[Federal Register Volume 81, Number 251 (Friday, December 30, 2016)]
[Notices]
[Pages 96566-96568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31651]


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DEPARTMENT OF THE TREASURY


Proposed Collection; Comment Request

AGENCY: Departmental Offices, Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury, as part of its continuing 
effort to reduce paperwork burdens, invites the general public and 
other Federal agencies to comment on revisions for 2017 of a currently 
approved information collection that is proposed for approval by the 
Office of Management and Budget. The Office of International Affairs 
within the Department of the Treasury is soliciting comments concerning 
the revision of the Treasury International Capital (TIC) Form SHL/SHLA.

DATES: Written comments should be received on or before February 28, 
2017 to be assured of consideration.

ADDRESSES: Direct all written comments to Dwight Wolkow, International 
Portfolio Investment Data Systems, Department of the Treasury, Room 
5422 MT, 1500 Pennsylvania Avenue NW., Washington, DC 20220. In view of 
possible delays in mail delivery, you may also wish to send a copy to 
Mr. Wolkow by email ([email protected]) or FAX (202-622-2009). 
Mr. Wolkow can also be reached by telephone (202-622-1276).

FOR FURTHER INFORMATION CONTACT: Copies of the proposed form and 
instructions are available at Part II of the Treasury International 
Capital (TIC) Forms Web page ``Forms SHL/SHLA & SHC/SHCA'', at: http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/forms-sh.aspx. Requests for additional information should be directed to Mr. 
Wolkow.

SUPPLEMENTARY INFORMATION: 
    Title: Treasury International Capital (TIC) Form SHL/SHLA, 
``Foreign-Residents' Holdings of U.S. Securities, including Selected 
Money Market Instruments''.
    OMB Control Number: 1505-0123.
    Abstract: This form collects foreign-residents' holdings of U.S. 
securities.

[[Page 96567]]

These data are used by the U.S. Government in the formulation of 
international financial and monetary policies, and for the computation 
of the U.S. balance of payments accounts and of the U.S. international 
investment position. These data are also used to provide information to 
the public and to meet international reporting commitments. The data 
collection includes large benchmark surveys conducted every five years, 
and smaller annual surveys conducted in the non-benchmark years. The 
data collected under an annual survey are used in conjunction with the 
results of the preceding benchmark survey to make economy-wide 
estimates for that non-benchmark year. Currently, the determination of 
who must report in the annual surveys is based primarily on the data 
submitted during the preceding benchmark survey. The data requested in 
the annual survey will generally be the same as requested in the 
preceding benchmark report. Form SHL is used for the benchmark survey 
of all significant U.S.-resident custodians and U.S.-resident issuers 
of securities regarding foreign-residents' holdings of U.S. securities. 
In non-benchmark years, Form SHLA is used for the annual surveys of 
primarily the largest U.S.-resident custodians and issuers.
    Current Actions: No changes in the forms/schedules will be made 
from the previous survey that was conducted as of June 30, 2016. The 
proposed changes in the instructions are:
    (1) In ``Consolidation Rules'' (section II.B in the instructions) 
the first sentence is expanded to list out separately ``Intermediate 
Holding Companies'' (IHCs), which are defined by Regulation YY, 12 CFR 
252, to clarify that IHCs should follow the same consolidation rules 
that are applicable to Bank Holding Companies (BHCs), Financial Holding 
Companies (FHCs), and Savings and Loan Holding Companies.
    (2) In ``Funds and Related Equity Ownership'' (section III.E in the 
instructions) the illustrative list of fund types in the second 
paragraph is expanded to list out separately ``private funds'', where 
``private funds'' refers to the same class of financial entities that 
must report to the Securities and Exchange Commission as private funds 
on Form PF.
    (3) In ``Funds and Related Equity Ownership'' (section III.E in the 
instructions) the last section, ``Direct Investment exception for 
private funds'', is new, to explain that in TIC reports as of 01 
January 2017 and afterwards, investments in private funds, or between 
the entities of a private fund, are included in TIC surveys regardless 
of ownership share if they meet BOTH of the following two criteria: (i) 
The private fund does not own, directly or indirectly through another 
business enterprise, an ``operating company''--i.e., a business 
enterprise that is not a private fund or a holding company--in which 
the foreign parent owns at least 10 percent of the voting interest; and 
(ii) If the private fund is owned indirectly (through one or more other 
U.S. business enterprises), so there are no ``operating companies'' 
between the foreign parent and the indirectly owned private fund.
    (4) In ``Stripped Securities'' (section III.G in the instructions) 
the next to last sentence in the second paragraph is revised and reads 
``In addition, all `teddy bears' (TBRs), `tigers' (TIGRs), `cats' 
(CATS) and `cougars' (COUGRs) should also be classified as U.S. 
Treasury securities.''
    (5) In ``DIRECT INVESTMENT'' (section III.I in the instructions) 
the next to last sentence is new, refers to proposed change (3) above, 
and reads ``Also, certain cross-border investments by or into private 
funds where these investments do not involve operating companies 
(companies that are not other private funds or holding companies) 
should be reported as portfolio investment on TIC reports rather than 
on BEA reports as direct Investment (see section III.F).''
    (6) In the ``Line-by-Line Instructions for Schedule 1'' (section IV 
in the instructions), the reporter type 5 in line 8 is expanded, refers 
to proposed change (1) above, and reads ``5 = Other Financial 
Organizations (including BHC, FHC & IHC)''.
    (7) In the ``Line-by-Line Instructions for Schedule 1'' (section IV 
in the instructions), the phrase in parentheses in line 20 is clarified 
and reads ``(records with Schedule 2, Item 18 = security types 1, 2, 3, 
or 4)''.
    (8) In the ``Line-by-Line Instructions for Schedule 1'' (section IV 
in the instructions), the phrase in parentheses in line 21 is clarified 
and reads ``(records with Schedule 2, Item 19 = security types 5, 6, 7, 
8, 9, 10, or 11)''.
    (9) In the ``Line-by-Line Instructions for Schedule 1'' (section IV 
in the instructions), the phrase in parentheses in line 22 is clarified 
and reads ``(records with Schedule 2, Item 19 = security type 5, 6, 7, 
8, 9, 10, or 11)''.
    (10) In the ``Line-by-Line Instructions for Schedule 1'' (section 
IV in the instructions), the phrase in parentheses in line 23 is 
clarified and reads ``(records with Schedule 2, Item 20 = security type 
12)''.
    (11) In the ``Line-by-Line Instructions for Schedule 2'' (section V 
in the instructions), the fifth type of issuer in line 11 is expanded, 
refers to proposed change (1) above, and reads ``Enter ``5'' if the 
security was issued by all other financial organizations (including 
BHC, FHC and IHC).''.
    (12) In the ``Line-by-Line Instructions for Schedule 2'' (section V 
in the instructions), the note for ``Type 11'' in line 12 is expanded, 
refers to proposed change (4) above, and reads ``Type 11 should include 
all debt other than asset-backed securities that is not covered in 
types 5-10, including U.S. Treasury bills, TBRs, TIGRs, CATS and 
COUGRs.''
    (13) In ``Appendix E: List of Currency Codes'', some names and/or 
symbols have been changed/updated, for example Romania, Serbia, Sudan, 
Turkey, Turkmenistan, Venezuela, and Zambia.
    (14) In ``Funds and Related Equity Ownership'' (section III.E in 
the instructions), under the subsection ``Reporting guidelines for 
Hedge Funds and other alternative investments'', the list of legal 
entities is expanded to include fund ``administrators''.
    (15) The exemption level (the threshold for reporting) for filing 
schedules 2 and 3 for a benchmark survey is increased from $100 million 
to $200 million.
    (16) Some clarifications may be made in other parts of the 
instructions.
    The changes will improve overall survey reporting.
    Type of Review: Revision of a currently approved data collections.
    Affected Public: Business/Financial Institutions.
    Form: TIC SHL/SHLA, Schedules 1 and 2 (1505-0123).
    Estimated Number of Respondents: An annual average (over five 
years) of 206, but this varies widely from about 590 in benchmark years 
(once every five years) to about 110 in other years (four out of every 
five years).
    Estimated Average Time per Respondent: An annual average (over five 
years) of about 168 hours, but this will vary widely from respondent to 
respondent. (a) In the year of a benchmark survey, which is conducted 
once every five years, it is estimated that exempt respondents will 
require an average of 17 hours; for custodians of securities, the 
estimate is a total of 321 hours on average, but this figure will vary 
widely for individual custodians; and for issuers of securities that 
have data to report and are not custodians, the estimate is 61 hours on 
average. (b) In a non-benchmark year, which occurs four years out of 
every five years, it is

[[Page 96568]]

estimated that the largest custodians of securities will require a 
total of 486 hours on average; and for the largest issuers of 
securities that have data to report and are not custodians, the 
estimate is 110 hours on average. The exemption level for custodians 
and for end-investors is the holding of less than $200 million in 
reportable U.S. securities owned by foreign residents. The exemption 
level applies only in benchmark years.
    Estimated Total Annual Burden Hours: An annual average (over five 
years) of 33,720 hours.
    Frequency of Response: Annual.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for Office of 
Management and Budget approval. All comments will become a matter of 
public record. The public is invited to submit written comments 
concerning: (a) Whether the Survey is necessary for the proper 
performance of the functions of the Office of International Affairs 
within the Department of the Treasury, including whether the 
information collected will have practical uses; (b) the accuracy of the 
above estimate of the burdens; (c) ways to enhance the quality, 
usefulness and clarity of the information to be collected; (d) ways to 
minimize the reporting and/or record keeping burdens on respondents, 
including the use of information technologies to automate the 
collection of the data requested; and (e) estimates of capital or 
start-up costs of operation, maintenance and purchase of services to 
provide the information requested.

Dwight Wolkow,
Administrator, International Portfolio Investment Data Systems.
[FR Doc. 2016-31651 Filed 12-29-16; 8:45 am]
 BILLING CODE 4810-25-P