Truth in Savings (Regulation DD), 9647-9649 [2014-03266]

Download as PDF Federal Register / Vol. 79, No. 34 / Thursday, February 20, 2014 / Proposed Rules narrower definition of ‘‘creditor’’ would not have to comply with the requirements of the Red Flags rule. However, small entity financial institutions would still be required to comply with the Red Flags rule, regardless of whether they meet the revised definition of creditor. 4. Other federal rules. The Board has not identified any federal statutes or regulations that would duplicate, overlap, or conflict with the proposed revision. 5. Significant alternatives to the proposed revisions. The proposed revisions to the definition of ‘‘creditor’’ and the cross-reference to the definition of a ‘‘notice of address discrepancy’’ reflect statutory changes. The Board does not believe there are significant alternatives to these revisions. Although the Board has authority to determine through a rulemaking that any other creditor that offers or maintains accounts that are subject to a reasonably foreseeable risk of identity theft is subject to the Red Flags rule, the Board does not believe it is appropriate to use its discretionary rulemaking authority at this time. III. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3506; 5 CFR part 1320 Appendix A.1), the Board reviewed the rule under the authority delegated to the Federal Reserve by the Office of Management and Budget (OMB). The proposed rule contains no requirements subject to the PRA. List of Subjects in 12 CFR Part 222 Authority and Issuance For the reasons set forth in the preamble, the Board proposes to amend Regulation V, 12 CFR part 222, as set forth below: PART 222—FAIR CREDIT REPORTING (REGULATION V) 1. The authority citation for part 222 continues to read as follows: tkelley on DSK3SPTVN1PROD with PROPOSALS ■ Authority 5 U.S.C. 1681b, 1681c, 1681m and 1681s; Secs. 3, 214, and 216, Pub. L. 108–159, 117 Stat. 1952. 2. Amend § 222.90 by revising paragraph (b)(5) to read as follows: ■ § 222.90 Duties regarding the detection, prevention, and mitigation of identity theft. * * (b) * * * VerDate Mar<15>2010 * * 17:08 Feb 19, 2014 Appendix J to Part 222—Interagency Guidelines on Identity Theft Detection, Prevention, and Mitigation * * * * * Supplement A to Appendix J * * * * * 3. A consumer reporting agency provides a notice of address discrepancy, as defined in 12 CFR 1022.82(b). * * * * * ■ By order of the Board of Governors of the Federal Reserve System, February 10, 2014. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2014–03264 Filed 2–19–14; 8:45 am] BILLING CODE P FEDERAL RESERVE SYSTEM 12 CFR Part 230 [Docket No. R–1482] RIN 7100 AE12 Truth in Savings (Regulation DD) Board of Governors of the Federal Reserve System. ACTION: Notice of proposed rulemaking; request for public comment. AGENCY: The Board of Governors of the Federal Reserve System (Board) is proposing to repeal its Regulation DD, 12 CFR part 230, which was issued to implement the Truth in Saving Act (TISA). Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred rulemaking authority for a number of consumer financial protection laws, including TISA, from the Board to the Bureau of Consumer Financial Protection (Bureau). In December 2011, the Bureau published an interim final rule establishing its own Regulation DD to implement TISA (Bureau Interim Final Rule).1 The Bureau Interim Final Rule substantially duplicates the Board’s Regulation DD. Credit unions are not subject to either the Board’s or Bureau’s Regulation DD, and are covered instead by a substantially identical regulation issued by the SUMMARY: Banks, banking, Consumer protection, Holding companies, Safety and soundness, and State member banks. * (5) Creditor has the same meaning as in 15 U.S.C. 1681m(e)(4). * * * * * ■ 3. Amend Supplement A to Appendix J by revising example 3. to read as follows: 1 12 CFR part 1030. See 76 FR 79276 (Dec. 21, 2011). Jkt 232001 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 9647 National Credit Union Administration (NCUA) pursuant to 12 U.S.C. 4311. Under section 1029 of the Dodd-Frank Act, the Board retains authority to issue rules for certain motor vehicle dealers that offer consumer financial services and are not subject to the Bureau’s regulatory authority. The Board is not aware of any entities that are motor vehicle dealers engaging in activities subject to TISA that would be subject to the Board’s authority under section 1029 of the Dodd-Frank Act. Accordingly, the Board is proposing to repeal its Regulation DD. DATES: Comments must be received on or before April 21, 2014. ADDRESSES: You may submit comments, identified by Docket No. R–1482, 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. • Email: regs.comments@ federalreserve.gov. Include the docket number in the subject line of the message. • FAX: (202) 452–3819 or (202) 452– 3102. • Mail: Robert deV. Frierson, 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 9:00 a.m. and 5:00 p.m. on weekdays. FOR FURTHER INFORMATION CONTACT: Vivian W. Wong, Counsel, Division of Consumer and Community Affairs, at (202) 452–3667, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263– 4869. SUPPLEMENTARY INFORMATION: I. Background The Truth in Savings Act (TISA), 12 U.S.C. 4301 et seq., historically has been implemented by the Board’s Regulation DD, published at 12 CFR part 230. The E:\FR\FM\20FEP1.SGM 20FEP1 9648 Federal Register / Vol. 79, No. 34 / Thursday, February 20, 2014 / Proposed Rules tkelley on DSK3SPTVN1PROD with PROPOSALS purpose of the act and regulation is to assist consumers in comparing deposit accounts offered by depository institutions, principally through the disclosure of fees, the annual percentage yield, the interest rate, and other account terms. An official staff commentary interprets the requirements of the Board’s Regulation DD (12 CFR part 230 (Supp. I)). Credit unions are governed by a substantially similar regulation issued by the NCUA at 12 CFR part 707. Title X of the Dodd-Frank Act transferred rulemaking authority for a number of consumer financial protection laws from the Board to the Bureau, effective July 21, 2011. In connection with the transfer of the Board’s rulemaking authority for TISA, the Bureau published an interim final rule to establish its own Regulation DD, 12 CFR part 1030, to implement TISA (Bureau Interim Final Rule).2 The Bureau Interim Final Rule substantially duplicated the Board’s Regulation DD and made only certain non-substantive, technical, formatting, and stylistic changes. The Bureau Interim Final Rule did not impose any new substantive obligations on regulated entities. Under section 1029(a) of the DoddFrank Act, the Bureau may not exercise any rulemaking, supervisory, enforcement or any other authority over a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, subject to certain exceptions.3 Section 1029(c) of the Dodd-Frank Act further provides that nothing in the Dodd-Frank 2 76 FR 79276 (Dec. 21, 2011). Section 1100B of the Dodd-Frank Act did not grant the Bureau TISA rulemaking authority over credit unions or repeal the NCUA’s TISA rulemaking authority over credit unions under 12 U.S.C. 4311. 3 Section 1029(a) of the Dodd-Frank Act states: ‘‘Except as permitted in subsection (b), the Bureau may not exercise any rulemaking, supervisory, enforcement, or any other authority . . . over a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.’’ 12 U.S.C. 5519(a). Section 1029(b) of the DoddFrank Act states: ‘‘Subsection (a) shall not apply to any person, to the extent such person (1) provides consumers with any services related to residential or commercial mortgages or self-financing transaction involving real property; (2) operates a line of business (A) that involves the extension of retail credit or retail leases involving motor vehicles; and (B) in which (i) the extension of retail credit or retail leases are provided directly to consumers and (ii) the contract governing such extension of retail credit or retail leases is not routinely assigned to an unaffiliated third party finance or leasing source; or (3) offers or provides a consumer financial product or service not involving or related to the sale, financing, leasing, rental, repair, refurbishment, maintenance, or other servicing of motor vehicles, motor vehicle parts, or any related or ancillary product or service.’’ 12 U.S.C. 5519(b). VerDate Mar<15>2010 17:08 Feb 19, 2014 Jkt 232001 Act should be construed to modify, limit, or supersede the authority of the Board with respect to a motor vehicle dealer described in section 1029(a) of the Dodd-Frank Act.4 Accordingly, to the extent that a motor vehicle dealer described in section 1029(a) of the Dodd-Frank Act was subject to one of the Board’s consumer financial service regulations, the Board’s regulation would continue to apply. II. Statutory Authority As noted above, Title X of the DoddFrank Act transferred rulemaking authority for TISA from the Board to the Bureau, effective July 21, 2011. Pursuant to Section 1029 of the Dodd-Frank Act, however, the Board retains rulemaking authority for consumer financial protection laws to the extent that such laws could cover motor vehicle dealers identified in Section 1029(a) of the Dodd-Frank Act. III. Discussion TISA and the Board’s Regulation DD apply only to depository institutions. See 12 U.S.C. 4301; 12 CFR 230.1(c). For this purpose, the term ‘‘depository institution’’ includes ‘‘an institution defined in Section 19(b)(1)(A)(i) through (vi) of the Federal Reserve Act (12 U.S.C. 461), except credit unions defined in Section 19(b)(1)(A)(iv).’’ 12 U.S.C. 4313(6); 12 CFR 230.2(j). Depository institutions are generally subject to restrictions on the types of activities in which they may engage as principal. See e.g., 12 U.S.C. 24 (Seventh) and 12 U.S.C. 1831a. These activities are restricted to those that are necessary to carry on the business of banking and other limited financial activities. Based on these restrictions, the Board believes that motor vehicle dealers, as defined in Section 1029(a) of the Dodd-Frank Act, that are predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, could not also be depository institutions subject to TISA. Consequently, the Board is publishing a proposed rule for public comment to repeal the Board’s Regulation DD, 12 CFR part 230. The Board, requests comment, however, on whether any motor vehicle dealers identified in Section 1029(a) of the Dodd-Frank Act are or could become depository institutions for purposes of TISA. IV. Initial Regulatory Flexibility Analysis The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA) generally 4 12 PO 00000 U.S.C. 5519(c). Frm 00006 Fmt 4702 Sfmt 4702 requires an agency to perform an assessment of the impact a rule is expected to have on small entities. Based on its analysis, and for the reasons stated below, the Board believes that this proposed rule will not have a significant economic impact on a substantial number of small entities. A final regulatory flexibility analysis will be conducted after consideration of comments received during the public comment period. 1. Statement of the need for, and objectives of, the proposed rule. Title X of the Dodd-Frank Act transferred rulemaking authority for a number of consumer financial protection laws from the Board to the Bureau, effective July 21, 2011, including TISA. The Bureau issued the Bureau Interim Final Rule to implement TISA in connection with the transfer of TISA rulemaking authority to the Bureau. Pursuant to Section 1029 of the Dodd-Frank Act, however, the Board retains rulemaking authority for consumer financial protection laws to the extent that such laws could cover motor vehicle dealers identified in Section 1029(a) of the Dodd-Frank Act. The Board does not believe that any motor vehicle dealers identified in Section 1029(a) of the Dodd-Frank Act are or could become depository institutions subject to TISA. Consequently, the Board is proposing to repeal the Board’s Regulation DD, 12 CFR part 230. 2. Small entities affected by the proposed rule. The Board does not believe that any motor vehicle dealers identified in Section 1029(a) of the Dodd-Frank Act are or could become depository institutions subject to TISA. Therefore, the Board believes the proposed rule would not affect any entity, including any small entity. 3. Recordkeeping, reporting, and compliance requirements. The proposed rule would repeal the Board’s Regulation DD, 12 CFR part 230, and would therefore not impose any recordkeeping, reporting, or compliance requirements on any entities. 4. Other federal rules. The Board has not identified any federal rules that duplicate, overlap, or conflict with the proposed repeal of the Board’s Regulation DD, 12 CFR part 230. 5. Significant alternatives to the proposed revisions. The Board is not aware of any significant alternatives that would further minimize any significant economic impact of the proposed rule on small entities, but solicits comment on this approach. V. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. E:\FR\FM\20FEP1.SGM 20FEP1 Federal Register / Vol. 79, No. 34 / Thursday, February 20, 2014 / Proposed Rules 3506; 5 CFR part 1320 Appendix A.1), the Board reviewed the rule under the authority delegated to the Federal Reserve by the Office of Management and Budget (OMB). The proposed rule contains no collections of information under the PRA. See 44 U.S.C. 3502(3). Accordingly, there is no paperwork burden associated with the proposed rule. List of Subjects in 12 CFR Part 230 Advertising, Banks, Banking, Consumer protection, Reporting and recordkeeping requirements, Truth in savings. Authority and Issuance PART 230—[REMOVED AND RESERVED] For the reasons set forth in the preamble, under the authority of 12 U.S.C. 5581, the Board proposes to remove and reserve Regulation DD, 12 CFR part 230. By order of the Board of Governors of the Federal Reserve System, February 10, 2014. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2014–03266 Filed 2–19–14; 8:45 am] BILLING CODE P FARM CREDIT ADMINISTRATION 12 CFR Part 612 RIN 3052–AC44 Standards of Conduct and Referral of Known or Suspected Criminal Violations; Standards of Conduct Farm Credit Administration. Proposed rule. AGENCY: ACTION: The Farm Credit Administration (FCA, we, or our) proposes to amend its regulations governing standards of conduct of directors, employees, and agents of Farm Credit System (System) institutions, excluding the Federal Agricultural Mortgage Corporation. The amendments would clarify and strengthen reporting requirements and prohibitions, require institutions to establish a Code of Ethics, and enhance the role of the Standards of Conduct Official. tkelley on DSK3SPTVN1PROD with PROPOSALS SUMMARY: You may send comments on or before May 21, 2014. ADDRESSES: We offer a variety of methods for you to submit your comments. For accuracy and efficiency reasons, commenters are encouraged to submit comments by email or through the FCA’s Web site. As facsimiles (fax) DATES: VerDate Mar<15>2010 17:08 Feb 19, 2014 Jkt 232001 are difficult for us to process and achieve compliance with section 508 of the Rehabilitation Act, we are no longer accepting comments submitted by fax. Regardless of the method you use, please do not submit your comment multiple times via different methods. You may submit comments by any of the following methods: • Email: Send us an email at regcomm@fca.gov. • FCA Web site: https://www.fca.gov. Select ‘‘Public Commenters,’’ then ‘‘Public Comments’’ and follow the directions for ‘‘Submitting a Comment.’’ • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Mail: Barry F. Mardock, Deputy Director, Office of Regulatory Policy, Farm Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102– 5090. You may review copies of comments we receive at our office in McLean, Virginia, or from our Web site at https:// www.fca.gov. Once you are in the Web site, select ‘‘Public Commenters,’’ then ‘‘Public Comments’’ and follow the directions for ‘‘Reading Submitted Public Comments.’’ We will show your comments as submitted but, for technical reasons, we may omit items such as logos and special characters. Identifying information that you provide, such as phone numbers and addresses, will be publicly available. However, we will attempt to remove email addresses to help reduce Internet spam. FOR FURTHER INFORMATION CONTACT: Jacqueline R. Melvin, Policy Analyst, Office of Regulatory Policy, Farm Credit Administration, McLean, VA 22102–5090, (703) 883–4498, TDD (703) 883–4056, or Mary Alice Donner, Senior Counsel, Office of General Counsel, Farm Credit Administration, McLean, VA 22102–5090, (703) 883–4020, TDD (703) 883–4056. SUPPLEMENTARY INFORMATION: I. Objectives The objectives of this proposed rule are to: • Clarify and strengthen the regulations in part 612, subpart A, regarding standards of conduct; • Modify definitions; • Clarify reporting requirements and prohibitions on the purchase of System institution acquired property and lending transactions; • Strengthen responsibility and accountability requirements for System institution Standards of Conduct PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 9649 Officials, boards of directors (or board), employees, and agents; and • Require each System institution to adopt a Code of Ethics. The FCA has not made significant changes to its standards of conduct regulations since 1994, and we have determined that it is appropriate to strengthen and modernize the rule. The proposed rule would add new provisions, clarify and augment some of the current provisions and provide additional flexibility for others. The proposed rule is organized differently from the current rule. Sections on director and employee reporting and prohibited conduct are repositioned to improve the logical flow of the rule. The proposed rule adds a new § 612.2136 on conflicts of interest, a new § 612.2165(a) on Code of Ethics, a new § 612.2165(c) on allowing exceptions to certain rules if no conflict of interest exists, and new requirements in § 612.2180 addressing standards of conduct for agents. It also adds new standards of conduct responsibilities to System institutions (proposed § 612.2160) and to the Standards of Conduct Official (proposed § 612.2170). We solicit comments on our proposed amendments. II. Section-by-Section Analysis A. Definitions [§ 612.2130] The proposed rule would have some new and some modified definitions: Code of Ethics. The proposed rule would define ‘‘Code of Ethics’’ as a written set of standards, rules, values, and guidance that an institution uses to ensure the ethical conduct of those who sign it, and that reflects professionalism and discourages misconduct so the best interests of the institution are advanced. Controlled entity and entity controlled by. The proposed rule would continue to provide that a controlled entity includes an interest in an entity in which the individual, directly or indirectly or acting through or in concert with one or more persons, owns 5 percent or more of the equity of the entity; owns, controls, or has the power to vote 5 percent or more of any class of voting securities of the entity; or has the power to exercise a controlling influence over the management of the entity. The FCA is aware that in other contexts the definition of ‘‘controlled entity’’ or ‘‘entity controlled by’’ may mean having an ownership interest with a greater threshold than 5 percent; however, the purpose of this rule is to ensure that institution directors and employees are completely objective in their decision-making, and are not in any way influenced by personal interests. The FCA believes that a E:\FR\FM\20FEP1.SGM 20FEP1

Agencies

[Federal Register Volume 79, Number 34 (Thursday, February 20, 2014)]
[Proposed Rules]
[Pages 9647-9649]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03266]


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FEDERAL RESERVE SYSTEM

12 CFR Part 230

[Docket No. R-1482]
RIN 7100 AE12


Truth in Savings (Regulation DD)

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice of proposed rulemaking; request for public comment.

-----------------------------------------------------------------------

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is proposing to repeal its Regulation DD, 12 CFR part 230, which was 
issued to implement the Truth in Saving Act (TISA). Title X of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank 
Act) transferred rulemaking authority for a number of consumer 
financial protection laws, including TISA, from the Board to the Bureau 
of Consumer Financial Protection (Bureau). In December 2011, the Bureau 
published an interim final rule establishing its own Regulation DD to 
implement TISA (Bureau Interim Final Rule).\1\ The Bureau Interim Final 
Rule substantially duplicates the Board's Regulation DD. Credit unions 
are not subject to either the Board's or Bureau's Regulation DD, and 
are covered instead by a substantially identical regulation issued by 
the National Credit Union Administration (NCUA) pursuant to 12 U.S.C. 
4311.
---------------------------------------------------------------------------

    \1\ 12 CFR part 1030. See 76 FR 79276 (Dec. 21, 2011).
---------------------------------------------------------------------------

    Under section 1029 of the Dodd-Frank Act, the Board retains 
authority to issue rules for certain motor vehicle dealers that offer 
consumer financial services and are not subject to the Bureau's 
regulatory authority. The Board is not aware of any entities that are 
motor vehicle dealers engaging in activities subject to TISA that would 
be subject to the Board's authority under section 1029 of the Dodd-
Frank Act. Accordingly, the Board is proposing to repeal its Regulation 
DD.

DATES: Comments must be received on or before April 21, 2014.

ADDRESSES: You may submit comments, identified by Docket No. R-1482, 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.
     Email: regs.comments@federalreserve.gov. Include the 
docket number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Robert deV. Frierson, 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 
9:00 a.m. and 5:00 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Vivian W. Wong, Counsel, Division of 
Consumer and Community Affairs, at (202) 452-3667, Board of Governors 
of the Federal Reserve System, 20th and C Streets NW., Washington, DC 
20551. For users of Telecommunications Device for the Deaf (TDD) only, 
contact (202) 263-4869.

SUPPLEMENTARY INFORMATION:

I. Background

    The Truth in Savings Act (TISA), 12 U.S.C. 4301 et seq., 
historically has been implemented by the Board's Regulation DD, 
published at 12 CFR part 230. The

[[Page 9648]]

purpose of the act and regulation is to assist consumers in comparing 
deposit accounts offered by depository institutions, principally 
through the disclosure of fees, the annual percentage yield, the 
interest rate, and other account terms. An official staff commentary 
interprets the requirements of the Board's Regulation DD (12 CFR part 
230 (Supp. I)). Credit unions are governed by a substantially similar 
regulation issued by the NCUA at 12 CFR part 707.
    Title X of the Dodd-Frank Act transferred rulemaking authority for 
a number of consumer financial protection laws from the Board to the 
Bureau, effective July 21, 2011. In connection with the transfer of the 
Board's rulemaking authority for TISA, the Bureau published an interim 
final rule to establish its own Regulation DD, 12 CFR part 1030, to 
implement TISA (Bureau Interim Final Rule).\2\ The Bureau Interim Final 
Rule substantially duplicated the Board's Regulation DD and made only 
certain non-substantive, technical, formatting, and stylistic changes. 
The Bureau Interim Final Rule did not impose any new substantive 
obligations on regulated entities.
---------------------------------------------------------------------------

    \2\ 76 FR 79276 (Dec. 21, 2011). Section 1100B of the Dodd-Frank 
Act did not grant the Bureau TISA rulemaking authority over credit 
unions or repeal the NCUA's TISA rulemaking authority over credit 
unions under 12 U.S.C. 4311.
---------------------------------------------------------------------------

    Under section 1029(a) of the Dodd-Frank Act, the Bureau may not 
exercise any rulemaking, supervisory, enforcement or any other 
authority over a motor vehicle dealer that is predominantly engaged in 
the sale and servicing of motor vehicles, the leasing and servicing of 
motor vehicles, or both, subject to certain exceptions.\3\ Section 
1029(c) of the Dodd-Frank Act further provides that nothing in the 
Dodd-Frank Act should be construed to modify, limit, or supersede the 
authority of the Board with respect to a motor vehicle dealer described 
in section 1029(a) of the Dodd-Frank Act.\4\ Accordingly, to the extent 
that a motor vehicle dealer described in section 1029(a) of the Dodd-
Frank Act was subject to one of the Board's consumer financial service 
regulations, the Board's regulation would continue to apply.
---------------------------------------------------------------------------

    \3\ Section 1029(a) of the Dodd-Frank Act states: ``Except as 
permitted in subsection (b), the Bureau may not exercise any 
rulemaking, supervisory, enforcement, or any other authority . . . 
over a motor vehicle dealer that is predominantly engaged in the 
sale and servicing of motor vehicles, the leasing and servicing of 
motor vehicles, or both.'' 12 U.S.C. 5519(a). Section 1029(b) of the 
Dodd-Frank Act states: ``Subsection (a) shall not apply to any 
person, to the extent such person (1) provides consumers with any 
services related to residential or commercial mortgages or self-
financing transaction involving real property; (2) operates a line 
of business (A) that involves the extension of retail credit or 
retail leases involving motor vehicles; and (B) in which (i) the 
extension of retail credit or retail leases are provided directly to 
consumers and (ii) the contract governing such extension of retail 
credit or retail leases is not routinely assigned to an unaffiliated 
third party finance or leasing source; or (3) offers or provides a 
consumer financial product or service not involving or related to 
the sale, financing, leasing, rental, repair, refurbishment, 
maintenance, or other servicing of motor vehicles, motor vehicle 
parts, or any related or ancillary product or service.'' 12 U.S.C. 
5519(b).
    \4\ 12 U.S.C. 5519(c).
---------------------------------------------------------------------------

II. Statutory Authority

    As noted above, Title X of the Dodd-Frank Act transferred 
rulemaking authority for TISA from the Board to the Bureau, effective 
July 21, 2011. Pursuant to Section 1029 of the Dodd-Frank Act, however, 
the Board retains rulemaking authority for consumer financial 
protection laws to the extent that such laws could cover motor vehicle 
dealers identified in Section 1029(a) of the Dodd-Frank Act.

III. Discussion

    TISA and the Board's Regulation DD apply only to depository 
institutions. See 12 U.S.C. 4301; 12 CFR 230.1(c). For this purpose, 
the term ``depository institution'' includes ``an institution defined 
in Section 19(b)(1)(A)(i) through (vi) of the Federal Reserve Act (12 
U.S.C. 461), except credit unions defined in Section 19(b)(1)(A)(iv).'' 
12 U.S.C. 4313(6); 12 CFR 230.2(j). Depository institutions are 
generally subject to restrictions on the types of activities in which 
they may engage as principal. See e.g., 12 U.S.C. 24 (Seventh) and 12 
U.S.C. 1831a. These activities are restricted to those that are 
necessary to carry on the business of banking and other limited 
financial activities. Based on these restrictions, the Board believes 
that motor vehicle dealers, as defined in Section 1029(a) of the Dodd-
Frank Act, that are predominantly engaged in the sale and servicing of 
motor vehicles, the leasing and servicing of motor vehicles, or both, 
could not also be depository institutions subject to TISA. 
Consequently, the Board is publishing a proposed rule for public 
comment to repeal the Board's Regulation DD, 12 CFR part 230. The 
Board, requests comment, however, on whether any motor vehicle dealers 
identified in Section 1029(a) of the Dodd-Frank Act are or could become 
depository institutions for purposes of TISA.

IV. Initial Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA) 
generally requires an agency to perform an assessment of the impact a 
rule is expected to have on small entities. Based on its analysis, and 
for the reasons stated below, the Board believes that this proposed 
rule will not have a significant economic impact on a substantial 
number of small entities. A final regulatory flexibility analysis will 
be conducted after consideration of comments received during the public 
comment period.
    1. Statement of the need for, and objectives of, the proposed rule. 
Title X of the Dodd-Frank Act transferred rulemaking authority for a 
number of consumer financial protection laws from the Board to the 
Bureau, effective July 21, 2011, including TISA. The Bureau issued the 
Bureau Interim Final Rule to implement TISA in connection with the 
transfer of TISA rulemaking authority to the Bureau. Pursuant to 
Section 1029 of the Dodd-Frank Act, however, the Board retains 
rulemaking authority for consumer financial protection laws to the 
extent that such laws could cover motor vehicle dealers identified in 
Section 1029(a) of the Dodd-Frank Act. The Board does not believe that 
any motor vehicle dealers identified in Section 1029(a) of the Dodd-
Frank Act are or could become depository institutions subject to TISA. 
Consequently, the Board is proposing to repeal the Board's Regulation 
DD, 12 CFR part 230.
    2. Small entities affected by the proposed rule. The Board does not 
believe that any motor vehicle dealers identified in Section 1029(a) of 
the Dodd-Frank Act are or could become depository institutions subject 
to TISA. Therefore, the Board believes the proposed rule would not 
affect any entity, including any small entity.
    3. Recordkeeping, reporting, and compliance requirements. The 
proposed rule would repeal the Board's Regulation DD, 12 CFR part 230, 
and would therefore not impose any recordkeeping, reporting, or 
compliance requirements on any entities.
    4. Other federal rules. The Board has not identified any federal 
rules that duplicate, overlap, or conflict with the proposed repeal of 
the Board's Regulation DD, 12 CFR part 230.
    5. Significant alternatives to the proposed revisions. The Board is 
not aware of any significant alternatives that would further minimize 
any significant economic impact of the proposed rule on small entities, 
but solicits comment on this approach.

V. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (PRA) of 1995 (44 
U.S.C.

[[Page 9649]]

3506; 5 CFR part 1320 Appendix A.1), the Board reviewed the rule under 
the authority delegated to the Federal Reserve by the Office of 
Management and Budget (OMB). The proposed rule contains no collections 
of information under the PRA. See 44 U.S.C. 3502(3). Accordingly, there 
is no paperwork burden associated with the proposed rule.

List of Subjects in 12 CFR Part 230

    Advertising, Banks, Banking, Consumer protection, Reporting and 
recordkeeping requirements, Truth in savings.

Authority and Issuance

PART 230--[REMOVED AND RESERVED]

    For the reasons set forth in the preamble, under the authority of 
12 U.S.C. 5581, the Board proposes to remove and reserve Regulation DD, 
12 CFR part 230.

    By order of the Board of Governors of the Federal Reserve 
System, February 10, 2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014-03266 Filed 2-19-14; 8:45 am]
BILLING CODE P
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