[Federal Register Volume 88, Number 37 (Friday, February 24, 2023)]
[Notices]
[Pages 11978-11980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03856]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; 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.'' The OCC also is giving notice that it has sent the 
collection to OMB for review.

DATES: Comments must be received on or before March 27, 2023.

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, 1557-0309, Office of the Comptroller of the Currency, 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) 293-4835.
    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 information 
in your comment or supporting materials that you consider confidential 
or inappropriate for public disclosure.
    Written comments and recommendations for the proposed information 
collection should also be sent within 30 days of publication of this 
notice to www.reginfo.gov/public/do/PRAMain. You can find this 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
    On August 23, 2022, the OCC published a 60-day notice for this 
information collection, (87 FR 51729). You may review comments and 
other related materials that pertain to this information collection 
following the close of the 30-day comment period for this notice by the 
method set forth in the next bullet.

[[Page 11979]]

     Viewing Comments Electronically: Go to www.reginfo.gov. 
Hover over the ``Information Collection Review'' tab and click on 
``Information Collection Review'' from the drop-down menu. 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. The OCC asks 
that OMB extend its approval of the collection in this notice.
    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.
    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).\2\ The rule implemented section 619 of 
the Dodd-Frank Act, which contains certain prohibitions and 
restrictions on the ability of a banking entity \3\ 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).
    \3\ 12 CFR 44.2(c).
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    Section 619 of the Dodd-Frank Act added a new section 13 to the 
Bank Holding Company Act (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 exemptions 
allow certain types of permissible trading and covered fund activities. 
The OCC's version of the rule is codified at 12 CFR part 44. Section 
44.20(d) and Appendix A require certain of the largest banking entities 
to report to the appropriate agency certain quantitative measurements.
    The reporting, recordkeeping, and disclosure requirements 
associated with the rule will permit banking entities to comply and the 
Agencies to enforce compliance with section 13 of the BHC Act and the 
final rule and to identify, monitor and limit risks of activities 
permitted under section 13, particularly involving banking entities 
posing the greatest risk to financial stability.

Section-by-Section Analysis

    Section 44.3(d)(3), regarding excluded liquidity management 
activities, includes recordkeeping requirements regarding a liquidity 
management plan for certain 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 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(a) requires a compliance program from banking 
entities with significant trading assets and liabilities.
    Section 44.20(b) specifies minimum requirements for the compliance 
program required by 44.20(a), including maintaining records sufficient 
to demonstrate compliance which banking entities must retain for at 
least five years or a longer period if required by the OCC.
    Section 44.20(c) requires a CEO attestation from any banking entity 
that has significant trading assets and liabilities.

[[Page 11980]]

    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.
    On August 23, 2022, the OCC published a 60-day notice for this 
information collection, (87 FR 51729). No comments were received. 
Comments continue to be solicited 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.

Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2023-03856 Filed 2-23-23; 8:45 am]
BILLING CODE 4810-33-P