81 FR 39641 - Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB

FEDERAL RESERVE SYSTEM

Federal Register Volume 81, Issue 117 (June 17, 2016)

Notice is hereby given of the final approval of a proposed information collection by the Board of Governors of the Federal Reserve System (Board) under OMB delegated authority. 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 Federal Reserve 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.

[Federal Register Volume 81, Number 117 (Friday, June 17, 2016)]
[Notices]
[Page 39641]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14300]


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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: Notice is hereby given of the final approval of a proposed 
information collection by the Board of Governors of the Federal Reserve 
System (Board) under OMB delegated authority. 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 Federal Reserve 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.

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.
    Final approval under OMB delegated authority of the extension for 
three years, without revision, of the following report:
    Report title: Recordkeeping Requirements Associated with the 
Interagency Statement on Complex Structured Finance Activities.
    Agency form number: FR 4022.
    OMB control number: 7100-0311.
    Frequency: Annual.
    Reporters: State member banks, bank holding companies, and U.S. 
branches and agencies of foreign banks.
    Estimated annual burden hours: 180 hours.
    Estimated average hours per response: 10 hours.
    Number of respondents: 18 Respondents.
    General description of report: Sections 11(a), 11(i), 21, and 25 of 
the Federal Reserve Act (12 U.S.C. 248(a), 248(i), 483, and 602) 
authorize the Board to issue the information collection and 
recordkeeping guidance associated with the Interagency Statement. In 
addition, section 5(c) of the Bank Holding Company Act (12 U.S.C 
1844(c)), section 10(b) of the Home Owners' Loan Act (12 U.S.C. 1467a 
(b)(2)), and section 13(a) of the International Banking Act (12 U.S.C. 
3108(a)) provide further authority for the Board to issue such rules 
and guidance. As a guidance document, the Interagency Statement is 
voluntary, although conformance with the guidance may be the subject of 
review during examinations of institutions engaged in CSFTs. No 
information is collected by the Board in connection with the 
Interagency Statement, so the issue of confidentiality does not 
ordinarily arise. Should an institution's policies or procedures 
adopted pursuant to the Interagency Statement be retained as part of 
the record of an institution's examination, the records would be exempt 
from disclosure under exemption (b)(8) of the Freedom of Information 
Act, 5 U.S.C. 552(b)(8).
    Abstract: The guidance provides that state member banks, bank 
holding companies, and U.S. branches and agencies of foreign banks 
supervised by the Federal Reserve should establish and maintain 
policies and procedures for identifying, evaluating, assessing, 
documenting, and controlling risks associated with certain complex 
structured finance transactions (CSFTs).
    A financial institution engaged in CSFTs should maintain a set of 
formal, firm-wide policies and procedures that are designed to allow 
the institution to identify, evaluate, assess, document, and control 
the full range of credit, market, operational, legal, and reputational 
risks associated with these transactions. These policies may be 
developed specifically for CSFTs or included in the set of broader 
policies governing the institution generally. A financial institution 
operating in foreign jurisdictions may tailor its policies and 
procedures as appropriate to account for, and comply with, the 
applicable laws, regulations, and standards of those jurisdictions.
    A financial institution's policies and procedures should establish 
a clear framework for the review and approval of individual CSFTs. 
These policies and procedures should set forth the responsibilities of 
the personnel involved in the origination, structuring, trading, 
review, approval, documentation, verification, and execution of CSFTs. 
A financial institution should define what constitutes a new complex 
structured finance product and establish a control process for the 
approval of such new product. An institution's policies also should 
provide for new complex structured finance products to receive the 
approval of all relevant control areas that are independent of the 
profit center before the products are offered to customers.
    Current Actions: On April 4, 2016, the Board published a notice in 
the Federal Register (81 FR 19178) requesting public comment for 60 
days on the proposal to extend for three years, without revision, the 
FR 4022. The comment period for this notice expired on June 3, 2016. 
The Federal Reserve did not receive any comments, and the information 
collection will be extended as proposed.

    Board of Governors of the Federal Reserve System, June 13, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-14300 Filed 6-16-16; 8:45 am]
 BILLING CODE 6210-01-P