Agency Information Collection Activities: Proposed Collection Renewal; Comment Request [OMB No. 3064-0025; -0028; -0134]

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Published

November 29, 2021

Issuing agencies

Federal Deposit Insurance Corporation

Abstract

The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995, invites the general public and other Federal agencies to take this opportunity to comment on the request to renew the existing information collections described below (OMB Control No. 3064-0025; -0028; and -0134).

Full Text

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<title>Federal Register, Volume 86 Issue 226 (Monday, November 29, 2021)</title>
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[Federal Register Volume 86, Number 226 (Monday, November 29, 2021)]
[Notices]
[Pages 67707-67709]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25813]

[[Page 67707]]

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FEDERAL DEPOSIT INSURANCE CORPORATION

Agency Information Collection Activities: Proposed Collection
Renewal; Comment Request [OMB No. 3064-0025; -0028; -0134]

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Agency information collection activities: Submission for OMB
Review; comment request.

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SUMMARY: The FDIC, as part of its obligations under the Paperwork
Reduction Act of 1995, invites the general public and other Federal
agencies to take this opportunity to comment on the request to renew
the existing information collections described below (OMB Control No.
3064-0025; -0028; and -0134).

DATES: Comments must be submitted on or before December 29, 2021.

ADDRESSES: Interested parties are invited to submit written comments to
the FDIC by any of the following methods:
<bullet> <a href="https://www.FDIC.gov/regulations/laws/federal">https://www.FDIC.gov/regulations/laws/federal</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#e88b8785858d869c9ba88e8c818bc68f879e"><span class="__cf_email__" data-cfemail="f794989a9a92998384b791939e94d9909881">[email&#160;protected]</span></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.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular information
collection by selecting ``Currently under 30-day Review--Open for
Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, <a href="/cdn-cgi/l/email-protection#761b151714130c173610121f1558111900"><span class="__cf_email__" data-cfemail="85e8e6e4e7e0ffe4c5e3e1ece6abe2eaf3">[email&#160;protected]</span></a>, MB-3128, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION:
Proposal to renew the following currently approved collections of
information:
1. Title: Application for Consent to Exercise Trust Powers.
OMB Number: 3064-0025.
Form Number: 6200-09.
Affected Public: Insured state nonmember banks wishing to exercise
trust powers.
Burden Estimate:

Table 1--Summary of Estimated Annual Burdens
[OMB No. 3064-0025]
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Type of burden Number of
IC description (obligation to Frequency of response Number of responses per Hours per Annual burden
respond) respondents respondent response (hours)
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Eligible depository institutions... Reporting (Required to On occasion................ 6 1 8 48
obtain or
retain a benefit).....
Not-eligible depository Reporting (Required to On occasion................ 1 1 24 24
institutions. obtain or
retain a benefit).....
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Total Annual Burden Hours...... ...................... ........................... .............. .............. .............. 72
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Source: FDIC.

General Description of Collection: FDIC regulations (12 CFR 333.2)
prohibit any insured State nonmember bank from changing the general
character of its business without the prior written consent of the
FDIC. The exercise of trust powers by a bank is usually considered a
change in the general character of a bank's business if the bank did
not exercise those powers previously. Therefore, unless a bank is
currently exercising trust powers, it must file a formal application to
obtain the FDIC's written consent to exercise trust powers. State
banking authorities, not the FDIC, grant trust powers to their banks.
The FDIC merely consents to the exercise of such powers. Applicants use
form FDIC 6200/09 to obtain FDIC's consent. There is no change in the
methodology or substance of this information collection. The decrease
in total estimated annual burden from 168 hours in 2018 to 72 hours
currently is due to economic factors as reflected in the decrease in
estimated number of respondents.
2. 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 (hour) (hours)
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Maintain Securities Trading Policies Recordkeeping........... Mandatory.............. 691 1 1 691
and Procedures.
Officer/Employee Filing of Reports of Third-Party Disclosure.. Mandatory.............. 2,073 4 1 8,292
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 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

[[Page 67708]]

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\ 1 CFR 344.96b.
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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.
3. Title: Customer Assistance Forms.
OMB Number: 3064-0134.
Form Numbers: 6422-04; -6422/11; 6422/15.
Affected Public: Individuals, Households, Business or Financial
Institutions.

Summary of Annual Burden
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Estimated
Estimated average Estimated time Estimated
Information collection description Type of burden Obligation to respond number of frequency of per response annual burden
respondents response (hours) (hours)
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Customer Assistance Form (6422/04)... Reporting............... Voluntary.............. 4,737 1 0.25 1,184
Business Assistance Form (6422/11)... Reporting............... Voluntary.............. 225 1 0.25 56
FDIC Deposit Insurance Form (6422/15) Reporting............... Voluntary.............. 911 1 0.25 228
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Total Estimated Annual Burden: 1,468 hours.
Burden Estimate:
General Description of Collection: This collection facilitates the
collection of information from customers of financial institutions that
have inquiries or complaints about service. Customers or businesses may
document their complaints or inquiries to the FDIC using a letter or
optional forms (Form 6422/04; Form 6422/11; Form 6422/15). The Forms
are used to facilitate online completion and submission of the
complaints or inquiries and to shorten FDIC response times by making it
easier to identify the nature of the complaint and to route the
customer or business

[[Page 67709]]

inquiry to the appropriate FDIC contact. There is no change in the
method or substance of the collection. The overall reduction in burden
hours is the result of economic fluctuation.

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, this 22nd day of November 2021.

Federal Deposit Insurance Corporation.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-25813 Filed 11-26-21; 8:45 am]
BILLING CODE 6714-01-P

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