[Federal Register Volume 84, Number 40 (Thursday, February 28, 2019)]
[Notices]
[Pages 6787-6788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03485]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to extend for three years, without revision, the
Recordkeeping Provisions Associated with the Guidance on Sound
Incentive Compensation Policies (FR 4027; OMB No. 7100-0327).
FOR FURTHER INFORMATION CONTACT:
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.
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.
SUPPLEMENTARY INFORMATION: On June 15, 1984, the Office of Management
and Budget (OMB) delegated to the Board authority under the Paperwork
Reduction Act (PRA) to approve and assign OMB control numbers to
collection of information requests and requirements conducted or
sponsored by the Board. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. Copies of the Paperwork Reduction Act
Submission, supporting statements and approved collection of
information instrument(s) are placed into OMB's public docket files.
The Board may not conduct or sponsor, and the respondent is not
required to respond to, an information collection that has been
extended, revised, or implemented on or after October 1, 1995, unless
it displays a currently valid OMB control number.
Final approval under OMB delegated authority of the extension for
three years, without revision, (or the implementation) of the following
information collection:
Report title: Recordkeeping Provisions Associated with the Guidance
on Sound Incentive Compensation Policies.
Agency form number: FR 4027.
OMB control number: 7100-0327.
Frequency: Annual.
Respondents: Banking organizations.
Estimated number of respondents: One-time implementation for large
institutions: 1; one-time implementation for small institutions: 1;
ongoing maintenance: 5,710.
Estimated average hours per response: One-time implementation for
large institutions: 480; one-time implementation for small
institutions: 80; ongoing maintenance: 40.
Estimated annual burden hours: 228,960.
General Description of Report
Compatibility With Effective Controls and Risk Management
Pursuant to Principle 2 of the Guidance, a banking organization's
risk-management processes and internal controls should reinforce and
support the development and maintenance of balanced incentive
compensation arrangements. Principle 2 states that banking
organizations should create and maintain sufficient documentation to
permit an audit of the organization's processes for establishing,
modifying, and monitoring incentive compensation arrangements.
Additionally, large banking organizations should maintain policies and
procedures that (i) identify and describe the role(s) of the personnel,
business units, and control units authorized to be involved in the
design, implementation, and monitoring of incentive compensation
arrangements; (ii) identify the source of significant risk-related
inputs into these processes and establish appropriate controls
governing the development and approval of these inputs to help ensure
their integrity; and (iii) identify the
[[Page 6788]]
individual(s) and control unit(s) whose approval is necessary for the
establishment of new incentive compensation arrangements or
modification of existing arrangements.
Strong Corporate Governance
Pursuant to Principle 3 of the Guidance, banking organizations
should have strong and effective corporate governance to help ensure
sound compensation practices. The Guidance states that a banking
organization's board of directors should approve and document any
material exceptions or adjustments to the organization's incentive
compensation arrangements established for senior executives.
Legal authorization and confidentiality: The recordkeeping
provisions of the Guidance are authorized pursuant to sections 9,
11(a), 25, and 25A of the Federal Reserve Act (12 U.S.C. 248(a), 325,
602, and 625); section 5 of the Bank Holding Company Act (12 U.S.C.
1844); section 10(b)(2) of the Home Owners' Loan Act (12 U.S.C.
1467a(b)(2)); section 7(c) of the International Banking Act (12 U.S.C.
3105(c)); and section 39 of the Federal Deposit Insurance Act (12
U.S.C. 1831p-1(c)).
Because the recordkeeping provisions are contained within guidance,
which is nonbinding, they are voluntary. There are no reporting forms
associated with this information collection.
Because the incentive compensation records would be maintained at
each banking organization, the Freedom of Information Act (``FOIA'')
would only be implicated if the Board obtained such records as part of
the examination or supervision of a banking organization. In the event
the records are obtained by the Board as part of an examination or
supervision of a financial institution, this information is considered
confidential pursuant to exemption 8 of the FOIA, which protects
information contained in ``examination, operating, or condition
reports'' obtained in the bank supervisory process (5 U.S.C.
552(b)(8)). In addition, the information may also be kept confidential
under exemption 4 of the FOIA, which protects commercial or financial
information obtained from a person that is privileged or confidential
(5 U.S.C. 552(b)(4)).
Current actions: On November 30, 2018, the Board published a notice
in the Federal Register (83 FR 61637) requesting public comment for 60
days on the extension, without revision, of the Recordkeeping
Provisions Associated with the Guidance on Sound Incentive Compensation
Policies. The comment period for this notice expired on January 29,
2019. The Board did not receive any comments.
Board of Governors of the Federal Reserve System, February 21,
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-03485 Filed 2-27-19; 8:45 am]
BILLING CODE 6210-01-P