[Federal Register Volume 86, Number 233 (Wednesday, December 8, 2021)]
[Notices]
[Pages 69643-69645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26325]


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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 comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
invites comment on a proposal to extend for three years, without 
revision, the Uniform Application for Municipal Securities Principal or 
Municipal Securities Representative Associated with a Bank Municipal 
Securities Dealer (Form MSD-4; OMB No. 7100-0100) and the Uniform 
Termination Notice for Municipal Securities Principal or Municipal 
Securities Representative Associated with a Bank Municipal Securities 
Dealer (Form MSD-5; OMB No. 7100-0101).

[[Page 69644]]


DATES: Comments must be submitted on or before February 7, 2022.

ADDRESSES: You may submit comments, identified by Form MSD-4 or Form 
MSD-5, by any of the following methods:
     Agency website: https://www.federalreserve.gov/. Follow 
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include the OMB 
number or FR number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, 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 website at 
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as 
submitted, unless modified for technical reasons or to remove 
personally identifiable information at the commenter's request. 
Accordingly, comments will not be edited to remove any confidential 
business information, identifying information, or contact information. 
Public comments may also be viewed electronically or in paper in Room 
146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. 
and 5:00 p.m. on weekdays. For security reasons, the Board requires 
that visitors make an appointment to inspect comments. You may do so by 
calling (202) 452-3684. Upon arrival, visitors will be required to 
present valid government-issued photo identification and to submit to 
security screening in order to inspect and photocopy comments.
    Additionally, commenters may send a copy of their comments to the 
Office of Management and Budget (OMB) Desk Officer for the Federal 
Reserve Board, 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: 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.

SUPPLEMENTARY INFORMATION: The Board invites comment on a proposal to 
extend for three years, without revision, the Uniform Application for 
Municipal Securities Principal or Municipal Securities Representative 
Associated with a Bank Municipal Securities Dealer and the Uniform 
Termination Notice for Municipal Securities Principal or Municipal 
Securities Representative Associated with a Bank Municipal Securities 
Dealer.\1\
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    \1\ As part of this clearance, the Board will clear the Form 
MSD-4 and Form MSD-5 under the Form MSD-4 OMB control number (7100-
0100), and then discontinue the Form MSD-5's separate OMB control 
number (7100-0101). This non-substantive change is aimed at 
simplifying the tracking and clearance process for the two related 
forms. This change would not modify the reporting or recordkeeping 
requirements of the forms in any way. The collection will then be 
titled ``The Uniform Application and the Uniform Termination Notice 
for Municipal Securities Principal or Municipal Securities 
Representative Associated with a Bank Municipal Securities Dealer'' 
(Form MSD-4 and Form MSD-5; 7100-0100).
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    On June 15, 1984, OMB delegated to the Board authority under the 
Paperwork Reduction Act (PRA) to approve and assign OMB control numbers 
to collections of information 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.
    During the comment period for this proposal, a copy of the proposed 
PRA OMB submission, including the draft reporting form and 
instructions, supporting statement, and other documentation, will be 
made available on the Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears above. Final 
versions of these documents will be made available at https://www.reginfo.gov/public/do/PRAMain, if approved.

Request for Comment on Information Collection Proposal

    The Board invites public comment on the following information 
collections, which are being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collections of information is necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed information collections, 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 collections 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 Board 
should modify the proposal.

Proposal Under OMB Delegated Authority To Extend for Three Years, 
Without Revision, the Following Information Collections

    Report title: Uniform Application for Municipal Securities 
Principal or Municipal Securities Representative Associated with a Bank 
Municipal Securities Dealer.
    Agency form number: Form MSD-4.
    OMB control number: 7100-0100.
    Frequency: Event generated.
    Respondents: Each municipal securities dealer (MSD) that is a state 
member bank (SMB), bank holding company (BHC), or a savings and loan 
holding company (SLHC), certain subsidiaries of such firms, or a 
foreign dealer bank.\2\
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    \2\ 15 U.S.C. 78c(34)(A)(ii).
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    Estimated number of respondents: Reporting, 13; Recordkeeping, 13.
    Estimated average hours per response: Reporting, 0.92; 
Recordkeeping, 0.08.
    Estimated annual burden hours: Reporting, 11.96; Recordkeeping, 
1.04.
    General description of report: The Municipal Securities Rulemaking 
Board (MSRB) rule G-7, Information Concerning Associated Persons, 
requires persons who are or seek to be an associated person of an MSD, 
either as a municipal securities principal (a person performing 
supervisory functions) or representative (a person engaged in 
underwriting, trading, or sales of municipal securities or furnishing 
financial advice to issuers in connection with the issuance of 
municipal securities) or in any other manner set forth under the rule, 
to provide certain background information to the MSD. The rule also 
requires MSDs to obtain and report this information. MSDs for which the 
Board is the appropriate regulatory agency (ARA) must report to the 
Board information required by MSRB rule G-7 using Form MSD-4. 
Generally, the information required by Form MSD-4

[[Page 69645]]

relates to employment history and professional background, including 
any disciplinary sanctions, as well as any claimed basis for exemption 
from MSRB examination requirements. Certain information reported on 
Form MSD-4 is filled out by the employee, with the rest completed by 
the MSD. As required by MSRB rule G-7, bank municipal securities 
dealers must retain copies of Form MSD-4 for each associated person 
during the entire term of employment.

    Report title: Uniform Termination Notice for Municipal Securities 
Principal or Municipal Securities Representative Associated with a Bank 
Municipal Securities Dealer.
    Agency form number: Form MSD-5.
    OMB control number: 7100-0101.
    Frequency: Event generated.
    Respondents: Each MSD that is an SMB, BHC, or an SLHC, certain 
subsidiaries of such firms, or a foreign dealer bank.\3\
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    \3\ 15 U.S.C. 78c(34)(A)(ii).
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    Estimated number of respondents: Reporting, 21; Recordkeeping, 21.
    Estimated average hours per response: Reporting, 0.16; 
Recordkeeping; 0.08.
    Estimated annual burden hours: Reporting, 3.36; Recordkeeping 1.68.
    General description of report: An MSD for which the Board is the 
ARA must file Form MSD-5 with the Board when any employee previously 
registered as a municipal securities principal or representative is 
terminated for any reason. Form MSD-5 requires information such as the 
reason for termination and whether any investigations or actions by 
agencies or self-regulatory organizations (SROs) involving the 
associated person occurred during the period of employment.
    Any SMB, BHC, or SLHC, as well as certain subsidiaries of such 
firms, and any foreign dealer bank that is an MSD is required to file 
Forms MSD-4 and MSD-5 with the Board with respect to its employees. As 
required by MSRB rule G-7, an MSD must retain both Form MSD-4 and Form 
MSD-5 for three years from the date of termination of employment.
    Legal authorization and confidentiality: The Securities Exchange 
Act of 1934 (Exchange Act) authorizes the Securities and Exchange 
Commission (SEC) and MSRB to promulgate rules requiring MSDs to file 
reports about associated persons with the SEC and ARAs,\4\ and the 
Board is the ARA for most Form MSD-4 and Form MSD-5 respondents.\5\ The 
Exchange Act further authorizes the Board to enforce compliance with 
the SEC's and MSRB's rules,\6\ and make rules and regulations to 
implement the portions of the Exchange Act for which it is 
responsible.\7\
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    \4\ 15 U.S.C. 78o-4(a)-(b) and (q).
    \5\ 15 U.S.C. 78c(a)(34)(A)(ii) (establishing the Board as the 
ARA for an MSD that is, or is the subsidiary of, an SLHC, SMB, or 
BHC (including a subsidiary of the BHC if the subsidiary does not 
already report to another ARA or to the SEC). While the Exchange Act 
does not specify the ARA for MSD activities of foreign dealer banks, 
the SEC has agreed that the Board should examine their MSD 
activities. See Letter from Catherine McGuire, Chief Counsel, SEC 
Division of Market Regulation, to Laura M. Homer, Assistant Director 
of Board S&R, June 14, 1994.
    \6\ 15 U.S.C. 78o-4(c).
    \7\ 15 U.S.C. 78w(a).
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    Several additional statutes also authorize the Board to require 
submission of the Forms MSD-4 and MSD-5 by specific entities, including 
the Federal Reserve Act (for SMBs and their affiliates),\8\ the 
International Banking Act (for branches and agencies of foreign 
banks),\9\ the Bank Holding Company Act of 1956 (for BHCs and their 
subsidiaries),\10\ and the Home Owners' Loan Act (for SLHCs and their 
subsidiaries).\11\
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    \8\ 12 U.S.C. 248(a)(1) (authorizing the Board to ``require such 
statements and reports'' of member banks as it may deem necessary).
    \9\ 12 U.S.C. 3105(c)(2) (subjecting branches and agencies of 
foreign banks to reporting requirements in the same manner as if the 
branch or agency were a State member bank).
    \10\ 12 U.S.C. 1844(c)(1)(A)(ii)(II) (authorizing the Board to 
require from a BHC or any subsidiary reports as to compliance with 
federal laws that the Board has jurisdiction to enforce).
    \11\ 12 U.S.C. 1467a(b)(2) (authorizing the Board to require 
reports from SLHCs and their subsidiaries containing such 
information concerning the operations of the SLHC or subsidiary as 
the Board may require).
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    Filing of the Forms MSD-4 and MSD-5 is mandatory. Information 
provided on Forms MSD-4 and MSD-5 may be kept confidential pursuant to 
exemption 6 of the Freedom of Information Act (FOIA) to the extent 
disclosure of such information ``would constitute a clearly unwarranted 
invasion of personal privacy.'' \12\ Information contained on Forms 
MSD-4 and MSD-5 may also be kept confidential under FOIA exemption 4 if 
it is confidential commercial or financial information that is both 
customarily and actually treated as private \13\ or under FOIA 
exemption 8 if it is obtained as part of an examination or supervision 
of a financial institution.\14\
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    \12\ 5 U.S.C. 552(b)(6).
    \13\ 5 U.S.C. 552(b)(4).
    \14\ 5 U.S.C. 552(b)(8).

    Board of Governors of the Federal Reserve System, November 30, 
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-26325 Filed 12-7-21; 8:45 am]
BILLING CODE 6210-01-P