[Federal Register Volume 81, Number 79 (Monday, April 25, 2016)]
[Notices]
[Pages 24101-24103]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09457]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: The Board of Governors of the Federal Reserve System (Board or 
Federal Reserve) invites comment on a proposal to extend for three 
years, with revision the Annual Report of Holding Companies (FR Y-6), 
the Annual Report of Foreign Banking Organizations (FR Y-7), and the 
Report of Changes in Organizational Structure (FR Y-10). The Federal 
Reserve proposes to revise the FR Y-6, FR Y-7, and FR Y-10 by modifying 
confidential treatment questions on the reporting forms and 
instructions to align with the recently approved confidentiality check-
box proposal.\1\ Additionally, the Federal Reserve proposes to revise 
the FR Y-7 and FR Y-10 to incorporate U.S. IHCs formed under the final 
rule for enhanced prudential standards for FBOs (Regulation YY).\2\ The 
Federal Reserve also proposes to revise the FR Y-6 and FR Y-10 to make 
certain clarifying changes to the instructions. The Federal Reserve is 
also proposing to extend for three years, without revision, the FR Y-
10E. The proposed changes to the FR Y-10 reporting form and 
instructions would be effective August 15, 2016. The proposed changes 
to the FR Y-6 and FR Y-7 reporting forms and instructions would be 
effective with fiscal year-ends beginning December 31, 2016.
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    \1\ See 80 FR 52282 (August 28, 2015).
    \2\ The draft FR Y-6 reporting form and instructions associated 
with this proposal also include the language to collect information 
for U.S. IHCs of FBOs as proposed in the IHC proposal currently out 
for public comment. See 81 FR 6265 (February 5, 2016).
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    On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board authority under the Paperwork Reduction Act 
(PRA) to approve of and assign OMB control numbers to collection of 
information requests and requirements conducted or sponsored by the 
Board. In exercising this delegated authority, the Board is directed to 
take every reasonable step to solicit comment. In determining whether 
to approve a collection of information, the Board will consider all 
comments received from the public and other agencies.

DATES: Comments must be submitted on or before June 24, 2016.

ADDRESSES: You may submit comments, identified by FR Y-6, FR Y-7, FR Y-
10, or FR Y-10E, 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: 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx 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 
3515, 1801 K Street (between 18th and 19th Streets NW.) Washington, DC 
20006 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--Nuha Elmaghrabi--Office of 
the Chief Data Officer, 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 Proposal

    The Board invites public comment on the following information 
collection,

[[Page 24102]]

which is being reviewed under authority delegated by the OMB under the 
PRA. 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, of the Following Report

    Report titles: Annual Report of Holding Companies; Annual Report of 
Foreign Banking Organizations; Report of Changes in Organizational 
Structure; Supplement to the Report of Changes in Organizational 
Structure.
    Agency form numbers: FR Y-6; FR Y-7; FR Y-10; FR Y-10E.
    OMB control number: 7100-0297.
    Frequency: FR Y-6: Annual; FR Y-7: Annual; FR Y-10: Event-
generated; FR Y-10E: Event-generated.
    Reporters: Bank holding companies (BHCs) and savings and loan 
holding companies (SLHCs) (collectively, holding companies (HCs)), 
securities holding companies, foreign banking organizations (FBOs), 
state member banks unaffiliated with a BHC, Edge Act and agreement 
corporations, and nationally chartered banks that are not controlled by 
a BHC (with regard to their foreign investments only).
    Estimated annual reporting hours: FR Y-6: 26,477 hours; FR Y-7: 972 
hours; FR Y-10 initial: 530 hours; FR Y-10 ongoing: 39,735 hours; FR Y-
10E: 2,649 hours.
    Estimated average hours per response: FR Y-6: 5.5 hours; FR Y-7: 4 
hours; FR Y-10 initial: 1 hour; FR Y-10 ongoing: 2.5 hours; FR Y-10E: 
0.5 hour.
    Number of respondents: FR Y-6: 4,814; FR Y-7: 243; FR Y-10 initial: 
530; FR Y-10 ongoing: 5,298; FR Y-10E: 5,298.
    General description of report: These information collections are 
mandatory as follows:
    FR Y-6: Section 5(c)(1)(A) of the Bank Holding Company Act (BHC 
Act) (12 U.S.C. 1844(c)(1)(A)); sections 8(a) and 13(a) of the 
International Banking Act (IBA) (12 U.S.C. 3106(a) and 3108(a)); 
sections 11(a)(1), 25, and 25A of the Federal Reserve Act (FRA) (12 
U.S.C. 248(a)(1), 602, and 611a); and sections 113, 165, 312, 618, and 
809 of the Dodd-Frank Act (12 U.S.C. 5361, 5365, 5412, 1850a(c)(1), and 
5468(b)(1)), respectively.
    FR Y-7: Sections 8(a) and 13(a) of the IBA (12 U.S.C. 3106(a) and 
3108(a)); sections 113, 165, 312, 618, and 809 of the Dodd-Frank Act 
(12 U.S.C. 5361, 5365, 5412, 1850a(c)(1), and 5468(b)(1)), 
respectively.
    FR Y-10 and FR Y-10E: Sections 4(k) and 5(c)(1)(A) of the BHC Act 
(12 U.S.C. 1843(k), 1844(c)(1)(A)); section 8(a) of the IBA (12 U.S.C. 
3106(a)); sections 11(a)(1), 25(7), and 25A of the FRA (12 U.S.C. 
248(a)(1), 321, 601, 602, 611a, 615, and 625); sections 113, 165, 312, 
618, and 809 of the Dodd-Frank Act (12 U.S.C. 5361, 5365, 5412, 
1850a(c)(1), and 5468(b)(1)); and section 10(c)(2)(H) of the Home 
Owners' Loan Act (12 U.S.C. 1467a(c)(2)(H)), respectively.
    The data collected in the FR Y-6, FR Y-7, FR Y-10, and FR Y-10E are 
not considered confidential. With regard to information that a banking 
organization may deem confidential, the institution may request 
confidential treatment of such information under one or more of the 
exemptions in the Freedom of Information Act (FOIA) (5 U.S.C. 552). The 
most likely case for confidential treatment will be based on FOIA 
exemption 4, which permits an agency to exempt from disclosure ``trade 
secrets and commercial or financial information obtained from a person 
and privileged and confidential'' (5 U.S.C. 552(b)(4)). To the extent 
an institution can establish the potential for substantial competitive 
harm, such information would be protected from disclosure under the 
standards set forth in National Parks & Conservation Association v. 
Morton, 498 F.2d 765 (D.C. Cir. 1974). Exemption 6 of FOIA might also 
apply with regard to the respondents' submission of non-public personal 
information of owners, shareholders, directors, officers and employees 
of respondents. Exemption 6 covers ``personnel and medical files and 
similar files the disclosure of which would constitute a clearly 
unwarranted invasion of personal privacy'' (5 U.S.C. 552(b)(6)). All 
requests for confidential treatment would need to be reviewed on a 
case-by-case basis and in response to a specific request for 
disclosure.
    The Federal Reserve proposes that the disclosure of the responses 
to the certification questions may interfere with home-country 
regulators' administration, execution, and disclosure of their stress-
test regime and its results, and may cause substantial competitive harm 
to the FBO providing the information, and thus this information may be 
protected from disclosure under FOIA exemption 4.
    Abstract: The FR Y-6 is an annual information collection submitted 
by top-tier HCs and non-qualifying FBOs. It collects financial data, an 
organization chart, verification of domestic branch data, and 
information about shareholders. The Federal Reserve uses the data to 
monitor HC operations and determine HC compliance with the provisions 
of the BHC Act, Regulation Y (12 CFR 225), the Home Owners' Loan Act 
(HOLA) and Regulation LL (12 CFR 238).
    The FR Y-7 is an annual information collection submitted by 
qualifying FBOs to update their financial and organizational 
information with the Federal Reserve. The FR Y-7 collects financial, 
organizational, shareholder, and managerial information. The Federal 
Reserve uses the information to assess an FBO's ability to be a 
continuing source of strength to its U.S. operations and to determine 
compliance with U.S. laws and regulations.
    The FR Y-10 is an event-generated information collection submitted 
by FBOs; top-tier HCs; securities holding companies as authorized under 
Section 618 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act of 2010 (the Dodd-Frank Act) (12 U.S.C. 1850a(c)(1)); 
state member banks unaffiliated with a bank holding company (BHC); Edge 
and agreement corporations that are not controlled by a member bank, a 
domestic BHC, or an FBO; and nationally chartered banks that are not 
controlled by a BHC (with regard to their foreign investments only), to 
capture changes in their regulated investments and activities. The 
Federal Reserve uses the data to monitor structure information on 
subsidiaries and regulated investments of these entities engaged in 
banking and nonbanking activities. The FR Y-10E is a free-form 
supplement that may be used to collect additional structural 
information deemed to be critical and needed in an expedited manner.
    Current Actions:
    Detailed description of proposed changes.

[[Page 24103]]

Proposed Revisions to the FR Y-6, FR Y-7, and FR Y-10

    Confidentiality. The Federal Reserve proposes to revise these 
reports by modifying the confidentiality questions on the forms and 
amending the instructions to align with the recently approved 
confidentiality check-box proposal. The change would allow institutions 
to indicate, using a check-box on the first page of the report, whether 
they are requesting confidential treatment for any portion of the data 
provided, and whether they are submitting a formal justification with 
the data or separately.

Proposed Revisions to the FR Y-7 and FR Y-10

    IHC Reporting. The Board's Regulation YY,\3\ in part, requires FBOs 
to designate IHCs, if certain requirements are met. The Federal Reserve 
proposes the following revisions to collect information specific to 
IHCs and their identification. Additionally, the information would 
assist in the supervision of the U.S. operations of FBOs.
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    \3\ 12 CFR part 252.
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    FR Y-7 instructions. The Federal Reserve proposes to expand the 
organization chart instructions to include the requirement that an FBO 
report its interest in an IHC.
    FR Y-10 form and instructions. The Federal Reserve proposes to 
expand the General Instructions to include changes to the 
organizational structure of an IHC as requiring the submission of the 
FR Y-10.
    On the Banking and Nonbanking Schedules, the Federal Reserve 
proposes to add to the company type ``IHCs.'' Banking Schedule item 5, 
``Fiscal Year End,'' would be revised to be applicable to IHCs. 
Additionally, on the Nonbanking Schedule, a new item ``Fiscal Year 
End'' would be added to allow for reporting IHCs that do not control a 
U.S. insured depository institution. The new item would be item 5 and 
current items 4 and 5 would be renumbered to 4.a and 4.b, respectively.
    On the Banking and Nonbanking Schedules, the Federal Reserve 
proposes to add examples for ``Date of Event'' in the instructions to 
provide guidance to IHC reporting.

Proposed Revisions to the FR Y-6 Only

    Instruction updates. The Federal Reserve proposes to clarify the 
difference in reporting requirements related to additional reportable 
entities for BHCs, IHCs, and SLHCs on the FR Y-6 (i.e., >=5% to <25% 
for BHCs and IHCs versus >=5% to <=25% for SLHCs). The slight 
difference in reporting criteria often results in a request for a 
revised schedule. Adding this clarification would reduce reporter 
burden.
    The Federal Reserve proposes to add a formula to calculate 
ownership percentage control for Report Item 3. The formula is used by 
the Federal Reserve when calculating control. Inclusion of the formula 
would help to standardize information received.
    Reporting form and instructions updates. The Federal Reserve 
proposes to clarify the signature requirements for Employee Stock 
Ownership Plans (ESOPs) and Limited Liability Companies (LLCs). 
Reporters are confused who the authorized signer should be when the HC 
is organized as an ESOP or LLC due to the different corporate 
structures.

Proposed Revisions to the FR Y-10 Only

    Instructions. The Federal Reserve proposes to remove the reference 
to the phase-in reporting of SLHCs from the General Instructions, which 
is no longer relevant because the phase-in is complete.
    Also in the General Instructions, the Federal Reserve proposes to 
remove the paragraph under ``What is the Legal Authority for the FR Y-
10?'' This change will align the reporting instructions with other 
forms and instructions, which provide the legal authority on the form.
    In the Banking, Savings and Loan, and Nonbanking Schedules 
instructions, the Federal Reserve proposes to clarify conditions under 
which sole partnership and sole member LLCs are reportable. 
Institutions often report incorrectly. The clarification would result 
in fewer revisions, thereby reducing overall burden.
    The Federal Reserve proposes to rephrase the description of section 
10(c)(6)(B) in Legal Authority Code (LAC) 412 and create a new LAC for 
section 10(c)(9)(C) to clearly identity which exemption SLHCs are 
claiming as a grandfathered unitary SLHC.
    The Federal Reserve also proposes to add definitions to the FR Y-10 
Glossary for the following terms: Grandfathered Unitary Savings and 
Loan Holding Company, Insured Depository Institution, and U.S. 
Intermediate Holding Company.
    In the Nonbanking Schedule instructions, the Federal Reserve 
proposes to add a note to clarify that a nonbank subsidiary under a 
savings association does not meet the definition of a financial 
subsidiary.
    The Federal Reserve proposes to update the Merger Schedule 
instructions to indicate that the popular name of the branch (for 
example, when the branch was formerly the head office of the 
nonsurvivor) must be reported on the Domestic Branch Schedule. 
Respondents often forget to report this information.

    Board of Governors of the Federal Reserve System, April 19, 
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-09457 Filed 4-22-16; 8:45 am]
 BILLING CODE 6210-01-P