[Federal Register Volume 82, Number 62 (Monday, April 3, 2017)]
[Notices]
[Pages 16210-16211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06401]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comments.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board or 
Federal Reserve) invites comment on a proposal to extend, without 
revision, the recordkeeping and disclosure requirements associated with 
Regulation R.
    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 2, 2017.

ADDRESSES: You may submit comments, identified by FR 4025, 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, 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 startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Federal 
Reserve should modify the proposed revisions prior to giving final 
approval.
    Proposal to approve under OMB delegated authority the extension for 
three years, without revision, of the following report(s):
    Report title: Recordkeeping and Disclosure Requirements Associated 
with Regulation R.
    OMB control number: 7100-0316.
    Frequency: On occasion.
    Respondents: Commercial banks and savings associations.
    Estimated number of respondents: Section 701 disclosures to 
customers: 1,500; Section 701 disclosures to brokers: 1,500, Section 
723 recordkeeping: 75; Section 741 disclosures to customers: 750.
    Estimated average hours per response: Section 701 disclosures to 
customers: 5 minutes; Section 701 disclosures to brokers: 15 minutes, 
Section 723 recordkeeping: 15 minutes; Section 741 disclosures to 
customers: 5 minutes.

[[Page 16211]]

    Estimated annual burden hours: 75,563.
    General Description of Report: Sections 701, 723, and 741 contain 
information collection requirements. Details of the requirements for 
each section are provided below.
    Section 701. Section 701(a)(2)(i) and (b) require banks (or their 
broker-dealer partners) that utilize the exemption provided in this 
section to make certain disclosures to high net worth or institutional 
customers. Specifically, these banks must clearly and conspicuously 
disclose (i) the name of the broker-dealer and (ii) that the bank 
employee participates in an incentive compensation program under which 
the bank employee may receive a fee of more than a nominal amount for 
referring the customer to the broker-dealer and payment of this fee may 
be contingent on whether the referral results in a transaction with the 
broker-dealer.
    In addition, one of the conditions of the exemption is that the 
broker-dealer and the bank have a contractual or other written 
arrangement containing certain elements, including notification and 
information requirements. The bank must provide its broker-dealer 
partner with the name of the bank employee receiving a referral fee 
under the exemption and certain other identifying information relating 
to the bank employee.
    Section 723. Section 723(e)(1) requires a bank that desires to 
exclude a trust or fiduciary account in determining its compliance with 
the chiefly compensated test in section 721, pursuant to a de minimis 
exclusion, to maintain records demonstrating that the securities 
transactions conducted by or on behalf of the account were undertaken 
by the bank in the exercise of its trust or fiduciary responsibilities 
with respect to the account.
    Section 741. Section 741(a)(2)(ii)(A) requires a bank relying on 
this exemption, which permits banks to effect transactions in the 
shares of a money market fund, to provide customers with a prospectus 
for the money market fund securities, not later than the time the 
customer authorizes the bank to effect the transaction in such 
securities, if the class or series of securities are not no-load. In 
situations where a bank effects transactions under the exemption as 
part of a program for the investment or reinvestment of deposit funds 
of, or collected by, another bank, the Section permits either the 
effecting bank or the deposit-taking bank to provide the customer a 
prospectus for the money market fund securities.
    Legal authorization and confidentiality: The Board's Legal Division 
has determined that section 3(a)(4)(F) of the Exchange Act (15 U.S.C. 
78c(a)(4)(F)) authorizes the Board and the SEC to require the 
information collection. The FR 4025 is required to obtain a benefit 
because banks wishing to utilize exemptions provided by the rules 701, 
723, and 741 are required to comply with the recordkeeping and 
disclosure requirements. If an institution considers the information to 
be trade secrets and/or privileged such information could be withheld 
from the public under the authority of the Freedom of Information Act 
(5 U.S.C. 552(b)(4)). Additionally, to the extent that such information 
may be contained in an examination report such information maybe also 
be withheld from the public (5 U.S.C. 552 (b)(8)).

    Board of Governors of the Federal Reserve System, March 27, 
2017.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2017-06401 Filed 3-31-17; 8:45 am]
BILLING CODE 6210-01-P