Personal Transactions in Securities, 30473-30474 [E7-10401]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Thrift Supervision
• Thrift Supervision Office

[Federal Register Volume 72, Number 105 (Friday, June 1, 2007)]
[Rules and Regulations]
[Pages 30473-30474]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-10401]



[[Page 30473]]

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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 551

[Docket ID OTS-2007-0010]
RIN 1550-AC16


Personal Transactions in Securities

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Interim rule with request for comment.

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SUMMARY: Office of Thrift Supervision (OTS) regulations, at 12 CFR 
551.150(a), currently require certain officers and employees of savings 
associations to file reports of their personal securities transactions 
with the savings association within ten business days after the end of 
each calendar quarter. In this interim final rule, OTS is amending 12 
CFR 551.150(a) to provide that such reports must be filed no later than 
30 calendar days after the end of each calendar quarter. As a result of 
this amendment, the time period for officers and employees of savings 
associations to file the report will be consistent with the time period 
for persons in similar positions at investment companies to file such 
reports under regulations promulgated by the Securities and Exchange 
Commission (SEC).

DATES: This interim final rule is effective June 1, 2007. Comments must 
be received on or before July 31, 2007.

ADDRESSES: You may submit comments, identified by OTS-2007-0010, by any 
of the following methods:
     Federal eRulemaking Portal: Go to https://
www.regulations.gov, select ``Office of Thrift Supervision'' from the 
agency drop-down menu, then click submit. Select Docket ID ``OTS-2007-
0010 to submit or view public comments and to view supporting and 
related materials for this notice of proposed rulemaking. The ``User 
Tips'' link at the top of the page provides information on using 
Regulations.gov, including instructions for submitting or viewing 
public comments, viewing other supporting and related materials, and 
viewing the docket after the close of the comment period.
     Mail: Regulation Comments, Chief Counsel's Office, Office 
of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552, 
Attention: OTS-2007-0010.
     Hand Delivery/Courier: Guard's Desk, East Lobby Entrance, 
1700 G Street, NW., from 9 a.m. to 4 p.m. on business days, Attention: 
Regulation Comments, Chief Counsel's Office, Attention: OTS-2007-0010.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
entered into the docket and posted on Regulations.gov without change, 
including any personal information provided. Comments, including 
attachments and other supporting materials received are part of the 
public record and subject to public disclosure. Do not enclose any 
information in your comment or supporting materials that you consider 
confidential or inappropriate for public disclosure.
    Viewing Comments Electronically: Go to https://www.regulations.gov, 
select ``Office of Thrift Supervision'' from the agency drop-down menu, 
then click ``Submit.'' Select Docket ID ``OTS-2007-0010'' to view 
public comments for this notice of proposed rulemaking.
    Viewing Comments On-Site: You may inspect comments at the Public 
Reading Room, 1700 G Street, NW., by appointment. To make an 
appointment for access, call (202) 906-5922, send an e-mail to 
public.info@ots.treas.gov, or send a facsimile transmission to (202) 
906-6518. (Prior notice identifying the materials you will be 
requesting will assist us in serving you.) We schedule appointments on 
business days between 10 a.m. and 4 p.m. In most cases, appointments 
will be available the next business day following the date we receive a 
request.

FOR FURTHER INFORMATION CONTACT: Judi McCormick, (202) 906-5636, 
Director, Consumer Protection & Specialty Programs, Examinations, 
Supervision & Consumer Protection; or David A. Permut, (202) 906-7505, 
Senior Attorney, Business Transactions Division, Office of Chief 
Counsel, Office of Thrift Supervision, 1700 G Street, NW., Washington, 
DC 20552.

SUPPLEMENTARY INFORMATION:

I. Background

    On December 12, 2002, OTS issued a final rule specifying the 
recordkeeping and confirmation requirements for savings associations 
that effect securities transactions.\1\ Among these regulatory 
requirements is a requirement that officers and employees of savings 
associations file a personal securities transaction report with the 
savings association, within ten business days of the end of each 
calendar quarter, if the officer or employee:
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    \1\ 67 FR 76293 (December 12, 2002).
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     Makes investment recommendations or decisions for the 
accounts of customers;
     Participates in the determination of these recommendations 
or decisions; or
     In connection with his or her duties, obtains information 
concerning which securities the savings association intends to 
purchase, sell, or recommend for purchase or sale.\2\
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    \2\ 12 CFR 551.140(d)(1)-(3) (2007).
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    OTS modeled this personal securities filing requirement on SEC Rule 
17j-1,\3\ which, at the time OTS established its recordkeeping and 
confirmation requirements, required personal securities trading reports 
to be filed within ten business days after the end of each calendar 
quarter. In July 2004, the SEC amended Rule 17j-1 to change the filing 
deadline from ten business days to 30 calendar days after the end of 
each calendar quarter.\4\ The SEC amendment was in response to comments 
regarding the delay in obtaining personal financial statements on a 
timely basis.
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    \3\ See 67 FR 39886, 39889 (June 11, 2002).
    \4\ 69 FR 41696, 41699--fn. 34 (July 9, 2004).
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    In this interim final rule, OTS is amending 12 CFR 551.150(a) to 
require officers and employees who are subject to the rule to file 
personal securities trading reports with OTS no later than 30 calendar 
days after the end of each calendar quarter. OTS believes it is 
appropriate to subject officers and employees of savings associations 
who are covered by the rule to requirements that are consistent with 
the requirements that the SEC has established for officers and 
employees of investment companies. Moreover, the amendment to the rule 
will result in more accurate reporting. The employees and officers 
impacted by the personal trading reporting requirement typically do not 
receive their quarterly statements from their brokers within ten 
business days of the end of any calendar quarter. The revised 
regulation will enable officers and employees covered by the rule to 
base their personal securities transactions reports on their most 
current brokerage statement.

II. Solicitation of Comments

A. Solicitation of Comments on the Interim Final Rule

    OTS is requesting comment on the interim final regulation. 
Specifically OTS seeks comment on:
    (1) Does the interim final regulation accomplish its stated 
purposes?
    (2) Does the interim final regulation create any ambiguities that 
were not present in the current regulation?
    (3) Does the interim final regulation impose unnecessary regulatory 
burdens?

[[Page 30474]]

B. Solicitation of Comments Regarding the Use of Plain Language

    Section 722 of GLBA requires federal banking agencies to use 
``plain language'' in all proposed and final rules published after 
January 1, 2000. OTS believes the interim final rule change is 
presented in a simple and straightforward manner.

III. Regulatory Findings

A. Advance Notice and Public Comment

    Section 553 of the Administrative Procedure Act (APA) provides that 
notice and comment procedures are not required when an agency finds 
that notice and public procedure are impracticable, unnecessary or 
contrary to the public interest. 5 U.S.C. 553. The original rule was 
intended to track the SEC rule. Subsequently the SEC changed the filing 
requirement from 10 to 30 days. It is appropriate for OTS to change its 
rule to conform to the SEC rule. No additional substantive burden is 
being added by this action, and the revision reduces regulatory burden 
by providing a longer period of time to file the required report. 
Accordingly, OTS finds that prior notice and public comment are 
unnecessary because the rule conforms OTS's regulation to the SEC's 
rules, and does not alter any substantive requirements.
    Although OTS has concluded that public notice and comment are not 
required for this interim final rule, it invites comments during the 
60-day period following publication. In developing a final rule, OTS 
will consider all public comments it receives within that period.

B. Effective Date

    Under section 553(d) of the APA, a rule may not be effective until 
30 days after its publication.\5\ This provision, however, does not 
apply where the agency finds good cause for making the rule effective 
immediately. For the reasons set forth above, and because the rule 
reduces regulatory burden, OTS finds that there is good cause for 
making this rule effective immediately.
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    \5\ 12 U.S.C. 553(d).
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    Section 302 of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (CDRIA) \6\ requires that new regulations and 
amendments to existing regulations take effect on the first day of a 
calendar quarter that begins on or after the date of publication of the 
rule. This delayed effective date provision, however, applies only if 
the rule imposes additional reporting, disclosure, or other new 
requirements on insured depository institutions. This rule imposes no 
additional reporting, disclosure or other requirements on any insured 
depository institution. Section 302 is inapplicable.
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    \6\ 12 U.S.C. 4802.
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C. Paperwork Reduction Act

    OTS has determined that this interim final rule does not involve a 
change to collections of information previously approved under the 
Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

D. Executive Order 12866

    The Director of OTS has determined that this interim final rule 
does not constitute a ``significant regulatory action'' for purposes of 
Executive Order 12866.

E. Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act (RFA) 
(5 U.S.C. 601), the Director certifies that this interim final rule 
will not have a significant economic impact on a substantial number of 
small entities. The interim final rule would conform OTS rules to SEC 
rules and give affected officers and employees additional time to file 
certain required reports. Accordingly, OTS has determined that a 
Regulatory Flexibility Analysis is not required.

F. Unfunded Mandates Reform Act of 1995

    OTS has determined that the proposed rule will not result in 
expenditures by state, local, or tribal governments or by the private 
sector of $100 million or more and that a budgetary impact statement is 
not required under Section 202 of the Unfunded Mandates Reform Act of 
1995, Pub. L. 104-4 (Unfunded Mandates Act). The interim final rule 
would conform OTS rules to SEC rules and give affected officers and 
employees additional time to file certain required reports. The change 
should not have a significant impact on small institutions. 
Accordingly, a budgetary impact statement is not required under section 
202 of the Unfunded Mandates Act.

List of Subjects in 12 CFR Part 551

    Reporting and recordkeeping requirements, Savings associations, 
Securities, Trusts and trustees.

Authority and Issuance

0
For the reasons set forth in the preamble, the Office of Thrift 
Supervision amends Chapter V of title 12 of the Code of Federal 
Regulations, as set forth below:

PART 551--RECORDKEEPING AND CONFIRMATION REQUIREMENTS FOR 
SECURITIES TRANSACTIONS

0
1. The authority citation for 12 CFR part 551 continues to read as 
follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464.


0
2. Amend Sec.  551.150(a) by removing the phrase ``within ten 
business'' and adding the phrase ``no later than 30 calendar'' in its 
place.
* * * * *

    Dated: May 25, 2007.

    By the Office of Thrift Supervision.
John M. Reich,
Director.
[FR Doc. E7-10401 Filed 5-31-07; 8:45 am]
BILLING CODE 6720-01-P