[Federal Register Volume 81, Number 148 (Tuesday, August 2, 2016)]
[Notices]
[Pages 50692-50693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18212]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act of 1995 (PRA), 
this notice announces that the Information Collection Request (ICR) 
abstracted below has been forwarded to the Office of Management and 
Budget (OMB) for review and comment. The ICR describes the nature of 
the information collection and its expected costs and burden.

DATES: Comments must be submitted on or before September 1, 2016.

ADDRESSES: Comments regarding the burden estimated or any other aspect 
of the information collection, including suggestions for reducing the 
burden, may be submitted directly to the Office of Information and 
Regulatory Affairs (OIRA) in OMB, within 30 days of the notice's 
publication, by email at [email protected]. Please identify 
the comments by OMB Control No. 3038-0067. Please provide the 
Commission with a copy of all submitted comments at the address listed 
below. Please refer to OMB Reference No. 3038-0067, found on http://reginfo.gov. Comments may also be mailed to the Office of Information 
and Regulatory Affairs, Office of Management and Budget, Attention: 
Desk Officer for the Commodity Futures Trading Commission, 725 17th 
Street NW., Washington, DC 20503 or through the Agency's Web site at 
http://comments.cftc.gov. Follow the instructions for submitting 
comments through the Web site.
    Comments may also be mailed to: Christopher Kirkpatrick, Secretary 
of the Commission, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581 or by Hand 
Delivery/Courier at the same address.
    A copy of the supporting statements for the collection of 
information discussed above may be obtained by visiting http://
RegInfo.gov. All comments must be submitted in English, or if not, 
accompanied by an English translation. Comments will be posted as 
received to http://www.cftc.gov.
    For Further Information or a Copy Contact: Sue McDonough, Counsel, 
Office of General Counsel, Commodity Futures Trading Commission, (202) 
418-5132; email: [email protected], and refer to OMB Control No. 
3038-0067.

SUPPLEMENTARY INFORMATION:
    Title: Part 162 Subpart C--Identity Theft Rule (OMB Control No. 
3038-0067). This is a request for extension of a currently approved 
information collection.
    Abstract: This collection of information is needed because under 
part 162 subpart C--Identify Theft, CFTC-regulated entities are 
required to develop and implement reasonable policies and procedures to 
identify, detect, and respond to relevant red flags (the Identity Theft 
Red Flags Rules) and, in the case of entities that issue credit or 
debit cards, to assess the validity of, and communicate with 
cardholders regarding, address changes. Section 162.30 includes the 
following information collection requirements for each CFTC-regulated 
entity that qualifies as a ``financial institution'' or ``creditor'' 
under part 162 subpart C and that offers or maintains covered accounts: 
(i) Creation and periodic updating of an identity theft prevention 
program (``Program'') that is approved by the board of directors, an 
appropriate committee thereof, or a designated senior management 
employee; (ii) periodic staff reporting to the board of directors on 
compliance with the Identity Theft Red Flags Rules and related 
guidelines; and (iii) training of staff to implement the Program. 
Section 162.32 includes the following information collection 
requirements for each CFTC-regulated entity that is a credit or debit 
card issuer: (i) Establishment of policies and procedures that assess 
the validity of a change of address notification if a request for an 
additional or replacement card on the account follows soon after the 
address change; and (ii) notification of a cardholder, before issuance 
of an additional or replacement card, at the previous address or 
through some other previously agreed-upon form of communication, or 
alternatively, assessment of the validity of the address change request 
through the entity's established policies and procedures. The 
Commission uses the collection of information to discharge its 
regulatory responsibilities to protect investors from the risks of 
identity theft.

[[Page 50693]]

    CFTC staff estimates of the hour burdens associated with section 
162.30 include the one-time burden of complying with this section for 
newly-formed CFTC-regulated entities, as well as the ongoing costs of 
compliance for all CFTC-regulated entities. With respect to the one-
time burden hours, staff estimates that each newly-formed financial 
institution or creditor would incur a burden of 2 hours to conduct an 
initial assessment of covered accounts. Staff estimates that 
approximately 572 CFTC-regulated financial institutions and creditors 
are newly formed each year, and the total estimated one-time burden to 
initially assess covered accounts is therefore 1,144 hours. Staff also 
estimates that each financial institution or creditor that maintains 
covered accounts would incur an additional initial burden of 29 hours 
to develop and obtain board approval of a Program and hours to train 
the staff of the financial institution or creditor. Staff estimates 
that approximately 47 \1\ CFTC-regulated financial institutions and 
creditors that maintain covered accounts are newly formed each year, 
and thus the total estimated one-time burden to develop and obtain 
board approval of a Program and train staff is 1,363 hours. Thus, the 
total initial estimated burden for all newly-formed CFTC-regulated 
entities is 2,507 hours (1,144 hours + 1,363 hours).
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    \1\ Based on a review of new registrations typically filed with 
the CFTC each year, CFTC staff estimates that approximately 6 
futures commission merchants (``FCMs''), 83 introducing brokers 
(``IBs''), 282 commodity trading advisors (``CTAs), and 198 
commodity pool operators (``CPOs'') are newly formed each year, for 
a total of 572 entities. CFTC staff also has observed that 
approximately 50 percent of all CPOs are dually registered as CTAs. 
With respect to RFEDs, CFTC staff has observed that all entities 
registering as RFEDs also register as FCMs. Based on these 
observation, CFTC has determined that the total number of newly-
formed financial institutions and creditors is 470 (569-99 CPOs that 
are also registered as CTAs). There were no newly registered RFEDs, 
SDs, or MSPs. Each of these 470 financial institutions or creditors 
would bear the initial one-time burden of compliance. Of the total 
470 newly-formed entities, staff estimates that all of the FCMs are 
likely to carry covered accounts, 10 percent of CTAs and CPOs are 
likely to carry covered accounts, and none of the IBs are likely to 
carry covered accounts, for a total of 47 newly-formed financial 
institutions or creditors carrying covered accounts that would be 
required to conduct an initial one-time burden of compliance with 
subpart C of part 162.
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    With respect to ongoing annual burden hours, CFTC staff estimates 
that each financial institution or creditor would incur a burden of 2 
hours to periodically assess whether it offers or maintains covered 
accounts. Staff estimates that there are approximately 3,956 CFTC-
regulated entities that are either financial institutions or creditors, 
and the total estimated annual burden to periodically assess covered 
accounts is therefore 7,912 hours. Staff also estimates that each 
financial institution or creditor that maintains covered accounts would 
incur an additional annual burden of 4 hours to prepare and present an 
annual report to the board and 2 hours to periodically review and 
update the Program. Staff estimates that there are approximately 47 
CFTC-regulated entities that are financial institutions or creditors 
that offer or maintain covered accounts, and thus the total estimated 
additional annual burden for these entities is 282 hours. Thus, the 
total ongoing annual estimated burden for all CFTC-regulated entities 
is 8,194 hours (7912 hours + 282 hours).
    The collections of information required by section 162.32 will 
apply only to CFTC-regulated entities that issue credit or debit cards. 
CFTC staff understands that CFTC-regulated entities generally do not 
issue credit or debit cards, but instead may partner with other 
entities, such as banks, that issue cards on their behalf. These other 
entities, which are not regulated by the CFTC, are already subject to 
substantially similar change of address obligations pursuant to other 
federal regulators' identity theft red flags rules. Therefore, staff 
does not expect that any CFTC-regulated entities will be subject to the 
information collection requirements of section 163.32, and accordingly, 
staff estimates that there is no hour burden related to section 162.32 
for CFTC-regulated entities.
    In total, CFTC staff estimates that the aggregate annual 
information collection burden of part 162 subpart C is 10,701 hours 
(2,507 hours + 8,194 hours). This estimate of burden hours is made 
solely for the purposes of the Paperwork Reduction Act and is not 
derived from a quantitative, comprehensive, or even representative 
survey or study of the burdens associated with Commission rules and 
forms. Compliance with part 162 subpart C, including compliance with 
the information collection requirements thereunder, is mandatory for 
each CFTC regulated entity that qualifies as a ``financial 
institution'' or ``creditor'' under part 162 subpart C (as discussed 
above, certain collections of information under part 162 subpart C are 
mandatory only for financial institutions or creditors that offer or 
maintain covered accounts).
    The Commission did not receive any comments on the 60-day Federal 
Register notice, 81 FR 35001, dated June 1, 2016.
    Estimated Number of Respondents: 4,622.
    Estimated Average Burden Hours per Respondent: 2.32.
    Estimated Total Annual Burden Hours: 10,723.\2\
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    \2\ This total annual burden hour reflects a slight increase in 
the estimated total annual burden hours to account for the average 
burden hours per respondent of 2.32 hours.
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    Frequency of Collection: Once.
    There are no capital costs or operating and maintenance costs 
associated with this collection.

    Authority:  44 U.S.C. 3501 et seq.

    Dated: July 27, 2016.
Christopher J. Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2016-18212 Filed 8-1-16; 8:45 am]
 BILLING CODE 6351-01-P