Continued Application of Regulations to Savings and Loan Holding Companies, 43953-43957 [2011-18100]
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
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Submit these documents via e-mail or
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A description of the items; (2) whether
and why such items are customarily
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industry; (3) whether the information is
generally known by or available from
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information has previously been made
available to others without obligation
concerning its confidentiality; (5) an
explanation of the competitive injury to
the submitting person which would
result from public disclosure; (6) when
such information might lose its
confidential character due to the
passage of time; and (7) why disclosure
of the information would be contrary to
the public interest.
It is DOE’s policy that all comments
may be included in the public docket,
without change and as received,
including any personal information
provided in the comments (except
information deemed to be exempt from
public disclosure).
E. Issues on Which DOE Seeks Comment
Although DOE welcomes comments
on any aspect of this proposal, DOE is
particularly interested in receiving
comments and views of interested
parties concerning the following issues:
1. Given the lack of a statutory
definition for ‘‘direct heating
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equipment,’’ whether DOE’s
interpretation that decorative vented
hearth products and vented gas log sets
are types of direct heating equipment is
reasonable.
2. The proposed compliance date for
vented gas hearth products and vented
gas log sets, including specific
rationales and accompanying data as to
why a different timeline for eliminating
standing pilots or other continuouslyburning ignition sources from
decorative gas hearth products may or
may not be warranted.
3. The proposed exclusion as a
decorative vented hearth product or
vented gas log set from the energy
conservation standard.
4. Impacts of the proposed amended
definition of ‘‘vented hearth heater’’ on
small business manufacturers of
decorative vented hearth products or
vented gas log sets.
VI. Approval of the Office of the
Secretary
The Secretary of Energy has approved
publication of today’s proposed rule.
List of Subjects in 10 CFR Part 430
Administrative practice and
procedure, Confidential business
information, Energy conservation,
Household appliances, Imports,
Intergovernmental relations, Reporting
and recordkeeping requirements, and
Small businesses.
Issued in Washington, DC, on July 14,
2011.
Kathleen Hogan,
Deputy Assistant Secretary for Energy
Efficiency, Office of Technology
Development, Energy Efficiency and
Renewable Energy.
For the reasons set forth in the
preamble, DOE proposes to amend Part
430 of Chapter II, Subchapter D, of Title
10 of the Code of Federal Regulations,
to read as set forth below:
PART 430—ENERGY CONSERVATION
PROGRAM FOR CONSUMER
PRODUCTS
1. The authority citation for part 430
continues to read as follows:
Authority: 42 U.S.C. 6291–6309; 28 U.S.C.
2461 note.
2. Section 430.2 is amended by
revising the definition for ‘‘vented
hearth heater’’ to read as follows:
§ 430.2
Definitions.
*
*
*
*
*
Vented hearth heater means a vented
appliance which simulates a solid fuel
fireplace and is designed to furnish
warm air, with or without duct
connections, to the space in which it is
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43953
installed. The circulation of heated
room air may be by gravity or
mechanical means. A vented hearth
heater may be freestanding, recessed,
zero clearance, or a gas fireplace insert
or stove. The following products are not
subject to the energy conservation
standards for vented hearth heaters:
(1) Vented gas log sets that meet all of
the following four criteria:
(i) Certified to ANSI Standard Z21.60;
(ii) Sold without a thermostat and with
a warranty provision expressly voiding
all manufacturer warranties in the event
the product is used with a thermostat;
(iii) Expressly and conspicuously
identified on its rating plate and in all
manufacturer’s advertising and product
literature as a ‘‘Decorative Product: Not
For Use As A Heating Appliance’’; and
(iv) With respect to products sold after
July 1, 2014, not equipped with a
standing pilot light or other
continuously-burning ignition source;
and
(2) Vented gas hearth products that
meet all of the following four criteria:
(i) Certified to ANSI Standard Z21.50
and not to ANSI Standard Z21.88; (ii)
Sold without a thermostat and with a
warranty provision expressly voiding all
manufacturer warranties in the event
the product is used with a thermostat;
(iii) Expressly and conspicuously
identified on its rating plate and in all
manufacturer’s advertising and product
literature as a ‘‘Decorative Product: Not
For Use As A Heating Appliance’’; and
(iv) With respect to products sold after
July 1, 2014, not equipped with a
standing pilot light or other
continuously-burning ignition source.
*
*
*
*
*
[FR Doc. 2011–18310 Filed 7–21–11; 8:45 am]
BILLING CODE 6450–01–P
FEDERAL RESERVE SYSTEM
12 CFR Chapter II
[Docket No. OP–1427]
Continued Application of Regulations
to Savings and Loan Holding
Companies
Board of Governors of the
Federal Reserve System.
ACTION: Notice of intent and request for
comment.
AGENCY:
The Board of Governors of the
Federal Reserve System (‘‘Board’’) is
issuing this notice of its intention to
continue to enforce certain regulations
previously issued by the Office of Thrift
Supervision (‘‘OTS’’) after assuming
supervisory responsibility for savings
and loan holding companies (‘‘SLHCs’’)
SUMMARY:
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
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and their non-depository subsidiaries
from the OTS in July 2011. The DoddFrank Wall Street Reform and Consumer
Protection Act (the ‘‘Dodd-Frank Act’’ or
‘‘Act’’) transfers supervisory functions
related to SLHCs and their nondepository subsidiaries to the Board on
July 21, 2011 (‘‘transfer date’’).
DATES: Comments must be submitted on
or before August 31, 2011.
ADDRESSES: You may submit comments
by any of the following methods:
• Agency Web Site: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
Include docket number OP–1427 in the
subject line of the message.
• FAX: 202/452–3819 or 202/452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at https://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper form in Room MP–500 of the
Board’s Martin Building (20th and C
Streets, NW.) between 9 a.m. and 5 p.m.
on weekdays.
FOR FURTHER INFORMATION CONTACT:
Amanda K. Allexon, Counsel, (202)
452–3818 or Kathleen O’Day, Deputy
General Counsel, (202) 452–3786, Legal
Division; Anna Lee Hewko, Assistant
Director, (202) 530–6260, or Michael
Sexton, Manager, (202) 452–3009,
Division of Banking Supervision and
Regulation, Board of Governors of the
Federal Reserve System, 20th and C
Streets, NW., Washington, DC 20551.
Telecommunications Device for the Deaf
(TDD) users may contact (202–263–
4869).
SUPPLEMENTARY INFORMATION:
Background
The Dodd-Frank Act was enacted on
July 21, 2010. Title III of the Dodd-Frank
Act transfers to the Board supervisory
functions of the OTS related to SLHCs
and their non-depository subsidiaries.
The Act transfers supervisory functions
related to Federal savings associations
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and state savings associations to the
Office of the Comptroller of the
Currency (‘‘OCC’’) and the Federal
Deposit Insurance Corporation
(‘‘FDIC’’), respectively.
With respect to the supervision of
SLHCs and their non-depository
subsidiaries, section 312 of the DoddFrank Act (12 U.S.C. 5412) provides that
all functions of the OTS and the
Director of the OTS (including authority
to issue orders) will transfer to the
Board on July 21, 2011. All rulemaking
authority related to SLHCs also will
transfer to the Board on that date
pursuant to section 312 of the Act.
Section 316 of the Dodd-Frank Act
provides that all orders, resolutions,
determinations, agreements, and
regulations, interpretive rules, other
interpretations, guidelines, and other
advisory materials issued, made,
prescribed, or allowed to become
effective by the OTS on or before the
transfer date with respect to SLHCs and
their non-depository subsidiaries will
remain in effect and shall be enforceable
until modified, terminated, set aside, or
superseded in accordance with
applicable law by the Board, by any
court of competent jurisdiction, or by
operation of law. The Act includes
parallel provisions applicable to the
OCC and the FDIC with respect to
Federal savings associations and state
savings associations, respectively.
Given the extensive transfer of
authority to multiple agencies, section
316 of the Dodd-Frank Act (12 U.S.C.
5414(c)) requires the Board, OCC, and
FDIC to identify and publish in the
Federal Register separate lists of the
current OTS regulations that each
agency will continue to enforce after the
transfer date. The Board is, therefore,
issuing this notice in accordance with
section 316 of the Dodd-Frank Act. This
notice identifies all OTS regulations
applicable to SLHCs and their nondepository subsidiaries that the Board
currently intends to enforce after the
transfer date.
On or immediately after the transfer
date, the Board intends to issue an
interim final rule to effectuate the
transition of OTS regulations to the
Board. That rule will include technical,
nomenclature, and other changes to
certain OTS regulations to accommodate
the transfer of supervisory authority
from the OTS to the Board and address
modifications made by the Dodd-Frank
Act. The Board also expects to modify
its own rules related to agency
administration and procedure, where
necessary, to account for the transfer of
authority on or after the transfer date.
When finalizing that rulemaking, the
Board will take into consideration any
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comments received on this notice as
well as those received on the interim
final rule. In the future, the Board may
propose substantive modifications to
rules regarding SLHCs and their nondepository subsidiaries in order to
address other modifications made by the
Dodd-Frank Act and consolidate rules
within the Board’s regulatory structure.
Continuing Regulations
The regulations currently applicable
to SLHCs and their non-depository
subsidiaries are found in Chapter V of
Title 12 of the Code of Federal
Regulations. The following narrative
provides a description of the parts of
Chapter V that the Board expects to
continue to enforce after July 21, 2011.
Following the narrative, a chart is
provided that lists each OTS part and
the Board’s current intention regarding
enforcement of such part. The Board
notes that failure to transfer an OTS
regulation does not relieve any entity of
the obligation to comply with all
statutory requirements.
Parts 574 though 585 include many of
the rules that relate to the supervision
of SLHCs, including those concerning
the acquisition of savings associations,
mutual holding companies, permissible
activities, and prohibited service by
certain individuals. The Board intends
to enforce the substantive provisions of
parts 574 through 585 after the transfer
date, including the requirements for
filing applications and the factors for
reviewing such applications. The Board,
however, does not expect to transfer
provisions in parts 574 though 585
regarding the processing of applications
and notices, such as agency review
periods, publication requirements, and
hearing procedures (including those
applicable as a result of cross-references
to part 516). Instead, beginning on the
transfer date, the Board anticipates
adopting the application procedures
currently used by bank holding
companies (‘‘BHCs’’) to equivalent
applications and notices submitted by
SLHCs. Additionally, the Board
anticipates eliminating the current OTS
regulations relating to control
determinations and rebuttals, including
the rebuttable control factors and
process in § 574.4, the certification of
ownership in § 574.5, and the rebuttal
agreement in § 574.100. In its place, the
Board expects to insert provisions
equivalent to those applicable to BHCs
and, beginning on the transfer date,
review investments and relationships
with SLHCs using the current practices
and policies applicable to BHCs,
including the Board’s policy statement
on noncontrolling equity investments
issued on September 22, 2008. The
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Board does not anticipate revisiting OTS
determinations with respect to existing
investments and ownership structures.
In the near future, the Board anticipates
proposing rules that would update and
streamline regulations related to control
determinations for both BHCs and
SLHCs.
The Board intends to enforce certain
definitional provisions (parts 541, 561,
and 583), as well as parts 533 and 563f
to the extent they are directly or
indirectly applicable to the supervision
of SLHCs and their non-depository
subsidiaries. Additionally, the Board
expects to enforce certain relevant
provisions of part 562 that provide
regulatory reporting requirements. The
Board, however, issued a notice on
February 8, 2011, indicating that it is
considering transitioning SLHCs to the
Board’s current reporting system as soon
as practicable.1 Currently, the Board is
reviewing comments received on that
notice and is considering issuing a
notice of proposed rulemaking on or
after the transfer date outlining a
proposal on SLHC reporting that may
affect part 562 and part 584.
Current OTS rules often integrate
regulatory requirements and supervision
for both SLHCs and savings
associations. As a result, certain
regulations that only reference savings
associations also may apply to SLHCs
(and in particular to mutual holding
companies) and their non-depository
subsidiaries through cross-references.
The Board, therefore, anticipates
enforcing parts 546, 552, 559, 563, 563b,
563c, 563e, and 563g, and §§ 543.1(b),
544.2, 544.5, 544.8, 545.95, 545.121, and
565.4. The Board anticipates enforcing
part 512 regarding investigative and
formal examination proceedings
because the Board does not have similar
rules currently in place for BHCs.
The Board does not anticipate
enforcing parts 500, 503 through 510,
513, 516, 517, and 528 after the transfer
date. These parts include agencyspecific administrative provisions and,
as noted above, the Board anticipates
modifying its own rules in this area on
or after the transfer date to account for
the transfer of authority.
Part 502 itemizes the current
assessment fee schedule for OTSsupervised institutions. The Board does
not currently charge BHCs or state
member banks (‘‘SMBs’’) for
examinations or inspections. However,
43955
section 318 of the Dodd-Frank Act (12
U.S.C. 248) requires the Board to charge
fees to offset the cost of regular or
special examinations of BHCs, SLHCs
and other nonbanking financial
companies over $50 billion. As a result,
the Board does not anticipate enforcing
part 502 and, instead, plans to issue
comprehensive guidance with respect to
assessment fees on or after the transfer
date.
Additionally, the Board does not
expect to enforce parts 535, 536, 550,
551, 555, 557, 558, 560, 563d, 564, 567,
568, 569, 570, 571, 572, 573, 590, and
591. The Board believes these
provisions only apply to the supervision
of savings associations and are not
applicable to SLHCs or their nondepository institutions.
The Board reserves the right to
continue to enforce any regulation or
policy of the OTS if it determines after
further review that the rule or policy
was applied by the OTS to SLHCs or is
otherwise required by law.
The following chart summarizes
which parts and sections of Chapter V
the Board currently expects to continue
to enforce after July 21, 2011.
OTS Part
Subject
Continuing provisions
Basis for decision
500 ..........
502 ..........
Agency organization and function .............
Assessments and fees ..............................
None ..........................................................
None ..........................................................
503 ..........
505 ..........
506 ..........
Privacy Act .................................................
Freedom of Information Act .......................
Information collection requirements under
the Paperwork Reduction Act.
Restrictions on post-employment activities
of senior examiners.
Removals, suspensions, and prohibitions
where a crime is charged or proven.
Rules of practice and procedure in adjudicatory proceedings.
Miscellaneous Organizational Regulations
Rules for investigative proceedings and
formal examination proceedings.
Practice before the Office ..........................
Application processing procedures ...........
None ..........................................................
None ..........................................................
None ..........................................................
Internal agency administration.
Internal agency administration and modifications required by the Dodd-Frank
Act.
Internal agency administration.
Internal agency administration.
Internal agency administration.
None ..........................................................
Internal agency administration.
None ..........................................................
Internal agency administration.
None ..........................................................
Internal agency administration.
None ..........................................................
All of part ...................................................
Internal agency administration.
Applies directly to SLHCs.
None ..........................................................
None ..........................................................
Contracting outreach programs .................
Nondiscrimination requirements ................
Disclosure and reporting of CRA-related
agreements.
Unfair or deceptive acts or practices ........
Consumer protection in sales of insurance
Definitions for regulations affecting Federal savings associations.
Federal mutual savings associations—Incorporation, organization, and conversion.
None ..........................................................
None ..........................................................
All of part ...................................................
Internal agency administration.
Replacing with Board processes within
specific regulations.
Internal agency administration.
Internal agency administration.
Applies directly to SLHCs.
None ..........................................................
None ..........................................................
Some of part ..............................................
Applies to savings associations only.
Applies through the savings association.
Relevant to SLHC provisions.
Some of part (Section 543.1(b) (resulting
from cross-reference in part 575)).
Applicable to SLHC as a result of a crossreference.
507 ..........
508 ..........
509 ..........
510 ..........
512 ..........
513 ..........
516 ..........
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517 ..........
528 ..........
533 ..........
535 ..........
536 ..........
541 ..........
543 ..........
1 Notice of Intent to Require Reporting Forms for
Savings and Loan Holding Companies, 76 Fed. Reg.
7091 (Feb. 8, 2011).
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
OTS Part
Subject
Continuing provisions
Basis for decision
544 ..........
Federal mutual savings associations—
Charter and bylaws.
Applicable to SLHC as a result of a crossreference.
545 ..........
Federal savings associations—Operations
546 ..........
Federal mutual savings associations—
Merger, dissolution, reorganization, and
conversion.
Fiduciary powers of savings associations
Recordkeeping and confirmation requirements for securities transactions.
Federal stock associations—Incorporation,
organization, and conversion.
Electronic operations .................................
Deposits .....................................................
Possession by conservators and receivers
for Federal and State savings associations.
Subordinate organizations .........................
Some of part (Sections 544.2, 544.5, and
544.8 (resulting from cross-reference in
part 575)).
Some of part (Sections 545.95 and
545.121 (resulting from cross-reference
in part 575)).
All of part (resulting from cross-reference
in part 575).
None of part ...............................................
None ..........................................................
Applies to savings associations only.
Applies to savings associations only.
All of part (resulting from cross-reference
in part 575 and others).
None ..........................................................
None ..........................................................
None ..........................................................
Applicable to SLHC as a result of a crossreference.
Applies to savings associations only.
Applies to savings associations only.
Applies to savings associations only.
All of part (resulting from cross-reference
in part 575).
None ..........................................................
Some of part ..............................................
Applicable to SLHC as a result of a crossreference.
Applies to savings associations only.
Relevant to SLHC provisions.
550 ..........
551 ..........
552 ..........
555 ..........
557 ..........
558 ..........
559 ..........
560 ..........
561 ..........
Applicable to SLHC as a result of a crossreference.
Applicable to SLHC as a result of a crossreference.
562 ..........
563 ..........
Lending and investment ............................
Definitions for regulations affecting all savings associations.
Regulatory reporting standards .................
Savings Associations—Operations ...........
563b ........
Conversions from mutual to stock form ....
563c ........
Accounting requirements ...........................
Some of part ..............................................
All of part (resulting from cross-reference
in part 575 and others).
All of part (resulting from cross-reference
in part 575).
All of part ...................................................
563d ........
563e ........
Securities of savings associations ............
Community reinvestment ...........................
None ..........................................................
Some of part ..............................................
563f .........
563g ........
Management official interlocks ..................
Securities offerings ....................................
564 ..........
565 ..........
Appraisals ..................................................
Prompt corrective action ............................
567
568
569
570
Capital ........................................................
Security procedures ...................................
Proxies .......................................................
Safety and soundness guidelines and
compliance procedures.
Fair Credit Reporting .................................
Loans in areas having special flood hazards.
Privacy of consumer financial information
Acquisition of control of savings associations.
All of part ...................................................
All of part (resulting from cross-reference
in part 575).
None ..........................................................
Some of part (Section 565.4 (resulting
from cross-reference in part 575)).
None ..........................................................
None ..........................................................
None ..........................................................
None ..........................................................
Applies directly to SLHCs.
Applicable to SLHC as a result of a crossreference.
Applicable to SLHC as a result of a crossreference.
Applicable to SLHC as a result of a crossreference.
Applies to savings associations only.
Applicable to SLHC as a result of a crossreference.
Applies directly to SLHCs.
Applicable to SLHC as a result of a crossreference.
Applies to savings associations only.
Applicable to SLHC as a result of a crossreference.
Applies to savings associations only.
Applies to savings associations only.
Applies to savings associations only.
Applies to savings associations only.
None ..........................................................
None of part ...............................................
Transferred to new agency..
Applies to savings associations only.
None of part ...............................................
Some of part ..............................................
Applies to savings associations only.
Applies directly to SLHCs. The Board will
replace current OTS application processing procedures. The Board also will
replace provisions related to control determinations and rebuttals.
Applies directly to SLHCs. The Board will
replace current OTS application processing procedures.
Relevant to SLHC provisions.
..........
..........
..........
..........
571 ..........
572 ..........
573 ..........
574 ..........
575 ..........
Mutual holding companies .........................
Some of part ..............................................
583 ..........
Definitions for regulations affecting savings and loan holding companies.
Savings and loan holding companies .......
All of part ...................................................
Prohibited service at savings and loan
holding companies.
Preemption of State usury laws ................
Preemption of State due-on-sale laws ......
All of part ...................................................
Applies directly to SLHCs. The Board will
replace current OTS application processing procedures.
Applies directly to SLHCs.
None ..........................................................
None ..........................................................
Applies to savings associations only.
Applies to savings associations only
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584 ..........
585 ..........
590 ..........
591 ..........
By this notice, the Board seeks to
inform interested persons, including
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All of part ...................................................
SLHCs and their non-depository
subsidiaries, of the Board’s approach to
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enforcement of certain OTS regulations
and invites comment on its intended
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
By order of the Board of Governors of the
Federal Reserve System, July 14, 2011.
Robert deV. Frierson,
Deputy Secretary of the Board.
eRulemaking Portal at https://
www.regulations.gov (IRS REG–109006–
11). The public hearing will be held in
the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue,
NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Andrea Hoffenson, (202) 622–3920;
concerning submissions of comments,
the hearing, and/or to be placed on the
building access list to attend the
hearing, Oluwafunmilayo (Funmi)
Taylor, (202) 622–7180 (not toll-free
numbers).
[FR Doc. 2011–18100 Filed 7–21–11; 8:45 am]
SUPPLEMENTARY INFORMATION:
BILLING CODE 6210–01–P
Background and Explanation of
Provisions
DEPARTMENT OF THE TREASURY
Temporary regulations in the Rules
and Regulations section of this issue of
the Federal Register amend the Income
Tax Regulations (26 CFR part 1) relating
to section 1001. The temporary
regulations provide that the transfer or
assignment of a derivative contract in
certain situations is not an exchange to
the nonassigning counterparty for
purposes of § 1.1001–1(a). The text of
the temporary regulations also serves as
the text of these proposed regulations.
The preamble to the temporary
regulations explains the amendments.
approach in order to help identify issues
and matters that may require special
attention. The Board requests specific
comment with respect to whether all
regulations relating to the supervision of
SLHCs are included in the listing above.
Alternatively, does this notice indicate
continued enforcement of regulatory
provisions that currently do not apply to
SLHCs or their non-depository
subsidiaries?
Internal Revenue Service
26 CFR Part 1
[REG–109006–11]
RIN 1545–BK13
Modifications of Certain Derivative
Contracts
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations and notice of public hearing.
AGENCY:
In the Rules and Regulations
section of this issue of the Federal
Register, the IRS is issuing temporary
regulations relating to whether an
exchange for purposes of § 1.1001–1(a)
occurs for the nonassigning
counterparty when there is an
assignment of certain derivative
contracts. The text of those regulations
also serves as the text of these proposed
regulations. This document also
provides notice of a public hearing on
these proposed regulations.
DATES: Written or electronic comments
must be received by October 20, 2011.
Outlines of topics to be discussed at the
public hearing scheduled for Thursday,
October 27, 2011, must be received by
Thursday, October 20, 2011.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–109006–11), room
5203, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be handdelivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to CC:PA:LPD:PR (REG–109006–11),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent
electronically, via the Federal
srobinson on DSK4SPTVN1PROD with PROPOSALS
SUMMARY:
VerDate Mar<15>2010
17:15 Jul 21, 2011
Jkt 223001
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. Therefore, a
regulatory assessment is not required. It
also has been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations, and because the
regulations do not impose a collection
of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Internal Revenue
Code, this notice of proposed
rulemaking has been submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small businesses.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
written comments (a signed original and
eight (8) copies) or electronic comments
that are submitted timely to the IRS. The
IRS and the Treasury Department
specifically request comments on the
clarity of the proposed rule and how it
may be made easier to understand. All
comments will be available for public
inspection and copying.
PO 00000
Frm 00022
Fmt 4702
Sfmt 4702
43957
A public hearing has been scheduled
for Thursday, October 27, 2011,
beginning at 10 a.m. in the IRS
Auditorium, Internal Revenue Building,
1111 Constitution Avenue, NW.,
Washington, DC. Due to building
security procedures, visitors must enter
through the Constitution Avenue
entrance. In addition, all visitors must
present photo identification to enter the
building. Because of access restrictions,
visitors will not be admitted beyond the
immediate entrance area more than 30
minutes before the hearing starts. For
information about having your name
placed on the building access list to
attend the hearing, see the FOR FURTHER
INFORMATION CONTACT section of this
preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit written or electronic
comments and an outline of the topics
to be discussed and the time to be
devoted to each topic (signed original
and eight (8) copies) by Thursday,
October 20, 2011. A period of 10
minutes will be allotted to each person
for making comments. An agenda
showing the scheduling of the speakers
will be prepared after the deadline for
receiving outlines has passed. Copies of
the agenda will be available free of
charge at the hearing.
Drafting Information
The principal author of these
regulations is Andrea M. Hoffenson,
Office of Associate Chief Council
(Financial Institutions and Products).
However, other personnel from the IRS
and the Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1001–4 is revised to
read as follows:
§ 1.1001–4 Modifications of certain
derivative contracts.
[The text of the proposed
amendments to § 1.1001–4 is the same
as the text for § 1.1001–4T(a) through (d)
E:\FR\FM\22JYP1.SGM
22JYP1
]]>Agencies
[Federal Register Volume 76, Number 141 (Friday, July 22, 2011)]
[Proposed Rules]
[Pages 43953-43957]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18100]
=======================================================================
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FEDERAL RESERVE SYSTEM
12 CFR Chapter II
[Docket No. OP-1427]
Continued Application of Regulations to Savings and Loan Holding
Companies
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice of intent and request for comment.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System
(``Board'') is issuing this notice of its intention to continue to
enforce certain regulations previously issued by the Office of Thrift
Supervision (``OTS'') after assuming supervisory responsibility for
savings and loan holding companies (``SLHCs'')
[[Page 43954]]
and their non-depository subsidiaries from the OTS in July 2011. The
Dodd-Frank Wall Street Reform and Consumer Protection Act (the ``Dodd-
Frank Act'' or ``Act'') transfers supervisory functions related to
SLHCs and their non-depository subsidiaries to the Board on July 21,
2011 (``transfer date'').
DATES: Comments must be submitted on or before August 31, 2011.
ADDRESSES: You may submit comments by any of the following methods:
Agency Web Site: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: regs.comments@federalreserve.gov. Include docket
number OP-1427 in the subject line of the message.
FAX: 202/452-3819 or 202/452-3102.
Mail: Jennifer J. Johnson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue,
NW., Washington, DC 20551.
All public comments are available from the Board's Web site at
https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical reasons. Accordingly, your
comments will not be edited to remove any identifying or contact
information. Public comments may also be viewed electronically or in
paper form in Room MP-500 of the Board's Martin Building (20th and C
Streets, NW.) between 9 a.m. and 5 p.m. on weekdays.
FOR FURTHER INFORMATION CONTACT: Amanda K. Allexon, Counsel, (202) 452-
3818 or Kathleen O'Day, Deputy General Counsel, (202) 452-3786, Legal
Division; Anna Lee Hewko, Assistant Director, (202) 530-6260, or
Michael Sexton, Manager, (202) 452-3009, Division of Banking
Supervision and Regulation, Board of Governors of the Federal Reserve
System, 20th and C Streets, NW., Washington, DC 20551.
Telecommunications Device for the Deaf (TDD) users may contact (202-
263-4869).
SUPPLEMENTARY INFORMATION:
Background
The Dodd-Frank Act was enacted on July 21, 2010. Title III of the
Dodd-Frank Act transfers to the Board supervisory functions of the OTS
related to SLHCs and their non-depository subsidiaries. The Act
transfers supervisory functions related to Federal savings associations
and state savings associations to the Office of the Comptroller of the
Currency (``OCC'') and the Federal Deposit Insurance Corporation
(``FDIC''), respectively.
With respect to the supervision of SLHCs and their non-depository
subsidiaries, section 312 of the Dodd-Frank Act (12 U.S.C. 5412)
provides that all functions of the OTS and the Director of the OTS
(including authority to issue orders) will transfer to the Board on
July 21, 2011. All rulemaking authority related to SLHCs also will
transfer to the Board on that date pursuant to section 312 of the Act.
Section 316 of the Dodd-Frank Act provides that all orders,
resolutions, determinations, agreements, and regulations, interpretive
rules, other interpretations, guidelines, and other advisory materials
issued, made, prescribed, or allowed to become effective by the OTS on
or before the transfer date with respect to SLHCs and their non-
depository subsidiaries will remain in effect and shall be enforceable
until modified, terminated, set aside, or superseded in accordance with
applicable law by the Board, by any court of competent jurisdiction, or
by operation of law. The Act includes parallel provisions applicable to
the OCC and the FDIC with respect to Federal savings associations and
state savings associations, respectively.
Given the extensive transfer of authority to multiple agencies,
section 316 of the Dodd-Frank Act (12 U.S.C. 5414(c)) requires the
Board, OCC, and FDIC to identify and publish in the Federal Register
separate lists of the current OTS regulations that each agency will
continue to enforce after the transfer date. The Board is, therefore,
issuing this notice in accordance with section 316 of the Dodd-Frank
Act. This notice identifies all OTS regulations applicable to SLHCs and
their non-depository subsidiaries that the Board currently intends to
enforce after the transfer date.
On or immediately after the transfer date, the Board intends to
issue an interim final rule to effectuate the transition of OTS
regulations to the Board. That rule will include technical,
nomenclature, and other changes to certain OTS regulations to
accommodate the transfer of supervisory authority from the OTS to the
Board and address modifications made by the Dodd-Frank Act. The Board
also expects to modify its own rules related to agency administration
and procedure, where necessary, to account for the transfer of
authority on or after the transfer date. When finalizing that
rulemaking, the Board will take into consideration any comments
received on this notice as well as those received on the interim final
rule. In the future, the Board may propose substantive modifications to
rules regarding SLHCs and their non-depository subsidiaries in order to
address other modifications made by the Dodd-Frank Act and consolidate
rules within the Board's regulatory structure.
Continuing Regulations
The regulations currently applicable to SLHCs and their non-
depository subsidiaries are found in Chapter V of Title 12 of the Code
of Federal Regulations. The following narrative provides a description
of the parts of Chapter V that the Board expects to continue to enforce
after July 21, 2011. Following the narrative, a chart is provided that
lists each OTS part and the Board's current intention regarding
enforcement of such part. The Board notes that failure to transfer an
OTS regulation does not relieve any entity of the obligation to comply
with all statutory requirements.
Parts 574 though 585 include many of the rules that relate to the
supervision of SLHCs, including those concerning the acquisition of
savings associations, mutual holding companies, permissible activities,
and prohibited service by certain individuals. The Board intends to
enforce the substantive provisions of parts 574 through 585 after the
transfer date, including the requirements for filing applications and
the factors for reviewing such applications. The Board, however, does
not expect to transfer provisions in parts 574 though 585 regarding the
processing of applications and notices, such as agency review periods,
publication requirements, and hearing procedures (including those
applicable as a result of cross-references to part 516). Instead,
beginning on the transfer date, the Board anticipates adopting the
application procedures currently used by bank holding companies
(``BHCs'') to equivalent applications and notices submitted by SLHCs.
Additionally, the Board anticipates eliminating the current OTS
regulations relating to control determinations and rebuttals, including
the rebuttable control factors and process in Sec. 574.4, the
certification of ownership in Sec. 574.5, and the rebuttal agreement
in Sec. 574.100. In its place, the Board expects to insert provisions
equivalent to those applicable to BHCs and, beginning on the transfer
date, review investments and relationships with SLHCs using the current
practices and policies applicable to BHCs, including the Board's policy
statement on noncontrolling equity investments issued on September 22,
2008. The
[[Page 43955]]
Board does not anticipate revisiting OTS determinations with respect to
existing investments and ownership structures. In the near future, the
Board anticipates proposing rules that would update and streamline
regulations related to control determinations for both BHCs and SLHCs.
The Board intends to enforce certain definitional provisions (parts
541, 561, and 583), as well as parts 533 and 563f to the extent they
are directly or indirectly applicable to the supervision of SLHCs and
their non-depository subsidiaries. Additionally, the Board expects to
enforce certain relevant provisions of part 562 that provide regulatory
reporting requirements. The Board, however, issued a notice on February
8, 2011, indicating that it is considering transitioning SLHCs to the
Board's current reporting system as soon as practicable.\1\ Currently,
the Board is reviewing comments received on that notice and is
considering issuing a notice of proposed rulemaking on or after the
transfer date outlining a proposal on SLHC reporting that may affect
part 562 and part 584.
---------------------------------------------------------------------------
\1\ Notice of Intent to Require Reporting Forms for Savings and
Loan Holding Companies, 76 Fed. Reg. 7091 (Feb. 8, 2011).
---------------------------------------------------------------------------
Current OTS rules often integrate regulatory requirements and
supervision for both SLHCs and savings associations. As a result,
certain regulations that only reference savings associations also may
apply to SLHCs (and in particular to mutual holding companies) and
their non-depository subsidiaries through cross-references. The Board,
therefore, anticipates enforcing parts 546, 552, 559, 563, 563b, 563c,
563e, and 563g, and Sec. Sec. 543.1(b), 544.2, 544.5, 544.8, 545.95,
545.121, and 565.4. The Board anticipates enforcing part 512 regarding
investigative and formal examination proceedings because the Board does
not have similar rules currently in place for BHCs.
The Board does not anticipate enforcing parts 500, 503 through 510,
513, 516, 517, and 528 after the transfer date. These parts include
agency-specific administrative provisions and, as noted above, the
Board anticipates modifying its own rules in this area on or after the
transfer date to account for the transfer of authority.
Part 502 itemizes the current assessment fee schedule for OTS-
supervised institutions. The Board does not currently charge BHCs or
state member banks (``SMBs'') for examinations or inspections. However,
section 318 of the Dodd-Frank Act (12 U.S.C. 248) requires the Board to
charge fees to offset the cost of regular or special examinations of
BHCs, SLHCs and other nonbanking financial companies over $50 billion.
As a result, the Board does not anticipate enforcing part 502 and,
instead, plans to issue comprehensive guidance with respect to
assessment fees on or after the transfer date.
Additionally, the Board does not expect to enforce parts 535, 536,
550, 551, 555, 557, 558, 560, 563d, 564, 567, 568, 569, 570, 571, 572,
573, 590, and 591. The Board believes these provisions only apply to
the supervision of savings associations and are not applicable to SLHCs
or their non-depository institutions.
The Board reserves the right to continue to enforce any regulation
or policy of the OTS if it determines after further review that the
rule or policy was applied by the OTS to SLHCs or is otherwise required
by law.
The following chart summarizes which parts and sections of Chapter
V the Board currently expects to continue to enforce after July 21,
2011.
----------------------------------------------------------------------------------------------------------------
OTS Part Subject Continuing provisions Basis for decision
----------------------------------------------------------------------------------------------------------------
500.................. Agency organization and None........................ Internal agency
function. administration.
502.................. Assessments and fees......... None........................ Internal agency
administration and
modifications required by
the Dodd-Frank Act.
503.................. Privacy Act.................. None........................ Internal agency
administration.
505.................. Freedom of Information Act... None........................ Internal agency
administration.
506.................. Information collection None........................ Internal agency
requirements under the administration.
Paperwork Reduction Act.
507.................. Restrictions on post- None........................ Internal agency
employment activities of administration.
senior examiners.
508.................. Removals, suspensions, and None........................ Internal agency
prohibitions where a crime administration.
is charged or proven.
509.................. Rules of practice and None........................ Internal agency
procedure in adjudicatory administration.
proceedings.
510.................. Miscellaneous Organizational None........................ Internal agency
Regulations. administration.
512.................. Rules for investigative All of part................. Applies directly to SLHCs.
proceedings and formal
examination proceedings.
513.................. Practice before the Office... None........................ Internal agency
administration.
516.................. Application processing None........................ Replacing with Board
procedures. processes within specific
regulations.
517.................. Contracting outreach programs None........................ Internal agency
administration.
528.................. Nondiscrimination None........................ Internal agency
requirements. administration.
533.................. Disclosure and reporting of All of part................. Applies directly to SLHCs.
CRA-related agreements.
535.................. Unfair or deceptive acts or None........................ Applies to savings
practices. associations only.
536.................. Consumer protection in sales None........................ Applies through the savings
of insurance. association.
541.................. Definitions for regulations Some of part................ Relevant to SLHC provisions.
affecting Federal savings
associations.
543.................. Federal mutual savings Some of part (Section Applicable to SLHC as a
associations--Incorporation, 543.1(b) (resulting from result of a cross-
organization, and conversion. cross-reference in part reference.
575)).
[[Page 43956]]
544.................. Federal mutual savings Some of part (Sections Applicable to SLHC as a
associations--Charter and 544.2, 544.5, and 544.8 result of a cross-
bylaws. (resulting from cross- reference.
reference in part 575)).
545.................. Federal savings associations-- Some of part (Sections Applicable to SLHC as a
Operations. 545.95 and 545.121 result of a cross-
(resulting from cross- reference.
reference in part 575)).
546.................. Federal mutual savings All of part (resulting from Applicable to SLHC as a
associations--Merger, cross-reference in part result of a cross-
dissolution, reorganization, 575). reference.
and conversion.
550.................. Fiduciary powers of savings None of part................ Applies to savings
associations. associations only.
551.................. Recordkeeping and None........................ Applies to savings
confirmation requirements associations only.
for securities transactions.
552.................. Federal stock associations-- All of part (resulting from Applicable to SLHC as a
Incorporation, organization, cross-reference in part 575 result of a cross-
and conversion. and others). reference.
555.................. Electronic operations........ None........................ Applies to savings
associations only.
557.................. Deposits..................... None........................ Applies to savings
associations only.
558.................. Possession by conservators None........................ Applies to savings
and receivers for Federal associations only.
and State savings
associations.
559.................. Subordinate organizations.... All of part (resulting from Applicable to SLHC as a
cross-reference in part result of a cross-
575). reference.
560.................. Lending and investment....... None........................ Applies to savings
associations only.
561.................. Definitions for regulations Some of part................ Relevant to SLHC provisions.
affecting all savings
associations.
562.................. Regulatory reporting Some of part................ Applies directly to SLHCs.
standards.
563.................. Savings Associations-- All of part (resulting from Applicable to SLHC as a
Operations. cross-reference in part 575 result of a cross-
and others). reference.
563b................. Conversions from mutual to All of part (resulting from Applicable to SLHC as a
stock form. cross-reference in part result of a cross-
575). reference.
563c................. Accounting requirements...... All of part................. Applicable to SLHC as a
result of a cross-
reference.
563d................. Securities of savings None........................ Applies to savings
associations. associations only.
563e................. Community reinvestment....... Some of part................ Applicable to SLHC as a
result of a cross-
reference.
563f................. Management official All of part................. Applies directly to SLHCs.
interlocks.
563g................. Securities offerings......... All of part (resulting from Applicable to SLHC as a
cross-reference in part result of a cross-
575). reference.
564.................. Appraisals................... None........................ Applies to savings
associations only.
565.................. Prompt corrective action..... Some of part (Section 565.4 Applicable to SLHC as a
(resulting from cross- result of a cross-
reference in part 575)). reference.
567.................. Capital...................... None........................ Applies to savings
associations only.
568.................. Security procedures.......... None........................ Applies to savings
associations only.
569.................. Proxies...................... None........................ Applies to savings
associations only.
570.................. Safety and soundness None........................ Applies to savings
guidelines and compliance associations only.
procedures.
571.................. Fair Credit Reporting........ None........................ Transferred to new agency..
572.................. Loans in areas having special None of part................ Applies to savings
flood hazards. associations only.
573.................. Privacy of consumer financial None of part................ Applies to savings
information. associations only.
574.................. Acquisition of control of Some of part................ Applies directly to SLHCs.
savings associations. The Board will replace
current OTS application
processing procedures. The
Board also will replace
provisions related to
control determinations and
rebuttals.
575.................. Mutual holding companies..... Some of part................ Applies directly to SLHCs.
The Board will replace
current OTS application
processing procedures.
583.................. Definitions for regulations All of part................. Relevant to SLHC provisions.
affecting savings and loan
holding companies.
584.................. Savings and loan holding All of part................. Applies directly to SLHCs.
companies. The Board will replace
current OTS application
processing procedures.
585.................. Prohibited service at savings All of part................. Applies directly to SLHCs.
and loan holding companies.
590.................. Preemption of State usury None........................ Applies to savings
laws. associations only.
591.................. Preemption of State due-on- None........................ Applies to savings
sale laws. associations only
----------------------------------------------------------------------------------------------------------------
By this notice, the Board seeks to inform interested persons,
including SLHCs and their non-depository subsidiaries, of the Board's
approach to enforcement of certain OTS regulations and invites comment
on its intended
[[Page 43957]]
approach in order to help identify issues and matters that may require
special attention. The Board requests specific comment with respect to
whether all regulations relating to the supervision of SLHCs are
included in the listing above. Alternatively, does this notice indicate
continued enforcement of regulatory provisions that currently do not
apply to SLHCs or their non-depository subsidiaries?
By order of the Board of Governors of the Federal Reserve
System, July 14, 2011.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. 2011-18100 Filed 7-21-11; 8:45 am]
BILLING CODE 6210-01-P
