82 FR 56022 - Proposed Agency Information Collection Activities; Comment Request

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 226 (November 27, 2017)

The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, without revision, the Recordkeeping and Disclosure Requirements Associated with Securities Transactions Pursuant to Regulation H (Reg H-3; OMB No. 7100-0196).

[Federal Register Volume 82, Number 226 (Monday, November 27, 2017)]
[Notices]
[Pages 56022-56023]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25499]


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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 Recordkeeping and Disclosure Requirements Associated with 
Securities Transactions Pursuant to Regulation H (Reg H-3; OMB No. 
7100-0196).

DATES: Comments must be submitted on or before January 26, 2018.

ADDRESSES: You may submit comments, identified by Reg H-3, by any of 
the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include OMB 
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 Web site at 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
3515, 1801 K Street (between 18th and 19th Streets NW.), Washington, DC 
20006 between 9:00 a.m. and 5:00 p.m. on weekdays.
    Additionally, commenters may send a copy of their comments to the 
OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory 
Affairs, Office of Management and Budget, New

[[Page 56023]]

Executive Office Building, Room 10235, 725 17th Street NW., Washington, 
DC 20503 or by fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission, 
including the proposed reporting form and instructions, supporting 
statement, and other documentation will be placed into OMB's public 
docket files, once approved. These documents will also be made 
available on the Federal Reserve Board's public Web site at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    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.

SUPPLEMENTARY INFORMATION: 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. 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.

Request for Comment on Information Collection Proposal

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

Proposal To Approve Under OMB Delegated Authority the Extension for 
Three Years, Without Revision, of the Following Report

    Report title: Recordkeeping and Disclosure Requirements Associated 
with Securities Transactions Pursuant to Regulation H.
    Agency form number: Reg H-3.
    OMB control number: 7100-0196.
    Frequency: Event-generated.
    Respondents: State member banks.
    Estimated number of respondents: State member banks (de novo): 1; 
state member banks with trust departments: 228; state member banks 
without trust departments: 601.
    Estimated average hours per response: State member banks (de novo): 
recordkeeping, 40 hours. State member banks with trust departments: 
recordkeeping, 2 hours; disclosure, 16 hours. State member banks 
without trust departments: recordkeeping, 15 minutes; disclosure, 5 
hours.
    Estimated annual burden hours: State member banks (de novo): 
recordkeeping, 40 hours. State member banks with trust departments: 
recordkeeping, 12,768 hours; disclosure, 43,776 hours. State member 
banks without trust departments: recordkeeping, 4,207 hours; 
disclosure, 36,060 hours.
    General description of report: These recordkeeping and disclosure 
requirements are pursuant to Sections 208.34(c), (d), and (g) of the 
Board's Regulation H, which require that state member banks effecting 
securities transactions for customers establish and maintain a system 
of records of these transactions, furnish confirmations of transactions 
to customers that disclose certain information, and establish written 
policies and procedures relating to securities trading. State member 
banks are required to maintain records created per these requirements 
for three years following a securities transaction. These requirements 
are necessary to protect the customer, to avoid or settle customer 
disputes, and to protect the institution against potential liability 
arising under the anti-fraud and insider trading provisions of the 
Securities Exchange Act of 1934 (``Securities Exchange Act'').
    Legal authorization and confidentiality: The Board has determined 
that the Regulation H requirements are authorized by Section 23 of the 
Securities Exchange Act, 15 U.S.C. 78w, which empowers the Board to 
make rules and regulations implementing those portions of the 
Securities Exchange Act for which it is responsible. The requirements 
of 12 CFR 208.34(c), (d), and (g) also are impliedly authorized by 
Section 9 of the Federal Reserve Act (12 U.S.C. 321-328a), which 
establishes the Board's supervisory authority with respect to the 
safety and soundness of state member banks. Accordingly, the Board is 
authorized to impose these recordkeeping, disclosure, and policy 
establishment requirements. The obligation of a state member bank to 
comply with the Regulation H requirements is mandatory, save for the 
limited exceptions set forth in 12 CFR 208.34(a).
    Inasmuch as the Board does not collect or receive any information 
concerning securities transactions pursuant to these requirements, no 
issues of confidentiality normally will arise. If, however, these 
records were to come into the possession of the Board, they may be 
protected from disclosure pursuant to exemption 4 of the Freedom of 
Information Act (``FOIA''), 5 U.S.C. 552(b)(4), under the standards set 
forth in National Parks & Conservation Ass'n v. Morton, 498 F.2d 765 
(D.C. Cir. 1974), to the extent an institution can establish the 
potential for substantial competitive harm. They also may be subject to 
withholding under FOIA exemption 6, 5 U.S.C. 552(b)(6), should 
disclosure constitute an unwarranted invasion of personal privacy.
    Additionally, if such information were included in the work papers 
of System examiners or abstracted in System reports of examination, the 
information also may be protected under exemption 8 of FOIA, 5 U.S.C. 
552(b)(8). Any withholding determination would be made on a case-by-
case basis in response to a specific request for disclosure of the 
information.

    Board of Governors of the Federal Reserve System, November 21, 
2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-25499 Filed 11-24-17; 8:45 am]
 BILLING CODE 6210-01-P