Electronic Filing and Disclosure of Beneficial Ownership Reports, 46403-46405 [05-15750]
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46403
Rules and Regulations
Federal Register
Vol. 70, No. 153
Wednesday, August 10, 2005
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 11
[Docket No. 05–14]
RIN 1557–AC75
Electronic Filing and Disclosure of
Beneficial Ownership Reports
Office of the Comptroller of the
Currency, Treasury.
ACTION: Final rule.
AGENCY:
SUMMARY: The Office of the Comptroller
of the Currency (OCC) is issuing this
final rule to adopt in final form, without
substantive change, an interim rule to
amend the OCC’s rules, policies, and
procedures to require the electronic
filing of beneficial ownership reports by
officers, directors, and major
shareholders of national banks that have
equity securities registered under the
Securities Exchange Act of 1934.
As required by the interim rule, this
final rule requires that all reports filed
with the OCC under section 16(a) of the
Securities Exchange Act of 1934 must be
filed electronically and posted on a
registered national bank’s Web site, if it
has one, as soon as practicable. This
final rule clarifies procedures for
officers, directors, and principal
shareholders of registered national
banks to comply with these mandated
electronic filing requirements.
DATES: This final rule is effective on
September 9, 2005.
FURTHER INFORMATION CONTACT: Asa
Chamberlayne, Counsel, Securities and
Corporate Practices Division, 202–874–
5210, or Martha Vestal Clarke, Counsel,
Legislative and Regulatory Activities
Division, 202–874–5090.
SUPPLEMENTARY INFORMATION:
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13:34 Aug 09, 2005
Jkt 205001
Background
The Securities Exchange Act of 1934
(Exchange Act) seeks to protect
investors by requiring accurate, reliable,
and timely corporate securities
disclosures. Generally, companies with
equity securities that are subject to the
registration requirements under section
12 of the Exchange Act (15 U.S.C. 78l)
must register these securities with the
Securities and Exchange Commission
(SEC). Section 16(a) of the Exchange Act
(15 U.S.C. 78p(a)) requires directors,
executive officers, and direct or indirect
beneficial owners of more than 10
percent of a class of securities that are
registered under the Exchange Act
(insiders) to file beneficial ownership
reports regarding their ownership and
transactions in the company’s
securities.1 Section 12(i) of the
Exchange Act (15 U.S.C. 78l(i)) vests the
OCC, rather than the SEC, with the
power to issue regulations
implementing certain Exchange Act
requirements with respect to national
banks that have equity securities
registered under the Exchange Act
(registered national banks), including
section 16, and with the authority to
administer and enforce these
requirements.2
As amended by the Sarbanes-Oxley
Act of 2002, Pub. L. 107–204, section
16(a) requires that insiders of a
registered company, including a
registered national bank, must file
beneficial ownership reports: (1) At the
time the company registers its securities
pursuant to section 12 of the Exchange
Act; (2) within 10 days after becoming
an insider of a registered national bank;
and (3) within two business days after
an insider consummates a transaction
resulting in a change in ownership, or
resulting in the purchase or sale of a
security-based swap agreement,3 in the
registered securities. These provisions
became effective on August 29, 2002.
Section 16(a)(4) (15 U.S.C. 78p(a)(4))
also requires that, beginning July 30,
1 Section 16(a) also requires an entity that has
registered its securities under the Exchange Act to
file initial and transactional reports with any
national securities exchange on which it has listed
its securities. See 15 U.S.C. 78p(a).
2 Under section 12(i), the other Federal banking
agencies have the same authority with respect to the
registered depository institutions that they
supervise. See 15 U.S.C. 78l(i).
3 The term ‘‘security-based swap agreement’’ is
defined in section 206(b) of the Gramm-LeachBliley Act (15 U.S.C. 78c note).
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Frm 00001
Fmt 4700
Sfmt 4700
2003, insiders must file their change-inownership reports electronically.
Moreover, the SEC, and the OCC in the
case of registered national banks, must
make these filings available to the
public on the Internet not later than the
end of the business day following the
filing. Also, a registered company,
including a registered national bank,
must post its insiders’ change-inownership reports on its Web site, if it
has a Web site, not later than the end
of the business day following the filing.
The SEC’s final rules implementing
these requirements for other public
companies mandate that all beneficial
ownership reports filed under section
16(a), not only the change-in-ownership
reports, must be filed electronically and
posted on a public company’s Web site,
if the company has a Web site, not later
than the end of the business day
following the filing. In addition, the SEC
provides Internet access to all such
filings that are filed with the SEC. The
SEC’s rules were effective for all section
16(a) filings that are made on or after
June 30, 2003.4
The SEC’s final rules also amended 17
CFR 240.16a–3, which applies to
registered national banks through the
OCC’s regulations at 12 CFR 11.2(b)(2).
As amended by the SEC, 17 CFR
240.16a–3 provides that any issuer with
a corporate Web site must post any
section 16(a) report on that Web site by
the end of the business day after the
filing, and the filing must remain
accessible on the Web site for at least 12
months. These same requirements apply
to registered national banks.
On September 22, 2003, the OCC
published and requested comment on
an interim rule amending 12 CFR part
11 (see 68 FR 54981). In the interim
rule, we imposed requirements similar
to those adopted by the SEC and
required that all section 16(a) reports
must be filed electronically by the
required due dates. To provide for the
electronic filing of insiders’ reports
under section 16(a) of the Exchange Act,
the Federal Deposit Insurance
Corporation, the Board of Governors of
the Federal Reserve System, and the
OCC created an electronic filing system
utilizing the FDICconnect secure Web
platform. This filing system became
operational on July 30, 2003.
In order to assure that this new
system was operating effectively, we did
4 See
E:\FR\FM\10AUR1.SGM
68 FR 25788 (May 13, 2003).
10AUR1
46404
Federal Register / Vol. 70, No. 153 / Wednesday, August 10, 2005 / Rules and Regulations
not require compliance with the
electronic filing and Web site posting
requirements until January 1, 2004. We
advised that, before January 1, 2004, to
the extent practicable, registered
national banks should post the section
16(a) filings on their Web sites and their
insiders should file their section 16(a)
reports electronically.
authority citation for part 11 that is no
longer necessary. The OCC made this
change already in a final rule amending
12 CFR parts 11 and 16, ‘‘Reporting and
Disclosure Requirements for National
Banks With Securities Registered Under
the Securities Exchange Act of 1934;
Securities Offering Disclosure Rules,’’.
See 68 FR 68489 (Dec. 9, 2003).
Description of Comments and Final
Rule
The comment period on the interim
rule ended November 21, 2003, and no
comments were received. Moreover,
while a very few banks may have had
some minor problems connecting to or
filing reports on FDICconnect in the
past, no further problems have been
reported. Thus, the OCC is adopting the
interim rule as a final rule with no
substantive modifications.
Accordingly, the final rule revises 12
CFR 11.3(a), which relates to filing
requirements and the inspection of
documents filed with the OCC pursuant
to the Exchange Act. The rule contains
a new § 11.3(a)(2), which provides that
statements that are required to be filed
electronically pursuant to section 16(a)
of the Exchange Act shall be filed
electronically. New § 11.3(a)(4) clarifies
that the electronic filing and Web site
posting requirements are mandatory for
section 16(a) statements that are
required to be filed on or after January
1, 2004.
The final rule also adds a new
§ 11.3(a)(3)(ii) which provides that an
electronic filing pursuant to section
16(a) of the Exchange Act submitted by
direct transmission on or before 10 p.m.
Eastern Standard Time or Eastern
Daylight Savings Time, whichever is
currently in effect, shall be deemed filed
on the same business day. This aspect
of the final rule is consistent with the
SEC’s rules applicable to electronic
filings that apply to other registered
companies. See 17 CFR 232.13(a)(4).
The OCC’s current rule at § 11.2(b)(2)
references the requirements in the SEC’s
rules that a public company that has a
Web site must post any filings on Forms
3, 4, or 5— the forms for filing beneficial
ownership reports under section 16(a) of
the Exchange Act—by the end of the
business day after the filing and
continue to make that form accessible
on its Web site for at least 12 months.
See 17 CFR 240.16a–3. Under the OCC’s
current rules, a registered national bank
is required to post these filings on its
Web site, if it has one, in accordance
with 17 CFR 240.16a–3.
The OCC has adopted the interim rule
with one technical modification
concerning the authority citation. The
interim rule contained a change to the
Regulatory Analysis
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13:34 Aug 09, 2005
Jkt 205001
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995, the OCC may not
conduct or sponsor, and a respondent is
not required to respond to, an
information collection unless it displays
a currently valid Office of Management
and Budget (OMB) control number. The
collections of information requirements
in 12 CFR part 11, including the
requirements in this final rule, have
been submitted to and approved by
OMB under OMB Control Number
1557–0106.
Regulatory Flexibility Act
Pursuant to section 605(b) of the
Regulatory Flexibility Act, 5 U.S.C.
605(b) (RFA), the regulatory flexibility
analysis otherwise required under
section 604 of the RFA is not required
if the agency certifies that the rule will
not have a significant economic impact
on a substantial number of small entities
and publishes its certification and a
short, explanatory statement in the
Federal Register along with its rule. As
of December 31, 2002, there were
approximately 25 registered national
banks subject to the amendments to part
11. As of the same date, only 15 of these
institutions have assets of less than $100
million and are considered small
entities for purposes of the RFA. See 5
U.S.C. 601; 13 CFR 121.201.
Based on the relatively small number
of national banks affected by the final
rule and the fact that the requirements
will not materially change the operating
environment for those banks, the OCC
hereby certifies that this rulemaking
will not have a significant economic
impact on a substantial number of small
entities. Accordingly, a regulatory
flexibility analysis is not needed.
Unfunded Mandates Reform Act of
1995
Section 202 of the Unfunded
Mandates Reform Act of 1995, Pub. L.
104–04 (Unfunded Mandates Act)
requires that an agency prepare a
budgetary impact statement before
promulgating a rule that includes a
Federal mandate that may result in
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
in any one year. If a budgetary impact
statement is required, section 205 of the
Unfunded Mandates Act also requires
an agency to identify and consider a
reasonable number of regulatory
alternatives before promulgating a rule.
The OCC has determined that the final
rule will not result in expenditures by
State, local, or tribal governments or by
the private sector of $100 million or
more. Accordingly, the OCC has not
prepared a budgetary impact statement
or specifically addressed the regulatory
alternatives considered.
Executive Order 12866
The OCC has determined that this
final rule does not constitute a
‘‘significant regulatory action’’ for the
purposes of Executive Order 12866.
List of Subjects in 12 CFR Part 11
Confidential business information,
National banks, Reporting and
recordkeeping requirements, Securities.
PART 11—SECURITIES EXCHANGE
ACT DISCLOSURE RULES
1. The authority citation for part 11
continues to read as follows:
I
Authority: 12 U.S.C. 93a; 15 U.S.C. 78l,
78m, 78n, 78p, 78w, 7241, 7242, 7243, 7244,
7261, 7262, 7264 and 7265.
2. In § 11.3, paragraph (a) is revised to
read as follows:
I
§ 11.3 Filing requirements and inspection
of documents.
(a) Filing requirements. (1) General.
Except as otherwise provided in this
section, all papers required to be filed
with the OCC pursuant to the 1934 Act
or regulations thereunder shall be
submitted in quadruplicate to the
Securities and Corporate Practices
Division, Office of the Comptroller of
the Currency, 250 E Street, SW.,
Washington, DC 20219. Material may be
filed by delivery to the OCC through the
mail, by fax (202–874–5279), or
otherwise.
(2) Statements filed pursuant to
section 16(a) of the 1934 Act.
Statements required under section 16(a)
of the 1934 Act shall be filed
electronically, as directed by the OCC.
(3) Date of filing. (i) General. The date
on which papers are actually received
by the OCC shall be the date of filing,
if the person or bank filing the papers
has complied with all applicable
requirements.
(ii) Electronic filings. An electronic
filing of a statement required under
section 16(a) of the 1934 Act that is
submitted by direct transmission on or
before 10 p.m. Eastern Standard Time or
Eastern Daylight Savings Time,
E:\FR\FM\10AUR1.SGM
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Federal Register / Vol. 70, No. 153 / Wednesday, August 10, 2005 / Rules and Regulations
whichever is currently in effect, shall be
deemed filed on the same business day.
(4) Mandatory compliance date.
Compliance with paragraph (a)(2) of this
section and any applicable requirements
that such statements must be posted on
a registered national bank’s Web site are
mandatory for statements required to be
filed on or after January 1, 2004.
*
*
*
*
*
Dated: August 3, 2005.
Julie L. Williams,
Acting Comptroller of the Currency.
[FR Doc. 05–15750 Filed 8–9–05; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF DEFENSE
Department of the Air Force
Air Force Instruction 33–332; Privacy
Act of 1974; Implementation
Department of the Air Force.
ACTION: Final rule.
AGENCY:
SUMMARY: The Department of the Air
Force is deleting an exemption rule for
the system of records F031 DOD A,
entitled ‘‘Joint Personnel Adjudication
System (JPAS)’’. The system of records
was transferred to the Defense Security
Service and assigned the identifier V5–
05, entitled ‘‘Joint Personnel
Adjudication System (JPAS)’’, which
was published in the Federal Register
on July 1, 2005 (70 FR 38120). The
exemption rule for the system of records
also was transferred to the Defense
Security Service and incorporated into
its existing rules at 32 CFR 321.13(h)
which was published in the Federal
Register on July 1, 2005 (70 FR 38009).
The exemption rule for the system of
records is therefore being deleted.
DATES: Effective August 10, 2005.
FOR FURTHER INFORMATION CONTACT: Mrs.
Novella Hill at (703) 588–7855.
SUPPLEMENTARY INFORMATION:
Executive Order 12866, ‘‘Regulatory
Planning and Review’’
It has been determined that Privacy
Act rules for the Department of Defense
are not significant rules. The rules do
not (1) Have an annual effect on the
economy of $100 million or more or
adversely affect in a material way the
economy; a sector of the economy;
productivity; competition; jobs; the
environment; public health or safety; or
State, local, or tribal governments or
communities; (2) Create a serious
inconsistency or otherwise interfere
with an action taken or planned by
13:34 Aug 09, 2005
Jkt 205001
Public Law 96–354, ‘‘Regulatory
Flexibility Act’’ (5 U.S.C. Chapter 6)
It has been determined that Privacy
Act rules for the Department of Defense
do not have significant economic impact
on a substantial number of small entities
because they are concerned only with
the administration of Privacy Act
systems of records within the
Department of Defense.
Public Law 96–511, ‘‘Paperwork
Reduction Act’’ (44 U.S.C. Chapter 35)
32 CFR Part 806b
VerDate jul<14>2003
another Agency; (3) Materially alter the
budgetary impact of entitlements,
grants, user fees, or loan programs, or
the rights and obligations of recipients
thereof; or (4) Raise novel legal or policy
issues arising out of legal mandates, the
President’s priorities, or the principles
set forth in this Executive order.
It has been determined that Privacy
Act rules for the Department of Defense
impose no information requirements
beyond the Department of Defense and
that the information collected within
the Department of Defense is necessary
and consistent with 5 U.S.C. 552a,
known as the Privacy Act of 1974.
Section 202, Public Law 104–4,
‘‘Unfunded Mandates Reform Act’’
It has been determined that Privacy
Act rulemaking for the Department of
Defense does not involve a Federal
mandate that may result in the
expenditure by State, local and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
and that such rulemaking will not
significantly or uniquely affect small
governments.
Executive Order 13132, ‘‘Federalism’’
It has been determined that Privacy
Act rules for the Department of Defense
do not have federalism implications.
The rules do not have substantial direct
effects on the States, on the relationship
between the National Government and
the States, or on the distribution of
power and responsibilities among the
various levels of government.
List of Subjects in 32 CFR Part 806b
Privacy.
Accordingly, 32 CFR 806b is to be
amended to read as follows:
I
PART 806B—PRIVACY ACT PROGRAM
1. The authority citation for 32 CFR
part 806b continues to read as follows:
I
Authority: Pub. L. 93–579, 88 Stat. 1896 (5
U.S.C. 552a).
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Fmt 4700
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Appendix D
46405
[Amended]
2. In part 806b, paragraph (f)(19) of
Appendix D is removed and reserved as
follows:
I
Appendix D to Part 806b—General and
Specific Exemptions
*
*
*
*
*
(f)(19) [Reserved]
*
*
*
*
*
Dated: August 4, 2005.
Jeannette Owings-Ballard,
OSD Federal Register Liaison Officer,
Department of Defense.
[FR Doc. 05–15787 Filed 8–9–05; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[CGD05–05–073]
RIN 1625–AA08
Special Local Regulations for Marine
Events; Manasquan River, Manasquan
Inlet and Atlantic Ocean, Point
Pleasant Beach to Bay Head, NJ,
Change of Location
Coast Guard, DHS.
Temporary final rule;
amendment.
AGENCY:
ACTION:
SUMMARY: On July 15, 2005, the Coast
Guard published a temporary final rule
in the Federal Register establishing
temporary special local regulations for
the ‘‘Point Pleasant OPA/NJ Offshore
Grand Prix’’, a marine event to be held
on the waters of the Manasquan River,
Manasquan Inlet and Atlantic Ocean
between Point Pleasant Beach and Bay
Head, New Jersey. On July 21, 2005, the
Coast Guard learned that this marine
event was proposed to be conducted at
a different location. This rule changes
the location of the temporary regulated
area. These special local regulations are
necessary to provide for the safety of life
on navigable waters during the event.
This action is intended to restrict vessel
traffic in the regulated area during the
event.
DATES: This rule is effective from 9:30
a.m. on August 12, 2005, to 3:30 p.m. on
August 13, 2005.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket, are part of docket CGD05–05–
073 and are available for inspection or
copying at Commander (oax), Fifth
Coast Guard District, 431 Crawford
Street, Portsmouth, Virginia 23704–
E:\FR\FM\10AUR1.SGM
10AUR1
Agencies
[Federal Register Volume 70, Number 153 (Wednesday, August 10, 2005)]
[Rules and Regulations]
[Pages 46403-46405]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-15750]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 70, No. 153 / Wednesday, August 10, 2005 /
Rules and Regulations
[[Page 46403]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 11
[Docket No. 05-14]
RIN 1557-AC75
Electronic Filing and Disclosure of Beneficial Ownership Reports
AGENCY: Office of the Comptroller of the Currency, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Office of the Comptroller of the Currency (OCC) is issuing
this final rule to adopt in final form, without substantive change, an
interim rule to amend the OCC's rules, policies, and procedures to
require the electronic filing of beneficial ownership reports by
officers, directors, and major shareholders of national banks that have
equity securities registered under the Securities Exchange Act of 1934.
As required by the interim rule, this final rule requires that all
reports filed with the OCC under section 16(a) of the Securities
Exchange Act of 1934 must be filed electronically and posted on a
registered national bank's Web site, if it has one, as soon as
practicable. This final rule clarifies procedures for officers,
directors, and principal shareholders of registered national banks to
comply with these mandated electronic filing requirements.
DATES: This final rule is effective on September 9, 2005.
FURTHER INFORMATION CONTACT: Asa Chamberlayne, Counsel, Securities and
Corporate Practices Division, 202-874-5210, or Martha Vestal Clarke,
Counsel, Legislative and Regulatory Activities Division, 202-874-5090.
SUPPLEMENTARY INFORMATION:
Background
The Securities Exchange Act of 1934 (Exchange Act) seeks to protect
investors by requiring accurate, reliable, and timely corporate
securities disclosures. Generally, companies with equity securities
that are subject to the registration requirements under section 12 of
the Exchange Act (15 U.S.C. 78l) must register these securities with
the Securities and Exchange Commission (SEC). Section 16(a) of the
Exchange Act (15 U.S.C. 78p(a)) requires directors, executive officers,
and direct or indirect beneficial owners of more than 10 percent of a
class of securities that are registered under the Exchange Act
(insiders) to file beneficial ownership reports regarding their
ownership and transactions in the company's securities.\1\ Section
12(i) of the Exchange Act (15 U.S.C. 78l(i)) vests the OCC, rather than
the SEC, with the power to issue regulations implementing certain
Exchange Act requirements with respect to national banks that have
equity securities registered under the Exchange Act (registered
national banks), including section 16, and with the authority to
administer and enforce these requirements.\2\
---------------------------------------------------------------------------
\1\ Section 16(a) also requires an entity that has registered
its securities under the Exchange Act to file initial and
transactional reports with any national securities exchange on which
it has listed its securities. See 15 U.S.C. 78p(a).
\2\ Under section 12(i), the other Federal banking agencies have
the same authority with respect to the registered depository
institutions that they supervise. See 15 U.S.C. 78l(i).
---------------------------------------------------------------------------
As amended by the Sarbanes-Oxley Act of 2002, Pub. L. 107-204,
section 16(a) requires that insiders of a registered company, including
a registered national bank, must file beneficial ownership reports: (1)
At the time the company registers its securities pursuant to section 12
of the Exchange Act; (2) within 10 days after becoming an insider of a
registered national bank; and (3) within two business days after an
insider consummates a transaction resulting in a change in ownership,
or resulting in the purchase or sale of a security-based swap
agreement,\3\ in the registered securities. These provisions became
effective on August 29, 2002.
---------------------------------------------------------------------------
\3\ The term ``security-based swap agreement'' is defined in
section 206(b) of the Gramm-Leach-Bliley Act (15 U.S.C. 78c note).
---------------------------------------------------------------------------
Section 16(a)(4) (15 U.S.C. 78p(a)(4)) also requires that,
beginning July 30, 2003, insiders must file their change-in-ownership
reports electronically. Moreover, the SEC, and the OCC in the case of
registered national banks, must make these filings available to the
public on the Internet not later than the end of the business day
following the filing. Also, a registered company, including a
registered national bank, must post its insiders' change-in-ownership
reports on its Web site, if it has a Web site, not later than the end
of the business day following the filing.
The SEC's final rules implementing these requirements for other
public companies mandate that all beneficial ownership reports filed
under section 16(a), not only the change-in-ownership reports, must be
filed electronically and posted on a public company's Web site, if the
company has a Web site, not later than the end of the business day
following the filing. In addition, the SEC provides Internet access to
all such filings that are filed with the SEC. The SEC's rules were
effective for all section 16(a) filings that are made on or after June
30, 2003.\4\
---------------------------------------------------------------------------
\4\ See 68 FR 25788 (May 13, 2003).
---------------------------------------------------------------------------
The SEC's final rules also amended 17 CFR 240.16a-3, which applies
to registered national banks through the OCC's regulations at 12 CFR
11.2(b)(2). As amended by the SEC, 17 CFR 240.16a-3 provides that any
issuer with a corporate Web site must post any section 16(a) report on
that Web site by the end of the business day after the filing, and the
filing must remain accessible on the Web site for at least 12 months.
These same requirements apply to registered national banks.
On September 22, 2003, the OCC published and requested comment on
an interim rule amending 12 CFR part 11 (see 68 FR 54981). In the
interim rule, we imposed requirements similar to those adopted by the
SEC and required that all section 16(a) reports must be filed
electronically by the required due dates. To provide for the electronic
filing of insiders' reports under section 16(a) of the Exchange Act,
the Federal Deposit Insurance Corporation, the Board of Governors of
the Federal Reserve System, and the OCC created an electronic filing
system utilizing the FDICconnect secure Web platform. This filing
system became operational on July 30, 2003.
In order to assure that this new system was operating effectively,
we did
[[Page 46404]]
not require compliance with the electronic filing and Web site posting
requirements until January 1, 2004. We advised that, before January 1,
2004, to the extent practicable, registered national banks should post
the section 16(a) filings on their Web sites and their insiders should
file their section 16(a) reports electronically.
Description of Comments and Final Rule
The comment period on the interim rule ended November 21, 2003, and
no comments were received. Moreover, while a very few banks may have
had some minor problems connecting to or filing reports on FDICconnect
in the past, no further problems have been reported. Thus, the OCC is
adopting the interim rule as a final rule with no substantive
modifications.
Accordingly, the final rule revises 12 CFR 11.3(a), which relates
to filing requirements and the inspection of documents filed with the
OCC pursuant to the Exchange Act. The rule contains a new Sec.
11.3(a)(2), which provides that statements that are required to be
filed electronically pursuant to section 16(a) of the Exchange Act
shall be filed electronically. New Sec. 11.3(a)(4) clarifies that the
electronic filing and Web site posting requirements are mandatory for
section 16(a) statements that are required to be filed on or after
January 1, 2004.
The final rule also adds a new Sec. 11.3(a)(3)(ii) which provides
that an electronic filing pursuant to section 16(a) of the Exchange Act
submitted by direct transmission on or before 10 p.m. Eastern Standard
Time or Eastern Daylight Savings Time, whichever is currently in
effect, shall be deemed filed on the same business day. This aspect of
the final rule is consistent with the SEC's rules applicable to
electronic filings that apply to other registered companies. See 17 CFR
232.13(a)(4).
The OCC's current rule at Sec. 11.2(b)(2) references the
requirements in the SEC's rules that a public company that has a Web
site must post any filings on Forms 3, 4, or 5-- the forms for filing
beneficial ownership reports under section 16(a) of the Exchange Act--
by the end of the business day after the filing and continue to make
that form accessible on its Web site for at least 12 months. See 17 CFR
240.16a-3. Under the OCC's current rules, a registered national bank is
required to post these filings on its Web site, if it has one, in
accordance with 17 CFR 240.16a-3.
The OCC has adopted the interim rule with one technical
modification concerning the authority citation. The interim rule
contained a change to the authority citation for part 11 that is no
longer necessary. The OCC made this change already in a final rule
amending 12 CFR parts 11 and 16, ``Reporting and Disclosure
Requirements for National Banks With Securities Registered Under the
Securities Exchange Act of 1934; Securities Offering Disclosure
Rules,''. See 68 FR 68489 (Dec. 9, 2003).
Regulatory Analysis
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995, the OCC may
not conduct or sponsor, and a respondent is not required to respond to,
an information collection unless it displays a currently valid Office
of Management and Budget (OMB) control number. The collections of
information requirements in 12 CFR part 11, including the requirements
in this final rule, have been submitted to and approved by OMB under
OMB Control Number 1557-0106.
Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act, 5
U.S.C. 605(b) (RFA), the regulatory flexibility analysis otherwise
required under section 604 of the RFA is not required if the agency
certifies that the rule will not have a significant economic impact on
a substantial number of small entities and publishes its certification
and a short, explanatory statement in the Federal Register along with
its rule. As of December 31, 2002, there were approximately 25
registered national banks subject to the amendments to part 11. As of
the same date, only 15 of these institutions have assets of less than
$100 million and are considered small entities for purposes of the RFA.
See 5 U.S.C. 601; 13 CFR 121.201.
Based on the relatively small number of national banks affected by
the final rule and the fact that the requirements will not materially
change the operating environment for those banks, the OCC hereby
certifies that this rulemaking will not have a significant economic
impact on a substantial number of small entities. Accordingly, a
regulatory flexibility analysis is not needed.
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L.
104-04 (Unfunded Mandates Act) requires that an agency prepare a
budgetary impact statement before promulgating a rule that includes a
Federal mandate that may result in expenditure by State, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more in any one year. If a budgetary impact statement is
required, section 205 of the Unfunded Mandates Act also requires an
agency to identify and consider a reasonable number of regulatory
alternatives before promulgating a rule. The OCC has determined that
the final rule will not result in expenditures by State, local, or
tribal governments or by the private sector of $100 million or more.
Accordingly, the OCC has not prepared a budgetary impact statement or
specifically addressed the regulatory alternatives considered.
Executive Order 12866
The OCC has determined that this final rule does not constitute a
``significant regulatory action'' for the purposes of Executive Order
12866.
List of Subjects in 12 CFR Part 11
Confidential business information, National banks, Reporting and
recordkeeping requirements, Securities.
PART 11--SECURITIES EXCHANGE ACT DISCLOSURE RULES
0
1. The authority citation for part 11 continues to read as follows:
Authority: 12 U.S.C. 93a; 15 U.S.C. 78l, 78m, 78n, 78p, 78w,
7241, 7242, 7243, 7244, 7261, 7262, 7264 and 7265.
0
2. In Sec. 11.3, paragraph (a) is revised to read as follows:
Sec. 11.3 Filing requirements and inspection of documents.
(a) Filing requirements. (1) General. Except as otherwise provided
in this section, all papers required to be filed with the OCC pursuant
to the 1934 Act or regulations thereunder shall be submitted in
quadruplicate to the Securities and Corporate Practices Division,
Office of the Comptroller of the Currency, 250 E Street, SW.,
Washington, DC 20219. Material may be filed by delivery to the OCC
through the mail, by fax (202-874-5279), or otherwise.
(2) Statements filed pursuant to section 16(a) of the 1934 Act.
Statements required under section 16(a) of the 1934 Act shall be filed
electronically, as directed by the OCC.
(3) Date of filing. (i) General. The date on which papers are
actually received by the OCC shall be the date of filing, if the person
or bank filing the papers has complied with all applicable
requirements.
(ii) Electronic filings. An electronic filing of a statement
required under section 16(a) of the 1934 Act that is submitted by
direct transmission on or before 10 p.m. Eastern Standard Time or
Eastern Daylight Savings Time,
[[Page 46405]]
whichever is currently in effect, shall be deemed filed on the same
business day.
(4) Mandatory compliance date. Compliance with paragraph (a)(2) of
this section and any applicable requirements that such statements must
be posted on a registered national bank's Web site are mandatory for
statements required to be filed on or after January 1, 2004.
* * * * *
Dated: August 3, 2005.
Julie L. Williams,
Acting Comptroller of the Currency.
[FR Doc. 05-15750 Filed 8-9-05; 8:45 am]
BILLING CODE 4810-33-P