Notice2022-18142
Agency Information Collection Activities: Information Collection Renewal; Comment Request; Reporting, Recordkeeping, and Disclosure Requirements Associated With Proprietary Trading and Certain Interests in and Relationships With Covered Funds
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
August 23, 2022
Issuing agencies
Treasury DepartmentComptroller of the Currency
Abstract
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites comment on a continuing information collection as required by the Paperwork Reduction Act of 1995 (PRA). In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and respondents are not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is soliciting comment concerning the renewal of its information collection titled "Reporting, Recordkeeping, and Disclosure Requirements Associated with Proprietary Trading and Certain Interests in and Relationships with Covered Funds."
Full Text
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<title>Federal Register, Volume 87 Issue 162 (Tuesday, August 23, 2022)</title>
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[Federal Register Volume 87, Number 162 (Tuesday, August 23, 2022)]
[Notices]
[Pages 51729-51731]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18142]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Information Collection
Renewal; Comment Request; Reporting, Recordkeeping, and Disclosure
Requirements Associated With Proprietary Trading and Certain Interests
in and Relationships With Covered Funds
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites comment on a continuing information
collection as required by the Paperwork Reduction Act of 1995 (PRA). In
accordance with the requirements of the PRA, the OCC may not conduct or
sponsor, and respondents are not required to respond to, an information
collection unless it displays a currently valid Office of Management
and Budget (OMB) control number. The OCC is soliciting comment
concerning the renewal of its information collection titled
``Reporting, Recordkeeping, and Disclosure Requirements Associated with
Proprietary Trading and Certain Interests in and Relationships with
Covered Funds.''
DATES: Comments must be received on or before October 24, 2022.
ADDRESSES: Commenters are encouraged to submit comments by email, if
possible. You may submit comments by any of the following methods:
<bullet> Email: <a href="/cdn-cgi/l/email-protection#047476656d6a626b446b67672a70766165772a636b72"><span class="__cf_email__" data-cfemail="8bfbf9eae2e5ede4cbe4e8e8a5fff9eeeaf8a5ece4fd">[email protected]</span></a>.
<bullet> Mail: Chief Counsel's Office, Attention: Comment
Processing, Office of the Comptroller of the Currency, Attention: 1557-
0309, 400 7th Street SW, Suite 3E-218, Washington, DC 20219.
<bullet> Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
<bullet> Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``1557-0309'' in your comment. In general, the OCC will publish
comments on <a href="http://www.reginfo.gov">www.reginfo.gov</a> without change, including any business or
personal information provided, such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any
[[Page 51730]]
information in your comment or supporting materials that you consider
confidential or inappropriate for public disclosure.
Following the close of this notice's 60-day comment period, the OCC
will publish a second notice with a 30-day comment period. You may
review comments and other related materials that pertain to this
information collection beginning on the date of publication of the
second notice for this collection by the method set forth in the next
bullet.
<bullet> Viewing Comments Electronically: Go to <a href="http://www.reginfo.gov">www.reginfo.gov</a>.
Hover over the ``Information Collection Review'' drop down menu and
click on ``Information Collection Review.'' From the ``Currently under
Review'' drop-down menu, select ``Department of Treasury'' and then
click ``submit.'' This information collection can be located by
searching by OMB control number ``1557-0309'' or ``Reporting,
Recordkeeping, and Disclosure Requirements Associated with Proprietary
Trading and Certain Interests in and Relationships with Covered
Funds.'' Upon finding the appropriate information collection, click on
the related ``ICR Reference Number.'' On the next screen, select ``View
Supporting Statement and Other Documents'' and then click on the link
to any comment listed at the bottom of the screen.
<bullet> For assistance in navigating <a href="http://www.reginfo.gov">www.reginfo.gov</a>, please
contact the Regulatory Information Service Center at (202) 482-7340.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer,
(202) 649-5490, Chief Counsel's Office, Office of the Comptroller of
the Currency, 400 7th Street SW, Suite 3E-218, Washington, DC 20219. If
you are deaf, hard of hearing, or have a speech disability, please dial
7-1-1 to access telecommunications relay services.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520),
Federal agencies must obtain approval from the OMB for each collection
of information that they conduct or sponsor. ``Collection of
information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to
include agency requests or requirements that members of the public
submit reports, keep records, or provide information to a third party.
Section 3506(c)(2)(A) of title 44 requires Federal agencies to provide
a 60-day notice in the Federal Register concerning each proposed
collection of information, including each proposed extension of an
existing collection of information, before submitting the collection to
OMB for approval. To comply with this requirement, the OCC is
publishing notice of the renewal of the collection of information set
forth in this document.
Title: Reporting, Recordkeeping, and Disclosure Requirements
Associated with Proprietary Trading and Certain Interests in and
Relationships with Covered Funds.
OMB Control No.: 1557-0309.
Description: This submission covers an existing regulation and
involves no change to the regulation or to the information collection
requirements. The OCC requests only that OMB renew its approval of the
collection.
Section 13 of the Bank Holding Company (BHC) Act generally
prohibits any banking entity from engaging in proprietary trading or
from acquiring or retaining an ownership interest in, sponsoring, or
having certain relationships with a covered fund, subject to certain
exemptions. The exemptions allow certain types of permissible trading
and covered fund activities. The initial regulations implementing
section 13 became effective on April 1, 2014. Twelve CFR 44.20(d) and
Appendix A of the implementing regulations require certain of the
largest banking entities to report to the appropriate agency certain
quantitative measurements.
This collection of information was established pursuant to a rule
\1\ required by the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act), which was enacted on July 21, 2010.\2\
The rule implemented section 619 of the Dodd-Frank Act, which contains
certain prohibitions and restrictions on the ability of a banking
entity and nonbank financial company supervised by the Board of
Governors of the Federal Reserve System (FRB) to engage in proprietary
trading and have certain interests in, or relationships with, a hedge
fund or private equity fund.
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\1\ 79 FR 5536 (January 31, 2014).
\2\ Dodd-Frank Wall Street Reform and Consumer Protection Act,
Public Law 111-203, 124 Stat. 1376 (2010).
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Section 619 of the Dodd-Frank Act added a new section 13 to the BHC
Act (codified at 12 U.S.C. 1851) that generally prohibits any banking
entity from engaging in proprietary trading or from acquiring or
retaining an ownership interest in, sponsoring, or having certain
relationships with a hedge fund or private equity fund, subject to
certain exemptions. The OCC's version of the rule is codified at 12 CFR
part 44. The reporting, recordkeeping, and disclosure requirements
associated with the rule permit banking entities and the OCC to enforce
compliance with section 13 of the BHC Act and the rule and to identify,
monitor, and limit risks of activities permitted under section 13.
Section-By-Section Analysis
Section 44.3(d)(3), regarding excluded liquidity management
activities, includes recordkeeping requirements for security, foreign
exchange forward, foreign exchange swap, or cross-currency swap
transactions.
Section 44.4(b)(3)(i)(A), regarding permitted market making
activities, provides that a trading desk or other organizational unit
of another banking entity is not a client, customer, or counterparty of
a trading desk relying on the market-making exemption if that other
entity has trading assets and liabilities of $50 billion or more unless
the trading desk documents how and why a particular trading desk or
other organizational unit of the other entity should be treated as a
client, customer, or counterparty of the trading desk.
Section 44.4(c)(3)(i) requires a banking entity that relies on the
market making presumption of compliance to make available to the OCC
upon request records regarding (1) any limit that is exceeded and (2)
any temporary or permanent increase to any limit(s), in each case in
the form and manner as directed by the OCC.
Section 44.5(c) includes documentation requirements for banking
entities that have significant trading assets and liabilities and rely
on the risk-mitigating hedging exemption.
Section 44.10(c)(18)(ii)(C)(1) requires a banking entity relying on
the exclusion from the covered fund definition for customer
facilitation vehicles to maintain documentation outlining how the
banking entity intends to facilitate the customer's exposure to a
transaction, investment strategy, or service.
Section 44.11(a)(2) requires a banking entity (or an affiliate
thereof) that organizes and offers a covered fund in connection with
the provision of bona fide trust, fiduciary, investment advisory, or
commodity trading advisory services to persons that are customers of
such services of the banking entity (or an affiliate thereof) to
organize and offer the fund pursuant to a written plan or similar
documentation outlining how the banking entity or such affiliate
intends to provide advisory or similar services to its customers
through organizing and offering such fund.
Section 44.11(a)(8)(i) requires a banking entity that organizes and
offers
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covered funds to make certain disclosures to investors in such funds.
This provision also applies to banking entities relying on exclusions
for credit funds, venture capital funds, family wealth management
vehicles, or customer facilitation vehicles.
Section 44.12(e) outlines the requirements for requesting an
extension of time to divest an ownership interest in a covered fund.
Section 44.20(b) requires a compliance program from banking
entities with significant trading assets and liabilities.
Section 44.20(c) requires a CEO attestation from any banking entity
that has significant trading assets and liabilities.
Section 44.20(d) requires a banking entity with significant trading
assets and liabilities (or any other banking entity to which the OCC
has provided written notification) to report metrics specified in
appendix A. Section 20(d) further specifies that a banking entity that
is required to report these metrics must do so within 30 days of the
end of each calendar quarter.
Section 44.20(e) requires a banking entity with significant trading
assets and liabilities to maintain additional documentation for covered
funds.
Section 44.20(f)(1) provides that a banking entity with no covered
activities (other than trading activities permitted pursuant to Sec.
44.6(a) of subpart B) can satisfy the requirements of Sec. 44.20 by
establishing the required compliance program prior to becoming engaged
in such activities or making such investments.
Section 44.20(f)(2) provides that a banking entity with moderate
trading assets and liabilities may satisfy the requirements of Sec.
44.20 by including in its existing compliance policies and procedures
appropriate references to the requirements of section 13 of the BHC Act
and part 44 and adjustments as appropriate given its activities, size,
scope, and complexity.
Section 44.20(i) covers notice and response procedures. The OCC
will notify a banking entity in writing of any determination requiring
notice under part 44 and will provide an explanation of the
determination. The banking entity may respond to the notice and should
include any matters that the banking entity would have the OCC consider
in deciding whether to make the determination. The response must be in
writing and delivered to the designated OCC official within 30 days
after the date on which the banking entity received the notice.
Type of Review: Extension of a currently approved collection.
Affected Public: Individuals; Businesses or other for-profit.
Frequency of Response: On occasion.
Estimated Number of Respondents: 39.
Estimated Total Annual Burden: 20,410.
Comments submitted in response to this notice will be summarized
and included in the submission to OMB. Comments are requested on:
(a) Whether the information collections are necessary for the
proper performance of the OCC's functions, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimates of the burden of the
information collections, 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 collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Patrick T. Tierney,
Assistant Director, Bank Advisory, Office of the Comptroller of the
Currency.
[FR Doc. 2022-18142 Filed 8-22-22; 8:45 am]
BILLING CODE 4810-33-P
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</html>Indexed from Federal Register on August 23, 2022.
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