Notice2022-09850
Proposed Agency Information Collection Activities; 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
May 9, 2022
Issuing agencies
Federal Reserve System
Abstract
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, with revision, the Structure Reporting and Recordkeeping Requirements for Domestic and Foreign Banking Organizations (FR Y-6, FR Y-7, FR Y-10, and FR Y-10E; OMB No. 7100-0297).
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 89 (Monday, May 9, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 89 (Monday, May 9, 2022)]
[Notices]
[Pages 27639-27642]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09850]
[[Page 27639]]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, with revision,
the Structure Reporting and Recordkeeping Requirements for Domestic and
Foreign Banking Organizations (FR Y-6, FR Y-7, FR Y-10, and FR Y-10E;
OMB No. 7100-0297).
DATES: Comments must be submitted on or before July 8, 2022.
ADDRESSES: You may submit comments, identified by FR Y-6, FR Y-7, FR Y-
10 and FR Y-10E, by any of the following methods:
<bullet> Agency Website: <a href="https://www.federalreserve.gov/">https://www.federalreserve.gov/</a>. Follow
the instructions for submitting comments at <a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#24564143570a474b4949414a50576442414041564548564157415652410a434b52"><span class="__cf_email__" data-cfemail="20524547530e434f4d4d454e5453604645444552414c524553455256450e474f56">[email protected]</span></a>. Include the OMB
number or FR number in the subject line of the message.
<bullet> FAX: (202) 452-3819 or (202) 452-3102.
<bullet> Mail: Federal Reserve Board of Governors, Attn: Ann E.
Misback, Secretary of the Board, Mailstop M-4775, 2001 C St. NW,
Washington, DC 20551.
All public comments are available from the Board's website at
<a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a> as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any confidential
business information, identifying information, or contact information.
Public comments may also be viewed electronically or in paper in Room
M-4365A, 2001 C St. NW, Washington, DC 20551, between 9:00 a.m. and
5:00 p.m. on weekdays. For security reasons, the Board requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 452-3684. Upon arrival, visitors will be required to
present valid government-issued photo identification and to submit to
security screening in order to inspect and photocopy comments.
Additionally, commenters may send a copy of their comments to the
Office of Management and Budget (OMB) Desk Officer for the Federal
Reserve Board, 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.
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.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collections of information conducted or
sponsored by the Board. In exercising this delegated authority, the
Board is directed to take every reasonable step to solicit comment. In
determining whether to approve a collection of information, the Board
will consider all comments received from the public and other agencies.
During the comment period for this proposal, a copy of the proposed
PRA OMB submission, including the draft reporting form and
instructions, supporting statement, and other documentation, will be
made available on the Board's public website at <a href="https://www.federalreserve.gov/apps/reportforms/review.aspx">https://www.federalreserve.gov/apps/reportforms/review.aspx</a> or may be requested
from the agency clearance officer, whose name appears above. Final
versions of these documents will be made available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>, if approved.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Board's functions, including whether the
information has practical utility;
b. The accuracy of the Board's estimate of the burden of the
proposed 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;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Proposal Under OMB Delegated Authority To Extend for Three Years, With
Revision, the Following Information Collections
Collection 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.
Collection identifiers: FR Y-6; FR Y-7; FR Y-10; and FR Y-10E.
OMB control number: 7100-0297.
Frequency: FR Y-6: Annual; FR Y-7: Annual; FR Y-10: Event-
generated; \1\ FR Y-10E: Event-generated.\2\
---------------------------------------------------------------------------
\1\ In 2020, there were 13,301 FR Y-10's processed for the 3,950
reporting institutions. This volume yields an approximate annual
frequency of 3.37.
\2\ The FR Y-10E is event-generated and the data are submitted
on an ad-hoc basis as needed.
---------------------------------------------------------------------------
Respondents: Bank holding companies (BHCs), savings and loan
holding companies (SLHCs), securities holding companies, and
intermediate holding companies (IHCs) (collectively, holding companies
(HCs)), foreign banking organizations (FBOs), state member banks that
are not controlled by an HC, Edge and agreement corporations that are
not controlled by a member bank, a domestic HC, or an FBO, and
nationally chartered banks that are not controlled by a BHC or an FBO
(with regard to their foreign investments only).
Estimated number of respondents: FR Y-6: 3,803; FR Y-7: 236; FR Y-
10: 3,950; FR Y-10E: 3,950.
Estimated average hours per response:
Reporting
FR Y-6: 2.5; FR Y-7: 3; FR Y-10: 2.5; FR Y-10E: 0.5.
Recordkeeping
FR Y-6: 0.5; FR Y-10: 0.5.
Estimated annual burden hours:
Reporting
FR Y-6: 9,508; FR Y-7: 708; FR Y-10: 33,253; FR Y-10E: 1,975.
Recordkeeping
FR Y-6: 1,902; FR Y-10: 6,651.
General description of report: The FR Y-6 is filed by all top-tier
HCs and non-qualifying FBOs. The report collects an organizational
chart and annual
[[Page 27640]]
verification of domestic branches within the organization and includes
information on the identity, percentage ownership, and business
interests of principal shareholders, directors, and executive officers.
The FR Y-6 can be filed via a paper or electronic (Portable Document
Format) submission to the appropriate Federal Reserve Bank.
The FR Y-7 is an annual report filed by qualifying FBOs that have a
U.S. banking presence. The report collects financial statements,
organizational information, shares and shareholder information, and
data on the eligibility to be a qualified FBO as defined by the Board's
Regulation K. The FR Y-7 can be filed via a paper submission mailed to
the appropriate Federal Reserve Bank.
The FR Y-10 is an event-generated information collection that
captures changes in organizational structure or the regulated
investments and activities of various entities. The FR Y-10 can be
filed electronically or via a paper, email, or fax submission to the
appropriate Federal Reserve Bank.
The FR Y-10E is a free-form supplement to the FR Y-10 that the
Board uses to collect additional structural information as needed on an
emergency basis. Responses for the FR Y-10E are voluntary. Submission
methods vary depending on the nature and time-sensitivity of the data
requests.
Proposed revisions: The Board proposes to (1) revise the FR Y-6
reporting requirements for reporters who do not have any changes from
their prior year's submission, (2) revise the FR Y-6 to automate and
add a standard template for reporting item three, securities holders,
and item four, insiders, (3) revise the FR Y-6 and FR Y-7 instructions
for how the organizational chart and the tiered structure information
are reported, (4) revise the FR Y-7 instructions to require the top
tier FBO to file for its subsidiary FBOs, (5) revise the FR Y-6
instructions for how branches of domestic depository institutions and
Edge and agreement corporations are verified and reconciled, (6) revise
the FR Y-7 instructions language requirements for submission of the
annual report to shareholders, (7) revise the FR Y-10 definition of
control in the Glossary section of the instructions, (8) revise the FR
Y-10 instructions for the legal authority codes and terminology for
unitary savings and loans holding company activities that meet the
requirements of section 10(c)(9)(C) of the Home Owners' Loan Act
(HOLA), (9) revise the FR Y-10 instructions to update descriptions for
legal authority codes 14, 68 and 999, (10) revise the FR Y-10 reporting
form to add an election to become a Covered Savings Association (CSA)
as a reportable event, (11) revise the FR Y-10 instructions to remove
savings associations from the definition of nonbanking company, (12)
clarify the FR Y-10 instructions for the definition of a head office
location, (13) clarify the FR Y-10 instructions for the state of
incorporation for federally chartered entities, (14) revise the FR Y-6
and the FR Y-10 instructions to add a requirement that respondents keep
a record of the data submitted, and (15) make other minor
clarifications and conforming edits to the FR Y-6, FR Y-7, and FR Y-10
forms and instructions. The proposed effective dates are as follows:
December 31, 2022:
<bullet> Revise the FR Y-6 reporting requirements for reporters who
do not have any changes from their prior year's submission.
December 31, 2024:
<bullet> Revise the FR Y-6 to automate and add a standard template
for reporting item three, securities holders, and item four, insiders.
<bullet> Revise the FR Y-6 and FR Y-7 instructions for how the
organizational chart and the tiered structure information are reported.
<bullet> Revise the FR Y-6 instructions for how branches of
domestic depository institutions and Edge and agreement corporations
are verified and reconciled.
All other changes are proposed to be effective September 30, 2022.
There are no changes proposed to the FR Y-10E.
FR Y-6 Reporting Requirements for Reporters Without Changes
The Board proposes to revise the FR Y-6 instructions and report
form cover page to add a ``Yes/No'' checkbox for reporters to indicate
whether the firm had changes to any reportable items from the prior
year's submission. In addition, the Board proposes to add a ``Yes/No''
checkbox to items 2, 3 and 4 for reporters to specifically indicate the
item(s) that changed. Currently, all HCs are required to file the full
FR Y-6 report no later than 90 calendar days after their fiscal year-
end. Under this proposal, reporters that check ``Yes'' for having
changes to any reportable items would also check ``Yes'' for the
specific item(s) that changed and submit this information as part of
their FR Y-6 submission for the year. Reporters that check ``No'' for
not having reportable changes would only be required to submit the
signed cover page annually, along with a copy of their annual report to
shareholders if they meet the reporting criteria for its submission.
These revisions would reduce reporting burden for HCs that do not have
changes to reportable items in a given year.
FR Y-6 Reporting for Securities Holders and Insiders
The Board proposes to revise the FR Y-6 report form and
instructions to add a standard template for reporting item 3,
securities holders, and item 4, insiders, and to add electronic
submission of these items. Currently, HCs submit a listing of their
securities holders and insiders information. The format varies by HC,
given that the volume of reportable information is based on the size
and complexity of the reporter. Standardizing these items simplifies
reporting this information and allows for electronic submission in lieu
of paper or PDF filing. In addition, electronic filing facilitates
easier data submission and faster processing and provides ready
accessibility of prior filings.
FR Y-6 and FR Y-7 Organization Chart
The Board proposes to revise item 2.a, Organization Chart, of the
FR Y-6 and FR Y-7 to modify how reporters submit their organization
chart. Under the proposal, reporters would no longer be required to
submit a hard copy of their organization chart. The Board proposes to
implement an electronic system for reporters to access their
organization chart securely and reconcile their structure data. The
revised instructions would remind reporters that, if they had any
organizational changes that should have been reported previously, they
would be required to submit an FR Y-10.
FR Y-6 and FR Y-7 Tiered Structure Page
The Board proposes to remove the FR Y-6 and FR Y-7 tiered structure
page. As described above on the changes for item 2.a, Organization
Chart, reporters would access their tiered structure in a secure system
to reconcile any discrepancies.
FR Y-7 Reporter in a Multi-Tiered Organization
The Board proposes to revise the FR Y-7 instructions to require the
top tier FBO to file for its subsidiary FBOs. This will reduce
confusion as to which FBO would be filing in a multi-tiered
organization and ensure that information reported is appropriately
captured under the ultimate parent FBO.
FR Y-6 Domestic Branch Listing
The Board proposes to decommission the branch verification website,
listed in item 2.b of the FR Y-6. As described
[[Page 27641]]
above on the changes for item 2.a, Organization Chart, reporters would
access their domestic depository institutions and their branches and
Edge and agreement corporations in a secure system to reconcile any
discrepancies.
FR Y-7 Annual Report to Shareholders
The Board proposes to revise the FR Y-7 instructions to require the
annual report to be submitted in English only. Currently, FBOs that
prepare an annual report for their shareholders are required to submit
a copy in the original language and an English translation copy for
each reported FBO. This proposed change would result in a small burden
reduction for respondents who prepare an annual report in languages
other than English.
FR Y-10 Glossary--Definition of Control
The Board proposes to revise the definition of control in the FR Y-
10 Glossary to be in line with the Board's final rule on control \3\
and other Board forms. This proposed change would provide clarity to
respondents when determining what constitutes control.
---------------------------------------------------------------------------
\3\ 85 FR 12398 (March 2, 2020).
---------------------------------------------------------------------------
FR Y-10 Legal Authority Code and Terminology for HOLA Section
10(c)(9)(C)
The Board proposes to update the FR Y-10 to refer to unitary SLHCs
subject to section 10(c)(9)(C) of HOLA as ``Legacy Unitary Savings and
Loan Holding Companies'' (LUSLHCs). Additionally, the Board proposes to
revise the definition for Legal Authority Code (LAC) 412 to be
applicable to unitary SLHCs subject to section 10(c)(9)(C), rather than
section 10(c)(6)(B), of the HOLA, as the revised citation is the proper
authority for LUSLHCs. The Board also proposes to remove the LAC 410
from Appendix A of the FR Y-10, which would no longer be used in light
of the proposed change to LAC 412.
FR Y-10 Legal Authority Code Descriptions
The Board proposes to revise the FR Y-10 instructions to update the
description for legal authority codes 14, 68 and 999. The descriptions
contain outdated terminology, and the revisions provide updated
guidance from the relevant statutory language.
FR Y-10 Covered Savings Associations
The Board proposes to revise the Savings and Loan Holding Company
schedule of the FR Y-10 form and instructions by adding as a reportable
change in legal authority a notice by an HC's subsidiary federal
savings association (FSA) to the Office of the Comptroller of the
Currency (OCC) to operate as a CSA. Section 5A of HOLA permits FSAs
that meet certain criteria to elect national bank powers and operate as
CSAs without having to change their charters by submitting a notice of
election to the OCC.\4\ With limited exceptions, the Federal Reserve
treats CSAs as national banks and their controlling HCs as bank holding
companies. Eligible FSAs have been able to take this election since May
24, 2019, when the OCC issued its final rule on CSAs. CSAs and their
controlling HCs are currently not required to provide the Federal
Reserve notice of the election and there is currently no publicly
available way to collect this information. Given that the CSA election
materially changes the nature of supervision and regulation of the
electing FSA and its controlling HC, this revision would allow the
Federal Reserve to track this change in legal authority in a timely
matter.
---------------------------------------------------------------------------
\4\ 12 U.S.C. 1464a.
---------------------------------------------------------------------------
A new box with the company type labeled ``Federal Savings
Association/Covered Savings Association'' will also be added to item 9,
Savings and Loan Type, for eligible reporters. Additionally, the Board
proposes to update the Glossary to define CSAs.
FR Y-10 Description of Savings Association as Nonbank Company
The Board proposes to update the FR Y-10 forms and instructions to
remove references to a savings association as a nonbanking company.
This change would reduce confusion since a savings association company
is not considered to be a nonbank company for FR Y-10 reporting
purposes as the transactions involving these entities are reported in
the Savings and Loan Schedule.
FR Y-10 Head Office Location
The Board proposes to revise the FR Y-10 instructions to clarify
that a head office location of a depository institution may also
include a separately licensed branch at the same address. This
clarification will help to reduce confusion on when a head office
location should be reported as a branch and how to accurately identify
all bank branches. The Board also proposes to revise the FR Y-10
instructions to clarify that reporters should use the location where
the main activities and operations of an entity are conducted when
reporting the head office of an entity without a brick-and-mortar
location.
FR Y-10 State of Incorporation
The Board proposes to revise the FR Y-10 instructions to require
nationally chartered entities to indicate that they are ``federally
chartered'' when reporting where they are incorporated. The current
instructions require the state of incorporation to be reported for all
reportable entities, but do not include instructions for how nationally
chartered entities should report.
FR Y-6 and FR Y-10 Recordkeeping Requirement
Finally, the Board proposes to revise the FR Y-6 and the FR Y-10
instructions to require respondents to maintain in their files a
physical copy of the manually signed FR Y-6 and FR Y-10 submissions.
These reports do not currently account for recordkeeping, and this
information must be maintained for a period of three years following
submission.
Legal authorization and confidentiality: The FR Y-6 is authorized
by the Board's reporting authorities, which are located in section
5(c)(1) of the BHC Act for BHCs (12 U.S.C. 1844(c)(1)), section
10(b)(2) of HOLA for SLHCs (12 U.S.C. 1467a(b)(2)), and section 618 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-
Frank Act) for securities holding companies (12 U.S.C. 1850a(c)(1)).
The Board has authority to require IHCs to file the FR Y-6 pursuant to
section 5(c) of the BHC Act (12 U.S.C. 1844(c)) and sections 102(a)(1)
and 165 of the Dodd-Frank Act (12 U.S.C. 5311(a)(1) and 5365).\5\ The
Board has the authority to require any top-tier HC that is organized
under foreign law but is not a FBO, and any FBO that does not meet the
requirements of and is not treated as a qualifying FBO under Regulation
K, to file the FR Y-6 under sections 8(a) and 13(a) of the
International Banking Act of 1978 (IBA) (12 U.S.C. 3106(a) and 3108(a))
and section 5(c)(1) of the BHC Act (12 U.S.C. 1844(c)(1)). Section 8(a)
of the IBA makes certain FBOs subject to the provisions of the BHC Act,
and
[[Page 27642]]
section 13(a) of the IBA authorizes the Board to ``issue such rules,
regulations, and orders as'' it may deem necessary in order to perform
its ``respective duties and functions under this chapter and to
administer and carry out the provisions and purposes of this chapter
and prevent evasions thereof.''
---------------------------------------------------------------------------
\5\ Section 102(a)(1) of the Dodd-Frank Act (12 U.S.C.
5311(a)(1)), defines ``bank holding company'' for purposes of Title
I of the Dodd-Frank Act to include FBOs that are treated as bank
holding companies under section 8(a) of the IBA (12 U.S.C. 3106(a)).
The Board has required, pursuant to section 165(b)(1)(B)(iv) of the
Dodd-Frank Act (12 U.S.C. 5365(b)(1)(B)(iv)), certain FBOs subject
to section 165 of the Dodd-Frank Act to form U.S. IHCs. Accordingly,
the parent foreign-based organization of a U.S. IHC is treated as a
BHC for purposes of the BHC Act and section 165 of the Dodd-Frank
Act. Because section 5(c) of the BHC Act authorizes the Board to
require reports from subsidiaries of BHCs, section 5(c) provides
authority to require U.S. IHCs to report the information contained
in the FR Y-6.
---------------------------------------------------------------------------
The FR Y-7 is authorized by sections 8(a) and 13(a) of the IBA and
section 5(c)(1) of the BHC Act.
The FR Y-10 and FR Y-10E are authorized by the Board's reporting
authorities, which are located in section 5(c)(1) of the BHC Act for
BHCs, section 10(b)(2) of HOLA for SLHCs, and section 618 of the Dodd-
Frank Act for securities holding companies. The Board is authorized to
require state member banks and agreement and Edge corporations to file
the FR Y-10 by reporting authorities located in sections 9(6), 25, and
25A of the Federal Reserve Act (FRA) (for state member banks, agreement
corporations, and Edge corporations, respectively) (12 U.S.C. 324, 602,
and 625, respectively). Similarly, information collection from national
banks under the FR Y-10 and FR Y-10E with respect to their foreign
branches, their investments made under Subpart A of Regulation K, and
foreign branches of their foreign subsidiaries that are investments
made under Subpart A of Regulation K, is authorized by the reporting
authorities located in sections 25 and 25A of the FRA. The Board has
the authority to require FBOs to file the FR Y-10 under sections 8(a)
and 13(a) of the IBA and section 5(c)(1) of the BHC Act.
Information collections under the FR Y-6, FR Y-7, and FR Y-10 are
mandatory. Information collections under the FR Y-10E are voluntary.
Individual respondents may request that information submitted to
the Board through the FR Y-6, FR Y-7, FR Y-10, and FR Y-10E be kept
confidential. If a respondent requests confidential treatment, the
Board will determine whether the information is entitled to
confidential treatment on a case-by-case basis. To the extent a
respondent submits nonpublic commercial or financial information, which
is both customarily and actually treated as private by the respondent,
the respondent may request confidential treatment pursuant to exemption
4 of the Freedom of Information Act (FOIA) (5 U.S.C. 552(b)(4)). To the
extent a respondent submits personal, medical, or similar files, the
disclosure of which would constitute an unwarranted invasion of
privacy, the respondent may request confidential treatment pursuant to
exemption 6 of the FOIA (5 U.S.C. 552(b)(6)). Additionally, personal
home addresses of securities holders submitted in response to the FR Y-
7 will be treated as confidential pursuant to exemption 6 of the FOIA.
Board of Governors of the Federal Reserve System.
Dated: May 3, 2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-09850 Filed 5-6-22; 8:45 am]
BILLING CODE 6210-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on May 9, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.