Proposed Agency Information Collection Activities; Comment Request, 16490-16492 [2019-07873]
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16490
Federal Register / Vol. 84, No. 76 / Friday, April 19, 2019 / Notices
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inventory of currently approved
collections of information. Copies of the
PRA Submission, supporting statements
and approved collection of information
instrument(s) are placed into OMB’s
public docket files. The Board may not
conduct or sponsor, and the respondent
is not required to respond to, an
information collection that has been
extended, revised, or implemented on or
after October 1, 1995, unless it displays
a currently valid OMB control number.
Final Approval Under OMB Delegated
Authority of the Extension for Three
Years, Without Revision, of the
Following Information Collection
Report title: Registration of a
Securities Holding Company.
Agency form number: FR 2082.
OMB control number: 7100–0347.
Frequency: On occasion.
Respondents: Securities holding
companies (SHCs).
Estimated number of respondents: 1.
Estimated average hours per response:
8.
Estimated annual burden hours: 8.
General description of report: Section
241.3(a)(1) of the Board’s Regulation OO
requires SHCs that elect to register to
become supervised SHCs to file the
appropriate registration form with the
responsible Federal Reserve Bank. The
registration form, FR 2082, requests
from the registering SHC an
organization chart (including all
subsidiaries), shareholder reports and
financial statements, information
regarding the SHC’s shareholders, senior
officers and directors, information
regarding the methods used by the SHC
to monitor and control its operations,
and information regarding the SHC’s
foreign bank subsidiaries and the bank
regulatory system in which these foreign
bank subsidiaries operate. The
information collected by the FR 2082
registration form is used by the Federal
Reserve System to determine whether
the registrant meets the requirements to
become a supervised SHC and to
complete the registration. This
information is not available from
another source.
Legal authorization and
confidentiality: The FR 2082 registration
form implemented by section 241.3(a) of
Regulation OO (12 CFR 241.3(a)) is
authorized by section 618(b)(2)(A) of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C.
1850a(b)(2)(A)). Section 618(b)(2)(A)
requires covered companies that elect to
be supervised by the Board ‘‘to register
by filing with the Board of Governors
such information and documents as the
[Board], by regulation, may prescribe as
necessary.’’ The obligation to submit the
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FR 2082 registration form is required for
covered companies that elect to register
to become supervised SHCs on a onetime basis.
The information provided on the FR
2082 registration form and in
connection with the SHC’s registration
is considered public. However, certain
personal and biographical information
on individuals, which is required to be
submitted as part of the registration,
may be treated as confidential under
exemption 6 of the Freedom of
Information Act (FOIA), which protects
from disclosure information that
‘‘would constitute a clearly unwarranted
invasion of personal privacy’’ (5 U.S.C.
552(b)(6)). In addition, certain
information submitted in connection
with the SHC’s registration may be
exempt from disclosure under
exemption 4 of the FOIA, which
protects confidential commercial or
financial information that is reasonably
likely to result in substantial
competitive harm if disclosed (5 U.S.C.
552(b)(4)). If an SHC seeks confidential
treatment of any information submitted
as part of its registration under
exemption 4 of the FOIA, the SHC must
submit such a request in accordance
with section 261.15 of the Board’s Rules
Regarding Availability of Information
(12 CFR 261.15). In addition,
information for which confidential
treatment is sought under exemption 4
or 6 of the FOIA, must be labelled as
confidential, accompanied by a request
for confidential treatment submitted in
writing concurrently with the filing of
the registration (or related submissions),
and the confidential treatment request
must provide a detailed justification as
to why confidential treatment is
warranted for each portion of the
registration (or submission) for which
confidentiality is requested.
Current actions: On January 31, 2019,
the Board published a notice in the
Federal Register (84 FR 716) requesting
public comment for 60 days on the
extension, without revision, of the
Registration of a Securities Holding
Company. The comment period for this
notice expired on April 1, 2019. The
Board did not receive any comments.
Board of Governors of the Federal Reserve
System, April 16, 2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2019–07876 Filed 4–18–19; 8:45 am]
BILLING CODE 6210–01–P
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FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Acquisitions of Shares of a Bank or
Bank Holding Company
The notificants listed below have
applied under the Change in Bank
Control Act (‘‘Act’’) (12 U.S.C. 1817(j))
and § 225.41 of the Board’s Regulation
Y (12 CFR 225.41) to acquire shares of
a bank or bank holding company. The
factors that are considered in acting on
the notices are set forth in paragraph 7
of the Act (12 U.S.C. 1817(j)(7)).
The notices are available for
immediate inspection at the Federal
Reserve Bank indicated. The notices
also will be available for inspection at
the offices of the Board of Governors.
Interested persons may express their
views in writing to the Reserve Bank
indicated for that notice or to the offices
of the Board of Governors. Comments
must be received not later than May 7,
2019.
A. Federal Reserve Bank of
Minneapolis (Mark A. Rauzi, Vice
President), 90 Hennepin Avenue,
Minneapolis, Minnesota 55480–0291:
1. Lana Krause, Winnebago,
Minnesota; to retain voting shares of
Krause Financial, Inc., Winnebago,
Minnesota, and thereby indirectly retain
shares of First Financial Bank in
Winnebago, Winnebago, Minnesota.
B. Federal Reserve Bank of Dallas
(Robert L. Triplett III, Senior Vice
President) 2200 North Pearl Street,
Dallas, Texas 75201–2272:
1. Kellye Lynee Ortega, Edinburg,
Texas, and for Myrhanda Ortega,
Edinburg, Texas, to join Kellye Lynee
Ortega as a group acting in concert; to
acquire voting shares of MNB Ventures,
Inc., and thereby acquire shares of Texas
National Bank, both of Mercedes, Texas.
Board of Governors of the Federal Reserve
System, April 16, 2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2019–07915 Filed 4–18–19; 8:45 am]
BILLING CODE P
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
ACTION: Notice, request for comment.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board) invites
comment on a proposal to extend for
three years, with revision, the Reporting
SUMMARY:
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Requirements Associated with
Regulation Y (Extension of Time to
Conform to the Volcker Rule) (FR Y–1;
OMB No. 7100–0333).
DATES: Comments must be submitted on
or before June 18, 2019.
ADDRESSES: You may submit comments,
identified by FR Y–1, by any of the
following methods:
• Agency website: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• Email: regs.comments@
federalreserve.gov. Include OMB
number in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, 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 website at https://
www.federalreserve.gov/apps/foia/
proposedregs.aspx 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 in Room 146, 1709 New York
Avenue NW, Washington, DC 20006,
between 9:00 a.m. and 5:00 p.m. on
weekdays. For security reasons, the
Board requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 452–3684.
Upon arrival, visitors will be required to
present valid government-issued photo
identification and to submit to security
screening in order to inspect and
photocopy comments.
Additionally, commenters may send a
copy of their comments to the OMB
Desk Officer—Shagufta Ahmed—Office
of Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 10235,
725 17th Street NW, Washington, DC
20503, or by fax to (202) 395–6974.
FOR FURTHER INFORMATION CONTACT: A
copy of the Paperwork Reduction Act
(PRA) OMB submission, including the
proposed reporting form and
instructions, supporting statement, and
other documentation will be placed into
OMB’s public docket files, if approved.
These documents will also be made
available on the Board’s public website
at https://www.federalreserve.gov/apps/
reportforms/review.aspx or may be
requested from the agency clearance
officer, whose name appears below.
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Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, Washington, DC 20551, (202)
452–3829. Telecommunications Device
for the Deaf (TDD) users may contact
(202) 263–4869, Board of Governors of
the Federal Reserve System,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION: On June
15, 1984, the OMB delegated to the
Board authority under the PRA to
approve and assign OMB control
numbers to collection of information
requests and requirements conducted or
sponsored by the Board. In exercising
this delegated authority, the Board is
directed to take every reasonable step to
solicit comment. In determining
whether to approve a collection of
information, the Board will consider all
comments received from the public and
other agencies.
Request for Comment on Information
Collection Proposal
The Board invites public comment on
the following information collection,
which is being reviewed under
authority delegated by the OMB under
the PRA. Comments are invited on the
following:
a. Whether the proposed collection of
information is necessary for the proper
performance of the Board’s functions,
including whether the information has
practical utility;
b. The accuracy of the Board’s
estimate of the burden of the proposed
information collection, including the
validity of the methodology and
assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
e. Estimates of capital or startup costs
and costs of operation, maintenance,
and purchase of services to provide
information.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the Board should
modify the proposal.
Proposal Under OMB Delegated
Authority To Extend for Three Years,
With Revision, the Following
Information Collection
Report title: Reporting Requirements
Associated with Regulation Y
(Extension of Time to Conform to the
Volcker Rule).
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16491
Agency form number: FR Y–1.
OMB control number: 7100–0333.
Frequency: Event-generated.
Respondents: Insured depository
institutions (other than certain limitedpurpose trust institutions), any
company that controls an insured
depository institution, any company
that is treated as a bank holding
company for purposes of section 8 of the
International Banking Act of 1978 (12
U.S.C. 3106), and any affiliate or
subsidiary of any of the foregoing
(collectively, banking entities), and
nonbank financial companies
designated by the Financial Stability
Oversight Council that engage in
proprietary trading activities or make
investments in covered funds.
Estimated number of respondents: 1.
Estimated average hours per response:
3.
Estimated annual burden hours: 3.
General description of report: The
information collection in section
225.181(c) of the Board’s Regulation Y
(12 CFR 225.181(c)) is used by newly
formed banking entities and existing
companies that become a banking entity
(collectively, new banking entities) to
seek an extension of time to bring their
activities and investments into
compliance with section 13 of the Bank
Holding Company Act (the Volcker
Rule) or to divest their interest in an
illiquid fund. The information
collection in section 225.182(c) of the
Board’s Regulation Y (12 CFR
225.182(c)) is used by nonbank financial
companies supervised by the Board to
seek an extension of time to bring their
activities and investments into
compliance with the Volcker Rule,
including any capital requirements and
quantitative limits adopted thereunder.
A request by a banking entity or
nonbank financial company supervised
by the Board also must address the
relevant factors set out in sections
225.181(d) and 225.182(d) of Regulation
Y.
Conformance Period for Banking
Entities Engaged in Prohibited
Proprietary Trading or Private Fund
Activities—Approval Required To Hold
Interests in Excess of Time Limit
(Section 225.181(c))
Section 225.181(c) requires an
application for an extension by or with
respect to a new banking entity or an
extension of the transition period for
illiquid funds to (1) be submitted in
writing to the Board at least 180 days
prior to the expiration of the applicable
time period, (2) provide the reasons why
the banking entity believes the
extension should be granted, and (3)
provide a detailed explanation of the
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banking entity’s plan for divesting or
conforming the activity or
investment(s). A request by a banking
entity also must address the relevant
factors governing Board determinations
set out in sections 225.181(d).
Additionally, Supervision and
Regulation Letter 16–18 (SR Letter 16–
18),1 states that the following additional
information that should be included in
a request for an extended transition
period for illiquid funds:
• A list or simple chart of illiquid
funds for which an extension is sought,
• A short description of each fund,
including the investment strategy and
types of investments made by each
fund, which entity within the firm holds
the investment, the size of each fund,
the total exposure of the banking entity
to each fund, the date by which each
remaining illiquid fund is expected to
mature by its terms or be conformed to
section 13 of the BHC Act, and the
banking entity’s relationship with the
fund (for example, general partner,
sponsor, investment adviser, investor),
• A description of the banking
entity’s specific efforts to divest or
conform its illiquid funds, including a
description of the overall covered funds
(both liquid and illiquid) that have been
divested or conformed to date, the
progress that has been made towards
divesting or conforming the investments
for which an extension is being sought
(for example, the number of funds sold,
the number of funds that continue to be
held, and the amount of investments
remaining in each fund and in
aggregate),
• A certification by the General
Counsel or Chief Compliance Officer of
the entity that sponsors or invests in the
illiquid funds that each fund meets the
definition of illiquid funds in section 13
of the BHC Act and sections 225.180–
.181 of Regulation Y, including that the
extension is necessary to fulfill a
contractual obligation of the banking
entity that was in effect on May 1, 2010,
and
• The length of the requested
extension of the conformance period
and a description of the banking entity’s
plan for divesting or conforming each
illiquid fund prior to the end of the
requested extension period.
SR Letter 16–18 further provides that
such a request should be submitted in
writing to the appropriate Federal
Reserve Bank and that the banking
entity should provide the name, phone
number, and email address of the
1 Procedures for a Banking Entity to Request an
Extended Transition Period for Illiquid Funds, SR
Letter 16–18 (December 9, 2016), available at
https://www.federalreserve.gov/supervisionreg/
srletters/sr1618.pdf.
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banking entity’s point of contact for the
request. Additionally, SR Letter 16–18
provides that, in the case where the
banking entity that sponsors or invests
in the illiquid fund is supervised
primarily by another federal banking
agency, the Securities and Exchange
Commission, or the Commodity Futures
Trading Commission, the top-tier
banking entity should also provide a
copy of the extension request to the
relevant agency for the subsidiary
banking entity.
Conformance Period for Nonbank
Financial Companies Supervised by the
Federal Reserve Engaged in Proprietary
Trading or Private Fund Activities—
Approval Required To Hold Interests in
Excess of Time Limit (Section
225.182(c))
Section 225.182(c) requires an
application for an extension by a
nonbank financial company supervised
by the Board to (1) be submitted in
writing to the Board at least 180 days
prior to the expiration of the applicable
time period, (2) provide the reasons why
the nonbank financial company
supervised by the Board believes the
extension should be granted, and (3)
provide a detailed explanation of the
company’s plan for coming into
compliance with the requirements of the
Volcker Rule. A request by nonbank
financial company supervised by the
Board also must address the relevant
factors governing Board determinations
set out in section 225.182(d).
Proposed revisions: The Board is
proposing to revise the FR Y–1 to
account for the provisions of SR Letter
16–18 that relate to the contents of a
request for an extended transition
period for illiquid funds and the
procedures for filing such a request.
Legal authorization and
confidentiality: Section 13 of the BHC
Act authorizes the Board to issue rules
to permit entities covered by the
Volcker Rule to seek extensions of time
of the conformance period (12 U.S.C.
1851(c)(6)). The Board also has the
authority to require reports from bank
holding companies (12 U.S.C. 1844(c)),
savings and loan holding companies (12
U.S.C. 1467a(b) and (g)), and state
member banks (12 U.S.C. 248(a) and
324). The information collections
associated with requests for extensions
of time to conform to the Volcker Rule
are required for covered entities that
decide to seek an extension of time to
conform their activities to the Volcker
Rule or divest their interest in an
illiquid hedge fund or private equity
fund. These collections of information,
therefore, are required to obtain a
benefit.
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Information required to be submitted
in order to obtain an extension of time
to conform activities to the Volcker Rule
may include:
• The terms of private contractual
obligations,
• The liquid or illiquid nature of
assets proposed to be divested by the
regulated entity,
• The total exposure of the covered
entity to the activity or investment, and
its materiality to the institution,
• The risks and costs of disposing of,
or maintaining, the activity or
investment, or
• The impact of divestiture or
conformance of the activity or
investment on any duty owed by the
institution to a client, customer, or
counterparty.
This information is the type of
confidential commercial and financial
information that may be withheld under
exemption 4 of the Freedom of
Information Act (5 U.S.C. 552(b)(4)). As
required information, it may be
withheld under exemption 4 only if
public disclosure could result in
substantial competitive harm to the
submitting institution.2
Board of Governors of the Federal Reserve
System, April 16, 2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2019–07873 Filed 4–18–19; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
ACTION: Notice, request for comment.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board) invites
comment on a proposal to extend for
three years, without revision, the
Written Security Program for State
Member Banks (FR 4004; OMB No.
7100–0112).
DATES: Comments must be submitted on
or before June 18, 2019.
ADDRESSES: You may submit comments,
identified by FR 4004, by any of the
following methods:
• Agency Website: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
SUMMARY:
2 See National Parks and Conservation
Association v. Morton, 498 F.2d 765 (D.C. Cir.
1974).
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]]>Agencies
[Federal Register Volume 84, Number 76 (Friday, April 19, 2019)]
[Notices]
[Pages 16490-16492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07873]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, with revision,
the Reporting
[[Page 16491]]
Requirements Associated with Regulation Y (Extension of Time to Conform
to the Volcker Rule) (FR Y-1; OMB No. 7100-0333).
DATES: Comments must be submitted on or before June 18, 2019.
ADDRESSES: You may submit comments, identified by FR Y-1, by any of the
following methods:
Agency website: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Email: [email protected]. Include OMB
number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, 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 website at
https://www.federalreserve.gov/apps/foia/proposedregs.aspx 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 in Room 146,
1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. and
5:00 p.m. on weekdays. For security reasons, the Board requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 452-3684. Upon arrival, visitors will be required to
present valid government-issued photo identification and to submit to
security screening in order to inspect and photocopy comments.
Additionally, commenters may send a copy of their comments to the
OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory
Affairs, Office of Management and Budget, New Executive Office
Building, Room 10235, 725 17th Street NW, Washington, DC 20503, or by
fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: A copy of the Paperwork Reduction Act
(PRA) OMB submission, including the proposed reporting form and
instructions, supporting statement, and other documentation will be
placed into OMB's public docket files, if approved. These documents
will also be made available on the Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears below.
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, Washington, DC 20551, (202) 452-3829. Telecommunications Device
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors
of the Federal Reserve System, Washington, DC 20551.
SUPPLEMENTARY INFORMATION: On June 15, 1984, the OMB delegated to the
Board authority under the PRA to approve and assign OMB control numbers
to collection of information requests and requirements conducted or
sponsored by the Board. In exercising this delegated authority, the
Board is directed to take every reasonable step to solicit comment. In
determining whether to approve a collection of information, the Board
will consider all comments received from the public and other agencies.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Board's functions, including whether the
information has practical utility;
b. The accuracy of the Board's estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Proposal Under OMB Delegated Authority To Extend for Three Years, With
Revision, the Following Information Collection
Report title: Reporting Requirements Associated with Regulation Y
(Extension of Time to Conform to the Volcker Rule).
Agency form number: FR Y-1.
OMB control number: 7100-0333.
Frequency: Event-generated.
Respondents: Insured depository institutions (other than certain
limited-purpose trust institutions), any company that controls an
insured depository institution, any company that is treated as a bank
holding company for purposes of section 8 of the International Banking
Act of 1978 (12 U.S.C. 3106), and any affiliate or subsidiary of any of
the foregoing (collectively, banking entities), and nonbank financial
companies designated by the Financial Stability Oversight Council that
engage in proprietary trading activities or make investments in covered
funds.
Estimated number of respondents: 1.
Estimated average hours per response: 3.
Estimated annual burden hours: 3.
General description of report: The information collection in
section 225.181(c) of the Board's Regulation Y (12 CFR 225.181(c)) is
used by newly formed banking entities and existing companies that
become a banking entity (collectively, new banking entities) to seek an
extension of time to bring their activities and investments into
compliance with section 13 of the Bank Holding Company Act (the Volcker
Rule) or to divest their interest in an illiquid fund. The information
collection in section 225.182(c) of the Board's Regulation Y (12 CFR
225.182(c)) is used by nonbank financial companies supervised by the
Board to seek an extension of time to bring their activities and
investments into compliance with the Volcker Rule, including any
capital requirements and quantitative limits adopted thereunder. A
request by a banking entity or nonbank financial company supervised by
the Board also must address the relevant factors set out in sections
225.181(d) and 225.182(d) of Regulation Y.
Conformance Period for Banking Entities Engaged in Prohibited
Proprietary Trading or Private Fund Activities--Approval Required To
Hold Interests in Excess of Time Limit (Section 225.181(c))
Section 225.181(c) requires an application for an extension by or
with respect to a new banking entity or an extension of the transition
period for illiquid funds to (1) be submitted in writing to the Board
at least 180 days prior to the expiration of the applicable time
period, (2) provide the reasons why the banking entity believes the
extension should be granted, and (3) provide a detailed explanation of
the
[[Page 16492]]
banking entity's plan for divesting or conforming the activity or
investment(s). A request by a banking entity also must address the
relevant factors governing Board determinations set out in sections
225.181(d).
Additionally, Supervision and Regulation Letter 16-18 (SR Letter
16-18),\1\ states that the following additional information that should
be included in a request for an extended transition period for illiquid
funds:
---------------------------------------------------------------------------
\1\ Procedures for a Banking Entity to Request an Extended
Transition Period for Illiquid Funds, SR Letter 16-18 (December 9,
2016), available at https://www.federalreserve.gov/supervisionreg/srletters/sr1618.pdf.
---------------------------------------------------------------------------
A list or simple chart of illiquid funds for which an
extension is sought,
A short description of each fund, including the investment
strategy and types of investments made by each fund, which entity
within the firm holds the investment, the size of each fund, the total
exposure of the banking entity to each fund, the date by which each
remaining illiquid fund is expected to mature by its terms or be
conformed to section 13 of the BHC Act, and the banking entity's
relationship with the fund (for example, general partner, sponsor,
investment adviser, investor),
A description of the banking entity's specific efforts to
divest or conform its illiquid funds, including a description of the
overall covered funds (both liquid and illiquid) that have been
divested or conformed to date, the progress that has been made towards
divesting or conforming the investments for which an extension is being
sought (for example, the number of funds sold, the number of funds that
continue to be held, and the amount of investments remaining in each
fund and in aggregate),
A certification by the General Counsel or Chief Compliance
Officer of the entity that sponsors or invests in the illiquid funds
that each fund meets the definition of illiquid funds in section 13 of
the BHC Act and sections 225.180-.181 of Regulation Y, including that
the extension is necessary to fulfill a contractual obligation of the
banking entity that was in effect on May 1, 2010, and
The length of the requested extension of the conformance
period and a description of the banking entity's plan for divesting or
conforming each illiquid fund prior to the end of the requested
extension period.
SR Letter 16-18 further provides that such a request should be
submitted in writing to the appropriate Federal Reserve Bank and that
the banking entity should provide the name, phone number, and email
address of the banking entity's point of contact for the request.
Additionally, SR Letter 16-18 provides that, in the case where the
banking entity that sponsors or invests in the illiquid fund is
supervised primarily by another federal banking agency, the Securities
and Exchange Commission, or the Commodity Futures Trading Commission,
the top-tier banking entity should also provide a copy of the extension
request to the relevant agency for the subsidiary banking entity.
Conformance Period for Nonbank Financial Companies Supervised by the
Federal Reserve Engaged in Proprietary Trading or Private Fund
Activities--Approval Required To Hold Interests in Excess of Time Limit
(Section 225.182(c))
Section 225.182(c) requires an application for an extension by a
nonbank financial company supervised by the Board to (1) be submitted
in writing to the Board at least 180 days prior to the expiration of
the applicable time period, (2) provide the reasons why the nonbank
financial company supervised by the Board believes the extension should
be granted, and (3) provide a detailed explanation of the company's
plan for coming into compliance with the requirements of the Volcker
Rule. A request by nonbank financial company supervised by the Board
also must address the relevant factors governing Board determinations
set out in section 225.182(d).
Proposed revisions: The Board is proposing to revise the FR Y-1 to
account for the provisions of SR Letter 16-18 that relate to the
contents of a request for an extended transition period for illiquid
funds and the procedures for filing such a request.
Legal authorization and confidentiality: Section 13 of the BHC Act
authorizes the Board to issue rules to permit entities covered by the
Volcker Rule to seek extensions of time of the conformance period (12
U.S.C. 1851(c)(6)). The Board also has the authority to require reports
from bank holding companies (12 U.S.C. 1844(c)), savings and loan
holding companies (12 U.S.C. 1467a(b) and (g)), and state member banks
(12 U.S.C. 248(a) and 324). The information collections associated with
requests for extensions of time to conform to the Volcker Rule are
required for covered entities that decide to seek an extension of time
to conform their activities to the Volcker Rule or divest their
interest in an illiquid hedge fund or private equity fund. These
collections of information, therefore, are required to obtain a
benefit.
Information required to be submitted in order to obtain an
extension of time to conform activities to the Volcker Rule may
include:
The terms of private contractual obligations,
The liquid or illiquid nature of assets proposed to be
divested by the regulated entity,
The total exposure of the covered entity to the activity
or investment, and its materiality to the institution,
The risks and costs of disposing of, or maintaining, the
activity or investment, or
The impact of divestiture or conformance of the activity
or investment on any duty owed by the institution to a client,
customer, or counterparty.
This information is the type of confidential commercial and
financial information that may be withheld under exemption 4 of the
Freedom of Information Act (5 U.S.C. 552(b)(4)). As required
information, it may be withheld under exemption 4 only if public
disclosure could result in substantial competitive harm to the
submitting institution.\2\
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\2\ See National Parks and Conservation Association v. Morton,
498 F.2d 765 (D.C. Cir. 1974).
Board of Governors of the Federal Reserve System, April 16,
2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2019-07873 Filed 4-18-19; 8:45 am]
BILLING CODE 6210-01-P
