Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Retail Foreign Exchange Transactions, 23409-23410 [2014-09482]

Agencies

• Office of the Comptroller of the Currency
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 79, Number 81 (Monday, April 28, 2014)]
[Notices]
[Pages 23409-23410]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09482]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; Retail Foreign Exchange 
Transactions

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to take this opportunity to comment on a continuing 
information collection, as required by the Paperwork Reduction Act of 
1995 (PRA).
    In accordance with the requirements of the PRA, the OCC may not 
conduct or sponsor, and the respondent is not required to respond to, 
an information collection unless it displays a currently valid Office 
of Management and Budget (OMB) control number.
    The OCC is soliciting comment concerning the renewal of its 
collection entitled ``Retail Foreign Exchange Transactions.'' It is 
also giving notice that it has sent the collection to OMB for review.

DATES: Comments must be submitted on or before May 28, 2014.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0250, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to 
(571) 465-4326 or by electronic mail to regs.comments@occ.treas.gov. 
You may personally inspect and photocopy comments at the OCC, 400 7th 
Street SW., Washington, DC 20219. For security reasons, the OCC 
requires that visitors make an appointment to inspect comments. You may 
do so by calling (202) 649-6700. Upon arrival, visitors will be 
required to present valid government-issued photo identification and 
submit to a security screening in order to inspect and photocopy 
comments.
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not enclose any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0250, U.S. Office of Management and Budget, 725 17th 
Street NW., 10235, Washington, DC 20503, or by email to: oira 
submission@omb.eop.gov.

FOR FURTHER INFORMATION CONTACT: Johnny Vilela or Mary H. Gottlieb, OCC 
Clearance Officers, (202) 649-5490, for persons who are deaf or hard of 
hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 400 7th Street 
SW., Suite 3E-218, Mail Stop 9W-11, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal 
agencies must obtain approval from the OMB for each collection of 
information they conduct or sponsor. ``Collection of information'' is 
defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency 
requests or requirements that members of the public submit reports, 
keep records, or provide information to a third party.
    The OCC is proposing to extend OMB approval of the following 
information collection without change:
    Title: Retail Foreign Exchange Transactions.
    OMB Control Number: 1557-0250.
    Description: Section 742(c)(2) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act of 2010 (Dodd-Frank Act) \1\ amended the 
Commodity Exchange Act (CEA) to provide that a U.S. financial 
institution for which there is a Federal regulatory agency supervisor 
shall not enter into, or offer to enter into, a transaction described 
in section 2(c)(2)(B)(i)(I) of the CEA \2\ with a retail customer 
except pursuant to a rule or regulation of a Federal regulatory agency 
allowing the transaction under such terms and conditions as the Federal 
regulatory agency shall prescribe.\3\
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    \1\ Public Law 111-203, 124 Stat. 1376. (July 21, 2010) 7 U.S.C. 
2(c)(2)(E).
    \2\ A transaction would include an agreement, contract, or 
transaction in foreign currency that . . . is a contract of sale of 
a commodity for future delivery (or an option on such a contract) or 
an option (other than an option executed or traded on a national 
securities exchange registered pursuant to section 6(a) of the 
Securities Exchange Act of 1934. 7 U.S.C. 2(c)(2)B(i)(II).
    \3\ 7 U.S.C. 2(c)(2)(E)(ii)(I).
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    The OCC issued a final rule at 12 CFR part 48 allowing such 
transactions for the institutions it regulates.\4\ The final rule 
contained a number of provisions, including a number of provisions that 
would represent collections of information under the PRA. At the time 
the rule was issued, the OCC requested and obtained approval from OMB 
to collect this information through July 31, 2014. This request seeks 
an extension of the collection for three years, through July 31, 2017. 
A section-by-section description of the reporting, recordkeeping and 
disclosure requirements contained in the OCC's rules at 12 CFR part 48 
follows.
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    \4\ 76 FR 41375 (July 14, 2011) (national banks); 76 FR 56094 
(Sept. 12, 2011) (Federal savings associations).
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Reporting Requirements

    The reporting requirements in Sec.  48.4 require that, prior to 
initiating a retail forex business, a national bank or Federal savings 
association provide the OCC with prior notice and obtain a written 
supervisory no-objection letter. In order to obtain a supervisory no-
objection letter, a national bank or Federal savings association must 
have written policies, procedures, and risk measurement and management 
systems and controls in place to ensure that retail forex transactions 
are conducted in a safe and sound manner. The national bank or Federal 
savings association also must provide other information required by the 
OCC, such as documentation of customer due diligence, new product 
approvals, and haircuts applied to noncash margins.

Disclosure Requirements

    Under Sec.  48.5, regarding the application and closing out of 
offsetting long and short positions, a national bank or Federal savings 
association must promptly provide the customer with a statement 
reflecting the financial result of the transactions and the name of the 
introducing broker to the account. The customer provides specific 
written instructions on how the offsetting transaction should be 
applied.
    Section 48.6 requires that a national bank or Federal savings 
association furnish a retail forex customer with a written disclosure 
before opening an account through which the customer

[[Page 23410]]

will engage in retail forex transactions and secure an acknowledgment 
from the customer that it was received and understood. It also requires 
the disclosure by a national bank or Federal savings association of its 
fees and other charges and its profitable accounts ratio.
    Section 48.10 requires a national bank or Federal savings 
association to issue monthly statements to each retail forex customer 
and to send confirmation statements following transactions.
    Section 48.13(c) prohibits a national bank or Federal savings 
association engaging in retail forex transactions from knowingly 
handling the account of any related person of another retail forex 
counterparty unless it receives proper written authorization, promptly 
prepares a written record of the order, and transmits to the 
counterparty copies all statements and written records. Section 
48.13(d) prohibits a related person of a national bank or Federal 
savings association engaging in forex transactions from having an 
account with another retail forex counterparty unless it receives 
proper written authorization and copies of all statements and written 
records for such accounts are transmitted to the counterparty.
    Section 48.15 requires a national bank or Federal savings 
association to provide a retail forex customer with 30 days prior 
notice of any assignment of any position or transfer of any account of 
the retail forex customer. It also requires a national bank or Federal 
savings association to which retail forex accounts or positions are 
assigned or transferred to provide the affected customers with risk 
disclosure statements and forms of acknowledgment and obtain the signed 
acknowledgments within 60 days.
    The customer dispute resolution provisions in Sec.  48.16 require 
certain endorsements, acknowledgments, and signatures. The section also 
requires that a national bank or Federal savings association, within 10 
days after receipt of notice from the retail forex customer that the 
customer intends to submit a claim to arbitration, provide the customer 
with a list of persons qualified in the dispute resolution.

Policies and Procedures; Recordkeeping

    Sections 48.7 and 48.13 require that a national bank or Federal 
savings association engaging in retail forex transactions keep full, 
complete, and systematic records and to establish and implement 
internal rules, procedures, and controls. Section 48.7 also requires 
that a national bank or Federal savings association keep account, 
financial ledger, transaction, and daily records, as well as memorandum 
orders, post-execution allocation of bunched orders, records regarding 
its ratio of profitable accounts, possible violations of law, records 
for noncash margin, and monthly statements and confirmations. Section 
48.9 requires policies and procedures for haircuts for noncash margin 
collected under the rule's margin requirements, and annual evaluations 
and modifications of the haircuts.
    Type of Review: Regular review.
    Affected Public: Businesses or other for-profit.
    Estimated Number of Respondents: 15.
    Total Reporting Burden: 224 hours.
    Total Disclosure Burden: 4,139 hours.
    Total Recordkeeping Burden: 18,055 hours.
    Total Annual Burden: 22,418 hours.
    The OCC originally estimated there would be approximately 72 
national banks and Federal savings associations engaged in retail forex 
transactions. However, based on the inquiries received since the rule 
became effective, the OCC now estimates there are only approximately 15 
national banks and Federal savings associations engaged in retail forex 
transactions and thus subject to this information collection.
    An agency may not conduct or sponsor, and a respondent is not 
required to respond to, an information collection unless the 
information collection displays a currently valid OMB control number.
    Comments submitted in response to this notice will be summarized 
and included in the request for OMB approval. All comments will become 
a matter of public record. Comments are invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimate of the burden of the 
information collection;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

Stuart E. Feldstein,
Director, Legislative and Regulatory Activities Division.
[FR Doc. 2014-09482 Filed 4-25-14; 8:45 am]
BILLING CODE 4810-33-P