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Notice2023-04257

Agency Information Collection Activities: Proposed Collection Renewal; Comment Request

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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
March 2, 2023

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 collections described below (OMB Control No. 3064-0140;-0175).

Full Text

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<title>Federal Register, Volume 88 Issue 41 (Thursday, March 2, 2023)</title>
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<body><pre>[Federal Register Volume 88, Number 41 (Thursday, March 2, 2023)]
[Notices]
[Pages 13117-13119]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04257]


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FEDERAL DEPOSIT INSURANCE

[OMB No. 3064-0140;-0175]


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 collections described below (OMB Control No. 
3064-0140;-0175).

DATES: Comments must be submitted on or before May 1, 2023.

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#0a696567676f647e794a6c6e6369246d657c"><span class="__cf_email__" data-cfemail="53303c3e3e363d27201335373a307d343c25">[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 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 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.

[[Page 13118]]


FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, <a href="/cdn-cgi/l/email-protection#49242a282b2c3328092f2d202a672e263f"><span class="__cf_email__" data-cfemail="7b16181a191e011a3b1d1f1218551c140d">[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 collection of information:
    1. Title: Insurance Sales Consumer Protections.
    OMB Number: 3064-0140.
    Forms: None.
    Affected Public: Insured State nonmember banks and savings 
associations that sell insurance products; persons who sell insurance 
in or on behalf of insured State nonmember banks and savings 
associations.
    Burden Estimate:

                                       Summary of Estimated Annual Burden
                                               [OMB No. 3064-0140]
----------------------------------------------------------------------------------------------------------------
                                 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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1. Insurance Sales Consumer     Third Party                1,101               1           05:00           5,505
 Protections, 12 CFR 343         Disclosure (On
 (Mandatory).                    Occasion).
                                                 ---------------------------------------------------------------
    Total Annual Burden         ................  ..............  ..............  ..............           5,505
     (Hours).
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Source: FDIC.

    General Description of Collection: Respondents must prepare and 
provide certain disclosures to consumers (e.g., that insurance products 
and annuities are not FDIC-insured) and obtain consumer 
acknowledgments, at two different times: (1) Before the completion of 
the initial sale of an insurance product or annuity to a consumer; and 
(2) at the time of application for the extension of credit (if 
insurance products or annuities are sold, solicited, advertised, or 
offered in connection with an extension of credit). There is no change 
in the substance or methodology of this information collection. The 
decrease in burden is due solely to a decrease in the estimated number 
of respondents.
    The disclosure requirements in this information collection apply to 
all FDIC-supervised IDIs that sell insurance products. According to 
recent Reports of Condition and Income (Call Report), there are 
currently 3,068 FDIC-supervised IDIs.\1\ To estimate the number of IDIs 
that would be directly affected by this ICR, FDIC restricts the count 
to those IDIs that report income from the sale of insurance on their 
Call Reports. IDIs report income from insurance activities differently 
depending on which Call Report form they file. IDIs file Call Report 
form 051 if they have less than $1 billion in total assets and do not 
have any foreign offices, and they file forms 031 or 041 otherwise. 
IDIs that file form 051 report income from insurance activities on Call 
Report schedule RI line 5(d) 2, while IDIs that file forms 031 or 041 
report income from annuity sales, underwriting income from insurance 
and reinsurance activities, and other income from insurance activities 
on Call Report schedule RI lines 5(d) 3-5.
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    \1\ FDIC Call Report data, September 2022.
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    As of September 30, 2022, 321 FDIC-supervised IDIs reported non-
zero values of income from annuity sales, underwriting income from 
insurance and reinsurance activities, or income from other insurance 
activities on Call Report forms 031 or 041. Another 780 FDIC-supervised 
IDIs reported non-zero values of income from insurance activities on 
Call Report form 051.\2\ Accordingly, the estimated number of 
respondents for this information collection is 1,101.\3\
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    \2\ Id.
    \3\ 321 + 780 = 1,101.
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    2. Title: Interagency Guidance on Sound Incentive Compensation 
Policies.
    OMB Number: 3064-0175.
    Forms: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                       Summary of Estimated Annual Burden
                                               [OMB No. 3064-0175]
----------------------------------------------------------------------------------------------------------------
                                 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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1. Initial documentation:       Recordkeeping                  1               1           40:00              40
 Interagency Guidance on Sound   (Annual).
 Incentive Compensation
 Practices, 75 FR 36395
 (Voluntary).
2. Revision of initial          Recordkeeping              1,985               1           02:00           3,970
 documentation: Interagency      (Annual).
 Guidance on Sound Incentive
 Compensation Practices, 75 FR
 36395 (Voluntary).
                                                 ---------------------------------------------------------------
    Total Annual Burden         ................  ..............  ..............  ..............           4,010
     (Hours).
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Source: FDIC.

    General Description of Collection: This Guidance helps promote that 
incentive compensation policies at insured state non-member banks do 
not encourage excessive risk-taking and are consistent with the safety 
and soundness of the organization. Under this Guidance, banks are 
encouraged to: (i) Have policies and procedures that

[[Page 13119]]

identify and describe the role(s) of the personnel and units authorized 
to be involved in incentive compensation arrangements, identify the 
source of significant risk-related inputs, establish appropriate 
controls governing these inputs to help ensure their integrity, and 
identify the individual(s) and unit(s) whose approval is necessary for 
the establishment or modification of incentive compensation 
arrangements; (ii) create and maintain sufficient documentation to 
permit an audit of the organization's processes for incentive 
compensation arrangements; (iii) have any material exceptions or 
adjustments to the incentive compensation arrangements established for 
senior executives approved and documented by its board of directors; 
and (iv) have its board of directors receive and review, on an annual 
or more frequent basis, an assessment by management of the 
effectiveness of the design and operation of the organization's 
incentive compensation system in providing risk taking incentives that 
are consistent with the organization's safety and soundness. There is 
no change in the substance or methodology of this information 
collection. The change in burden is due to a decrease in the estimated 
number of respondents. The burden hours decreased by 358 from 4,368 to 
4,010.

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 February 27, 2023.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2023-04257 Filed 3-1-23; 8:45 am]
BILLING CODE 6714-01-P


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Indexed from Federal Register on March 2, 2023.

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