Notice2022-19356
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 8, 2022
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 new information collection described below.
Full Text
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<title>Federal Register, Volume 87 Issue 173 (Thursday, September 8, 2022)</title>
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[Federal Register Volume 87, Number 173 (Thursday, September 8, 2022)]
[Notices]
[Pages 55003-55005]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-19356]
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FEDERAL DEPOSIT INSURANCE CORPORATION
[OMB No. 3064-NEW]
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 new
information collection described below.
DATES: Comments must be submitted on or before November 7, 2022.
ADDRESSES: Interested parties are invited to submit written comments to
the FDIC by any of the following methods:
<bullet> Agency Website: <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#f794989a9a92998384b791939e94d9909881"><span class="__cf_email__" data-cfemail="55363a3838303b21261533313c367b323a23">[email 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 NW building (located on F Street
NW), on business days between 7:00 a.m. and 5:00 p.m.
All comments should refer to ``False Advertising, Misrepresentation
of Insured Status, and Misuse of the FDIC's Name or Logo.'' 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#6508060407001f042503010c064b020a13"><span class="__cf_email__" data-cfemail="a5c8c6c4c7c0dfc4e5c3c1ccc68bc2cad3">[email protected]</span></a>, MB-3128, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION: Proposal to establish a new collection of
information:
1. Title: False Advertising, Misrepresentation of Insured Status,
and Misuse of the FDIC's Name or Logo.
2. OMB Number: 3064-NEW
Affected Public: Non-bank entities that make statements regarding
the extent or manner of deposit insurance provided.
Burden Estimate:
Summary of Estimated Annual Burden
[OMB No. 3064-NEW]
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Type of burden Number of Time per
Information collection (frequency of Number of responses per response Annual burden
(obligation to respond) response) respondents respondent (HH:MM) (hours)
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Implementation
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Insured Depository Institution Disclosure 500 1 02:00 1,000
Relationships (12 CFR part (Occasional).
328.102(b)(5)) (Mandatory). (Annual)........
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Implementation Total...... ................ .............. .............. .............. 1,000
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Ongoing
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Insured Depository Institution Disclosure 1,500 1 00:30 750
Relationships (12 CFR part (Occasional).
328.102(b)(5)) (Mandatory). (Annual)........
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Ongoing Total............. ................ .............. .............. 750
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Source: FDIC.
[[Page 55004]]
Note: Annual burden estimates for a given collection are calculated first by multiplying the number of
respondents by the number of responses per respondent and rounded to the nearest whole number, which
represents the total number of annual responses. This number is then multiplied by the time per response to
obtain the estimated annual burden for that collection.
General Description of Collection:
The FDIC recently issued a final rule entitled ``False Advertising,
Misrepresentation of Insured Status, and Misuse of the FDIC's Name or
Logo'' (The Final Rule) \1\ that established the process by which the
Federal Deposit Insurance Corporation (FDIC) will identify and
investigate conduct that may violate section 18(a)(4) of the Federal
Deposit Insurance Act, the standards under which such conduct will be
evaluated, and the procedures which the Federal Deposit Insurance
Corporation will follow when formally and informally enforcing the
provisions of section 18(a)(4) of the Federal Deposit Insurance Act.
The Final Rule amended FDIC regulations under 12 CFR part 328 (part
328). In particular, certain amendments to part 328 impose disclosure
requirements for non-bank entities that make certain types of
statements regarding deposit insurance.\2\
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\1\ 87 FR 33415 (June 2, 2022).
\2\ 12 CFR 328.102(b)(5).
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Section 18(a)(4) of the Federal Deposit Insurance Act (FDI Act), 12
U.S.C. 1828(a)(4) (Section 18(a)(4)), prohibits any person from
engaging in false advertising by misusing the name or logo of the FDIC
or from making knowing misrepresentations about the existence of or the
extent or manner of deposit insurance.\3\ Section 18(a)(4) provides the
FDIC independent authority to investigate and take administrative
enforcement actions, including the power to issue cease and desist
orders and impose civil money penalties, against any person who misuses
the FDIC name or logo or makes misrepresentations about deposit
insurance. Part 328 sets out the FDIC's signage and advertising rules.
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\3\ Under Federal law, it is also criminal offense to misuse the
FDIC name or make false representations regarding deposit insurance.
See 18 U.S.C. 709.
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The Final Rule established a new subpart B to part 328, entitled
``False Advertising, Misrepresentation of Insured Status, and Misuse of
the FDIC's Name or Logo'' containing the new regulations. Section
328.102 of subpart B sets forth the conduct that is prohibited by
Section 18(a)(4). It further provides transparency by setting forth the
FDIC's interpretation of the scope of prohibited conduct, including
specific examples of conduct that the FDIC deems to violate Section
18(a)(4). The section further sets forth certain standards that the
FDIC will use to determine if a statement violates Section 18(a)(4).
Section 328.102 establishes that a statement regarding deposit
insurance will be deemed to omit material information if it does not
identify the insured depository institution(s) with which the
representing party has a direct or indirect business relationship for
the placement of deposits and into which the consumer's deposits may be
placed. Thereby, the Final Rule establishes third-party disclosure
requirements for non-bank entities that make statements regarding the
extent or manner of deposit insurance provided. These disclosure
requirements constitute an information collection under the Paperwork
Reduction Act (PRA) of 1995. As such, the FDIC is required to obtain
OMB approval of this new information collection. The PRA burdens
imposed by Sec. 328.102 can be categorized into two distinct burdens:
(1) implementation burdens that are incurred once by each respondent to
set up policies and procedures to ensure that its statements regarding
deposit insurance comply with the requirements in Sec. 328.102; and
(2) ongoing burdens that are incurred every year by each respondent to
maintain compliance with these requirements. Since these burdens have
separate frequencies and times per response, the FDIC is listing and
estimating these two burdens separately.
Potential respondents to this new information collection are non-
bank entities that make statements regarding the extent or manner of
deposit insurance provided. The FDIC does not have direct data on the
number of non-bank entities that would be affected by this requirement
upon implementation. FDIC believes that the non-bank entities affected
by the requirement would generally be classified in the following North
American Industry Classification System (NAICS) industries:
Miscellaneous Financial Investment Activities (NAICS Code 523999),
Financial Transaction Processing, Reserve & Clearinghouse Activities
(NAICS Code 522320), Computer System Design and Related Services (NAICS
Code 5415), and Investment Advice (NAICS Code 523930). According to
recent Census data, there were 144,556 firms in these NAICS industries
in 2019, the most recent year for which such data is available.\4\
However, FDIC believes that the requirement will only affect
approximately one percent of firms in these industries. Therefore, the
FDIC estimates that approximately 1,500 non-bank entities will be
affected by the third-party disclosure requirement.\5\
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\4\ (1,110 + 3,163 + 120,070 + 20,213 = 144,556) 2019 County
Business Patterns. See number of firms at <a href="https://www.census.gov/data/tables/2019/econ/susb/2019-susb-annual.html">https://www.census.gov/data/tables/2019/econ/susb/2019-susb-annual.html</a>, last retrieved on
June 30, 2022.
\5\ 0.01 * 144,556 [ap] 1,500.
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The 1,500 firms affected by this ICR are expected to implement
policies and procedures to ensure that its statements regarding deposit
insurance identify its partner insured depository institution(s), as
described in Sec. 328.102, in the year in which the adopted regulation
becomes effective. Annualized over a 3-year approval period, the
average annual number of affected firms is 370. FDIC is conservatively
assuming approximately 500 annual respondents to the implementation
burden.
In order to maintain compliance with the requirements of part 328,
each of the 1,500 firms described above must regularly update its
statements regarding deposit insurance to ensure that the statements
continually identify the insured depository institution(s) described in
Sec. 328.102. As such, FDIC estimates 1,500 annual respondents to the
ongoing burden.
The activities that respondents undergo to implement policies and
procedures to comply with part 328 can all be considered part of a
single response to the implementation requirement. Therefore, FDIC uses
one as the number of annual responses per respondent for
implementation. Similarly, activities throughout the year that are
performed by respondents to maintain compliance with part 328 can all
be considered as parts of a single annual response on an ongoing basis.
FDIC uses one as the number of annual responses per respondent for the
ongoing burden. Based on supervisory experience, FDIC estimates that
the annual burden for each non-bank entities to disclose the Insured
Depository Institution(s) with which the representing party has a
direct or indirect business relationship for the placement of deposits
and into which the consumer's deposits may be placed to be 2 hours per
response for implementation and 0.5 hours per response on an ongoing
basis.
[[Page 55005]]
Request for Comment
Comments are invited on: (a) Whether the collections of information
are 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 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; and (d) ways to minimize the burden of the collections 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.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on September 1, 2022.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2022-19356 Filed 9-7-22; 8:45 am]
BILLING CODE 6714-01-P
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