[Federal Register Volume 65, Number 249 (Wednesday, December 27, 2000)]
[Notices]
[Pages 81864-81868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32911]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
SUMMARY:
Background
Notice is hereby given of the final approval of proposed
information collections by the Board of Governors of the Federal
Reserve System (Board) under OMB delegated authority, as per 5 CFR
1320.16 (OMB Regulations on Controlling Paperwork Burdens on the
Public). Board-approved collections of information are incorporated
into the official OMB inventory of currently approved collections of
information. Copies of the OMB 83-Is and supporting
[[Page 81865]]
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--Mary M. West--Division of
Research and Statistics, Board of Governors of the Federal Reserve
System, Washington, DC 20551 (202-452-3829).
OMB Desk Officer--Alexander T. Hunt--Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 3208, Washington, DC 20503 (202-395-7860).
Final approval under OMB delegated authority of the extension of
three years, with revision, of the following reports:
1. Report title: Annual Report of Bank Holding Companies (FR Y-6)
and Changes in Investments and Activities of Top-Tier Financial Holding
Companies, Bank Holding Companies, and State Member Banks (FR Y-6A).
Agency form number: FR Y-6 and FR Y-6A.
OMB control number: 7100-0124.
Frequency: annual and event-generated.
Reporters: domestic top-tier bank holding companies (BHCs) and
unaffiliated state member banks.
Annual reporting hours: 22,552 hours.
Estimated average hours per response: 4 hours.
Number of respondents: 5,638.
Small businesses are not affected.
General description of report: This information collection is
mandatory; Section 5(c) of the Bank Holding Company Act (BHC Act) (12
U.S.C. 1844(c)); Section 9 of the FRA (12 U.S.C. 321); Section 25 of
the FRA (12 U.S.C. 601-604a); Section 25A of the FRA (12 U.S.C. 611-
631); and, Regulation Y (12 CFR part 225). Upon request from a
respondent, certain information may be given confidential treatment
pursuant to the Freedom of Information Act (5 U.S.C. 552(b)(4) and
(6)).
Abstract: All domestic top-tier BHCs file the FR Y-6, which
collects financial data, an organization chart and information about
shareholders. The Federal Reserve uses the data to monitor holding
company operations and determine holding company compliance with the
provisions of the Bank Holding Company Act (BHC Act) and Regulation Y
(12 CFR 225). The FR Y-6A is an event-generated report filed by top-
tier BHCs and unaffiliated state member banks to report changes in
regulated investments and activities made pursuant to the Bank Holding
Company Act and Regulation Y. The report collects information relating
to acquisitions, divestitures, changes in activities, and legal
authority. The number of FR Y-6As submitted varies depending on the
reportable activities engaged in by each bank holding company.
Current actions: On September 20, 2000, the Federal Reserve issued
a Federal Register notice (65 FR 56910) requesting public comment on a
proposal to extend with revision the FR Y-6 and the FR Y-6A. To reduce
burden and cost and make the forms easier to use, the Federal Reserve
proposed to replace the FR Y-6A with the FR Y-10. This new form would
make the reporting of structure data for domestic and foreign banking
organizations more similar, reduce the types of investments to be
included, streamline the method of reporting percentage of ownership
for nonbanking investments, and simplify the reporting of legal
authority (regulatory) and activity codes. To improve the timeliness of
the data, the Federal Reserve proposed to vary the reporting schedule
of the FR Y-10 for different types of transactions. The Federal Reserve
also proposed to revise the FR Y-6 organization charts to exclude small
merchant banking investments and to include parallel language from the
reportable entities sections of the proposed FR Y-10 instructions, as
appropriate.
The comment period ended on November 20, 2000, and the Federal
Reserve received public comments from six domestic banking
organizations and one attorney. Most commenters favored the format of
the proposed FR Y-10, stating that this form was easier to understand
and more user-friendly than the FR Y-6A. Also, commenters strongly
favored the reduction in the number of reports filed for nonbanking
investments. Currently, FR Y-6A reporting form requires information on
virtually all investments in which there was control or an ownership
interest of greater than 5 percent. However, the proposed FR Y-10
reporting form does not require reports for nonbanking investments of
less than 25 percent of a class of voting securities unless the
reporter otherwise controls the company.
Several comments were received on the proposed deadlines for these
reports. The proposed FR Y-10 included a new 3-day deadline for
openings, closings, mergers, sales and relocations of depository
institutions, Edge and agreement corporations, and nondepository trusts
that are members of the Federal Reserve System. Almost all of the
commenters objected to this new deadline, which was proposed to ensure
timely receipt of data needed for monetary policy purposes. After
reviewing the comments, the Federal Reserve determined that there are
alternative ways to capture the information and decided to make all
information due thirty days after the transaction. Also, one large
banking organization suggested providing the reports in batches on the
same day of each month. Federal Reserve Bank staff have worked with
banking organizations to establish reporting arrangements to reduce
burden, especially for complex reports such as these. They will
continue these efforts on a case-by-case basis, as long as all notices
are filed in accordance with deadlines specified in the regulations.
One domestic bank suggested additions to the list of business
entity types in the Characteristics Schedule of the FR Y-10. The
Federal Reserve has taken further steps to reduce the overlap between
types of entities reported on the Characteristics Schedule and the
types of activities reported on the Investments and Activities
Schedule. One large domestic banking organization asked for
clarification on reporting ownership in more than one class of voting
securities. The Federal Reserve has clarified these issues in the final
instructions.
Two large banking organizations objected to including entities on
the FR Y-6 organizational chart that were not included in the
reportable entities on the FR Y-10. The Federal Reserve has a
continuing need for a more complete picture of holding company
structure on an annual basis and has maintained the annual reporting
requirement for information about investments between 5 and 25 percent
on the FR Y-6. In an effort to reduce burden, however, the Federal
Reserve has dropped the requirement to annotate the exact percentage
ownership of these investments on the FR Y-6 and will allow some
flexibility in the manner in which respondents report the additional
entities. This may involve methods such as annotating the organization
charts for entities not reportable on the FR Y-10 or providing a
separate list of these entities.
The Federal Reserve solicited comment on limiting reporting of
insurance and securities activities by using materiality thresholds.
Although
[[Page 81866]]
no comments were received, the Federal Reserve decided to limit
reporting of insurance companies in each line of insurance business (1)
to those in the line of ownership down to, but not beyond, a
functionally regulated firm or (2), in the case of investments that are
not functionally regulated, to those above a threshold level based on
the relative size and importance of various tiers of insurance
companies. The Federal Reserve also decided to use a materiality
threshold to limit reporting of securities investments. The Federal
Reserve solicits comment on whether such materiality test would be
helpful, and, if so, how these test should be defined. Comments must be
submitted on or before January 26, 2001. Comments, which should refer
to the OMB control number or agency form number, should be addressed to
Jennifer J. Johnson, Secretary, Board of Governors of the Federal
Reserve System, 20th and C Streets, NW., Washington, DC 20551, or
mailed electronically to [email protected]. Comments
addressed to Ms. Johnson also may be delivered to the Board's mailroom
between 8:45 a.m. and 5:15 p.m., and to the security control room
outside of those hours. Both the mailroom and the security control room
are accessible from the courtyard entrance on 20th Street between
Constitution Avenue and C Street, NW. Comments received may be
inspected in room M-P-500 between 9:00 a.m. and 5:00 p.m., except as
provided in section 261.14 of the Board's Rules Regarding Availability
of Information, 12 CFR 261.14(a). A copy of the comments may also be
submitted to the OMB desk officer for the Board: Alexander T. Hunt,
Office of Information and Regulatory Affairs, Office of Management and
Budget, New Executive Office Building, Room 3208, Washington, DC 20503.
One large banking organization thought the burden estimates were
understated. The Federal Reserve has been developing an Internet-based
collection tool for the FR Y-10 and plans to begin implementation in
June 2001. The option of filing the FR Y-10 electronically and the new
materiality thresholds for insurance and securities investments should
significantly reduce the burden of filing these reports. As described
above, the Federal Reserve has taken further steps to streamline and
clarify the reporting requirements and believes that the burden
estimates for the FR Y-10 and FR Y-6 should remain the same as those in
the initial proposal. Also, the hourly burden estimates represent the
average amount of the time required for all reporters to complete the
reporting requirements; the actual amount of time required will vary
based on an institution's size.
One large banking organization asked for additional time to
implement the proposed changes. The Federal Reserve will replace the FR
Y-6A with the FR Y-10 on June 1, 2001, and will implement the revised
FR Y-6 on December 31, 2001. Please see the section below describing
the FR Y-10. The Federal Reserve will distribute the final reporting
forms and instructions early in 2001 to allow respondent to make system
changes necessary to accommodate the new reporting requirements.
2. Report title: Annual Report of Foreign Banking Organizations (FR
Y-7) and Foreign Banking Organization Structure Report on U.S. Banking
and Nonbanking Activities (FR Y-7A)
Agency form number: FR Y-7 and FR Y-7A.
OMB control number: 7100-0125.
Frequency: annual, event-generated.
Reporters: foreign banking organizations (FBOs).
Annual reporting hours: 3,761.
Estimated average hours per response: 11.5 hours.
Number of respondents: 327.
Small businesses are not affected.
General description of report: This information collection is
mandatory; Section 5(c) of the BHC Act (12 U.S.C. 1844(c)); Section 7
and 13(a) of the international Banking Act of 1978 (12 U.S.C. 3106 and
3108 (a)); Section 25 of the FRA (12 U.S.C. 601-604a); Section 25A of
the FRA (12 U.S.C. 611-631); and, Regulation Y (12 CFR part 225). Upon
request from a respondent, certain information may be given
confidential treatment pursuant to the Freedom of Information Act (5
U.S.C. 552(b)(4) and (6)).
Abstract: The FR Y-7 is a report filed by all FBOs that engage in
banking in the United States, either directly or indirectly, to update
their financial and organizational information. The Federal Reserve
uses information to assess an FBO's ability to be a continuing source
of strength to its U.S. banking operations and to determine compliance
with U.S. laws and regulations. The FR Y-7A is a structural report
completed by FBOs that engage in banking in the United States, either
indirectly through a subsidiary bank, Edge or agreement corporation, or
commercial lending company, or directly through a branch or agency. The
information contained in this report is used by the Federal Reserve
System to assess the foreign banking organization's ability to be a
continuing source of strength to its U.S. banking operations and to
determine compliance with U.S. laws and regulations.
Current actions: On September 20, 2000, the Federal Reserve is
issued a Federal Register notice (65 FR 56910) requesting public
comment on a proposal to extend with revision the FR Y-7 and the FR Y-
7A. To reduce burden and cost and make the forms easier to use, the
Federal Reserve proposed to replace the FR Y-7A with the FR Y-10F. This
new form would make the reporting of structure data for domestic and
foreign banking organizations more similar, reduce the types of
investments to be included, streamline the method of reporting
percentage of ownership for nonbanking investments, and simplify the
reporting of legal authority (regulatory) and activity codes. To
improve the timeliness of the data, the Federal Reserve proposed to
vary the reporting schedule of the FR Y-10F report for different types
of transactions. For consistency purposes, the Federal Reserve proposed
that FBOs, which currently file on an annual basis, would report the
required structure information on an event-generated basis. The FR Y-
10F report would also include data on managed non-U.S. branches, not
included on the FR Y-7A report.
The Federal Reserve proposed to change the due date for the FR Y-7
to 90 calendar days after the respondent's fiscal year end to be
consistent with the FR Y-6, revise the FR Y-7 organization chart to
exclude small merchant banking investments and debts previously
contracted (DPC), and include parallel language on reportable entities
from the FR Y-10F instructions, as appropriate. Finally, the Federal
Reserve proposed to revise the FR Y-7 to include information on
business measurement tests currently included on the FR Y-7A.
The comment period ended on November 20, 2000. The Federal Reserve
received comments from three FBOs and three foreign banking trade
groups regarding the proposed revisions. Most commenters favored the
format of the proposed FR Y--10F, stating this form was easier to
understand and more user-friendly than the FR Y-7A. Also, commenters
strongly favored the reduction in the number of reports filed for
nonbanking investments. Currently, FR Y-7A reporting form requires
information on virtually all investments in which there was control or
ownership interest of greater than 5 percent. However, the proposed FR
Y-10F reporting form does
[[Page 81867]]
not require reports for nonbanking investments of less than 25 percent
of a class of voting securities unless the reporter otherwise controls
the company.
Several comments were received on the proposed deadlines for these
reports. The proposed FR Y-10F included a new 3-day deadline for
openings, closings, mergers, sales and relocations of depository
institutions, Edge and agreement corporations, and nondepository trusts
that are members of the Federal Reserve System. Almost all of the
commenters objected to this new deadline, which was proposed to ensure
timely receipt of data needed for monetary policy purposes. After
reviewing the comments, the Federal Reserve determined that there are
alternative ways to capture the information and decided to make all
information due thirty days after the transaction.
The three foreign banking trade groups objected to event-generated
filing of all reportable transactions by FBOs on the FR Y-10F. Based on
their comments, these institutions may have interpreted that the
Federal Reserve proposed to collect information on FBO's worldwide
holdings on an event-generated basis; however, this was never the
intent of the Federal Reserve's proposal. Currently, FBOs file most of
their structure information annually on the FR Y-7A; however, FBOs that
are financial holding companies file information about new activities
permissible under the Gramm-Leach-Bliley Act of 1999 (GLB Act) on an
event-generated basis. The Federal Reserve retained the requirement for
event-generated filing by FBOs for entities that are held directly in
the United States to make reporting of structure data for domestic and
foreign banking organizations more similar and to ensure compliance
with the GLB Act. The Federal Reserve clarified the instructions to
limit FBO reporting to their holdings in the United States.
For the FR Y-7, all of the commenters objected to shortening the
deadline from 120 days after the respondent's fiscal year end to 90
days after their fiscal year end. They stated that FBOs are not allowed
to release this type of information prior to distributing it to their
shareholders and meeting certain regulatory requirements in their home
country. As a result of these comments, the Federal Reserve decided to
retain the 120-day deadline.
One foreign banking trade group objected to including entities on
the FR Y-7 organizational chart that were not included in the
reportable entities on the FR Y-10F. The Federal Reserve has a
continuing need for a more complete picture of FBO structure on an
annual basis and has maintained the requirement for information about
investments between 5 and 25 percent on the FR Y-7. In an effort to
reduce burden, however, the Federal Reserve has dropped the requirement
to annotate the exact percentage ownership of these investments on the
FR Y-7 and will allow some flexibility in the manner in which
respondents report the additional entities. This may involve methods
such as annotating the organization charts for entities not reportable
on the FR Y-10F or providing a separate list of these entities.
Two foreign banking trade organizations suggested conforming the
provisions of Section 211.23(h) to the revised FR Y-7 and FR Y-10F and
discontinuing the Notification pursuant to Section 211.23(h) of
Regulation K on Acquisitions by Foreign Banking Organizations (FR 4002;
OMB No. 71100-0110) to avoid unnecessary duplication of effort. The
Federal Reserve has already approved discontinuance of the FR 4002 as
soon as revisions to Regulation K are finalized; these revisions are
anticipated in 2001.
The Federal Reserve solicited comment on limiting reporting of
insurance and securities activities by using materially thresholds.
Although no comments were received, the Federal Reserve decided to
limit reporting of insurance companies in each line of insurance
business (1) to those in the line of ownership down to, but not beyond,
a functionally regulated firm or (2), in the case of investments that
are not functionally regulated, to those above a threshold level based
on the relative size and importance of various tiers of insurance
companies. The Federal Reserve also decided to use a materiality
threshold to limit reporting of securities investments. The Federal
Reserve solicits comment on whether such materiality tests would be
helpful, and, if so, how these should be defined. Comments must be
submitted on or before January 26, 2001. Comments, which should refer
to the OMB control number or agency form number, should be addressed to
Jennifer J. Johnson, Secretary, Board of Governors of the Federal
Reserve System, 20th and C Streets, NW., Washington, DC 20551, or
mailed electronically to [email protected]. Comments
addressed to Ms. Johnson also may be delivered to the Board's mailroom
between 8:45 a.m. and 5:15 p.m., and to the security control room
outside of those hours. Both the mailroom and the security control room
are accessible from the courtyard entrance on 20th Street between
Constitution Avenue and C Street, NW. Comments received may be
inspected in room M-P-500 between 9 a.m. and 5 p.m., except as provided
in section 261.14 of the Board's Rules Regarding Availability of
Information, 12 CFR 261.14(a). A copy of the comments may also be
submitted to the OMB desk officer for the Board: Alexander T. Hunt,
Office of Information and Regulatory Affairs, Office of Management and
Budget, New Executive Office Building, Room 3208, Washington, DC 20503.
Two foreign banking trade groups thought the burden estimates were
understated. One foreign banking trade group asked for the option of
filing the information electronically. The Federal Reserve has been
developing an Internet-based collection tool for the FR Y-10F and plans
to begin implementation in 2001. The option of filing the FR Y-10F
electronically and the new materiality thresholds for insurance and
securities investments should significantly reduce the burden of filing
these reports. As described above, the Federal Reserve has taken
further steps to streamline and clarify the reporting requirements and
believes that the burden estimates for the FR Y-10F and FR Y-7 should
remain the same as those in the initial proposal. Also, the hourly
burden estimates represent the average amount of the time required for
all reporters to complete the reporting requirements; the actual amount
of time required will vary based on an institution's size. Finally, the
Federal Reserve clarified that FBOs should limit their reporting to
their holdings in the United States.
Two foreign banking trade groups asked for additional time for FBOs
to implement the proposed changes. The Federal Reserve will replace the
FR Y-7A with the FR Y-10F on June 1, 2001, and will implement the
revised FR Y-7 on December 31, 2001. Please see the section below
describing the FR Y-10. The Federal Reserve will distribute the final
reporting forms and instructions early in 2001 to allow respondent to
make system changes necessary to accommodate the new reporting
requirements.
Final approval under OMB delegated authority of revision, without
extension, of the following report:
Report title: Changes in Foreign Investments Made Pursuant to
Regulation K.
Agency form number: FR 2064.
OMB control number: 7100-0109.
Frequency: event-generated.
Recordkeepers: BHCs, member banks, and Edge and agreement
corporations.
[[Page 81868]]
Annual recordkeeping hours: 320.
Estimated average hours per response: 2 hours.
Number of respondents: 40.
Small businesses are not affected.
General description of report: This information collection is
considered mandatory; Section 5(c) of the BHC Act (12 U.S.C. 1844(c));
Section 7 and 13(a) of the international Banking Act of 1978 (12 U.S.C.
3106 and 3108 (a)); Section 25 of the FRA (12 U.S.C. 601-604a); Section
25A of the FRA (12 U.S.C. 611-631); and, Regulation K (12 CFR part
211.7(c)); and was given confidential treatment (5 U.S.C. 552(b)(4) and
(b)(6)).
Abstract: Changes in Foreign Investments Made Pursuant to
Regulation K currently is an event-generated report filed by BHCs,
member banks, and Edge and agreement corporations to record changes in
their international investments. The Federal Reserve uses the
information to monitor investments in the international operations of
U.S. banking organizations and to fulfill its supervisory
responsibilities under Regulation K.
Current Actions: On September 20, 2000, the Federal Reserve issued
a Federal Register notice (65 FR 56910) requesting public comment on a
proposal to revise without extension the FR 2064. The Federal Reserve
proposed to revise the FR 2064 to include only the information on
historical cost of investments, as required by Regulation K, move
structure information to the FR Y-10, raise the threshold for reporting
these foreign investments, and change the reporting frequency of the FR
2064 from event-generated to quarterly. The comment period ended
November 20, 2000.
One large domestic banking organization criticized the
inconsistencies in the reporting thresholds for the FR 2064 and the
FRY-10 and the bifurcation of Regulation K reporting between these two
reports. Another large domestic banking organization suggested further
deletions to the items listed on the FR 2064. After further
consideration, the Federal Reserve decided to eliminate the collection
of the FR 2064 report. However, Federal Reserve examiners have a
continuing need to monitor compliance with the Federal Reserve Act and
relevant sections of Regulation K. The Federal Reserve will replace
this reporting requirement with a requirement to maintain records of
comparable information, effective June 1, 2001, and will issue
instructions for this recordkeeping requirement in the near future.
Final approval under OMB delegated authority the implementation of
the following reports:
Report title: Report of Changes in Organizational Structure (FRY-
10) and Report of Changes in FBO Organizational Structure (FR Y-10F).
Agency form number: FR Y-10 and FR Y-10F.
OMB control number: 71-0297.
Frequency: event-generated.
Reporters: FR Y-10: bank holding companies, member banks not
affiliated with a bank holding company, Edge and agreement
corporations; FR Y-10F: foreign banking organizations.
Annual reporting hours: FR Y-10: 12,240 hours; FR Y-10F: 2,044
hours.
Estimated average hours per response: 1.25 hours.
Number of respondents: FR Y-10: 2,448; FR Y-10F:327.
Small businesses are not affected.
General description of report: These information collections are
mandatory; Section 5(c) of the Bank Holding Company Act (BHC Act) 12
U.S.C. 1844(c)); Section 4 of the BHC Act (12 U.S.C. 1843(k)); Section
25 of the FRA (12 U.S.C. 601-604a); Section 25A of the FRA (12 U.S.C.
611-631); and, Regulation Y (12 CFR part 225); FR Y-10 only--Section 9
of the FRA (12 U.S.C. 321); FR Y-10F only--Section 7 and 13(a) of the
international Banking Act of 1978 (12 U.S.C. 3106 and 3108 (a)). Upon
request from a respondent, certain information may be given
confidential treatment pursuant to the Freedom of Information Act (5
U.S.C. 552(b)(4) and (6)).
Current actions: On September 20, 2000, the Federal Reserve issued
a Federal Register notice (65 FR 56910) requesting public comment on a
proposal to implement the FR Y-10 and the FR Y-10F. To reduce burden
and cost and make the forms easier to use, the Federal Reserve proposed
to reformat the FR Y-6A and FR Y-7A into two forms, the FR Y-10 and FR
Y-10F, respectively. These proposed forms would make the reporting of
structure data for domestic and foreign banking organizations more
similar, reduce the types of investments to be included, streamline the
method of reporting percentage of ownership for nonbanking investments,
and simplify the reporting of legal authority (regulatory) and activity
codes. To improve the timeliness of the data, the Federal Reserve
proposed to vary the reporting schedule of the FR Y-10 and FR Y-10F
reports for different types of transactions. For consistency purposes,
the Federal Reserve proposed that FBOs, which currently file on an
annual basis, would report the required structure information on an
event-generated basis. The FR Y-10F report would also include data on
managed non-U.S. branches, not included on the FR Y-7A report. In
addition structure information would be moved from the FR 2064 to the
FR Y-10. The comment period ended on November 20, 2000. Comments
received on these two forms have been addressed in the Current Actions
section of the FR Y-6A, FR Y-7A, and FR 2064.
Board of Governors of the Federal Reserve System, December 20,
2000.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 00-32911 Filed 12-26-00; 8:45 am]
BILLING CODE 6210-01-P