83 FR 3141 - Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB
FEDERAL RESERVE SYSTEM Federal Register Volume 83, Issue 15 (January 23, 2018)
Federal Register Volume 83, Issue 15 (January 23, 2018)
| Page Range | 3141-3145 | |
| FR Document | 2018-01153 |
[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)] [Notices] [Pages 3141-3145] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-01153] ----------------------------------------------------------------------- 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 revise, without extension, the Annual Report of Foreign Banking Organizations (FR Y-7). The revisions to the mandatory FR Y-7 information collection are effective beginning with FR Y-7 reports for fiscal year-ends that end on or after March 1, 2018. 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: On June 15, 1984, the Office of Management and Budget (OMB) delegated to the Board [[Page 3142]] 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 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. Final approval under OMB delegated authority of the revision of the following information collection: Report Titles: Annual Report of Holding Companies; Annual Report of Foreign Banking Organizations; Report of Changes in Organizational Structure; Supplement to the Report of Changes in Organizational Structure. Agency Form Numbers: FR Y-6; FR Y-7 (with revision); FR Y-10; FR Y- 10E. OMB Control Number: 7100-0297. Effective Date: Beginning with fiscal year-ends that end and for reports submitted on or after March 1, 2018. Frequency: FR Y-6: Annual; \1\ FR Y-7: Annual; \2\ FR Y-10: Event- generated; \3\ FR Y-10E: Event-generated.\4\ --------------------------------------------------------------------------- \1\ The FR Y-6 is submitted annually, no later than 90 calendar days after the end of the respondent's fiscal year. Individual respondent data are available to the public upon request through the appropriate Reserve Bank. Under certain circumstances, however, respondents may request confidential treatment. \2\ All FBOs that are qualifying file the FR Y-7 annually as of the end of the FBO's fiscal year; the data are due no later than four months after the report date. Individual respondent data are available to the public upon request through the appropriate Reserve Bank. Under certain circumstances, however, respondents may request confidential treatment. \3\ The FR Y-10 is event-generated, and the data are submitted within 30 calendar days of a reportable transaction or event. Individual respondent data are available to the public upon request through the appropriate Reserve Bank. Under certain circumstances, however, respondents may request confidential treatment. Limited data from the FR Y-10 are published on the National Information Center's public website. \4\ The FR Y-10E is event-generated and the data are submitted on an ad-hoc basis as needed. --------------------------------------------------------------------------- Respondent: Bank holding companies (BHCs) and savings and loan holding companies, securities holding companies, and intermediate holding companies (collectively, holding companies (HCs)), foreign banking organizations (FBOs), state member banks unaffiliated with a BHC, Edge Act and agreement corporations, and nationally chartered banks that are not controlled by a BHC (with regard to their foreign investments only). Number of Respondents: FR Y-6 initial: 13; FR Y-6 ongoing: 4,827; FR Y-7: 243; FR Y-10: 5,298; FR Y-10E: 5,298. Estimated Average Hours per Response: FR Y-6 initial: 10 hours; FR Y-6 ongoing: 5.5 hours; FR Y-7: 6 hours; FR Y-10: 2.5 hours; FR Y-10E: 0.5 hour. Estimated Annual Burden Hours: FR Y-6 initial: 130 hours; FR Y-6 ongoing: 26,549 hours; FR Y-7: 1,458 hours; FR Y-10: 39,735 hours; FR Y-10E: 2,649 hours. General Description of Report: The FR Y-6 is an annual information collection submitted by top-tier domestic HCs and FBOs that are non- qualifying. It collects financial data, an organization chart, verification of domestic branch data, and information about shareholders. The Federal Reserve uses the data to monitor HC operations and determine HC compliance with the provisions of the BHC Act, Regulation Y (12 CFR 225), the Home Owners' Loan Act (HOLA), Regulation LL (12 CFR 238), and Regulation YY (12 CFR 252). The FR Y-7 is an annual information collection submitted by FBOs that are qualifying to update their financial and organizational information with the Federal Reserve. The FR Y-7 collects financial, organizational, shareholder, and managerial information. The Federal Reserve uses the information to assess an FBO's ability to be a continuing source of strength to its U.S. operations and to determine compliance with U.S. laws and regulations. The FR Y-10 is an event-generated information collection submitted by FBOs; top-tier HCs; securities holding companies as authorized under Section 618 of the Dodd-Frank Act (12 U.S.C. 1850a(c)(1)); state member banks unaffiliated with a BHC; Edge and agreement corporations that are not controlled by a member bank, a domestic BHC, or an FBO; and nationally chartered banks that are not controlled by a BHC (with regard to their foreign investments only) to capture changes in their regulated investments and activities. The Federal Reserve uses the data to monitor structure information on subsidiaries and regulated investments of these entities engaged in banking and nonbanking activities. The FR Y-10E is an event-driven supplement that may be used to collect additional structural information deemed to be critical and needed in an expedited manner. Legal authorization and confidentiality: These information collections are mandatory as follows: FR Y-6: Section 5(c)(1)(A) of the Bank Holding Company Act (BHC Act) (12 U.S.C. 1844(c)(1)(A)); sections 8(a) and 13(a) of the International Banking Act (IBA) (12 U.S.C. 3106(a) and 3108(a)); sections 11(a)(1), 25, and 25A of the Federal Reserve Act (FRA) (12 U.S.C. 248(a)(1), 602, and 611a); and sections 113, 165, 312, 618, and 809 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) (12 U.S.C. 5361, 5365, 5412, 1850a(c)(1), and 5468(b)(1)). FR Y-7: Sections 8(a) and 13(a) of the IBA (12 U.S.C. 3106(a) and 3108(a)); sections 113, 165, 312, 618, and 809 of the Dodd-Frank Act (12 U.S.C. 5361, 5365, 5412, 1850a(c)(1), and 5468(b)(1)). FR Y-10 and FR Y-10E: Sections 4(k) and 5(c)(1)(A) of the BHC Act (12 U.S.C. 1843(k), and 1844(c)(1)(A)); section 8(a) of the IBA (12 U.S.C. 3106(a)); sections 11(a)(1), 25(7), and 25A of the FRA (12 U.S.C. 248(a)(1), 321, 601, 602, 611a, 615, and 625); sections 113, 165, 312, 618, and 809 of the Dodd-Frank Act (12 U.S.C. 5361, 5365, 5412, 1850a(c)(1), and 5468(b)(1)); and section 10(c)(2)(H) of the Home Owners' Loan Act (HOLA) (12 U.S.C. 1467a(c)(2)(H)). Except as discussed below, the data collected in the FR Y-6, FR Y- 7, FR Y-10, and FR Y-10E are generally not considered confidential. With regard to information that a banking organization may deem confidential, the institution may request confidential treatment of such information under one or more of the exemptions in the Freedom of Information Act (FOIA) (5 U.S.C. 552). The most likely case for confidential treatment will be based on FOIA exemption 4, which permits an agency to exempt from disclosure ``trade secrets and commercial or financial information obtained from a person and privileged and confidential'' (5 U.S.C. 552(b)(4)). To the extent an institution can establish the potential for substantial competitive harm, such information would be protected from disclosure under the standards set forth in National Parks & Conservation Association v. Morton, 498 F.2d 765 (D.C. Cir. 1974). In particular, the disclosure of the responses to the certification questions on the FR Y-7 may interfere with home country regulators' administration, execution, and disclosure of their stress test regime and its results, and may cause substantial competitive harm to the FBO providing the information, and thus this information may be protected from [[Page 3143]] disclosure under FOIA exemption 4. Exemption 6 of FOIA might also apply with regard to the respondents' submission of non-public personal information of owners, shareholders, directors, officers and employees of respondents. Exemption 6 covers ``personnel and medical files and similar files the disclosure of which would constitute a clearly unwarranted invasion of personal privacy'' (5 U.S.C. 552(b)(6)). All requests for confidential treatment would need to be reviewed on a case-by-case basis and in response to a specific request for disclosure. Current Actions: On December 2, 2015, the Board published a notice in the Federal Register (80 FR 75457) requesting public comment for 60 days on the proposal to revise, with extension, of the FR Y-6, FR Y-7, FR Y-10, and FR Y-10E. In the notice, the Board proposed revisions to the FR Y-7 reporting form to require an FBO to indicate its compliance with Regulation YY by certifying that it meets, does not meet, or is not subject to the relevant U.S. risk committee certification requirement and to indicate that it meets, does not meet, or is not subject to the relevant home country stress testing requirement. The notice also included revisions to the instructions to the FR Y-7 reporting form to describe the requirements and the scope of applicability of the report to FBOs. The comment period for this notice expired on February 1, 2016. The Federal Reserve received two comment letters, one from an industry association and one from a banking organization. One comment letter requested clarification on certain of the requirements of Regulation YY, including the requirement to form a U.S. risk committee, while the other comment letter requested clarification on the instructions for the FR Y-6 and the FR Y-10 reports. The Board is adopting the revisions as proposed except that (i) the Board is extending the effective date to be effective beginning with FR Y-7 reports submitted for fiscal year-ends that end on or after March 1, 2018, and (ii) the Board is not adopting the proposed extensions of the FR Y-6, FR Y-7, FR Y-10, and FR Y-10E. The Board is also clarifying several of the issues raised by commenters in response to the December 2, 2015, Federal Register notice, as further discussed below. Section 165 of the Dodd-Frank Act directs the Board to establish enhanced prudential standards for BHCs and FBOs with total consolidated assets of $50 billion or more and nonbank financial companies that the Financial Stability Oversight Council has designated for supervision by the Board. In addition, the Dodd-Frank Act directs the Board to issue regulations applying certain standards to BHCs and FBOs with total consolidated assets of $10 billion or more. In particular, the Board is directed to require publicly traded BHCs and FBOs with total consolidated assets of $10 billion or more to establish risk committees.\5\ In addition, section 165 requires the Board to issue regulations imposing company-run stress test requirements on BHCs, FBOs, state member banks, and savings and loan holding companies with total consolidated assets of more than $10 billion.\6\ --------------------------------------------------------------------------- \5\ See 12 CFR 252.132(a) and 252.144(a). \6\ See 12 U.S.C. 5365(i). --------------------------------------------------------------------------- In February of 2014, the Board adopted enhanced prudential standards for FBOs, including risk committee and stress testing requirements for FBOs with total consolidated assets of more than $10 billion. These standards are contained in the Board's Regulation YY, which applies different requirements to FBOs depending on their asset size. The risk committee and stress testing requirements are located in the following subparts:Subpart L establishes stress testing requirements for FBOs with total consolidated assets of more than $10 billion; Subpart M establishes risk committee requirements for publicly traded FBOs with total consolidated assets between $10-$50 billion; Subpart N establishes enhanced prudential standards (including risk committee and stress testing requirements) for FBOs with total consolidated assets of $50 billion or more but combined U.S. assets of less than $50 billion; and Subpart O establishes enhanced prudential standards (including risk committee and stress testing requirements) for FBOs with total consolidated assets of $50 billion or more and combined U.S. assets of $50 billion or more. With regard to risk committee requirements, an FBO subject to subpart M or N of Regulation YY is required to certify that it has a risk committee that oversees the risk management practices of the combined U.S. operations of the company and has at least one member with appropriate risk expertise.\7\ This certification must be filed on an annual basis with the Board concurrently with the FR Y-7. An FBO subject to subpart O of Regulation YY is subject to additional U.S. risk committee requirements that are more prescriptive and must employ a U.S. chief risk officer in the United States.\8\ --------------------------------------------------------------------------- \7\ The combined U.S. operations of an FBO include its U.S. branches and agencies and U.S. subsidiaries (other than any company held under section 2(h)(2) of the BHC Act, if applicable). \8\ FBOs subject to subpart O are not required to certify that they have a U.S. risk committee because the Board expects to gain sufficient information through the supervisory process to evaluate whether the U.S. risk committee meets the requirements of this section. --------------------------------------------------------------------------- With regard to stress testing, an FBO subject to subpart L, N, or O of Regulation YY must be subject to a consolidated capital stress testing regime administered or reviewed by the FBO's home country supervisor, meet the home country supervisor's minimum standards, and, in some cases, provide information to the Board about the results of home country stress testing or face additional requirements in the United States. In particular, the U.S. branches and agencies of the FBO become subject to an asset maintenance requirement, and the FBO generally must conduct an annual stress test of its U.S. subsidiaries. An FBO subject to subpart O also must stress test any U.S. IHC. The revisions to the FR Y-7 implement the U.S. risk committee certification requirement in Regulation YY and provide FBOs with a standardized way to indicate compliance with the home country stress testing requirements (and thus, avoid being subject to additional requirements in the U.S.). The revisions to the FR Y-7 also better describe the risk committee requirements in Regulation YY and the scope of applicability of the report to FBOs. Detailed Discussion of Public Comments The following is a detailed discussion of the two comments received regarding the FR Y-7 proposal and the responses related to the changes in the FR Y-7 proposal. Although no comments were received on the reporting burden estimates, the Board has reconsidered the estimates given the clarifications provided to Regulation YY. Thus, the Board increased the estimated hourly burden from 4 hours to 6 hours per response. A commenter requested a number of clarifications regarding the provisions in Regulation YY that require an FBO to maintain a committee of its global board of directors (or equivalent thereof) that oversees the risk-management policies of the combined U.S. operations of the FBO.\9\ Each of these questions are matters of interpretation of the requirements of Regulation YY and are [[Page 3144]] not related to the reporting requirements in the FR Y-7. --------------------------------------------------------------------------- \9\ See 12 CFR 252.132(a) and 252.144(a). --------------------------------------------------------------------------- First, the commenter requested clarification on whether the committee that oversees U.S. risk must be composed entirely of members of the FBO's global board or may be configured in other ways that take into account the size, scale, and complexity of an FBO's combined U.S. operations and more effectively utilize the expertise of personnel familiar with the risk of these operations. In response to this comment, to certify compliance with sections 252.132(a) and 252.144(a), the FBO is not required to form a special U.S. risk committee comprised of members of the FBO's board of directors. Rather, the FBO must ensure that the FBO's board of directors or a committee comprised of members of the FBO's board of directors has primary responsibility for oversight of the risks of the combined U.S. operations. The committee that oversees U.S. risk for an FBO subject to Regulation YY is not required to (though it may) directly administer the FBO's U.S. risk management policies; rather, the FBO may designate specific senior management officials from the FBO's U.S. operations to be responsible for administering the U.S. risk management policies and for providing regular reports directly to the FBO's board of directors or risk committee.\10\ The rule is intended to allow an FBO flexibility in establishing its oversight function so long as the FBO's board of directors is informed about and provides the appropriate level of guidance about the risks of the combined U.S. operations of the FBO. However the FBO designs its oversight function, the FBO must also take appropriate measures to ensure that the risk management policies for its combined U.S. operations are implemented and that the risk committee is provided sufficient information on the combined U.S. operations to allow it to carry out its responsibilities.\11\ --------------------------------------------------------------------------- \10\ See 79 FR 17284 (March 27, 2014). \11\ See 12 CFR 252.132(c) and 252.144(c). --------------------------------------------------------------------------- The same commenter requested clarification regarding how the requirement in Regulation YY for an FBO to have a committee that oversees U.S. risk would apply to an FBO with a two-tier board structure. The two-tier board structure is a common feature of FBOs in European countries, and generally consists of a supervisory board independent from management that sets the direction of the company and oversees the company's senior management, and a management/executive board that implements the company's strategies and risk management. The purpose of the risk committee requirements in Regulation YY is to ensure that the FBO parent is aware of and takes responsibility for the oversight of the risks of its combined U.S. operations. This oversight function can be integrated into various board structures that currently exist in different foreign countries. In a two-tier board structure, a committee of either the supervisory board or the management/executive board (or a combination thereof) could be considered a committee of the FBO board of directors for purposes of complying with the requirement under Regulation YY for an FBO to maintain a committee that oversees U.S. risk. Both tiers of a two-tier board are typically involved in evaluating risk management at an FBO with the same goals as those of a single board of directors in the United States. The same commenter requested clarification regarding various requirements in Regulation YY relating to capital stress testing and liquidity stress testing.\12\ To be exempt from additional U.S. capital stress testing requirements, Regulation YY requires an FBO to be subject on a consolidated basis to an annual capital stress testing regime in its home country that meets certain requirements and to actually meet any minimum stress testing standards set by the FBO's home country supervisor.\13\ In reporting Item 5 of the FR Y-7, an FBO is expected to evaluate the stress testing regime to which it is subject and make a reasonable conclusion about whether this regime meets the home country stress testing criteria in Regulation YY. --------------------------------------------------------------------------- \12\ See 12 CFR 252.122(a), 12 CFR 252.145(a), 12 CFR 252.146(b), and 12 CFR 252.158(b). \13\ The capital stress testing regime must include: (i) An annual supervisory capital stress test conducted by the relevant home country supervisor or an annual evaluation and review by the home country supervisor of an internal capital adequacy stress test conducted by the FBO; and (ii) requirements for governance and controls of stress testing practices by relevant management and the board of directors (or equivalent thereof). --------------------------------------------------------------------------- Moreover, the same commenter requested clarification as to whether an FBO would meet the home country stress test requirements upon a satisfactory completion of an Internal Capital Adequacy Assessment Process (ICAAP). If an ICAAP satisfies the underlying requirements for a capital stress test, including all applicable information requirements in Regulation YY, satisfactory completion of the ICAAP would be sufficient to satisfy these requirements. Regulation YY requires an FBO to report on an annual basis the results of an internal liquidity stress test for either the consolidated operations of the FBO or the FBO's combined U.S. operations. In either case, the liquidity stress test must incorporate three specified planning horizons. The same commenter requested guidance on how an FBO should report when the FBO's home country uses fewer or different planning horizons. In the event that an FBO is not required to conduct an internal liquidity stress test for its consolidated operations using the three specified planning horizons in Regulation YY or chooses not to do so, the FBO may instead choose to provide an internal liquidity stress test for just the combined U.S. operations. Under Regulation YY, if an FBO does not comply with the internal liquidity stress testing reporting requirements, it must limit the net aggregate amount owed by the parent or other non-U.S. affiliates to the U.S. operations to 25 percent or less of the third party liabilities of the combined U.S. operations. In addition, although Regulation YY does not prescribe the information that must be reported to the Board regarding the internal liquidity stress tests, given the diversity in liquidity reporting requirements across jurisdictions, FBOs are expected to provide sufficient information in the internal liquidity stress test to allow the Board to assess the liquidity position of the FBO.\14\ --------------------------------------------------------------------------- \14\ See 79 FR 17239, 17301 (March 27, 2014). --------------------------------------------------------------------------- The same commenter requested guidance on an FBO's compliance with the stress testing requirement when annual stress testing is not required by the FBO's home country supervisor. Regulation YY requires an FBO to be subject to a stress testing regime that includes an annual supervisory stress test or annual supervisory evaluation of the FBO's internal stress test. A bi-annual stress test, for example, would not satisfy this requirement. The same commenter requested guidance on whether an FBO would be deemed to satisfy the requirement to report and certify compliance with its home country capital adequacy requirements by completing the FR Y- 7Q. In addition, the commenter requested confirmation of the as-of date and frequency of the certification of the FR Y-7Q. Regulation YY requires an FBO to report compliance with capital adequacy measures that are consistent with the Basel Capital Framework (as defined in 12 CFR 252.143(a) and 252.154(a)) concurrently with filing the FR Y-7Q; however, Regulation YY does not specify the frequency or the as-of date for an FBO's certification of [[Page 3145]] compliance with its home country capital requirements. On December 2, 2016, the Board approved a final notice to amend the FR Y-7Q to expand reporting regarding an FBO's home country capital ratios consistent with Regulation YY. An FBO's completion of the FR Y-7Q on a quarterly basis would satisfy both the requirement to report and the requirement to certify to the Board its compliance with capital adequacy measures that are consistent with the Basel Capital Framework. If an FBO is unable to report that it is in compliance with such capital adequacy measures, the Board may impose requirements, conditions, and restrictions relating to the U.S. operations of the FBO.\15\ --------------------------------------------------------------------------- \15\ See 12 CFR 252.143(c) and 252.154(c). --------------------------------------------------------------------------- A second commenter requested clarification on the definition of an inactive company when an entity is in the liquidation process. Respondents should refer to the definition of ``Liquidation'' in the Banking, Savings and Loan, and Nonbanking Schedules in the FR Y-10 instructions on how to classify an entity during the liquidation process. Specifically, the instructions state ``liquidation refers to final distribution of assets, satisfaction of liabilities, and closing of capital accounts of a company, as opposed to sale or transfer of the company.'' The same commenter also requested that the instructions be expanded on reporting when a nonbanking company is a functionally regulated subsidiary since the mere registration with a functional regulator does not necessarily qualify a company as being functionally regulated for these purposes. In response to the commenter's request, the Board notes that respondents should refer to the definition of ``Functionally Regulated Subsidiary'' in the FR Y-10 instructions, which provides that certain companies may be required to be registered with one of the enumerated regulators without necessarily qualifying as being functionally regulated by that regulator; for example, publicly held companies may be required to be registered with the U.S. Securities and Exchange Commission (SEC) without necessarily qualifying as functionally regulated by the SEC as a securities broker-dealer, investment adviser, investment company, or company that engages in commodity futures trading. Board of Governors of the Federal Reserve System, January 18, 2018. Margaret McCloskey Shanks, Deputy Secretary of the Board. [FR Doc. 2018-01153 Filed 1-22-18; 8:45 am] BILLING CODE 6210-01-P
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FEDERAL RESERVE SYSTEM Guidance on Response Programs for from disclosure to the public under the
Unauthorized Access to Customer Freedom of Information Act (5 U.S.C
Agency Information Collection Information. 552(b)(3), (4), (6), and (8)). Also, a
Activities: Announcement of Board Agency form number: FR 4100. federal employee is prohibited by law
Approval Under Delegated Authority OMB control number: 7100–0309. from disclosing a SAR or the existence
and Submission to OMB Frequency: On occasion. of a SAR (31 U.S.C. 5318(g)).
Respondents: State member banks Current actions: On September 12,
AGENCY: Board of Governors of the (SMBs), bank holding companies
Federal Reserve System. 2017, the Federal Reserve published a
(BHCs), affiliates and certain non-bank notice in the Federal Register (82 FR
SUMMARY: The Board of Governors of the subsidiaries of bank holding companies, 42814) requesting public comment for
Federal Reserve System (Board) is uninsured state agencies and branches 60 days on the extension, without
adopting a proposal to extend for three of foreign banks, commercial lending revision, of the Reporting,
years, without revision, the Reporting, companies owned or controlled by Recordkeeping, and Disclosure
Recordkeeping, and Disclosure foreign banks, and Edge and agreement Requirements Associated with the
Requirements Associated with the corporations. Guidance on Response Programs for
Guidance on Response Programs for Estimated number of respondents: Unauthorized Access to Customer
Unauthorized Access to Customer Develop response program: 1; Incident
Information (FR 4100; OMB No. 7100– Information. The comment period for
notification: 412. this notice expired on November 13,
0309). Estimated average hours per response:
2017. The Federal Reserve did not
FOR FURTHER INFORMATION CONTACT: Develop response program: 24; Incident
receive any comments.
Federal Reserve Board Clearance notification: 36.
Officer—Nuha Elmaghrabi—Office of Estimated annual burden hours: Board of Governors of the Federal Reserve
the Chief Data Officer, Board of Develop response program: 24; Incident System, January 17, 2018.
Governors of the Federal Reserve notification: 14,832. Ann E. Misback,
System, Washington, DC 20551 (202) General description of report: The ID- Secretary of the Board.
452–3829. Telecommunications Device Theft Guidance is the information [FR Doc. 2018–01113 Filed 1–22–18; 8:45 am]
for the Deaf (TDD) users may contact collection associated with the BILLING CODE 6210–01–P
(202) 263–4869, Board of Governors of Interagency Guidance on Response
the Federal Reserve System, Programs for Unauthorized Access to
Washington, DC 20551. Customer Information and Customer FEDERAL RESERVE SYSTEM
OMB Desk Officer—Shagufta Notice (security guidelines), which was
Ahmed—Office of Information and published in the Federal Register in Agency Information Collection
Regulatory Affairs, Office of March 2005.1 Trends in customer Activities: Announcement of Board
Management and Budget, New information theft and the accompanying Approval Under Delegated Authority
Executive Office Building, Room 10235, misuse of that information led to the and Submission to OMB
725 17th Street NW, Washington, DC issuance of these security guidelines AGENCY: Board of Governors of the
20503 or by fax to (202) 395–6974. applicable to financial institutions. The Federal Reserve System.
SUPPLEMENTARY INFORMATION: On June security guidelines are designed to
SUMMARY: The Board of Governors of the
15, 1984, the Office of Management and facilitate timely and relevant
notification to affected customers and Federal Reserve System (Board) is
Budget (OMB) delegated to the Board
the appropriate regulatory authority adopting a proposal to revise, without
authority under the Paperwork
(ARA) of the financial institutions. The extension, the Annual Report of Foreign
Reduction Act (PRA) to approve of and
security guidelines provide specific Banking Organizations (FR Y–7). The
assign OMB control numbers to
direction regarding the development of revisions to the mandatory FR Y–7
collection of information requests and
response programs and customer information collection are effective
requirements conducted or sponsored
notifications. beginning with FR Y–7 reports for fiscal
by the Board. Board-approved
Legal authorization and year-ends that end on or after March 1,
collections of information are
confidentiality: The Board has 2018.
incorporated into the official OMB
inventory of currently approved determined that the reporting, FOR FURTHER INFORMATION CONTACT:
collections of information. Copies of the recordkeeping, and disclosure Federal Reserve Board Clearance
Paperwork Reduction Act Submission, requirements associated with the FR Officer—Nuha Elmaghrabi—Office of
supporting statements and approved 4100 are authorized by the Gramm- the Chief Data Officer, Board of
collection of information instrument(s) Leach-Bliley Act and are mandatory (15 Governors of the Federal Reserve
are placed into OMB’s public docket U.S.C. 6801(b)). Since the FR 4100 System, Washington, DC 20551 (202)
files. The Federal Reserve may not provides that a financial institution 452–3829. Telecommunications Device
conduct or sponsor, and the respondent regulated by the Board should notify its for the Deaf (TDD) users may contact
is not required to respond to, an designated Reserve Bank upon (202) 263–4869, Board of Governors of
information collection that has been becoming aware of an incident of the Federal Reserve System,
extended, revised, or implemented on or unauthorized access to sensitive Washington, DC 20551.
after October 1, 1995, unless it displays customer information, issues of OMB Desk Officer—Shagufta
a currently valid OMB control number. confidentiality may arise if the Board Ahmed—Office of Information and
Regulatory Affairs, Office of
sradovich on DSK3GMQ082PROD with NOTICES
were to obtain a copy of a customer
Final Approval Under OMB Delegated notice during the course of an Management and Budget, New
Authority of the Extension for Three examination, a copy of a Suspicious Executive Office Building, Room 10235,
Years, Without Revision, of the Activity Report (SAR), or other sensitive 725 17th Street NW, Washington, DC
Following Report: customer information. In such cases, the 20503 or by fax to (202) 395–6974.
Report title: Reporting, information would likely be exempt SUPPLEMENTARY INFORMATION: On June
Recordkeeping, and Disclosure 15, 1984, the Office of Management and
Requirements Associated with the 1 See 70 FR 15736 Budget (OMB) delegated to the Board
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compliance with its home country Board of Governors of the Federal Reserve collections of information. Copies of the
capital requirements. On December 2, System, January 18, 2018. Paperwork Reduction Act Submission,
2016, the Board approved a final notice Margaret McCloskey Shanks, supporting statements and approved
to amend the FR Y–7Q to expand Deputy Secretary of the Board. collection of information instrument(s)
reporting regarding an FBO’s home [FR Doc. 2018–01153 Filed 1–22–18; 8:45 am] are placed into OMB’s public docket
country capital ratios consistent with BILLING CODE 6210–01–P files. The Federal Reserve may not
Regulation YY. An FBO’s completion of conduct or sponsor, and the respondent
the FR Y–7Q on a quarterly basis would is not required to respond to, an
satisfy both the requirement to report FEDERAL RESERVE SYSTEM information collection that has been
and the requirement to certify to the extended, revised, or implemented on or
Agency Information Collection after October 1, 1995, unless it displays
Board its compliance with capital Activities; Announcement of Board
adequacy measures that are consistent a currently valid OMB control number.
Approval Under Delegated Authority Final approval under OMB delegated
with the Basel Capital Framework. If an and Submission to OMB authority of the extension for three
FBO is unable to report that it is in
AGENCY: Board of Governors of the years, with revision, of the following
compliance with such capital adequacy
Federal Reserve System. information collections:
measures, the Board may impose 1. Report Title: Financial Statements
requirements, conditions, and SUMMARY: The Board of Governors of the
of U.S. Nonbank Subsidiaries of U.S.
restrictions relating to the U.S. Federal Reserve System (Board or Holding Companies and the
operations of the FBO.15 Federal Reserve) is adopting a proposal Abbreviated Financial Statements of
A second commenter requested to extend for three years, with revision, U.S. Nonbank Subsidiaries of U.S.
the following mandatory reports: Holding Companies.
clarification on the definition of an
(1) The Financial Statements of U.S.
inactive company when an entity is in Agency Form Number: FR Y–11 and
Nonbank Subsidiaries of U.S. Holding
the liquidation process. Respondents FR Y–11S.
Companies (FR Y–11; OMB No. 7100–
should refer to the definition of OMB Control Number: 7100–0244.
0244),
‘‘Liquidation’’ in the Banking, Savings Frequency: Quarterly and annually.
(2) the Abbreviated Financial
and Loan, and Nonbanking Schedules in Reporters: Holding companies.
Statements of U.S. Nonbank
the FR Y–10 instructions on how to Estimated Number of Respondents:
Subsidiaries of U.S. Holding Companies
classify an entity during the liquidation FR Y–11 (quarterly): 634; FR Y–11
(FR Y–11S; OMB No. 7100–0244),
process. Specifically, the instructions (annual): 230; FR Y–11S: 299.
(3) the Financial Statements of
state ‘‘liquidation refers to final Estimated Average Hours per
Foreign Subsidiaries of U.S. Banking
distribution of assets, satisfaction of Response: FR Y–11 (quarterly): 6.8; FR
Organizations (FR 2314; OMB No. 7100–
liabilities, and closing of capital Y–11 (annual): 6.8; FR Y–11S: 1.
0073), and
accounts of a company, as opposed to Estimated Annual Reporting Hours:
(4) the Abbreviated Financial
FR Y–11 (quarterly): 17,244; FR Y–11
sale or transfer of the company.’’ Statements of Foreign Subsidiaries of
(annual): 1,564; FR Y–11S: 299.
The same commenter also requested U.S. Banking Organizations (FR 2314S;
OMB No. 7100–0073). General Description of Information
that the instructions be expanded on Collection: The FR Y–11 reporting forms
reporting when a nonbanking company FOR FURTHER INFORMATION CONTACT: collect financial information for
is a functionally regulated subsidiary Federal Reserve Board Clearance individual, non-functionally regulated
since the mere registration with a Officer—Nuha Elmaghrabi—Office of U.S. nonbank subsidiaries of domestic
functional regulator does not necessarily the Chief Data Officer, Board of holding companies (i.e., bank holding
qualify a company as being functionally Governors of the Federal Reserve companies, savings and loan holding
regulated for these purposes. In System, Washington, DC 20551, (202) companies, securities holding
452–3829. Telecommunications Device companies, and intermediate holding
response to the commenter’s request,
for the Deaf (TDD) users may contact companies). Holding companies file the
the Board notes that respondents should
(202) 263–4869, Board of Governors of FR Y–11 on a quarterly or annual basis
refer to the definition of ‘‘Functionally
the Federal Reserve System, or the FR Y–11S on an annual basis,
Regulated Subsidiary’’ in the FR Y–10 Washington, DC 20551.
instructions, which provides that predominantly based on whether the
OMB Desk Officer—Shagufta organization meets certain asset size
certain companies may be required to be Ahmed—Office of Information and
registered with one of the enumerated thresholds described in the instructions
Regulatory Affairs, Office of to the reports. The FR Y–11 data are
regulators without necessarily Management and Budget, New
qualifying as being functionally used with other holding company data
Executive Office Building, Room 10235, to assess the condition of holding
regulated by that regulator; for example, 725 17th Street NW, Washington, DC companies that are heavily engaged in
publicly held companies may be 20503. nonbanking activities and to monitor
required to be registered with the U.S.
SUPPLEMENTARY INFORMATION: On June the volume, nature, and condition of
Securities and Exchange Commission their nonbanking operations.
15, 1984, the Office of Management and
(SEC) without necessarily qualifying as Budget (OMB) delegated to the Board 2. Report Title: Financial Statements
functionally regulated by the SEC as a authority under the Paperwork of Foreign Subsidiaries of U.S. Banking
securities broker-dealer, investment Reduction Act (PRA) to approve of and Organizations and the Abbreviated
sradovich on DSK3GMQ082PROD with NOTICES
adviser, investment company, or assign OMB control numbers to Financial Statements of Foreign
company that engages in commodity collection of information requests and Subsidiaries of U.S. Banking
futures trading. requirements conducted or sponsored Organizations.
by the Board. Board-approved Agency Form Number: FR 2314 and
collections of information are FR 2314S.
incorporated into the official OMB OMB Control Number: 7100–0073.
15 See 12 CFR 252.143(c) and 252.154(c). inventory of currently approved Frequency: Quarterly and annually.
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Document Created: 2018-01-23 01:08:46
Document Modified: 2018-01-23 01:08:46
| 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 | Notices | |
| Action | On December 2, 2015, the Board published a notice in the Federal Register (80 FR 75457) requesting public comment for 60 days on the proposal to revise, with extension, of the FR Y-6, FR Y-7, FR Y-10, and FR Y-10E. In the notice, the Board proposed revisions to the FR Y-7 reporting form to require an FBO to indicate its compliance with Regulation YY by certifying that it meets, does not meet, or is not subject to the relevant U.S. risk committee certification requirement and to indicate that it meets, does not meet, or is not subject to the relevant home country stress testing requirement. The notice also included revisions to the instructions to the FR Y-7 reporting form to describe the requirements and the scope of applicability of the report to FBOs. The comment period for this notice expired on February 1, 2016. The Federal Reserve received two comment letters, one from an industry association and one from a banking organization. One comment letter requested clarification on certain of the requirements of Regulation YY, including the requirement to form a U.S. risk committee, while the other comment letter requested clarification on the instructions for the FR Y-6 and the FR Y-10 reports. The Board is adopting the revisions as proposed except that (i) the Board is extending the effective date to be effective beginning with FR Y-7 reports submitted for fiscal year-ends that end on or after March 1, 2018, and (ii) the Board is not adopting the proposed extensions of the FR Y-6, FR Y-7, FR Y-10, and FR Y-10E. The Board is also clarifying several of the issues raised by commenters in response to the December 2, 2015, Federal Register notice, as further discussed below. | |
| Dates | Beginning with fiscal year-ends that end and for reports submitted on or after March 1, 2018. | |
| 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. | |
| FR Citation | 83 FR 3141 |
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