82 FR 33496 - Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 138 (July 20, 2017)

The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend, without revision, the recordkeeping and disclosure requirements associated with Regulation R. On June 15, 1984, the Office of Management and Budget (OMB) delegated to the Board authority under the Paperwork Reduction Act (PRA) to approve of and assign OMB control numbers to collection of information requests and requirements conducted or sponsored by the Board. 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 Board 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 82, Number 138 (Thursday, July 20, 2017)]
[Notices]
[Pages 33496-33497]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-15263]


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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: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend, without revision, the recordkeeping 
and disclosure requirements associated with Regulation R.
    On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board authority under the Paperwork Reduction Act 
(PRA) to approve of and assign OMB control numbers to collection of 
information requests and requirements conducted or sponsored by the 
Board. 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 Board 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 
or by fax to (202) 395-6974.

SUPPLEMENTARY INFORMATION: Final approval under OMB delegated authority 
of the extension for three years, without revision, of the following 
report:
    Report title: Recordkeeping and Disclosure Requirements Associated 
with Regulation R.
    Agency form number: FR 4025.
    OMB Control number: 7100-0316.
    Frequency: On occasion.
    Respondents: Commercial banks and savings associations.
    Estimated number of respondents: Section 701 disclosures to 
customers: 1,500; Section 701 disclosures to brokers: 1,500, Section 
723 recordkeeping: 75; Section 741 disclosures to customers: 750.
    Estimated average hours per response: Section 701 disclosures to 
customers: 5 minutes; Section 701 disclosures to brokers: 15 minutes, 
Section 723 recordkeeping: 15 minutes; Section 741 disclosures to 
customers: 5 minutes.
    Estimated annual burden hours: 75,563.
    General description of report: Sections 701, 723, and 741 contain 
information collection requirements. Details of the requirements for 
each section are provided below.
    Section 701. Section 701(a)(2)(i) and (b) require banks (or their 
broker-dealer partners) that utilize the exemption provided in this 
section to make certain disclosures to high net worth or institutional 
customers. Specifically, these banks must clearly and conspicuously 
disclose (i) the name of the broker-dealer and (ii) that the bank 
employee participates in an incentive compensation program under which 
the bank employee may receive a fee of more than a nominal amount for 
referring the customer to the broker- dealer and payment of this fee 
may be contingent on whether the referral results in a transaction with 
the broker-dealer.
    In addition, one of the conditions of the exemption is that the 
broker-dealer and the bank have a contractual or other written 
arrangement containing certain elements, including notification and 
information requirements. The bank must provide its broker-dealer 
partner with the name of the bank employee receiving a referral fee 
under the exemption and certain other identifying information relating 
to the bank employee.
    Section 723. Section 723(e)(1) requires a bank that desires to 
exclude a trust or fiduciary account in determining its compliance with 
the chiefly compensated test in section 721, pursuant to a de minimis 
exclusion 5, to maintain records demonstrating that

[[Page 33497]]

the securities transactions conducted by or on behalf of the account 
were undertaken by the bank in the exercise of its trust or fiduciary 
responsibilities with respect to the account.
    Section 741. Section 741(a)(2)(ii)(A) requires a bank relying on 
this exemption, which permits banks to effect transactions in the 
shares of a money market fund, to provide customers with a prospectus 
for the money market fund securities, not later than the time the 
customer authorizes the bank to effect the transaction in such 
securities, if the class or series of securities are not no-load. In 
situations where a bank effects transactions under the exemption as 
part of a program for the investment or reinvestment of deposit funds 
of, or collected by, another bank, the Section permits either the 
effecting bank or the deposit-taking bank to provide the customer a 
prospectus for the money market fund securities.
    Legal authorization and confidentiality: The Board's Legal Division 
has determined that section 3(a)(4)(F) of the Exchange Act (15 U.S.C. 
78c(a)(4)(F)) authorizes the Board and the SEC to require the 
information collection. The FR 4025 is required to obtain a benefit 
because banks wishing to utilize exemptions provided by the rules 701, 
723, and 741 are required to comply with the recordkeeping and 
disclosure requirements. If an institution considers the information to 
be trade secrets and/or privileged, such information could be withheld 
from the public under section (b)(4) of the Freedom of Information Act 
(5 U.S.C. 552(b)(4)). Additionally, to the extent that such information 
may be contained in an examination report, such information maybe also 
be withheld from the public under section (b)(8) of the Freedom of 
Information Act (5 U.S.C. 552 (b)(8)).
    Current Actions: On April 3, 2017, the Board published a notice in 
the Federal Register (82 FR 16210) requesting public comment for 60 
days on the extension, without revision, of the Recordkeeping and 
Disclosure Requirements Associated with Regulation R. The comment 
period for this notice expired on June 2, 2017. The Board did not 
receive any comments.

    Board of Governors of the Federal Reserve System, July 17, 2017.
Ann E. Misback
Secretary of the Board.
[FR Doc. 2017-15263 Filed 7-19-17; 8:45 am]
 BILLING CODE 6210-01-P