83 FR 17619 - Qualified Financial Contracts Recordkeeping Related to Orderly Liquidation Authority
DEPARTMENT OF THE TREASURY Federal Register Volume 83, Issue 78 (April 23, 2018)
Federal Register Volume 83, Issue 78 (April 23, 2018)
| Page Range | 17619-17621 | |
| FR Document | 2018-08388 |
[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)] [Rules and Regulations] [Pages 17619-17621] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-08388] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY 31 CFR Part 148 RIN 1505-AC57 Qualified Financial Contracts Recordkeeping Related to Orderly Liquidation Authority AGENCY: Department of the Treasury. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Secretary of the Treasury (the ``Secretary''), as Chairperson of the Financial Stability Oversight Council, in consultation with the Federal Deposit Insurance Corporation (the ``FDIC''), is adopting a final rule that extends the compliance dates of the regulation implementing the qualified financial contract (``QFC'') recordkeeping requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ``Dodd-Frank Act'' or the ``Act''). DATES: The final rule is effective May 23, 2018. FOR FURTHER INFORMATION CONTACT: Brian Smith, Director, Office of Capital Markets, (202) 622-0157; Peter Nickoloff, Financial Economist, Office of Capital Markets, (202) 622-1692; Steven D. Laughton, Assistant General Counsel (Banking & Finance), (202) 622-8413; or Stephen T. Milligan, Attorney-Advisor, (202) 622-4051. SUPPLEMENTARY INFORMATION: On October 31, 2016, the Secretary published a final regulation pursuant to section 210(c)(8)(H) of the Dodd-Frank [[Page 17620]] Act requiring certain financial companies to maintain records with respect to their QFC positions, counterparties, legal documentation, and collateral that would assist the FDIC as receiver in exercising its rights and fulfilling its obligations under Title II of the Act.\1\ On December 28, 2017, the Secretary published a notice of proposed rulemaking that would extend the compliance dates of the regulation.\2\ --------------------------------------------------------------------------- \1\ 81 FR 75624 (Oct. 31, 2016). \2\ 82 FR 61505 (Dec. 28, 2017). --------------------------------------------------------------------------- The regulation currently provides for staggered compliance dates for the bulk of the recordkeeping requirements as follows. The regulation generally provides that records entities with $1 trillion or more in total consolidated assets have 540 days (approximately 18 months) after the effective date to comply with the regulation; that records entities with total assets equal to or greater than $500 billion (but less than $1 trillion) have two years from the effective date to comply with the regulation; that records entities with total assets equal to or greater than $250 billion (but less than $500 billion) have three years from the effective date to comply with the regulation; and that all other records entities have four years from the effective date to comply with the regulation.\3\ Given that the effective date is December 30, 2016, the first of these compliance dates is currently June 23, 2018. --------------------------------------------------------------------------- \3\ 31 CFR 148.1(d)(1)(i). --------------------------------------------------------------------------- Separately, the regulation provides that a records entity may request an exemption from one or more of the regulation's requirements and that the Secretary may grant conditional or unconditional exemptions from the regulation's requirements after receiving a recommendation from the FDIC, prepared in consultation with the relevant primary financial regulatory agencies (as defined in the regulation).\4\ Since the regulation became effective, the Secretary, the FDIC, and the primary financial regulatory agencies have received requests for exemptions from the requirements of the regulation for certain types of records entities within a corporate group and certain types of QFCs. These exemption requests are currently subject to review by the Secretary, the FDIC, and the primary financial regulatory agencies. --------------------------------------------------------------------------- \4\ 31 CFR 148.3(c)(4). --------------------------------------------------------------------------- In light of the pending exemption requests and the Administration's general policy of alleviating unnecessary regulatory burdens,\5\ the Secretary, in consultation with the FDIC, proposed a six-month extension of the compliance dates in the regulation. The Secretary specifically requested comment on whether the compliance dates should be extended and, if so, whether six months is the proper length for the extension and whether an extension should be given only with respect to records entities in the first compliance tier, i.e., those records entities that currently have a June 23, 2018 compliance date. --------------------------------------------------------------------------- \5\ See Executive Order No. 13771, Reducing Regulation and Controlling Regulatory Costs, section 1, 82 FR 9339 (Feb. 3, 2017); Executive Order No. 13777, Enforcing the Regulatory Reform Agenda, section 1, 82 FR 12285 (Mar. 1, 2017). --------------------------------------------------------------------------- The Secretary received one substantive comment regarding the proposed rule.\6\ The Clearing House Association L.L.C. and the Securities Industry and Financial Markets Association, which represent certain institutions that are records entities under the rule, wrote together to express their strong support for a proposed extension.\7\ These commenters recommended a nine month extension for all records entities noting that such an extension would afford records entities enough time to reflect the Secretary's determinations as to the pending exemption requests in their efforts to comply with the regulation. --------------------------------------------------------------------------- \6\ The Secretary received a total of four comments; however, three of the comments were not germane to the proposed rule. \7\ Letter of January 29, 2018. --------------------------------------------------------------------------- In support of their request for extension of the compliance dates, the commenters cited the resources being expended to develop systems to collect information in the specific formats required by the rule and the changes that will have to be made to the plans for those compliance efforts once determinations as to the exemption requests are made. The commenters also cited concurrent efforts by records entities to come into compliance with other regulatory requirements regarding QFCs recently adopted by other federal financial regulators. Although the Secretary recognizes the importance of the QFC recordkeeping requirements, the Secretary continues to believe that it would impose an unnecessary burden on records entities to require their compliance with the regulation before the scope of their recordkeeping responsibilities is determined. An extension of the compliance dates is appropriate pending the Secretary's decisions whether to grant, in whole or in part, conditional or unconditional exemptions based on the exemption requests received to date, and to allow adequate time for records entities to prepare for compliance once the exemption requests are resolved. Specifically, the Secretary has determined to amend the regulations to extend the compliance date by approximately nine months for records entities in the first compliance tier. Based on the substantive comment received in response to the proposed rule, the Secretary believes that this extension will allow sufficient time for such records entities to comply with the rule after determinations have been made with respect to the exemption requests. The Secretary has determined to extend the compliance dates for all other records entities by six months, as was proposed. Based on the substantive comment received in response to the proposed rule, the Secretary believes this additional time will permit records entities in each compliance tier to adjust their plans and budgets for compliance once the determinations as to the exemption requests are made while maintaining the staggered approach that was adopted by the Secretary with respect to the original compliance dates. That staggered approach was adopted not only on the understanding that larger entities will generally have greater capacity to apply to the task of coming into initial compliance with the rules but also because of the anticipated need to provide guidance to records entities as they work to come into compliance with the rules.\8\ Maintaining the staggered compliance schedule will permit staff of the Department of the Treasury and the FDIC to allocate their resources to more efficiently provide any needed guidance to records entities in each compliance tier. --------------------------------------------------------------------------- \8\ See 81 FR at 75634. --------------------------------------------------------------------------- Administrative Law Matters 1. Regulatory Flexibility Act This final rule will not impose any additional burden on any records entities; rather, it would reduce the existing regulatory burden by extending the periods in which records entities have to comply with the regulation's requirements. For this reason and as discussed further in the release of the 2016 final regulation, the Secretary certifies, pursuant to 5 U.S.C. 605(b), that this final rule will not have a significant economic impact on a substantial number of small entities under the Small Business Administration's most recently revised standards for small entities, which went into effect on October 1, 2017. 2. Executive Order 12866 This final rule is not a significant regulatory action as defined in section 3.f of Executive Order 12866. [[Page 17621]] 3. Executive Order 13771 While the cost savings of the rule cannot be estimated at this time, this final rule is considered a deregulatory action under Executive Order 13771.\9\ --------------------------------------------------------------------------- \9\ 82 FR 9339 (Feb. 3, 2017). --------------------------------------------------------------------------- List of Subjects in 31 CFR Part 148 Reporting and recordkeeping requirements. Authority and Issuance For the reasons set forth in the preamble, the Department of the Treasury amends part 148 to 31 CFR as follows: PART 148--QUALIFIED FINANCIAL CONTRACTS RECORDKEEPING RELATED TO THE FDIC ORDERLY LIQUIDATION AUTHORITY 0 1. The authority citation for part 148 continues to read as follows: Authority: 31 U.S.C. 321(b) and 12 U.S.C. 5390(c)(8)(H). 0 2. Amend Sec. 148.1 by revising paragraphs (d)(1)(i) introductory text, (d)(1)(i)(A) introductory text, (d)(1)(i)(B) introductory text, (d)(1)(i)(C) introductory text, and (d)(1)(i)(D) to read as follows: Sec. 148.1 Scope, purpose, effective date, and compliance dates. * * * * * (d) * * * (1) * * * (i) A records entity subject to this part on the effective date must comply with Sec. 148.3(a)(2) on the date that is 90 days after the effective date and with all other applicable requirements of this part on: (A) March 31, 2019 for a records entity that: * * * * * (B) June 30, 2019 for any records entity that is not subject to the compliance date set forth in paragraph (d)(1)(i)(A) of this section and: * * * * * (C) June 30, 2020 for any records entity that is not subject to the compliance dates set forth in paragraph (d)(1)(i)(A) or (B) of this section and: * * * * * (D) June 30, 2021 for any records entity that is not subject to the compliance dates set forth in paragraph (d)(1)(i)(A), (B), or (C) of this section. * * * * * Dated: April 13, 2018. Clay Berry, Deputy Assistant Secretary for Financial Markets. [FR Doc. 2018-08388 Filed 4-20-18; 8:45 am] BILLING CODE 4810-25-P
![Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Rules and Regulations 17619
Regulatory Findings yoke (yoke). This condition could result in Airbus Helicopters, 2701 N. Forum Drive,
failure of the yoke, loss of M/R control, and Grand Prairie, TX 75052; telephone (972)
We determined that this AD will not subsequent loss of control of the helicopter. 641–0000 or (800) 232–0323; fax (972) 641–
have federalism implications under 3775; or at http://
Executive Order 13132. This AD will (c) Effective Date
www.helicopters.airbus.com/website/en/ref/
not have a substantial direct effect on This AD becomes effective May 8, 2018. Technical_Support_73.html.
the States, on the relationship between (d) Compliance (4) You may view this service information
the national Government and the States, at FAA, Office of the Regional Counsel,
You are responsible for performing each Southwest Region, 10101 Hillwood Pkwy,
or on the distribution of power and action required by this AD within the Room 6N–321, Fort Worth, TX 76177. For
responsibilities among the various specified compliance time unless it has information on the availability of this
levels of government. already been accomplished prior to that time. material at the FAA, call (817) 222–5110.
For the reasons discussed, I certify (e) Required Actions (5) You may view this service information
that this AD: that is incorporated by reference at the
1. Is not a ‘‘significant regulatory Within 15 hours time-in-service (TIS) and National Archives and Records
thereafter at intervals not to exceed 15 hours Administration (NARA). For information on
action’’ under Executive Order 12866; TIS, visually inspect each yoke for a crack,
2. Is not a ‘‘significant rule’’ under the availability of this material at NARA, call
paying particular attention to the areas
DOT Regulatory Policies and Procedures (202) 741–6030, or go to: http://
shown in Details B, C, and D of Figure 1 of
www.archives.gov/federal-register/cfr/ibr-
(44 FR 11034, February 26, 1979); EASB 05A051. If there is a crack on a yoke,
locations.html.
3. Will not affect intrastate aviation in before further flight, replace the swashplate.
Alaska to the extent that it justifies Issued in Fort Worth, Texas, on April 11,
(f) Alternative Methods of Compliance 2018.
making a regulatory distinction; and (AMOCs)
4. Will not have a significant Scott A. Horn,
(1) The Manager, Safety Management
economic impact, positive or negative, Section, Rotorcraft Standards Branch, FAA, Deputy Director for Regulatory Operations,
on a substantial number of small entities may approve AMOCs for this AD. Send your Compliance & Airworthiness Division,
under the criteria of the Regulatory proposal to: Matt Fuller, Senior Aviation Aircraft Certification Service.
Flexibility Act. Safety Engineer, Safety Management Section, [FR Doc. 2018–08096 Filed 4–20–18; 8:45 am]
We prepared an economic evaluation Rotorcraft Standards Branch, FAA, 10101 BILLING CODE 4910–13–P
of the estimated costs to comply with Hillwood Pkwy., Fort Worth, TX 76177;
this AD and placed it in the AD docket. telephone (817) 222–5110; email 9-ASW-
FTW-AMOC-Requests@faa.gov.
List of Subjects in 14 CFR Part 39 (2) For operations conducted under a 14 DEPARTMENT OF THE TREASURY
CFR part 119 operating certificate or under
Air transportation, Aircraft, Aviation 14 CFR part 91, subpart K, we suggest that 31 CFR Part 148
safety, Incorporation by reference, you notify your principal inspector, or RIN 1505–AC57
Safety. lacking a principal inspector, the manager of
the local flight standards district office or Qualified Financial Contracts
Adoption of the Amendment certificate holding district office, before
Recordkeeping Related to Orderly
Accordingly, under the authority operating any aircraft complying with this
AD through an AMOC. Liquidation Authority
delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as (g) Additional Information AGENCY: Department of the Treasury.
follows: The subject of this AD is addressed in ACTION: Final rule.
European Aviation Safety Agency (EASA) AD
PART 39—AIRWORTHINESS No. 2017–0191R2, dated December 15, 2017. SUMMARY: The Secretary of the Treasury
DIRECTIVES You may view the EASA AD on the internet (the ‘‘Secretary’’), as Chairperson of the
at http://www.regulations.gov by searching Financial Stability Oversight Council, in
■ 1. The authority citation for part 39 for and locating it in Docket No. FAA–2018– consultation with the Federal Deposit
continues to read as follows: 0237. Insurance Corporation (the ‘‘FDIC’’), is
Authority: 49 U.S.C. 106(g), 40113, 44701. (h) Subject adopting a final rule that extends the
Joint Aircraft Service Component (JASC)
compliance dates of the regulation
§ 39.13 [Amended] implementing the qualified financial
Code: 6230 Main Rotor Mast/Swashplate.
■ 2. The FAA amends § 39.13 by adding contract (‘‘QFC’’) recordkeeping
(i) Material Incorporated by Reference requirements of the Dodd-Frank Wall
the following new airworthiness
directive (AD): (1) The Director of the Federal Register Street Reform and Consumer Protection
approved the incorporation by reference of Act (the ‘‘Dodd-Frank Act’’ or the
2018–08–01 Airbus Helicopters: the service information listed in this ‘‘Act’’).
Amendment 39–19254; Docket No. paragraph under 5 U.S.C. 552(a) and 1 CFR
FAA–2018–0237; Product Identifier part 51. DATES: The final rule is effective May
2017–SW–145–AD. (2) You must use this service information 23, 2018.
as applicable to do the actions required by FOR FURTHER INFORMATION CONTACT:
(a) Applicability this AD, unless the AD specifies otherwise.
This AD applies to Model EC225LP
Brian Smith, Director, Office of Capital
(i) Airbus Helicopters Emergency Alert
helicopters, certificated in any category, with Service Bulletin (EASB) No. 05A051, Markets, (202) 622–0157; Peter
a main rotor (M/R) rotating swashplate Revision 1, dated November 16, 2017. Nickoloff, Financial Economist, Office
(swashplate) part number (P/N) 332A31– Note 1 to paragraph (i)(2)(i): Airbus of Capital Markets, (202) 622–1692;
3074–00 or P/N 332A31–3074–01 with a Helicopters EASB No. 05A051, Revision 1, Steven D. Laughton, Assistant General
jstallworth on DSKBBY8HB2PROD with RULES
serial number listed in Appendix 4.A. of dated November 16, 2017, is co-published as Counsel (Banking & Finance), (202)
Airbus Helicopters Emergency Alert Service one document along with Airbus Helicopters 622–8413; or Stephen T. Milligan,
Bulletin No. 05A051, Revision 1, dated EASB No. 05A046, Revision 1, dated Attorney-Advisor, (202) 622–4051.
November 16, 2017 (EASB 05A051). November 16, 2017, which is not
incorporated by reference in this AD. SUPPLEMENTARY INFORMATION: On
(b) Unsafe Condition (ii) Reserved. October 31, 2016, the Secretary
This AD defines the unsafe condition as a (3) For Airbus Helicopter’s service published a final regulation pursuant to
crack in a swashplate control rod attachment information identified in this AD, contact section 210(c)(8)(H) of the Dodd-Frank
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3. Executive Order 13771 DEPARTMENT OF HOMELAND In response, on March 21, 2018, the
While the cost savings of the rule SECURITY Coast Guard published a notice of
cannot be estimated at this time, this proposed rulemaking (NPRM) titled
final rule is considered a deregulatory Coast Guard ‘‘Special Local Regulation; USS
action under Executive Order 13771.9 PORTLAND Commissioning, Portland,
33 CFR Part 100 OR’’ (83 FR 12303). There we proposed
List of Subjects in 31 CFR Part 148 to establish a regulated area extending
[Docket Number USCG–2018–0154]
Reporting and recordkeeping approximately 500 yards on each side of
requirements. RIN 1625–AA08 the naval vessel on the Willamette River
in Portland, OR during the
Authority and Issuance Special Local Regulation; USS commissioning ceremonies and invited
For the reasons set forth in the PORTLAND Commissioning, Portland, comments on our proposed regulatory
preamble, the Department of the OR action related to this event. During the
Treasury amends part 148 to 31 CFR as AGENCY: Coast Guard, DHS. comment period that ended April 5,
follows: 2018, we received 3 comments.
ACTION: Temporary final rule.
Under 5 U.S.C. 553(d)(3), the Coast
PART 148—QUALIFIED FINANCIAL SUMMARY: The Coast Guard is Guard finds that good cause exists for
CONTRACTS RECORDKEEPING establishing a temporary regulated area making this rule effective less than 30
RELATED TO THE FDIC ORDERLY for certain waters of the Willamette days after publication in the Federal
LIQUIDATION AUTHORITY River. This action is necessary to Register. Delaying the effective date of
provide for the safety of life on these this rule would be impracticable
■ 1. The authority citation for part 148 because it needs to be effective starting
continues to read as follows: navigable waters near Port of Portland
Terminal 2, Portland, OR, during a April 14, 2018 to ensure the safety of
Authority: 31 U.S.C. 321(b) and 12 U.S.C. naval vessel commissioning ceremony vessels and the navigable waters within
5390(c)(8)(H). the regulated area during the ceremonial
on April 14 through 23, 2018. This
■ 2. Amend § 148.1 by revising regulation prohibits persons and vessels activities and to prevent any disruption
paragraphs (d)(1)(i) introductory text, from being in the regulated area unless to the commissioning ceremonies.
(d)(1)(i)(A) introductory text, (d)(1)(i)(B) authorized by the Captain of the Port III. Legal Authority and Need for Rule
introductory text, (d)(1)(i)(C) Columbia River or a designated
introductory text, and (d)(1)(i)(D) to read The Coast Guard is issuing this rule
representative.
as follows: under authority in 33 U.S.C. 1233. The
DATES: This rule is effective from 12:01 Captain of the Port Sector Columbia
§ 148.1 Scope, purpose, effective date, and a.m. to 11:59 p.m. on April 23, 2018. For River (COTP) has determined that to
compliance dates. the purposes of enforcement, actual provide for the safety of participants,
* * * * * notice will be used from 11:59 p.m. on spectators, support and transiting
(d) * * * April 14, 2018, until April 23, 2018. vessels, it is necessary to temporarily
(1) * * * ADDRESSES: To view documents restrict vessel traffic from April 14
(i) A records entity subject to this part mentioned in this preamble as being through 23, 2018. The purpose of this
on the effective date must comply with available in the docket, go to http:// rule is to ensure the safety of vessels
§ 148.3(a)(2) on the date that is 90 days www.regulations.gov, type USCG–2018– and the navigable waters within the
after the effective date and with all other 0154 in the ‘‘SEARCH’’ box and click regulated area, during, and after the
applicable requirements of this part on: ‘‘SEARCH.’’ Click on Open Docket scheduled event and to prevent any
(A) March 31, 2019 for a records Folder on the line associated with this disruption to the commissioning
entity that: rule. ceremonies.
* * * * * FOR FURTHER INFORMATION CONTACT: If
(B) June 30, 2019 for any records IV. Discussion of Comments, Changes,
you have questions on this rule, call or and the Rule
entity that is not subject to the email LCDR Laura Springer, MSU
compliance date set forth in paragraph As noted above, we received three
Portland Waterways; telephone 503–
(d)(1)(i)(A) of this section and: comments on our NPRM published
240–9319, email msupdxwwm@
* * * * * March 21, 2018 (83 FR 12303). The first
uscg.mil.
(C) June 30, 2020 for any records comment was in support of the
entity that is not subject to the SUPPLEMENTARY INFORMATION: regulated area. The second comment
compliance dates set forth in paragraph I. Table of Abbreviations was from a yacht club requesting
(d)(1)(i)(A) or (B) of this section and: clarification for transiting the regulated
* * * * * CFR Code of Federal Regulations area. Vessels desiring to transit the
(D) June 30, 2021 for any records DHS Department of Homeland Security regulated area will be able with
entity that is not subject to the FR Federal Register approval from the patrol commander.
NPRM Notice of proposed rulemaking This issue was addressed in the
compliance dates set forth in paragraph
§ Section published proposed regulatory text.
(d)(1)(i)(A), (B), or (C) of this section. U.S.C. United States Code
* * * * * Procedures for transiting the area will
also be published in the Local Notice to
Dated: April 13, 2018. II. Background Information and
Mariners. The third comment was
jstallworth on DSKBBY8HB2PROD with RULES
Clay Berry, Regulatory History
beyond the scope of this rulemaking.
Deputy Assistant Secretary for Financial From April 14 through 23, 2018, the We made no changes in the regulatory
Markets. U.S. Navy will be conducting text from what we proposed in the
[FR Doc. 2018–08388 Filed 4–20–18; 8:45 am] ceremonial activities for the NPRM.
BILLING CODE 4810–25–P commissioning of the USS PORTLAND. This rule establishes a regulated area
The commissioning activities will take from 11:59 p.m. on April 14, 2018, to
9 82 FR 9339 (Feb. 3, 2017). place at the Port of Portland Terminal 2. 11:59 p.m. on April 23, 2018. The
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Document Created: 2018-04-21 00:33:32
Document Modified: 2018-04-21 00:33:32
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | The final rule is effective May 23, 2018. | |
| Contact | Brian Smith, Director, Office of Capital Markets, (202) 622-0157; Peter Nickoloff, Financial Economist, Office of Capital Markets, (202) 622-1692; Steven D. Laughton, Assistant General Counsel (Banking & Finance), (202) 622-8413; or Stephen T. Milligan, Attorney-Advisor, (202) 622-4051. | |
| FR Citation | 83 FR 17619 | |
| RIN Number | 1505-AC57 |
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