[Federal Register Volume 86, Number 184 (Monday, September 27, 2021)]
[Notices]
[Pages 53300-53301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20808]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0028]


Agency Information Collection Activities: Proposed Collection 
Renewal; Comment Request

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The FDIC, as part of its obligations under the Paperwork 
Reduction Act of 1995 (PRA), invites the general public and other 
Federal agencies to take this opportunity to comment on the renewal of 
the existing information collection described below (OMB Control No. 
3064-0028).

DATES: Comments must be submitted on or before November 26, 2021.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     https://www.FDIC.gov/regulations/laws/federal.
     Email: [email protected]. Include the name and number of 
the collection in the subject line of the message.
     Mail: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery: Comments may be hand-delivered to the guard 
station at the rear of the 17th Street building (located on F Street), 
on business days between 7:00 a.m. and 5:00 p.m.
    All comments should refer to the relevant OMB control number. A 
copy of the comments may also be submitted to the OMB desk officer for 
the FDIC: Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Washington, DC 
20503.

FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, [email protected], MB-3128, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: 
    Proposal to renew the following currently approved collection of 
information:
    1. Title: Recordkeeping and Confirmation Requirements for 
Securities Transactions.
    OMB Number: 3064-0028.
    Form Number: None.
    Affected Public: FDIC-Insured Institutions and Certain Employees of 
the FDIC-Insured Institutions.
    Burden Estimate:

                                                                Summary of Annual Burden
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                                                                                             Estimated       Estimated    Estimated time     Estimated
 Information collection description      Type of burden         Obligation to  respond       number of     frequency of    per  response   annual burden
                                                                                            respondents      responses        (hours)         (hours)
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Maintain Securities Trading          Recordkeeping.........  Mandatory..................             691               1               1             691
 Policies and Procedures.
Officer/Employee Filing of Reports   Third-Party Disclosure  Mandatory..................           2,073               4               1           8,292
 of Personal Securities Trading
 Transactions--344.9 (assumes 5
 officers/employees at each
 institution with income from
 securities broker activity).
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    Total Estimated Annual Burden: 8,983 hours.
    General Description of Collection: The collection of information 
requirements are contained in 12 CFR part 344. The purpose of the 
regulation is to ensure that purchasers of securities in transactions 
affected by insured state

[[Page 53301]]

nonmember banks are provided with adequate records concerning the 
transactions. The regulation is also designed to ensure that insured 
state nonmember banks maintain adequate records and controls with 
respect to the securities transactions they effect. Finally, this 
regulation requires officers and employees of FDIC-supervised 
institutions to report to the FDIC supervised institution certain 
personal securities trading activity.
    Sections 344.4, 344.5, and 344.6 refer to reporting and third party 
disclosure burdens associated with confirmation of securities 
transactions. The FDIC assumes that banks automate notifications to 
customers of securities transactions, and would automate these 
notifications even if 12 CFR 344 were not in place. The automation 
includes the recordkeeping and disclosure of the confirmation of 
securities transactions. As such, FDIC believes that the activities 
associated with sections 344.4, 344.5, and 344.6 are all done in the 
ordinary course business, and do not represent PRA burden.
    Potential respondents to this IC are all FDIC-supervised 
institutions that effect securities transactions for customers. 
Respondents include institutions that conduct securities transactions 
themselves or that conduct securities transactions through a broker/
dealer. To estimate the annual number of respondents, FDIC referenced 
the number of FDIC-supervised institutions that reported exercising 
fiduciary powers as of the first quarter of 2021,\1\ which is reported 
on item 2 of Call Report Schedule RC-T.
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    \1\ RIS variable TREXER.
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    As of March 31, 2021, 691 FDIC-supervised institutions reported 
exercising fiduciary powers.\2\ These 691 entities are subject to the 
PRA requirements in 12 CFR 344.8. Thus, FDIC estimates 691 respondents 
to the line items corresponding to this section. In the previous 
renewal of this information collection, the FDIC estimated 680 
respondents to this IC; this estimate was derived by counting the 
number of FDIC-supervised institutions with income from securities 
brokerage activity. The increase in the estimated number of respondents 
from 680 to 691 is a result of a change in estimation methodology due 
to a change in the call report reporting requirements.\3\
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    \2\ FDIC Call Report data, March 2021.
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    The line item corresponding to 12 CFR 344.9 applies to officers and 
employees of FDIC-supervised institutions who ``make investment 
recommendations or decisions for the accounts of customers; participate 
in the determination of such recommendations or decisions; or in 
connection with their duties, obtain information concerning which 
securities are being purchased or sold or recommend such action.'' \5\ 
Excluded from this requirement are ``transactions for the benefit of 
the officer or employee over which the officer or employee has no 
direct or indirect influence or control; transactions in registered 
investment company shares; transactions in government securities; and 
all transactions involving in the aggregate $10,000 or less during the 
calendar quarter.'' \6\ The FDIC does not currently have access to data 
on how many officers or employees are required to report trading 
activities in which they have a beneficial interest in accordance with 
Section 344.9. In the estimate for the previous ICR, it was assumed 
that five officers or employees per FDIC-supervised institution 
affected by this IC who would respond to this line item. Based on 
supervisory experience, FDIC believes that most of the smaller FDIC-
supervised institutions do not have any personnel subject to Section 
344.9.\7\ Accordingly, FDIC has reduced the assumed number of officers 
or employees per FDIC-supervised institution who would respond to this 
line item from five to three. FDIC therefore estimates 2,073 
respondents per year to this line item.\8\ This estimate constitutes a 
decrease of 1,327 in the estimated annual number of respondents to this 
IC.
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    \5\ 12 CFR 344.9(a).
    \6\ 12 CFR 344.9(b)
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    Section 344.8 requires FDIC-supervised institutions to establish 
processes and procedures for assigning responsibility for supervising 
employees and officers who are involved with processing, documenting, 
and executing securities transactions for customers, and for ensuring 
equitable treatment of parties to a security transaction, and of 
customers who submit orders for the same security or securities at 
approximately the same time. Policies and procedures are generally 
reviewed and updated annually. FDIC therefore estimate one response per 
respondent to this line item as FDIC believes that institutions are 
more likely to update their policies and procedures annually rather 
than monthly. This estimate represents a decrease of 11 responses per 
respondent.
    FDIC has also revised its estimate of the time required to respond 
to the requirements of Section 344.8 to one hour per response. This 
estimate represents an increase of 0.75 hours per response from the 
estimate included in the 2018 renewal and is based on the FDIC's 
experience with this information collection.
    FDIC estimates one hour per response for the burden related to 
Section 344.9. This estimate represents a decrease of 0.5 hours per 
response from the estimate included in the 2018 renewal and is also 
based on the FDIC's experience with this information collection.
    The total estimated annual burden for this information collection 
is 8,983 hours, which is a decrease of 56,297 hours from the estimate 
included in the previous renewal.

Request for Comment

    Comments are invited on: (a) Whether the collection of information 
is necessary for the proper performance of the FDIC's functions, 
including whether the information has practical utility; (b) the 
accuracy of the estimates of the burden of the 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; and (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology. All 
comments will become a matter of public record.

    Dated at Washington, DC, on September 19, 2021.

Federal Deposit Insurance Corporation.
James P. Sheesley,
Assistant Executive Secretary.
FR Doc. 2021-20808 Filed 9-24-21; 8:45 am
BILLING CODE 6714-01-P