[Federal Register Volume 87, Number 162 (Tuesday, August 23, 2022)]
[Notices]
[Pages 51729-51731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18142]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Comment Request; Reporting, Recordkeeping, and Disclosure 
Requirements Associated With Proprietary Trading and Certain Interests 
in and Relationships With Covered Funds

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION:  Notice and request for comment.

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SUMMARY:  The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites comment on a continuing information 
collection as required by the Paperwork Reduction Act of 1995 (PRA). In 
accordance with the requirements of the PRA, the OCC may not conduct or 
sponsor, and respondents are not required to respond to, an information 
collection unless it displays a currently valid Office of Management 
and Budget (OMB) control number. The OCC is soliciting comment 
concerning the renewal of its information collection titled 
``Reporting, Recordkeeping, and Disclosure Requirements Associated with 
Proprietary Trading and Certain Interests in and Relationships with 
Covered Funds.''

DATES: Comments must be received on or before October 24, 2022.

ADDRESSES:  Commenters are encouraged to submit comments by email, if 
possible. You may submit comments by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Attention: Comment 
Processing, Office of the Comptroller of the Currency, Attention: 1557-
0309, 400 7th Street SW, Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0309'' in your comment. In general, the OCC will publish 
comments on www.reginfo.gov without change, including any business or 
personal information provided, such as name and address information, 
email addresses, or phone numbers. Comments received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not include any

[[Page 51730]]

information in your comment or supporting materials that you consider 
confidential or inappropriate for public disclosure.
    Following the close of this notice's 60-day comment period, the OCC 
will publish a second notice with a 30-day comment period. You may 
review comments and other related materials that pertain to this 
information collection beginning on the date of publication of the 
second notice for this collection by the method set forth in the next 
bullet.
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Hover over the ``Information Collection Review'' drop down menu and 
click on ``Information Collection Review.'' From the ``Currently under 
Review'' drop-down menu, select ``Department of Treasury'' and then 
click ``submit.'' This information collection can be located by 
searching by OMB control number ``1557-0309'' or ``Reporting, 
Recordkeeping, and Disclosure Requirements Associated with Proprietary 
Trading and Certain Interests in and Relationships with Covered 
Funds.'' Upon finding the appropriate information collection, click on 
the related ``ICR Reference Number.'' On the next screen, select ``View 
Supporting Statement and Other Documents'' and then click on the link 
to any comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, 
(202) 649-5490, Chief Counsel's Office, Office of the Comptroller of 
the Currency, 400 7th Street SW, Suite 3E-218, Washington, DC 20219. If 
you are deaf, hard of hearing, or have a speech disability, please dial 
7-1-1 to access telecommunications relay services.

SUPPLEMENTARY INFORMATION:  Under the PRA (44 U.S.C. 3501-3520), 
Federal agencies must obtain approval from the OMB for each collection 
of information that they conduct or sponsor. ``Collection of 
information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to 
include agency requests or requirements that members of the public 
submit reports, keep records, or provide information to a third party. 
Section 3506(c)(2)(A) of title 44 requires Federal agencies to provide 
a 60-day notice in the Federal Register concerning each proposed 
collection of information, including each proposed extension of an 
existing collection of information, before submitting the collection to 
OMB for approval. To comply with this requirement, the OCC is 
publishing notice of the renewal of the collection of information set 
forth in this document.
    Title: Reporting, Recordkeeping, and Disclosure Requirements 
Associated with Proprietary Trading and Certain Interests in and 
Relationships with Covered Funds.
    OMB Control No.: 1557-0309.
    Description: This submission covers an existing regulation and 
involves no change to the regulation or to the information collection 
requirements. The OCC requests only that OMB renew its approval of the 
collection.
    Section 13 of the Bank Holding Company (BHC) Act generally 
prohibits any banking entity from engaging in proprietary trading or 
from acquiring or retaining an ownership interest in, sponsoring, or 
having certain relationships with a covered fund, subject to certain 
exemptions. The exemptions allow certain types of permissible trading 
and covered fund activities. The initial regulations implementing 
section 13 became effective on April 1, 2014. Twelve CFR 44.20(d) and 
Appendix A of the implementing regulations require certain of the 
largest banking entities to report to the appropriate agency certain 
quantitative measurements.
    This collection of information was established pursuant to a rule 
\1\ required by the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act), which was enacted on July 21, 2010.\2\ 
The rule implemented section 619 of the Dodd-Frank Act, which contains 
certain prohibitions and restrictions on the ability of a banking 
entity and nonbank financial company supervised by the Board of 
Governors of the Federal Reserve System (FRB) to engage in proprietary 
trading and have certain interests in, or relationships with, a hedge 
fund or private equity fund.
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    \1\ 79 FR 5536 (January 31, 2014).
    \2\ Dodd-Frank Wall Street Reform and Consumer Protection Act, 
Public Law 111-203, 124 Stat. 1376 (2010).
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    Section 619 of the Dodd-Frank Act added a new section 13 to the BHC 
Act (codified at 12 U.S.C. 1851) that generally prohibits any banking 
entity from engaging in proprietary trading or from acquiring or 
retaining an ownership interest in, sponsoring, or having certain 
relationships with a hedge fund or private equity fund, subject to 
certain exemptions. The OCC's version of the rule is codified at 12 CFR 
part 44. The reporting, recordkeeping, and disclosure requirements 
associated with the rule permit banking entities and the OCC to enforce 
compliance with section 13 of the BHC Act and the rule and to identify, 
monitor, and limit risks of activities permitted under section 13.

Section-By-Section Analysis

    Section 44.3(d)(3), regarding excluded liquidity management 
activities, includes recordkeeping requirements for security, foreign 
exchange forward, foreign exchange swap, or cross-currency swap 
transactions.
    Section 44.4(b)(3)(i)(A), regarding permitted market making 
activities, provides that a trading desk or other organizational unit 
of another banking entity is not a client, customer, or counterparty of 
a trading desk relying on the market-making exemption if that other 
entity has trading assets and liabilities of $50 billion or more unless 
the trading desk documents how and why a particular trading desk or 
other organizational unit of the other entity should be treated as a 
client, customer, or counterparty of the trading desk.
    Section 44.4(c)(3)(i) requires a banking entity that relies on the 
market making presumption of compliance to make available to the OCC 
upon request records regarding (1) any limit that is exceeded and (2) 
any temporary or permanent increase to any limit(s), in each case in 
the form and manner as directed by the OCC.
    Section 44.5(c) includes documentation requirements for banking 
entities that have significant trading assets and liabilities and rely 
on the risk-mitigating hedging exemption.
    Section 44.10(c)(18)(ii)(C)(1) requires a banking entity relying on 
the exclusion from the covered fund definition for customer 
facilitation vehicles to maintain documentation outlining how the 
banking entity intends to facilitate the customer's exposure to a 
transaction, investment strategy, or service.
    Section 44.11(a)(2) requires a banking entity (or an affiliate 
thereof) that organizes and offers a covered fund in connection with 
the provision of bona fide trust, fiduciary, investment advisory, or 
commodity trading advisory services to persons that are customers of 
such services of the banking entity (or an affiliate thereof) to 
organize and offer the fund pursuant to a written plan or similar 
documentation outlining how the banking entity or such affiliate 
intends to provide advisory or similar services to its customers 
through organizing and offering such fund.
    Section 44.11(a)(8)(i) requires a banking entity that organizes and 
offers

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covered funds to make certain disclosures to investors in such funds. 
This provision also applies to banking entities relying on exclusions 
for credit funds, venture capital funds, family wealth management 
vehicles, or customer facilitation vehicles.
    Section 44.12(e) outlines the requirements for requesting an 
extension of time to divest an ownership interest in a covered fund.
    Section 44.20(b) requires a compliance program from banking 
entities with significant trading assets and liabilities.
    Section 44.20(c) requires a CEO attestation from any banking entity 
that has significant trading assets and liabilities.
    Section 44.20(d) requires a banking entity with significant trading 
assets and liabilities (or any other banking entity to which the OCC 
has provided written notification) to report metrics specified in 
appendix A. Section 20(d) further specifies that a banking entity that 
is required to report these metrics must do so within 30 days of the 
end of each calendar quarter.
    Section 44.20(e) requires a banking entity with significant trading 
assets and liabilities to maintain additional documentation for covered 
funds.
    Section 44.20(f)(1) provides that a banking entity with no covered 
activities (other than trading activities permitted pursuant to Sec.  
44.6(a) of subpart B) can satisfy the requirements of Sec.  44.20 by 
establishing the required compliance program prior to becoming engaged 
in such activities or making such investments.
    Section 44.20(f)(2) provides that a banking entity with moderate 
trading assets and liabilities may satisfy the requirements of Sec.  
44.20 by including in its existing compliance policies and procedures 
appropriate references to the requirements of section 13 of the BHC Act 
and part 44 and adjustments as appropriate given its activities, size, 
scope, and complexity.
    Section 44.20(i) covers notice and response procedures. The OCC 
will notify a banking entity in writing of any determination requiring 
notice under part 44 and will provide an explanation of the 
determination. The banking entity may respond to the notice and should 
include any matters that the banking entity would have the OCC consider 
in deciding whether to make the determination. The response must be in 
writing and delivered to the designated OCC official within 30 days 
after the date on which the banking entity received the notice.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Individuals; Businesses or other for-profit.
    Frequency of Response: On occasion.
    Estimated Number of Respondents: 39.
    Estimated Total Annual Burden: 20,410.
    Comments submitted in response to this notice will be summarized 
and included in the submission to OMB. Comments are requested on:
    (a) Whether the information collections are necessary for the 
proper performance of the OCC's functions, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimates of the burden of the 
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 start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

Patrick T. Tierney,
Assistant Director, Bank Advisory, Office of the Comptroller of the 
Currency.
[FR Doc. 2022-18142 Filed 8-22-22; 8:45 am]
BILLING CODE 4810-33-P