[Federal Register Volume 83, Number 11 (Wednesday, January 17, 2018)]
[Notices]
[Pages 2492-2493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00674]
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DEPARTMENT OF THE TREASURY
Proposed Collection; Comment Request
AGENCY: Departmental Offices; Department of the Treasury.
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 the revision of an information
collection that is to be proposed for approval by the Office of
Management and Budget. The Office of International Affairs of the
Department of the Treasury is soliciting comments concerning Treasury
International Capital Form SLT, Aggregate Holdings of Long-Term
Securities by U.S. and Foreign Residents.
DATES: Written comments should be received on or before March 19, 2018
to be assured of consideration.
ADDRESSES: Direct all written comments to Dwight Wolkow, International
Portfolio Investment Data Systems, Department of the Treasury, Room
5422, 1500 Pennsylvania Avenue NW, Washington, DC 20220. In view of
possible delays in mail delivery, please also notify Mr. Wolkow by
email ([email protected]), FAX (202-622-2009) or telephone
(202-622-1276).
FOR FURTHER INFORMATION CONTACT: Copies of the proposed forms and
instructions are available on the Treasury's TIC Forms web page,
https://www.treasury.gov/resource-center/data-chart-center/tic/Pages/forms-slt.aspx. Requests for additional information should be directed
to Mr. Wolkow.
SUPPLEMENTARY INFORMATION: Title: Treasury International Capital Form
SLT, Aggregate Holdings of Long-Term Securities by U.S. and Foreign
Residents.
OMB Control Number: 1505-0235.
Abstract: Form SLT is part of the Treasury International Capital
(TIC) reporting system, which is required by law (22 U.S.C. 286f; 22
U.S.C. 3103; E.O. 10033; 31 CFR 128), and is designed to collect timely
information on international portfolio capital movements. Form SLT is a
monthly report on cross-border portfolio investment in long-term
marketable securities by U.S. and foreign residents. This information
is used by the U.S. Government in the formulation of international
financial and monetary policies and for the preparation of the U.S.
balance of payments accounts and the U.S. international investment
position.
Current Actions: No changes in the form are being proposed at this
time. The proposed changes in the instructions are:
(1) The section II.A ``Who Must Report,'' the section II.F ``What
Must Be Reported,'' and the section II.G.1 ``How to Report'' of the
instructions are updated to list out separately ``certain private
funds'', which are a subgroup of the class of financial entities
defined by the Securities and Exchange Commission as private funds on
Form PF: ``any issuer that would be an investment company as defined in
[[Page 2493]]
section 3 of the Investment Company Act of 1940 but for section 3(c)(1)
or 3(c)(7) of . . . [that] Act.'' In cooperation with the Bureau of
Economic Analysis (BEA), effective for TIC reports beginning as of
January 1, 2017 and afterwards, reporters of investments in private
funds that meet the definition of direct investment (that is, ownership
by one person of 10 percent or more of the voting interest of a
business enterprise) but display characteristics of portfolio
investment (specifically, investors who do not intend to control or
influence the management of an operating company) are required to
report through the Treasury International Capital (TIC) reporting
system, where other related portfolio investments are already being
reported, and not to report on BEA's direct investment surveys.
Specifically, cross-border investments by or into private funds are
included in TIC reports regardless of ownership share if they meet BOTH
of the following 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 U.S. or 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 business enterprises), there are
no ``operating companies'' between the U.S. or foreign parent and the
indirectly-owned private fund. Direct investment in operating
companies, including investment by and through private funds, will
continue to be reported to BEA. Guidance on the decision to report
investments in certain private funds or between entities of certain
private funds in the TIC system or in BEA surveys can be found at:
https://www.bea.gov/privatefunds; use the tools labeled ``U.S.
Investments in Foreign Private Funds'' and ``Foreign Investments in
U.S. Private Funds.'' This change aligns the U.S. direct investment and
portfolio investment data more closely with the intent of the
investment with respect to management control. In addition, it reduces
the burden for respondents, many of whom previously reported both to
the TIC reporting system and to BEA's direct investment reporting
system. This change in reporting was effective January 1, 2017; this
update will formalize the reporting requirements. Note: This change
applies also to these other TIC forms if the reporting requirements of
the form are met: BC, BL-1, BL-2, BQ-1, BQ-2, BQ-3, D, S, SHC(A) and
SHL(A).
(2) The section II.A ``Who Must Report'' of the instructions is
updated to list out separately ``principal trading firms'' and ''fund
administrators.''
(3) The section II.A ``Who Must Report'' and section II.B
``Consolidation Rules'' of the instructions are updated to list out
separately Intermediate Holding Companies (IHCs), as defined by
Regulation YY, 12 CFR 252, and 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. Regulation YY was effective by January 1, 2015, and
IHCs are filing TIC reports; this update will formalize their reporting
requirements.
(4) The section II.F.2 ``What Must Be Reported'' of the
instructions is updated to clarify that, regarding securities involved
in security lending agreements and repurchase/resale (reverse
repurchase) agreements, sales of the underlying security collateral to
other parties and the purchases of such securities from other parties,
undertaken in order to return the security collateral to the lenders,
must be reported.
(5) The section IV.C.1 columns 1 & 2 ``Column by Column
Instructions'' of the instructions is updated to clarify that the
stripped securities ``teddy bears'' (TBRs), ``tigers'' (TIGRs),
``cats'' (CATS) and ``cougars'' (COUGRs) should also be classified as
U.S. Treasury securities.
(6) The section II.F.2 ``What Must Be Reported'' clarifies that
long-term Treasury securities are
Bonds, Notes, TIPS, FRNs and Savings Bonds.
(7) Some other clarifications and format changes may be made to
improve the instructions.
Type of Review: Revision of a currently approved collection.
Affected Public: Business or other for-profit organizations. Form
SLT (1505-0235).
Estimated Number of Respondents: 408.
Estimated Average Time per Respondent: Average 8.8 hours per
respondent per filing. The estimated average burden per respondent
varies widely, from about 17 hours per filing for a U.S.-resident
custodian filing Part A and Part B to about 6.5 hours for a U.S.-
resident issuer or U.S.-resident end-investor filing Part B.
Estimated Total Annual Burden Hours: 42,912 hours, based on 12
reporting periods per year.
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 Form SLT is necessary for the proper
performance of the functions of the Office, including whether the
information 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; and (e) estimates of capital or start-up costs of operation,
maintenance and purchase of services to provide information.
Dwight Wolkow,
Administrator, International Portfolio Investment Data Reporting
Systems.
[FR Doc. 2018-00674 Filed 1-16-18; 8:45 am]
BILLING CODE 4810-25-P