Notice2021-20808
Agency Information Collection Activities: Proposed Collection Renewal; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 27, 2021
Issuing agencies
Federal Deposit Insurance Corporation
Abstract
The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to take this opportunity to comment on the renewal of the existing information collection described below (OMB Control No. 3064-0028).
Full Text
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<title>Federal Register, Volume 86 Issue 184 (Monday, September 27, 2021)</title>
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[Federal Register Volume 86, Number 184 (Monday, September 27, 2021)]
[Notices]
[Pages 53300-53301]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-20808]
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FEDERAL DEPOSIT INSURANCE CORPORATION
[OMB No. 3064-0028]
Agency Information Collection Activities: Proposed Collection
Renewal; Comment Request
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Notice and request for comment.
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SUMMARY: The FDIC, as part of its obligations under the Paperwork
Reduction Act of 1995 (PRA), invites the general public and other
Federal agencies to take this opportunity to comment on the renewal of
the existing information collection described below (OMB Control No.
3064-0028).
DATES: Comments must be submitted on or before November 26, 2021.
ADDRESSES: Interested parties are invited to submit written comments to
the FDIC by any of the following methods:
<bullet> https://www.FDIC.gov/regulations/laws/federal.
<bullet> Email: <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="2c4f4341414942585f6c4a48454f024b435a">[email protected]</a>. Include the name and number of
the collection in the subject line of the message.
<bullet> Mail: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW,
Washington, DC 20429.
<bullet> Hand Delivery: Comments may be hand-delivered to the guard
station at the rear of the 17th Street building (located on F Street),
on business days between 7:00 a.m. and 5:00 p.m.
All comments should refer to the relevant OMB control number. A
copy of the comments may also be submitted to the OMB desk officer for
the FDIC: Office of Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Washington, DC
20503.
FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="016c626063647b6041676568622f666e77">[email protected]</a>, MB-3128, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
Proposal to renew the following currently approved collection of
information:
1. Title: Recordkeeping and Confirmation Requirements for
Securities Transactions.
OMB Number: 3064-0028.
Form Number: None.
Affected Public: FDIC-Insured Institutions and Certain Employees of
the FDIC-Insured Institutions.
Burden Estimate:
Summary of Annual Burden
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Estimated Estimated Estimated time Estimated
Information collection description Type of burden Obligation to respond number of frequency of per response annual burden
respondents responses (hours) (hours)
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Maintain Securities Trading Recordkeeping......... Mandatory.................. 691 1 1 691
Policies and Procedures.
Officer/Employee Filing of Reports Third-Party Disclosure Mandatory.................. 2,073 4 1 8,292
of Personal Securities Trading
Transactions--344.9 (assumes 5
officers/employees at each
institution with income from
securities broker activity).
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Total Estimated Annual Burden: 8,983 hours.
General Description of Collection: The collection of information
requirements are contained in 12 CFR part 344. The purpose of the
regulation is to ensure that purchasers of securities in transactions
affected by insured state
[[Page 53301]]
nonmember banks are provided with adequate records concerning the
transactions. The regulation is also designed to ensure that insured
state nonmember banks maintain adequate records and controls with
respect to the securities transactions they effect. Finally, this
regulation requires officers and employees of FDIC-supervised
institutions to report to the FDIC supervised institution certain
personal securities trading activity.
Sections 344.4, 344.5, and 344.6 refer to reporting and third party
disclosure burdens associated with confirmation of securities
transactions. The FDIC assumes that banks automate notifications to
customers of securities transactions, and would automate these
notifications even if 12 CFR 344 were not in place. The automation
includes the recordkeeping and disclosure of the confirmation of
securities transactions. As such, FDIC believes that the activities
associated with sections 344.4, 344.5, and 344.6 are all done in the
ordinary course business, and do not represent PRA burden.
Potential respondents to this IC are all FDIC-supervised
institutions that effect securities transactions for customers.
Respondents include institutions that conduct securities transactions
themselves or that conduct securities transactions through a broker/
dealer. To estimate the annual number of respondents, FDIC referenced
the number of FDIC-supervised institutions that reported exercising
fiduciary powers as of the first quarter of 2021,\1\ which is reported
on item 2 of Call Report Schedule RC-T.
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\1\ RIS variable TREXER.
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As of March 31, 2021, 691 FDIC-supervised institutions reported
exercising fiduciary powers.\2\ These 691 entities are subject to the
PRA requirements in 12 CFR 344.8. Thus, FDIC estimates 691 respondents
to the line items corresponding to this section. In the previous
renewal of this information collection, the FDIC estimated 680
respondents to this IC; this estimate was derived by counting the
number of FDIC-supervised institutions with income from securities
brokerage activity. The increase in the estimated number of respondents
from 680 to 691 is a result of a change in estimation methodology due
to a change in the call report reporting requirements.\3\
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\2\ FDIC Call Report data, March 2021.
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The line item corresponding to 12 CFR 344.9 applies to officers and
employees of FDIC-supervised institutions who ``make investment
recommendations or decisions for the accounts of customers; participate
in the determination of such recommendations or decisions; or in
connection with their duties, obtain information concerning which
securities are being purchased or sold or recommend such action.'' \5\
Excluded from this requirement are ``transactions for the benefit of
the officer or employee over which the officer or employee has no
direct or indirect influence or control; transactions in registered
investment company shares; transactions in government securities; and
all transactions involving in the aggregate $10,000 or less during the
calendar quarter.'' \6\ The FDIC does not currently have access to data
on how many officers or employees are required to report trading
activities in which they have a beneficial interest in accordance with
Section 344.9. In the estimate for the previous ICR, it was assumed
that five officers or employees per FDIC-supervised institution
affected by this IC who would respond to this line item. Based on
supervisory experience, FDIC believes that most of the smaller FDIC-
supervised institutions do not have any personnel subject to Section
344.9.\7\ Accordingly, FDIC has reduced the assumed number of officers
or employees per FDIC-supervised institution who would respond to this
line item from five to three. FDIC therefore estimates 2,073
respondents per year to this line item.\8\ This estimate constitutes a
decrease of 1,327 in the estimated annual number of respondents to this
IC.
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\5\ 12 CFR 344.9(a).
\6\ 12 CFR 344.9(b)
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Section 344.8 requires FDIC-supervised institutions to establish
processes and procedures for assigning responsibility for supervising
employees and officers who are involved with processing, documenting,
and executing securities transactions for customers, and for ensuring
equitable treatment of parties to a security transaction, and of
customers who submit orders for the same security or securities at
approximately the same time. Policies and procedures are generally
reviewed and updated annually. FDIC therefore estimate one response per
respondent to this line item as FDIC believes that institutions are
more likely to update their policies and procedures annually rather
than monthly. This estimate represents a decrease of 11 responses per
respondent.
FDIC has also revised its estimate of the time required to respond
to the requirements of Section 344.8 to one hour per response. This
estimate represents an increase of 0.75 hours per response from the
estimate included in the 2018 renewal and is based on the FDIC's
experience with this information collection.
FDIC estimates one hour per response for the burden related to
Section 344.9. This estimate represents a decrease of 0.5 hours per
response from the estimate included in the 2018 renewal and is also
based on the FDIC's experience with this information collection.
The total estimated annual burden for this information collection
is 8,983 hours, which is a decrease of 56,297 hours from the estimate
included in the previous renewal.
Request for Comment
Comments are invited on: (a) Whether the collection of information
is necessary for the proper performance of the FDIC's functions,
including whether the information has practical utility; (b) the
accuracy of the estimates of the burden of the information collection,
including the validity of the methodology and assumptions used; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology. All
comments will become a matter of public record.
Dated at Washington, DC, on September 19, 2021.
Federal Deposit Insurance Corporation.
James P. Sheesley,
Assistant Executive Secretary.
FR Doc. 2021-20808 Filed 9-24-21; 8:45 am
BILLING CODE 6714-01-P
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