Policy To Encourage Trial Disclosure Programs; Information Collection, 74625-74628 [2012-30159]
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Federal Register / Vol. 77, No. 242 / Monday, December 17, 2012 / Proposed Rules
conservation standard or make
representations about the energy use or
efficiency of the covered product.
(5) Extension to additional basic
models. DOE may extend the scope of a
waiver upon request of the petitioner to
include additional basic models
employing the same technology as the
basic models set forth in the original
petition. Notification of such extension
will be published in the Federal
Register.
(g) If the alternate test procedure
specified in the interim waiver differs
from the alternate test procedure
specified by DOE in the subsequent
decision and order granting the petition
for waiver, a manufacturer who has
already certified basic models using the
procedure permitted in DOE’s grant of
an interim test procedure waiver does
not need to re-test and re-rate those
basic models so long as:
(1) The manufacturer used that
alternative procedure after DOE granted
the company’s interim waiver request;
and
(2) Changes have not been made to
those basic models that would cause
them to use more energy or otherwise be
less energy efficient.
(3) After DOE publishes a decision
and order in the Federal Register, a
manufacturer must use the test
procedure contained in that notice to
rate any basic models that have not yet
been certified to DOE and for any future
testing of any basic model(s) covered by
the decision and order.
(h) Not later than 60 days after DOE
grants a petition for waiver for a type of
equipment employing a particular
technology or characteristic, any
manufacturer of that equipment
employing a technology or characteristic
that results in the same need for a
waiver, as specified by DOE in the
published petition for waiver in the
Federal Register, must submit a petition
for waiver pursuant to the requirements
of this section. Manufacturers may also
submit a request for interim waiver
pursuant to the requirements of this
section.
(i)(1) Waivers and interim waivers are
conditioned upon the presumed validity
of statements, representations, and
documents provided by the petitioner.
DOE may revoke or modify a waiver or
interim waiver at any time upon a
determination that the factual basis
underlying the petition for waiver or
interim waiver is incorrect, or upon a
determination that the results from the
alternate test procedure are
unrepresentative of the basic models’
true energy consumption characteristics.
DOE will publish any proposed
rescission or modification in the
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Federal Register for public comment.
DOE will also publish its decision in the
Federal Register.
(2) Petitioners may request that DOE
rescind or modify a waiver or interim
waiver if the petitioner discovers an
error in the information provided to
DOE as part of its petition, determines
that the waiver is no longer needed, or
for other appropriate reasons. DOE will
publish any request for rescission or
modification in the Federal Register for
public comment. DOE will also publish
its decision on the request in the
Federal Register. The decision shall be
based on relevant information contained
in the record and any comments
received. Basic models tested
subsequent to the effective date of a
rescission must be tested using the
applicable DOE test procedure.
(j) Revision of regulation. As soon as
practicable after the granting of any
waiver, DOE will publish in the Federal
Register a notice of proposed
rulemaking to amend its regulations so
as to eliminate any need for the
continuation of such waiver. As soon
thereafter as practicable, DOE will
publish in the Federal Register a final
rule. Such waiver will terminate on the
date on which use of the test procedure
established in such final rule is required
to demonstrate compliance with the
applicable conservation standard.
(k) In order to exhaust administrative
remedies, any person aggrieved by an
action under this section must file an
appeal with the DOE’s Office of
Hearings and Appeals as provided in 10
CFR part 1003, subpart C.
[FR Doc. 2012–30195 Filed 12–14–12; 8:45 am]
BILLING CODE 6450–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Chapter X
[Docket No. CFPB–2012–0046]
Policy To Encourage Trial Disclosure
Programs; Information Collection
Bureau of Consumer Financial
Protection.
ACTION: Notice of proposed policy and
proposed information collection;
request for comment.
AGENCY:
The Bureau of Consumer
Financial Protection (Bureau) invites the
general public and other Federal
agencies to take this opportunity to
comment on its proposed Policy to
Encourage Trial Disclosure Programs
(Policy), which is intended to carry out
the Bureau’s authority under Section
SUMMARY:
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1032(e) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of
2010 (Dodd-Frank Act), and also a
proposed information collection
associated with applications submitted
by companies seeking Bureau approval
to conduct trial disclosure programs
under the proposed Policy as required
by the Paperwork Reduction Act of
1995.
DATES: Written comments are
encouraged and must be received on or
before February 15, 2013 to be assured
of consideration.
ADDRESSES: Submit comments on the
proposed Policy by any of the following
methods:
• Electronic: https://
www.regulations.gov. Follow the
instructions on this site for submitting
comments.
• Mail/Hand Delivery/Courier:
Monica Jackson, Office of the Executive
Secretary, Consumer Financial
Protection Bureau, 1700 G Street NW.,
Washington, DC 20552.
Submit comments on the proposed
information collection by any of the
following methods:
• Electronic:
CFPB_Public_PRA@cfpb.gov.
• Mail/Hand Delivery/Courier: Direct
all written comments to Consumer
Financial Protection Bureau (Attention:
PRA Office), 1700 G Street NW.,
Washington, DC 20552.
Instructions: Submissions should
include agency name and the title
‘‘Policy to Encourage Trial Disclosure
Programs; Information Collection.’’
Comments will be available for public
inspection and copying at 1700 G Street
NW., Washington, DC 20552 on official
business days between the hours of 10
a.m. and 5 p.m. Eastern Time. You can
make an appointment to inspect
comments by telephoning (202) 435–
7275. All comments, including any
attachments and other supporting
materials, will become part of the public
record and subject to public disclosure.
For this reason, please do not include in
your comments information of a
confidential nature, such as sensitive
personal information or proprietary
information. You should only submit
information that you wish to make
available publicly.
FOR FURTHER INFORMATION CONTACT: For
additional information about the
proposed information collection,
contact the Consumer Financial
Protection Bureau, (Attention: PRA
Office), 1700 G Street NW., Washington,
DC 20552, (202) 435–9011, or through
the Internet at
CFPB_Public_PRA@cfpb.gov. For
additional information about the
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proposed Policy, contact Will WadeGery, Research, Markets & Regulations
Division, Bureau of Consumer Financial
Protection, (202) 435–7700.
SUPPLEMENTARY INFORMATION: No waiver
will issue under the Policy until the
Office of Management and Budget
approves the proposed information
collection and the Policy is finalized in
light of comments received.
Title: Policy to Encourage Trial
Disclosure Programs; Information
Collection.
Office of Management and Budget
(OMB) Control Number: 3170–XXXX.
Abstract: In subsection 1032(e) of the
Dodd-Frank Act, 12 U.S.C. 5532(e),
Congress gave the Bureau authority to
provide certain legal protections to
companies to conduct trial disclosure
programs. This authority can be used to
help further the Bureau’s statutory
objective, stated in subsection
1021(b)(5) of the Act, to ‘‘facilitate
access and innovation’’ in the ‘‘markets
for consumer financial products and
services.’’
In line with this authority, the Bureau
is proposing the Policy that is laid out
in full in the next section of this Notice.
Under the proposed Policy, if the
Bureau approves a specific trial, then,
for the duration of an agreed testing
period, the Bureau will deem the testing
company’s disclosure, to the extent that
it is used solely by the testing company
under the terms and conditions
approved by the Bureau, to be in
compliance with, or hold it exempt
from, applicable federal disclosure
requirements. The Bureau believes that
there may be significant opportunities to
enhance consumer protection by
facilitating innovation in financial
products and services and enabling
companies to research informative, costeffective disclosures. The Bureau also
recognizes that in-market testing,
involving companies and consumers in
real world situations, may offer
particularly valuable information with
which to improve disclosure rules and
model forms. The Bureau seeks
comments on any aspect of this
proposed Policy.
The Bureau is also seeking comments
on the information to be submitted to
the Bureau by any company that is
seeking Bureau approval of a proposed
trial disclosure program under the
proposed Policy. The proposed Policy
lays out eligibility criteria for trial
programs, which require companies
proposing such tests to provide certain
information to the Bureau. The Bureau
invites the public to comment on all
aspects of the proposed information
collection that would be occasioned by
these eligibility criteria.
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Type of Information Collection
Review: New collection.
Average Expected Annual Number of
Information Collection Activities: 1.
Information Collection—Affected
Public: Business or other for-profit or
not-for-profit institutions.
Estimated Number of Respondents: 2–
10.
Estimated Time per Respondent: 10
hours.
Frequency of Response: 1.
Estimated Total Annual Burden
Hours: 20–100.
Proposed Policy To Encourage Trial
Disclosure Programs
The text of the proposed Policy is laid
out in full below.
Consumers need timely and
understandable information to make the
financial decisions that they believe are
best for themselves and their families.
Much federal consumer protection law
rests on the premise that accurate and
effective disclosures are critical in
helping Americans understand the
costs, benefits, and risks of different
consumer financial products and
services. In Section 1032 of the DoddFrank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act),
Congress gave the Consumer Financial
Protection Bureau (Bureau) authority to
develop rules to ensure that consumers
receive such disclosures, as well as
model forms to help companies comply
with those rules.1
In subsection 1032(e) of the DoddFrank Act, Congress also gave the
Bureau authority to approve ‘‘trial
disclosure programs.’’ 2 This authority
can be used to help further the Bureau’s
statutory objective, stated in subsection
1021(b)(5) of the Dodd-Frank Act, to
‘‘facilitate access and innovation’’ in the
‘‘markets for consumer financial
products and services.’’ In particular,
Congress empowered the Bureau to
provide a legal ‘‘safe harbor’’ to
companies testing revised disclosures.
For disclosure trials it approves,
therefore, the Bureau will ‘‘deem’’ a
participating company ‘‘to be in
compliance with’’ or ‘‘exempt from’’
otherwise applicable federal disclosure
requirements for a defined period.3 The
Bureau believes that there may be
significant opportunities to enhance
consumer protection by facilitating
innovation in financial products and
1 See
12 U.S.C. 5532(a)–(d).
U.S.C. 5532(e).
3 12 U.S.C. 5532(e)(2). For convenience, this
statutory authority to deem companies in
compliance with or to exempt them from disclosure
requirements—in each case for a limited period of
time—is hereinafter referred to as the authority to
issue ‘‘waivers’’ for approved programs.
2 12
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services and by enabling responsible
companies to research informative, costeffective disclosures in test programs.
We also recognize that ‘‘in-market’’
testing, involving companies and
consumers in real world situations, may
offer particularly valuable information
with which to improve disclosure rules
and model forms.
Accordingly, the Bureau is releasing
its proposed Policy on trial disclosure
programs.4 Our intent is for the Policy
to encourage banks, thrifts, credit
unions, and other financial services
companies to innovate by proposing and
conducting such programs.5 The
information generated by such programs
may then help the Bureau to establish
more effective disclosure rules and
practices.6
The policy has four sections:
• Section A describes which
proposed programs will be considered
eligible for a temporary waiver;
• Section B lists factors the Bureau
may consider in deciding which eligible
programs to approve for such a waiver;
• Section C describes the Bureau’s
procedures for issuing waivers; and
• Section D describes how we will
disclose information about these
programs.
A. Eligibility
Trial disclosure program proposals
should be submitted in writing to the
Bureau. To be considered eligible for a
waiver, a proposal should:
1. Describe the disclosures that are to
be tested; 7
4 The Bureau may permit a covered person or
covered persons to conduct a trial disclosure
program ‘‘subject to specified standards and
procedures.’’ 12 U.S.C. 5532(e)(1).
5 The Policy is not intended to nor should it be
construed to: (1) Restrict or limit in any way the
CFPB’s discretion in exercising its authorities; (2)
constitute an interpretation of law; or (3) create or
confer upon any covered person (including one
who is the subject of CFPB supervisory,
investigation or enforcement activity) or consumer,
any substantive or procedural rights or defenses
that are enforceable in any manner. Of course, if the
Bureau approves a waiver in connection with a trial
disclosure program, the terms of its approval will
specify certain legal rights granted to the recipient
or recipients of the waiver. Those rights, however,
are based on the approval notice, and not on the
present policy guidance.
6 The Policy should not be viewed as substituting
for the normal process of rulemaking. In the event
that information learned from trial disclosure
programs triggers or otherwise informs follow-on
rulemaking, the Bureau would follow the standard
rulemaking process, which affords the public the
opportunity of submitting comments on a proposed
regulation.
7 So long as otherwise consistent with the
minimum eligibility standards, new disclosures
could include modifications to an existing model
form, changed delivery mechanisms, wholesale
replacement of a model form or existing disclosure
requirements with new disclosure requirements or
forms, and/or the elimination of select disclosure
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2. Describe how these changes are
expected to improve upon existing
disclosures,8 particularly with respect to
consumer understanding and/or costeffectiveness; 9
3. Provide a reasonable explanation
for expecting these improvements;
4. Provide metrics for testing whether
such improvements are realized;
5. Identify the duration of the test and
the size, location, and nature of the
consumer population involved in the
test, and explain why that duration and
scope are reasonably necessary for
sound testing;
6. Identify with particularity which
current rules or enumerated consumer
laws are to be temporarily waived in
connection with the trial disclosure
program; 10
7. Identify any third-party vendors to
be used in connection with the
proposed program and describe their
proposed role;
8. Contain a commitment to sharing
test result data 11 with the Bureau;
9. Acknowledge that the Bureau may
revoke any approved waiver if the
program violates the terms and
conditions under which the Bureau
approves the program; and
10. Explain how the company will
address disclosure requirements for the
test population at the conclusion of the
test period.
requirements. All proposals should include a copy
of the trial disclosures to be tested and a clear
statement of how they would be provided to
consumers.
8 The relevant existing disclosures are those made
in accordance with disclosure rules issued either
under the authority of Section 1032(a) or to
implement an enumerated consumer law. See 12
U.S.C. 5481(12).
9 Trial disclosures should be ‘‘designed to
improve upon’’ existing disclosures. (12 U.S.C.
5532(e)(1).) Intended improvements may go to
consumer understanding of the relevant product or
service and/or to the cost-effectiveness of
disclosures. The Bureau anticipates approving trial
disclosure programs that are intended to improve
both consumer understanding and costeffectiveness.
10 Under subsection 1032(e)(2), the Bureau has
authority to waive ‘‘a requirement of a rule or an
enumerated consumer law,’’ as that term is defined
in the Dodd-Frank Act. See 12 U.S.C. 5481(12). As
used in subsection 1032(e)(2), the term ‘‘rule’’
includes: (i) rules implementing an enumerated
consumer law; and (ii) rules implementing the
Consumer Financial Protection Act of 2010,
including rules promulgated by the Bureau under
its authority to prevent unfair, abusive, or deceptive
acts or practices, or to enable full, accurate and
effective disclosure.
11 The proposal should commit to sharing test
result data with the Bureau at the end of the
program. In addition, it should contain either (1) a
commitment to sharing with the Bureau interim
data on test results during the course of the
program, or (2) an explanation for why such interim
data cannot reasonably be provided.
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B. Approval of Proposals for Waivers
To decide whether to approve a
proposed program for a waiver,12 the
Bureau may take account of a number of
factors, including:
1. The extent to which the program
may help the Bureau develop disclosure
rules or policies that better enable
consumers to understand the costs,
benefits, and risks associated with
consumer financial products or services;
2. The extent to which the program
may help the Bureau develop rules or
policies to correct or mitigate market
failure;
3. The extent to which the program
may help the Bureau develop more costeffective disclosure rules or policies;
4. The extent to which the program
controls for and mitigates risks to
consumers; 13
5. The strength of the company’s
compliance management system relative
to the size, nature, and complexity of
the company’s consumer business;
6. How effectively and efficiently the
program will test for potential
improvements to consumer
understanding and/or the costeffectiveness of disclosures, and how
narrowly the program is tailored to the
testing objectives;
7. The extent to which existing data
or other evidence indicate that the
proposed changes will realize the
intended improvements; and
9. The extent to which the company
intends to permit public disclosure of
test results.
In reviewing and approving
applications, the Bureau will also take
into consideration the scope and nature
of programs currently underway as well
as the Bureau’s currently available
resources.
C. Waiver Procedures for Approved
Programs
When the Bureau approves a waiver,
it will provide the company or
companies that receive the waiver with
the specific terms and conditions of its
approval.14 Waivers will require
companies to certify, and document or
otherwise demonstrate to the Bureau,
their compliance with these approved
terms and conditions. If a company does
12 The decision whether to approve a proposed
program for a waiver will be within the Bureau’s
sole discretion. The Bureau will review reasonable
requests to reconsider its position on programs for
which it has not approved a waiver.
13 This includes the extent to which a proposal
contains reasonable contingency plans for
addressing unanticipated consumer harms that arise
during the duration of the test.
14 If the Bureau determines not to approve a
proposed trial program, it will inform the company
of its determination.
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not follow the terms and conditions of
the waiver, the Bureau may revoke the
waiver in whole or in part.15
Waiver terms and conditions will be
in writing in an integrated document
entitled ‘‘1032(e) Trial Disclosure
Waiver: Terms and Conditions.’’ This
document will be signed by the Director
of the Bureau or by his or her designee,
and by an officer of each company
approved for a waiver in connection
with the program.
In addition, the document will:
1. List the company or companies that
are receiving a waiver;
2. Specify the temporary duration of
the waiver;
3. Specify the rules and statutory
provisions that the Bureau will waive
during the test period for the testing
company or companies;
4. Describe and delineate the test
population;
5. Specify the changed disclosure or
disclosures to be used; and
6. List any other conditions on the
effectiveness of the waiver, such as the
terms of testing, data sharing,
certification of compliance with the
terms of the waiver, and/or public
disclosure.
D. Bureau Disclosure of Information
Regarding Trial Programs
The Bureau will publish notice on its
Web site of any trial disclosure program
that it approves for a waiver. The notice
will: (i) Identify the company or
companies conducting the trial
disclosure program; (ii) summarize the
changed disclosures to be used, their
intended purpose, and the duration of
their intended use; (iii) summarize the
scope of the waiver and the Bureau’s
reasons for granting it; and (iv) state that
the waiver only applies to the testing
company in accordance with the
approved terms of use.
Public disclosure of any other
information regarding trial programs is
governed by the Bureau’s Interim Final
Rule on Disclosure of Records and
Information.16 For example, the rule
requires the Bureau to make available
records requested by the public unless
they are subject to a FOIA exemption or
exclusion.17 To the extent the Bureau
wishes to disclose information regarding
trial programs, the terms of such
disclosure will be included in the
1032(e) Trial Disclosure Waiver: Terms
15 If the Bureau revokes or partially revokes a
waiver for failure to follow the waiver’s terms, it
will do so in writing and it will specify the reason
or reasons for its action. The Bureau may offer an
opportunity to correct any such failure before
revoking a waiver.
16 See 12 CFR 1070 et seq.
17 See 12 CRF 1070.14.
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and Conditions document. Consistent
with applicable law and its own rules,
the Bureau will not seek to disclose any
test data that would conflict with
consumers’ privacy interests.
Request for Comments
Comments are invited with respect to
the proposed Policy and/or the related
information collection effected by the
application process for potential
approval of a proposed trial disclosure
program. All comments will become a
matter of public record.
Comments related to the proposed
information collection will be
summarized and/or included in the
request for OMB approval. With respect
to the information collection, comments
are invited on: (a) Whether the
collection of information is necessary
for the proper performance of the
functions of the Bureau, including
whether the information shall have
practical utility; (b) the accuracy of the
Bureau’s estimate of the burden of the
collection of information, including the
validity of the methodology and the
assumptions used; (c) ways to enhance
the quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated, electronic, mechanical or
other technological collection
techniques or other forms of information
technology, e.g., permitting electronic
submission of responses. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless it
displays a currently valid OMB control
number.
Dated: December 10, 2012.
Garry Reeder,
Chief of Staff, Bureau of Consumer Financial
Protection.
[FR Doc. 2012–30159 Filed 12–14–12; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
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[Docket No. FAA–2012–1227; Directorate
Identifier 2012–NM–016–AD]
RIN 2120–AA64
Airworthiness Directives; Embraer S.A.
Airplanes
Federal Aviation
Administration (FAA), DOT.
AGENCY:
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Notice of proposed rulemaking
(NPRM).
ACTION:
We propose to adopt a new
airworthiness directive (AD) for certain
Embraer S.A. Model ERJ 190 airplanes.
This proposed AD was prompted by
reports of cracks on the side stay of the
main landing gear (MLG). This proposed
AD would require repetitive
measurements of the left-hand (LH) and
right-hand (RH) MLG side stay support
fitting to detect bushing migration,
replacement of the bushing if necessary,
and eventual replacement of the
bushing; a detailed inspection for
damage on the LH and RH MLG side
stay support assembly, and related
investigative and corrective actions if
necessary. We are proposing this AD to
prevent excessive bearing friction,
which might compromise the MLG free
fall extension, and cause fatigue
cracking on the MLG side stay and on
its support assembly, resulting in
reduced structural integrity of the MLG.
DATES: We must receive comments on
this proposed AD by January 31, 2013.
ADDRESSES: You may send comments by
any of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: (202) 493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.
• Hand Delivery: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
For service information identified in
this proposed AD, contact Embraer S.A.,
Technical Publications Section (PC
060), Av. Brigadeiro Faria Lima, 2170—
˜
Putim—12227–901 Sao Jose dos
Campos—SP—BRASIL; telephone +55
12 3927–5852 or +55 12 3309–0732; fax
+55 12 3927–7546; email
distrib@embraer.com.br; Internet https://
www.flyembraer.com. You may review
copies of the referenced service
information at the FAA, Transport
Airplane Directorate, 1601 Lind Avenue
SW., Renton, Washington. For
information on the availability of this
material at the FAA, call 425–227–1221.
SUMMARY:
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov; or in person at the
Docket Operations office between 9 a.m.
and 5 p.m., Monday through Friday,
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except Federal holidays. The AD docket
contains this proposed AD, the
regulatory evaluation, any comments
received, and other information. The
street address for the Docket Operations
office (telephone (800) 647–5527) is in
the ADDRESSES section. Comments will
be available in the AD docket shortly
after receipt.
FOR FURTHER INFORMATION CONTACT:
Cindy Ashforth, Aerospace Engineer,
International Branch, ANM–116,
Transport Airplane Directorate, FAA,
1601 Lind Avenue SW., Renton,
Washington 98057–3356; telephone
(425) 227–2768; fax (425) 227–1149.
SUPPLEMENTARY INFORMATION:
Comments Invited
We invite you to send any written
relevant data, views, or arguments about
this proposed AD. Send your comments
to an address listed under the
ADDRESSES section. Include ‘‘Docket No.
FAA–2012–1227; Directorate Identifier
2012–NM–016–AD’’ at the beginning of
your comments. We specifically invite
comments on the overall regulatory,
economic, environmental, and energy
aspects of this proposed AD. We will
consider all comments received by the
closing date and may amend this
proposed AD based on those comments.
We will post all comments we
receive, without change, to https://
www.regulations.gov, including any
personal information you provide. We
will also post a report summarizing each
substantive verbal contact we receive
about this proposed AD.
Discussion
ˆ
The Agencia Nacional de Aviacao
¸˜
Civil (ANAC), which is the aviation
authority for Brazil, has issued Brazilian
Airworthiness Directive 2012–01–01,
effective January 28, 2012 (referred to
after this as ‘‘the MCAI’’), to correct an
unsafe condition for the specified
products. The MCAI states:
This [ANAC] AD results from reports of
cracks on the Main Landing Gear (MLG) Side
Stay. Further investigation has revealed that
the cracks were caused by excessive friction
on the MLG Side Stay Support Fitting due to
its outer bushing migration. This [ANAC] AD
is being issued to prevent such excessive
bearing friction which may compromise the
MLG free fall extension and; cause fatigue
cracks on the MLG Side Stay and on the MLG
Side Stay Support Assembly resulting in
reduced structural integrity of the MLG.
*
*
*
*
*
The required actions include repetitive
measurements of the LH and RH MLG
side stay support fitting to detect
bushing migration, replacement the
bushing if necessary, and eventual
replacement of the bushing; a detailed
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]]>Agencies
[Federal Register Volume 77, Number 242 (Monday, December 17, 2012)]
[Proposed Rules]
[Pages 74625-74628]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30159]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Chapter X
[Docket No. CFPB-2012-0046]
Policy To Encourage Trial Disclosure Programs; Information
Collection
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notice of proposed policy and proposed information collection;
request for comment.
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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) invites
the general public and other Federal agencies to take this opportunity
to comment on its proposed Policy to Encourage Trial Disclosure
Programs (Policy), which is intended to carry out the Bureau's
authority under Section 1032(e) of the Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010 (Dodd-Frank Act), and also a
proposed information collection associated with applications submitted
by companies seeking Bureau approval to conduct trial disclosure
programs under the proposed Policy as required by the Paperwork
Reduction Act of 1995.
DATES: Written comments are encouraged and must be received on or
before February 15, 2013 to be assured of consideration.
ADDRESSES: Submit comments on the proposed Policy by any of the
following methods:
Electronic: https://www.regulations.gov. Follow the
instructions on this site for submitting comments.
Mail/Hand Delivery/Courier: Monica Jackson, Office of the
Executive Secretary, Consumer Financial Protection Bureau, 1700 G
Street NW., Washington, DC 20552.
Submit comments on the proposed information collection by any of
the following methods:
Electronic: CFPB_Public_PRA@cfpb.gov.
Mail/Hand Delivery/Courier: Direct all written comments to
Consumer Financial Protection Bureau (Attention: PRA Office), 1700 G
Street NW., Washington, DC 20552.
Instructions: Submissions should include agency name and the title
``Policy to Encourage Trial Disclosure Programs; Information
Collection.'' Comments will be available for public inspection and
copying at 1700 G Street NW., Washington, DC 20552 on official business
days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make
an appointment to inspect comments by telephoning (202) 435-7275. All
comments, including any attachments and other supporting materials,
will become part of the public record and subject to public disclosure.
For this reason, please do not include in your comments information of
a confidential nature, such as sensitive personal information or
proprietary information. You should only submit information that you
wish to make available publicly.
FOR FURTHER INFORMATION CONTACT: For additional information about the
proposed information collection, contact the Consumer Financial
Protection Bureau, (Attention: PRA Office), 1700 G Street NW.,
Washington, DC 20552, (202) 435-9011, or through the Internet at CFPB_Public_PRA@cfpb.gov. For additional information about the
[[Page 74626]]
proposed Policy, contact Will Wade-Gery, Research, Markets &
Regulations Division, Bureau of Consumer Financial Protection, (202)
435-7700.
SUPPLEMENTARY INFORMATION: No waiver will issue under the Policy until
the Office of Management and Budget approves the proposed information
collection and the Policy is finalized in light of comments received.
Title: Policy to Encourage Trial Disclosure Programs; Information
Collection.
Office of Management and Budget (OMB) Control Number: 3170-XXXX.
Abstract: In subsection 1032(e) of the Dodd-Frank Act, 12 U.S.C.
5532(e), Congress gave the Bureau authority to provide certain legal
protections to companies to conduct trial disclosure programs. This
authority can be used to help further the Bureau's statutory objective,
stated in subsection 1021(b)(5) of the Act, to ``facilitate access and
innovation'' in the ``markets for consumer financial products and
services.''
In line with this authority, the Bureau is proposing the Policy
that is laid out in full in the next section of this Notice. Under the
proposed Policy, if the Bureau approves a specific trial, then, for the
duration of an agreed testing period, the Bureau will deem the testing
company's disclosure, to the extent that it is used solely by the
testing company under the terms and conditions approved by the Bureau,
to be in compliance with, or hold it exempt from, applicable federal
disclosure requirements. The Bureau believes that there may be
significant opportunities to enhance consumer protection by
facilitating innovation in financial products and services and enabling
companies to research informative, cost-effective disclosures. The
Bureau also recognizes that in-market testing, involving companies and
consumers in real world situations, may offer particularly valuable
information with which to improve disclosure rules and model forms. The
Bureau seeks comments on any aspect of this proposed Policy.
The Bureau is also seeking comments on the information to be
submitted to the Bureau by any company that is seeking Bureau approval
of a proposed trial disclosure program under the proposed Policy. The
proposed Policy lays out eligibility criteria for trial programs, which
require companies proposing such tests to provide certain information
to the Bureau. The Bureau invites the public to comment on all aspects
of the proposed information collection that would be occasioned by
these eligibility criteria.
Type of Information Collection Review: New collection.
Average Expected Annual Number of Information Collection
Activities: 1.
Information Collection--Affected Public: Business or other for-
profit or not-for-profit institutions.
Estimated Number of Respondents: 2-10.
Estimated Time per Respondent: 10 hours.
Frequency of Response: 1.
Estimated Total Annual Burden Hours: 20-100.
Proposed Policy To Encourage Trial Disclosure Programs
The text of the proposed Policy is laid out in full below.
Consumers need timely and understandable information to make the
financial decisions that they believe are best for themselves and their
families. Much federal consumer protection law rests on the premise
that accurate and effective disclosures are critical in helping
Americans understand the costs, benefits, and risks of different
consumer financial products and services. In Section 1032 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act),
Congress gave the Consumer Financial Protection Bureau (Bureau)
authority to develop rules to ensure that consumers receive such
disclosures, as well as model forms to help companies comply with those
rules.\1\
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\1\ See 12 U.S.C. 5532(a)-(d).
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In subsection 1032(e) of the Dodd-Frank Act, Congress also gave the
Bureau authority to approve ``trial disclosure programs.'' \2\ This
authority can be used to help further the Bureau's statutory objective,
stated in subsection 1021(b)(5) of the Dodd-Frank Act, to ``facilitate
access and innovation'' in the ``markets for consumer financial
products and services.'' In particular, Congress empowered the Bureau
to provide a legal ``safe harbor'' to companies testing revised
disclosures. For disclosure trials it approves, therefore, the Bureau
will ``deem'' a participating company ``to be in compliance with'' or
``exempt from'' otherwise applicable federal disclosure requirements
for a defined period.\3\ The Bureau believes that there may be
significant opportunities to enhance consumer protection by
facilitating innovation in financial products and services and by
enabling responsible companies to research informative, cost-effective
disclosures in test programs. We also recognize that ``in-market''
testing, involving companies and consumers in real world situations,
may offer particularly valuable information with which to improve
disclosure rules and model forms.
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\2\ 12 U.S.C. 5532(e).
\3\ 12 U.S.C. 5532(e)(2). For convenience, this statutory
authority to deem companies in compliance with or to exempt them
from disclosure requirements--in each case for a limited period of
time--is hereinafter referred to as the authority to issue
``waivers'' for approved programs.
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Accordingly, the Bureau is releasing its proposed Policy on trial
disclosure programs.\4\ Our intent is for the Policy to encourage
banks, thrifts, credit unions, and other financial services companies
to innovate by proposing and conducting such programs.\5\ The
information generated by such programs may then help the Bureau to
establish more effective disclosure rules and practices.\6\
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\4\ The Bureau may permit a covered person or covered persons to
conduct a trial disclosure program ``subject to specified standards
and procedures.'' 12 U.S.C. 5532(e)(1).
\5\ The Policy is not intended to nor should it be construed to:
(1) Restrict or limit in any way the CFPB's discretion in exercising
its authorities; (2) constitute an interpretation of law; or (3)
create or confer upon any covered person (including one who is the
subject of CFPB supervisory, investigation or enforcement activity)
or consumer, any substantive or procedural rights or defenses that
are enforceable in any manner. Of course, if the Bureau approves a
waiver in connection with a trial disclosure program, the terms of
its approval will specify certain legal rights granted to the
recipient or recipients of the waiver. Those rights, however, are
based on the approval notice, and not on the present policy
guidance.
\6\ The Policy should not be viewed as substituting for the
normal process of rulemaking. In the event that information learned
from trial disclosure programs triggers or otherwise informs follow-
on rulemaking, the Bureau would follow the standard rulemaking
process, which affords the public the opportunity of submitting
comments on a proposed regulation.
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The policy has four sections:
Section A describes which proposed programs will be
considered eligible for a temporary waiver;
Section B lists factors the Bureau may consider in
deciding which eligible programs to approve for such a waiver;
Section C describes the Bureau's procedures for issuing
waivers; and
Section D describes how we will disclose information about
these programs.
A. Eligibility
Trial disclosure program proposals should be submitted in writing
to the Bureau. To be considered eligible for a waiver, a proposal
should:
1. Describe the disclosures that are to be tested; \7\
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\7\ So long as otherwise consistent with the minimum eligibility
standards, new disclosures could include modifications to an
existing model form, changed delivery mechanisms, wholesale
replacement of a model form or existing disclosure requirements with
new disclosure requirements or forms, and/or the elimination of
select disclosure requirements. All proposals should include a copy
of the trial disclosures to be tested and a clear statement of how
they would be provided to consumers.
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[[Page 74627]]
2. Describe how these changes are expected to improve upon existing
disclosures,\8\ particularly with respect to consumer understanding
and/or cost-effectiveness; \9\
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\8\ The relevant existing disclosures are those made in
accordance with disclosure rules issued either under the authority
of Section 1032(a) or to implement an enumerated consumer law. See
12 U.S.C. 5481(12).
\9\ Trial disclosures should be ``designed to improve upon''
existing disclosures. (12 U.S.C. 5532(e)(1).) Intended improvements
may go to consumer understanding of the relevant product or service
and/or to the cost-effectiveness of disclosures. The Bureau
anticipates approving trial disclosure programs that are intended to
improve both consumer understanding and cost-effectiveness.
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3. Provide a reasonable explanation for expecting these
improvements;
4. Provide metrics for testing whether such improvements are
realized;
5. Identify the duration of the test and the size, location, and
nature of the consumer population involved in the test, and explain why
that duration and scope are reasonably necessary for sound testing;
6. Identify with particularity which current rules or enumerated
consumer laws are to be temporarily waived in connection with the trial
disclosure program; \10\
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\10\ Under subsection 1032(e)(2), the Bureau has authority to
waive ``a requirement of a rule or an enumerated consumer law,'' as
that term is defined in the Dodd-Frank Act. See 12 U.S.C. 5481(12).
As used in subsection 1032(e)(2), the term ``rule'' includes: (i)
rules implementing an enumerated consumer law; and (ii) rules
implementing the Consumer Financial Protection Act of 2010,
including rules promulgated by the Bureau under its authority to
prevent unfair, abusive, or deceptive acts or practices, or to
enable full, accurate and effective disclosure.
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7. Identify any third-party vendors to be used in connection with
the proposed program and describe their proposed role;
8. Contain a commitment to sharing test result data \11\ with the
Bureau;
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\11\ The proposal should commit to sharing test result data with
the Bureau at the end of the program. In addition, it should contain
either (1) a commitment to sharing with the Bureau interim data on
test results during the course of the program, or (2) an explanation
for why such interim data cannot reasonably be provided.
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9. Acknowledge that the Bureau may revoke any approved waiver if
the program violates the terms and conditions under which the Bureau
approves the program; and
10. Explain how the company will address disclosure requirements
for the test population at the conclusion of the test period.
B. Approval of Proposals for Waivers
To decide whether to approve a proposed program for a waiver,\12\
the Bureau may take account of a number of factors, including:
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\12\ The decision whether to approve a proposed program for a
waiver will be within the Bureau's sole discretion. The Bureau will
review reasonable requests to reconsider its position on programs
for which it has not approved a waiver.
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1. The extent to which the program may help the Bureau develop
disclosure rules or policies that better enable consumers to understand
the costs, benefits, and risks associated with consumer financial
products or services;
2. The extent to which the program may help the Bureau develop
rules or policies to correct or mitigate market failure;
3. The extent to which the program may help the Bureau develop more
cost-effective disclosure rules or policies;
4. The extent to which the program controls for and mitigates risks
to consumers; \13\
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\13\ This includes the extent to which a proposal contains
reasonable contingency plans for addressing unanticipated consumer
harms that arise during the duration of the test.
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5. The strength of the company's compliance management system
relative to the size, nature, and complexity of the company's consumer
business;
6. How effectively and efficiently the program will test for
potential improvements to consumer understanding and/or the cost-
effectiveness of disclosures, and how narrowly the program is tailored
to the testing objectives;
7. The extent to which existing data or other evidence indicate
that the proposed changes will realize the intended improvements; and
9. The extent to which the company intends to permit public
disclosure of test results.
In reviewing and approving applications, the Bureau will also take
into consideration the scope and nature of programs currently underway
as well as the Bureau's currently available resources.
C. Waiver Procedures for Approved Programs
When the Bureau approves a waiver, it will provide the company or
companies that receive the waiver with the specific terms and
conditions of its approval.\14\ Waivers will require companies to
certify, and document or otherwise demonstrate to the Bureau, their
compliance with these approved terms and conditions. If a company does
not follow the terms and conditions of the waiver, the Bureau may
revoke the waiver in whole or in part.\15\
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\14\ If the Bureau determines not to approve a proposed trial
program, it will inform the company of its determination.
\15\ If the Bureau revokes or partially revokes a waiver for
failure to follow the waiver's terms, it will do so in writing and
it will specify the reason or reasons for its action. The Bureau may
offer an opportunity to correct any such failure before revoking a
waiver.
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Waiver terms and conditions will be in writing in an integrated
document entitled ``1032(e) Trial Disclosure Waiver: Terms and
Conditions.'' This document will be signed by the Director of the
Bureau or by his or her designee, and by an officer of each company
approved for a waiver in connection with the program.
In addition, the document will:
1. List the company or companies that are receiving a waiver;
2. Specify the temporary duration of the waiver;
3. Specify the rules and statutory provisions that the Bureau will
waive during the test period for the testing company or companies;
4. Describe and delineate the test population;
5. Specify the changed disclosure or disclosures to be used; and
6. List any other conditions on the effectiveness of the waiver,
such as the terms of testing, data sharing, certification of compliance
with the terms of the waiver, and/or public disclosure.
D. Bureau Disclosure of Information Regarding Trial Programs
The Bureau will publish notice on its Web site of any trial
disclosure program that it approves for a waiver. The notice will: (i)
Identify the company or companies conducting the trial disclosure
program; (ii) summarize the changed disclosures to be used, their
intended purpose, and the duration of their intended use; (iii)
summarize the scope of the waiver and the Bureau's reasons for granting
it; and (iv) state that the waiver only applies to the testing company
in accordance with the approved terms of use.
Public disclosure of any other information regarding trial programs
is governed by the Bureau's Interim Final Rule on Disclosure of Records
and Information.\16\ For example, the rule requires the Bureau to make
available records requested by the public unless they are subject to a
FOIA exemption or exclusion.\17\ To the extent the Bureau wishes to
disclose information regarding trial programs, the terms of such
disclosure will be included in the 1032(e) Trial Disclosure Waiver:
Terms
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and Conditions document. Consistent with applicable law and its own
rules, the Bureau will not seek to disclose any test data that would
conflict with consumers' privacy interests.
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\16\ See 12 CFR 1070 et seq.
\17\ See 12 CRF 1070.14.
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Request for Comments
Comments are invited with respect to the proposed Policy and/or the
related information collection effected by the application process for
potential approval of a proposed trial disclosure program. All comments
will become a matter of public record.
Comments related to the proposed information collection will be
summarized and/or included in the request for OMB approval. With
respect to the information collection, comments are invited on: (a)
Whether the collection of information is necessary for the proper
performance of the functions of the Bureau, including whether the
information shall have practical utility; (b) the accuracy of the
Bureau's estimate of the burden of the collection of information,
including the validity of the methodology and the assumptions used; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated,
electronic, mechanical or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses. An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless it displays a currently valid OMB control number.
Dated: December 10, 2012.
Garry Reeder,
Chief of Staff, Bureau of Consumer Financial Protection.
[FR Doc. 2012-30159 Filed 12-14-12; 8:45 am]
BILLING CODE 4810-AM-P
