implementation of applicable 
provisions of title III of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (``Dodd-Frank Act''). There is no corresponding 
FDIC Electronic Operations rule and the rule is deemed obsolete, 
unnecessary, and burdensome. Therefore, the FDIC has decided to rescind 
and remove the regulation in its entirety.

DATES: The final rule is effective on November 27, 2015.

FOR FURTHER INFORMATION CONTACT: Jennifer Maree, Legal Division, (202) 
898-6543; Frederick Coleman, Division of Risk Management Supervision, 
(703) 254-0452.

SUPPLEMENTARY INFORMATION:

I. Background

A. The Dodd-Frank Act

    Title III of the Dodd-Frank Act \1\ provided for a substantial 
reorganization of the regulation of State and Federal savings 
associations and their holding companies. Beginning July 21, 2011, the 
transfer date established by section 311 of the Dodd-Frank Act, 
codified at 12 U.S.C. 5411, the powers, duties, and functions formerly 
performed by the OTS were divided among the FDIC, as to State savings 
associations, the Office of the Comptroller of the Currency (``OCC''), 
as to Federal savings associations, and the Board of Governors of the 
Federal Reserve System (``FRB''), as to savings and loan holding 
companies. Section 316(b) of the Dodd-Frank Act, codified at 12 U.S.C. 
5414(b), provides the manner of treatment for all orders, resolutions, 
determinations, regulations, and advisory materials that had been 
issued, made, prescribed, or allowed to become effective by the OTS. 
The section provides that if such materials were in effect on the day 
before the transfer date, they continue to be in effect and are 
enforceable by or against the appropriate successor agency until they 
are modified, terminated, set aside, or superseded in accordance with 
applicable law by such successor agency, by any court of competent 
jurisdiction, or by operation of law.
---------------------------------------------------------------------------

    \1\ Dodd-Frank Wall Street Reform and Consumer Protection Act, 
Public Law 111-203, 124 Stat. 1376 (2010).
---------------------------------------------------------------------------

    Section 316(c) of the Dodd-Frank Act, codified at 12 U.S.C. 
5414(c), further directed the FDIC and the OCC to consult with one 
another and to publish a list of the continued OTS regulations which 
would be enforced by the FDIC and the OCC, respectively. On June 14, 
2011, the FDIC's Board of Directors approved a ``List of OTS 
Regulations to be Enforced by the OCC and the FDIC Pursuant to the 
Dodd-Frank Wall Street Reform and Consumer Protection Act.'' This list 
was published by the FDIC and the OCC as a Joint Notice in the Federal 
Register on July 6, 2011.\2\
---------------------------------------------------------------------------

    \2\ 76 FR 39247 (July 6, 2011).
---------------------------------------------------------------------------

    Although section 312(b)(2)(B)(i)(II) of the Dodd-Frank Act, 
codified at 12 U.S.C. 5412(b)(2)(B)(i)(II), granted the OCC rulemaking 
authority relating to both State and Federal savings associations, 
nothing in the Dodd-Frank Act affected the FDIC's existing authority to 
issue regulations under the Federal Deposit Insurance Act (``FDI Act'') 
and other laws as the ``appropriate Federal banking agency'' or under 
similar statutory terminology. Section 312(c) of the Dodd-Frank Act 
amended the definition of ``appropriate Federal banking agency'' 
contained in section 3(q) of the FDI Act, 12 U.S.C. 1813(q), to add 
State savings associations to the list of entities for which the FDIC 
is designated as the ``appropriate Federal banking agency.'' As a 
result, when the FDIC acts as the designated ``appropriate Federal 
banking agency'' (or under similar terminology) for State savings 
associations, as it does here, the FDIC is authorized to issue, modify 
and rescind regulations involving such associations, as well as for 
State nonmember banks and insured branches of foreign banks.
    As noted, on June 14, 2011, pursuant to this authority, the FDIC's 
Board of Directors reissued and redesignated certain transferring OTS 
regulations. These transferred OTS regulations were published as new 
FDIC regulations in the Federal Register on August 5, 2011.\3\ When it 
republished the transferred OTS regulations as new FDIC regulations, 
the FDIC specifically noted 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, as appropriate.
---------------------------------------------------------------------------

    \3\ 76 FR 47652 (Aug. 5, 2011).
---------------------------------------------------------------------------

    One of the OTS rules transferred to the FDIC requires State savings 
associations to notify the FDIC at least 30 days before establishing a 
transactional Web site. The OTS rule, formerly found at 12 CFR part 
555, subpart B (``part 555, subpart B''), was transferred to the FDIC 
with only technical changes and is now found in the FDIC's rules at 12 
CFR part 390, subpart L (``part 390, subpart L''), entitled 
``Electronic Operations.'' The FDIC has no such corresponding rule. 
After careful review of part 390, subpart L, the FDIC has decided to 
rescind part 390, subpart L, in its entirety, because, as discussed 
below, it is obsolete, unnecessary, and burdensome.

II. Proposed Rule

A. Removal of Part 390, Subpart L (Former OTS Part 555, Subpart B)

    On July 21, 2014, the FDIC published a Notice of Proposed 
Rulemaking (``Proposed Rule'') regarding the removal of part 390, 
subpart L, which governs electronic operations of State savings 
associations.\4\ The Proposed Rule would have removed part 390, subpart 
L, from the CFR in an effort to streamline FDIC regulations for all 
FDIC-supervised institutions. As discussed in the Proposed Rule, the 
FDIC carefully reviewed the transferred rule, part 390, subpart L, and 
determined that it should be rescinded because it is obsolete, 
unnecessary, and burdensome.
---------------------------------------------------------------------------

    \4\ 79 FR 42231 (July 21, 2014).
---------------------------------------------------------------------------

III. Comments

    The FDIC issued the Proposed Rule with a 60-day comment period, 
which closed on September 19, 2014. No comments on the Proposed Rule 
were received by the FDIC. Consequently, the final rule (``Final 
Rule'') is adopted as proposed without any changes.

IV. Explanation of the Final Rule

    As discussed in the Proposed Rule, the OTS enacted the Electronic 
Operations rule, part 390, subpart L,

[[Page 65613]]

unilaterally. This rule required savings associations to file a written 
notice with the OTS at least 30 days before establishing a 
transactional Web site. Neither the FDIC, the OCC, nor the FRB has a 
regulatory notice requirement similar to the Electronic Operations rule 
that requires insured depository institutions to notify the respective 
agency if they intend to establish transactional Web sites. Rescinding 
and removing the Electronic Operations rule will serve to streamline 
the FDIC's rules and eliminate obsolete, unnecessary, and burdensome 
regulations. It will also facilitate uniform supervision regarding 
notification requirements for electronic operation for all FDIC-
supervised insured depository institutions. Accordingly, the Final Rule 
removes and rescinds part 390, subpart L, in its entirety.

V. Administrative Law Matters

A. The Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
(``PRA'') of 1995, 44 U.S.C. 3501-3521, the FDIC may not conduct or 
sponsor, and the respondent is not required to respond to, an 
information collection unless it displays a currently valid Office of 
Management and Budget (``OMB'') control number.
    The Final Rule rescinds and removes from FDIC regulations part 390, 
subpart L, because it is obsolete, unnecessary, and burdensome. This 
rule was transferred with only nominal changes to the FDIC from the OTS 
when the OTS was abolished by title III of the Dodd-Frank Act. In 
republishing this rule, the FDIC made only technical changes to 
existing OTS regulations. The FDIC does not have a regulatory notice 
requirement similar to the Electronic Operations rule that requires 
insured depository institutions to notify the FDIC if they intend to 
set up transactional Web sites and, therefore, never established an 
information collection to account for the paperwork burden imposed on 
the public.
    The Final Rule will neither create any new information collection 
nor modify any of the FDIC's existing information collections. 
Accordingly, the FDIC will not submit any information collection 
request to OMB.

B. The Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA''),\5\ generally requires an 
agency to consider whether a final rule will have a significant 
economic impact on a substantial number of small entities (defined in 
regulations promulgated by the Small Business Administration to include 
banking organizations with total assets of less than or equal to $500 
million).\6\ Pursuant to section 605(b) of the RFA, a final regulatory 
flexibility analysis is not required if the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities, and publishes its certification and a short 
explanatory statement in the Federal Register together with the rule. 
For the reasons provided below, the FDIC certifies that the Final Rule 
will not have a significant economic impact on a substantial number of 
small entities. Accordingly, a regulatory flexibility analysis is not 
required.
---------------------------------------------------------------------------

    \5\ 5 U.S.C. 601 et seq.
    \6\ 78 FR 37409, 37411 (June 20, 2013).
---------------------------------------------------------------------------

    As discussed in the Proposed Rulemaking, part 390, subpart L, was 
transferred from part 555, subpart B, which governed notification 
provisions for savings associations that intended to establish 
transactional Web sites. Part 555, subpart B became effective on 
January 1, 1999, and all savings associations were required to comply 
with it. The FDIC's Final Rule rescinds and removes part 390, subpart 
L, because it is obsolete, unnecessary, and burdensome. Since the 
Electronic Operations rule is being rescinded, the Final Rule will 
reduce the paperwork and other regulatory burdens on State savings 
associations by eliminating the requirement to provide the FDIC with 
notice before establishing a transactional Web site. Therefore, the 
Final Rule will have no significant economic impact on any State 
savings association.

C. Small Business Regulatory Enforcement Fairness Act

    The Office of Management and Budget has determined that the Final 
Rule is not a ``major rule'' within the meaning of the Small Business 
Regulatory Enforcement Fairness Act of 1996 (``SBREFA''), 5 U.S.C. 801 
et seq.

D. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act, 12 U.S.C. 4809, requires 
each Federal banking agency to use plain language in all of its 
proposed and final rules published after January 1, 2000. In the 
Proposed Rule, the FDIC invited comments on whether the Proposed Rule 
was clearly stated and effectively organized, and how the FDIC might 
make it easier to understand. Although the FDIC did not receive any 
comments, the FDIC sought to present the Final Rule in a simple and 
straightforward manner.

E. The Economic Growth and Regulatory Paperwork Reduction Act

    Under section 2222 of the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996 (``EGRPRA''), the FDIC is required to review all 
of its regulations, at least once every 10 years, in order to identify 
any outdated or otherwise unnecessary regulations imposed on insured 
institutions.\7\ The FDIC completed the last comprehensive review of 
its regulations under EGRPRA in 2006 and is commencing the next 
decennial review, which is expected to be completed by 2016. The 
Proposed Rule solicited comments on whether the proposed rescission of 
part 390, subpart L would impose any outdated or unnecessary regulatory 
requirements on insured depository institutions. No comments on this 
issue were received. Upon review, the FDIC does not believe that 
rescinding part 390, subpart L, imposes any outdated or unnecessary 
regulatory requirements on any insured depository institutions. Rather, 
because the Electronic Operations rule is being rescinded, the Final 
Rule eliminates an outdated and unnecessary regulatory burden on State 
savings associations by eliminating the requirement to provide the FDIC 
with notice before establishing a transactional Web site.
---------------------------------------------------------------------------

    \7\ Public Law 104-208, 110 Stat. 3009 (1996).
---------------------------------------------------------------------------

List of Subjects in 12 CFR Part 390

    Banks, banking; electronic operations; savings associations.

Authority and Issuance

    For the reasons stated in the preamble, the Board of Directors of 
the FDIC amends 12 CFR part 390 of the Code of Federal Regulations as 
follows:

PART 390--REGULATIONS TRANSFERRED FROM THE OFFICE OF THRIFT 
SUPERVISION

0
1. The authority citation for part 390 is revised to read as follows:

    Authority: 12 U.S.C. 1819.

    Subpart A also issued under 12 U.S.C. 1820.
    Subpart B also issued under 12 U.S.C. 1818.
    Subpart C also issued under 5 U.S.C. 504; 554-557; 12 U.S.C. 
1464; 1467; 1468; 1817; 1818; 1820; 1829; 3349, 4717; 15 U.S.C. 78 
l; 78o-5; 78u-2; 28 U.S.C. 2461 note; 31 U.S.C. 5321; 42 U.S.C. 
4012a.
    Subpart D also issued under 12 U.S.C. 1817; 1818; 1820; 15 
U.S.C. 78 l.
    Subpart E also issued under 12 U.S.C. 1813; 1831m; 15 U.S.C. 78.
    Subpart F also issued under 5 U.S.C. 552; 559; 12 U.S.C. 2901 et 
seq.

[[Page 65614]]

    Subpart G also issued under 12 U.S.C. 2810 et seq., 2901 et 
seq.; 15 U.S.C. 1691; 42 U.S.C. 1981, 1982, 3601-3619.
    Subpart H also issued under 12 U.S.C. 1464; 1831y.
    Subpart I also issued under 12 U.S.C. 1831x.
    Subpart J also issued under 12 U.S.C. 1831p-1.
    Subpart M also issued under 12 U.S.C. 1818.
    Subpart N also issued under 12 U.S.C. 1821.
    Subpart O also issued under 12 U.S.C. 1828.
    Subpart P also issued under 12 U.S.C. 1470; 1831e; 1831n; 1831p-
1; 3339.
    Subpart Q also issued under 12 U.S.C. 1462; 1462a; 1463; 1464.
    Subpart R also issued under 12 U.S.C. 1463; 1464; 1831m; 1831n; 
1831p-1.
    Subpart S also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 
1468a; 1817; 1820; 1828; 1831e; 1831o; 1831p-1; 1881-1884; 3207; 
3339; 15 U.S.C. 78b; 78 l; 78m; 78n; 78p; 78q; 78w; 31 U.S.C. 5318; 
42 U.S.C. 4106.
    Subpart T also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78 l; 78m; 78n; 78w.
    Subpart U also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78 l; 78m; 78n; 78p; 78w; 78d-1; 7241; 7242; 7243; 7244; 
7261; 7264; 7265.
    Subpart V also issued under 12 U.S.C. 3201-3208.
    Subpart W also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78 l; 78m; 78n; 78p; 78w.
    Subpart X also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 
1828; 3331 et seq.
    Subpart Y also issued under 12 U.S.C. 1831o.
    Subpart Z also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 
1828 (note).

Subpart L--[Removed and Reserved]

0
2. Remove and reserve subpart L, consisting of Sec. Sec.  390.220 
through 390.222.

    Dated at Washington, DC, this 22nd day of October, 2015.

    By order of the Board of Directors.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015-27292 Filed 10-26-15; 8:45 am]
BILLING CODE 6714-01-P