Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB, 73304-73307 [2022-26035]
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Federal Register / Vol. 87, No. 228 / Tuesday, November 29, 2022 / Notices
relating to activities of CRA affiliates, 1;
and Disclosure: NGEP Covered
agreements to public, 2.
Estimated average hours per response:
Reporting: IDI and affiliates—Copy of
agreements to agency, 1; List of
agreements to agency, 1; Annual report,
4; Filing NGEP annual report, 1;
Reporting: NGEP—Copy of agreements
to agency, 1, Annual report, 4;
Disclosure: IDI and affiliates—Covered
agreements to public, 1, Agreements
relating to activities of CRA affiliates, 1;
and Disclosure: NGEP Covered
agreements to public, 1.
Estimated annual burden hours:
Reporting: IDI and affiliates—Copy of
agreements to agency, 2; List of
agreements to agency, 2; Annual report,
4; Filing NGEP annual report, 1;
Reporting: NGEP—Copy of agreements
to agency, 2, Annual report, 8;
Disclosure: IDI and affiliates—Covered
agreements to public, 2, Agreements
relating to activities of CRA affiliates, 2;
and Disclosure: NGEP Covered
agreements to public, 2.
General description of collection:
Regulation G—Disclosure and Reporting
of CRA-Related Agreements 1
implements section 711 of the GrammLeach-Bliley Act (GLBA),2 which
requires IDIs, affiliates of IDIs, and
NGEPs to disclose written agreements
entered into in connection with
fulfillment of the CRA.3
Legal authorization and
confidentiality: The disclosure and
reporting requirements of Regulation G
are authorized pursuant to the Board’s
authority to prescribe regulations to
carry out the purposes of section 711 of
GLBA.4 The FR G disclosure and
reporting requirements are mandatory.
The disclosure and reporting
requirements of section 711 and
Regulation G require relevant parties to
disclose covered agreements to the
public.5 However, as explained in the
preamble to Regulation G, an entity
subject to Regulation G may submit
separate public and complete versions
of its covered agreements to the Board
with a request for confidential treatment
for the complete version.6 As stated in
the preamble, the Board would release
only the public version unless it
received a request under the Freedom of
Information Act (FOIA) for the entirety
of the CRA-related agreement.7
Regulation G states that in responding
to a request for a covered agreement
from an individual or entity under the
public disclosure provisions of section
711, an NGEP, insured depository
institution, or affiliate may withhold
from the public information that the
party believes the relevant supervisory
agency could withhold from disclosure
under the FOIA.8 Information contained
in covered agreements may be exempt
from disclosure under exemption 4 of
the FOIA, which protects nonpublic
commercial or financial information,
which is both customarily and actually
treated as private by the respondent.9
Information contained in covered
agreements may also be exempt from
disclosure under exemption 6 of the
FOIA, which protects information about
individuals in personnel and medical
files the disclosure of which ‘‘would
constitute a clearly unwarranted
invasion of personal privacy,’’ 10 and
under exemption 8 of the FOIA, which
protects information contained in
‘‘examination, operating, or condition
reports’’ obtained in the bank
supervisory process.11
Current actions: On July 26, 2022, the
Board published an initial notice in the
Federal Register (87 FR 44392)
requesting public comment for 60 days
on the extension, without revision, of
the FR G. The comment period for this
notice expired on September 26, 2022.
The Board did not receive any
comments.
12 CFR part 207.
Codified at 12 U.S.C. 1831y.
3 12 U.S.C. 2901 et seq.
4 12 U.S.C. 1831y(h)(1).
5 The Board noted in the preamble to Regulation
G that section 711 would require disclosure of some
types of information that an agency might normally
withhold from disclosure under the FOIA and that
the Board would not keep information confidential
under the FOIA that a party would be required to
disclose under section 711. Disclosure and
Reporting of CRA-Related Agreements, 66 FR 2052,
2066–2067 (Jan. 10, 2001).
6 Id.
AGENCY:
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Board of Governors of the Federal Reserve
System, November 22, 2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022–25969 Filed 11–28–22; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Announcement of Board
Approval Under Delegated Authority
and Submission to OMB
Board of Governors of the
Federal Reserve System.
SUMMARY: The Board of Governors of the
Federal Reserve System (Board) is
adopting a proposal to extend for three
years, with revision, the Structure
Id.
12 CFR 207.6(b)(2).
9 5 U.S.C. 552(b)(4).
10 5 U.S.C. 552(b)(6).
11 5 U.S.C. 552(b)(8).
7
8
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Reporting and Recordkeeping
Requirements for Domestic and Foreign
Banking Organizations (FR Y–6, FR Y–
7, FR Y–10, and FR Y–10E; OMB No.
7100–0297).
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, nuha.elmaghrabi@frb.gov, (202)
452–3884.
Office of Management and Budget
(OMB) Desk Officer for the Federal
Reserve Board, 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.
SUPPLEMENTARY INFORMATION: On June
15, 1984, OMB delegated to the Board
authority under the Paperwork
Reduction Act (PRA) to approve and
assign OMB control numbers to
collections of information conducted or
sponsored by the Board. Boardapproved collections of information are
incorporated into the official OMB
inventory of currently approved
collections of information. The OMB
inventory, as well as copies of the PRA
Submission, supporting statements
(which contain more detailed
information about the information
collections and burden estimates than
this notice), and approved collection of
information instrument(s) are available
at https://www.reginfo.gov/public/do/
PRAMain. These documents are also
available on the Federal Reserve Board’s
public website at https://
www.federalreserve.gov/apps/
reportingforms/home/review or may be
requested from the agency clearance
officer, whose name appears above.
Final Approval Under OMB Delegated
Authority of the Extension for Three
Years, With Revision, of the Following
Information Collection
Collection title: Annual Report of
Holding Companies; Annual Report of
Foreign Banking Organizations; Report
of Changes in Organizational Structure;
Supplement to the Report of Changes in
Organizational Structure.
Collection identifier: FR Y–6; FR Y–7;
FR Y–10; and FR Y–10E.
OMB control number: 7100–0297.
Effective Date: The effective dates are
as follows:
March 31, 2023:
• Revised the FR Y–10 definition of
‘‘control’’ in the Glossary section of the
instructions.
December 31, 2024:
• Revised the FR Y–6 to automate and
add a standard template for reporting
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item three, securities holders, and item
four, insiders.
• Revised the FR Y–6 and FR Y–7
instructions for how the organizational
chart and the tiered structure
information are reported.
• Revised the FR Y–6 instructions for
how branches of domestic depository
institutions and Edge and agreement
corporations are verified and reconciled.
All other changes are effective
December 31, 2022. There are no
changes to the FR Y–10E.
General description of collection: The
FR Y–6 is filed by all top-tier holding
companies (HCs) and non-qualifying
foreign banking organizations (FBOs).
The report collects an organizational
chart and annual verification of
domestic branches within the
organization and includes information
on the identity, percentage ownership,
and business interests of principal
shareholders, directors, and executive
officers. The FR Y–6 can be filed via a
paper or electronic (Portable Document
Format) submission to the appropriate
Federal Reserve Bank.
The FR Y–7 is an annual report filed
by qualifying FBOs that have a U.S.
banking presence. The report collects
financial statements, organizational
information, shares and shareholder
information, and data on the eligibility
to be a qualified FBO as defined by the
Board’s Regulation K. The FR Y–7 can
be filed via a paper submission mailed
to the appropriate Federal Reserve Bank.
The FR Y–10 is an event-generated
information collection that captures
changes in organizational structure or
the regulated investments and activities
of various entities. The FR Y–10 can be
filed electronically or via a paper, email,
or fax submission to the appropriate
Federal Reserve Bank.
The FR Y–10E is a free-form
supplement to the FR Y–10 that the
Board uses to collect additional
structural information as needed on an
emergency basis. Responses for the FR
Y–10E are voluntary. Submission
methods vary depending on the nature
and time-sensitivity of the data requests.
Frequency: FR Y–6: Annual; FR Y–7:
Annual; FR Y–10: Event-generated; 1 FR
Y–10E: Event-generated.2
Respondents: Bank holding
companies (BHCs), savings and loan
holding companies (SLHCs), securities
holding companies, and intermediate
holding companies (IHCs) (collectively,
HCs), FBOs, state member banks that are
1 In 2020, there were 13,301 FR Y–10’s processed
for the 3,950 reporting institutions. This volume
yields an approximate annual frequency of 3.37.
2 The FR Y–10E is event-generated and the data
are submitted on an ad-hoc basis as needed.
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not controlled by an HC, Edge and
agreement corporations that are not
controlled by a member bank, a
domestic HC, or an FBO, and nationally
chartered banks that are not controlled
by a BHC or an FBO (with regard to
their foreign investments only).
Total estimated number of
respondents: FR Y–6: 3,803; FR Y–7:
236; FR Y–10: 3,950; FR Y–10E: 3,950.
Estimated average hours per response:
Reporting
FR Y–6: 2.5; FR Y–7: 3; FR Y–10: 2.5;
FR Y–10E: 0.5.
Recordkeeping
FR Y–6: 0.5; FR Y–10: 0.5.
Total estimated change in burden:
(3,210).
Total estimated annual burden hours:
Reporting
FR Y–6: 9,508; FR Y–7: 708; FR Y–10:
33,253; FR Y–10E: 1,975.
Recordkeeping
FR Y–6: 1,902; FR Y–10: 6,651.3
Current actions: On May 9, 2022, the
Board published a notice in the Federal
Register (87 FR 27639) requesting
public comment for 60 days on the
extension, with revision, of the FR Y–
6, FR Y–7, FR Y–10, and FR Y–10E
reports. The Board proposed to modify
the FR Y–6, FR Y–7 and FR Y–10
reports by (1) revising the FR Y–6
reporting requirements for reporters
who do not have any changes from their
prior year’s submission, (2) revising the
FR Y–6 to automate and add a standard
template for reporting item three,
securities holders, and item four,
insiders, (3) revising the FR Y–6 and FR
Y–7 instructions for how the
organizational chart and the tiered
structure information are reported, (4)
revising the FR Y–7 instructions to
require the top tier FBO to file for its
subsidiary FBOs, (5) revising the FR Y–
6 instructions for how branches of
domestic depository institutions and
Edge and agreement corporations are
verified and reconciled, (6) revising the
FR Y–7 instructions language
requirements for submission of the
annual report to shareholders, (7)
revising the FR Y–10 definition of
control in the Glossary section of the
instructions, (8) revising the FR Y–10
instructions for the legal authority codes
3 More detailed information regarding this
collection, including more detailed burden
estimates, can be found in the OMB Supporting
Statement posted at https://www.federalreserve.gov/
apps/reportingforms/home/review. On the page
displayed at the link, you can find the OMB
Supporting Statement by referencing the collection
identifier, FR Y–6, FR Y–7, FR Y–10, and FR Y–
10E.
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73305
and terminology for unitary savings and
loans holding company activities that
meet the requirements of section
10(c)(9)(C) of the Home Owners’ Loan
Act (HOLA), (9) revising the FR Y–10
instructions to update descriptions for
legal authority codes 14, 68 and 999,
(10) revising the FR Y–10 reporting form
to add an election to become a Covered
Savings Association (CSA) as a
reportable event, (11) revising the FR Y–
10 instructions to remove savings
associations from the definition of
nonbanking company, (12) clarifying the
FR Y–10 instructions for the definition
of a head office location, (13) clarifying
the FR Y–10 instructions for the state of
incorporation for federally chartered
entities, (14) revising the FR Y–6 and
the FR Y–10 instructions to add a
requirement that respondents keep a
record of the data submitted, and (15)
making other minor clarifications and
conforming edits to the FR Y–6, FR Y–
7, and FR Y–10 forms and instructions.
The comment period for this notice
expired on July 8, 2022. The Board
received comments from three
commenters: two from trade
associations and one from an individual
banking organization. Board staff also
conducted two follow-up calls with
trade associations along with banking
organizations to better understand their
concerns and recommendations. The
commenters generally supported the
proposed revisions.
Detailed Discussion of Public
Comments
A commenter remarked that the
effective date of the revision to the
definition of ‘‘control’’ in the FR Y–10
glossary should be delayed to
September 30, 2023. Specifically, the
commenter noted that a delay would
allow companies additional time to
implement the revision. The commenter
also sought confirmation regarding the
application of the revised definition to
past and current structures.
The proposed revised definition of
‘‘control’’ was intended to align the FR
Y–10 and other structure reports to the
Board’s final control rule. After this
alignment, reporting companies will be
required to report subsidiaries—that is
companies that are controlled—for
purposes of Regulations Y and LL (12
CFR parts 225 and 238) as subsidiaries
under the FR Y–10 and other structure
reports. This will ensure that reported
structure information matches reporting
companies’ actual organizational
structures.
Regarding the effective date of the
revised definition of ‘‘control’’ on the
FR Y–10, the Board will not move
forward with the September 30, 2022,
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effective date. Instead, the Board
adopted the effective date of March 31,
2023, to allow additional time for
respondents to perform any system
enhancements.
As a result of the revised glossary
definition of ‘‘control,’’ a reporting
company generally should ensure that
filings are made to reflect all current
subsidiaries within 30 days of the
effective date of the revised definition,
consistent with the standard filing
period. This revision does not require a
reporting company to report a company
that is not a subsidiary as of the
effective date of the revised definition,
even if the company would have been
a subsidiary in the past under the
revised definition. In addition,
consistent with guidance previously
provided in the final control rule, a
reporting company does not need to file
to reflect a subsidiary that would be
controlled under the revised definition
but for the fact that the subsidiary (1)
was reviewed by Federal Reserve
System staff prior to the effective date
of the control rule and was not
determined to be controlled, or (2) was
reasonably determined not to be
controlled by the reporting company at
the time the relationship was
established based on the standards and
interpretations then in effect.4 The
glossary has been revised to reflect the
outstanding guidance on the control
rule.
A commenter requested that the
Board retain the flexibility in the FR Y–
7 for tiered FBOs to file separately,
stating that the proposed change would
create significant challenges for certain
FBOs. In response to this comment, the
Board will not move forward with
requiring the top tier FBO to file for its
subsidiary FBOs.
A commenter recommended that the
proposed automated system for the FR
Y–6 incorporate functionality to allow
reporters to identify items as
confidential, similar to the current
process. Additionally, the commenter
recommended revising the reporting
instructions to provide clarity on how to
request confidentiality with the new
electronic filing process. The Board has
not changed the existing process for
requesting confidentiality for the FR Y–
6 report. Additionally, any future
system enhancements will allow for the
current process for requesting
confidentiality to continue.
A commenter noted that the proposed
FR Y–6 report item 4 has two columns
4 These exclusions do not apply if, subsequent to
the review by Federal Reserve System staff or the
reporting company, the relationship between the
reporting company and the other company changed
materially.
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incorrectly labeled as (4)(b), and that
one of the columns should be column
(4)(d). The Board acknowledges this
discrepancy and will adopt the
proposed item with correctly labelled
columns.
A commenter requested that the
Federal Reserve confirm that firms will
be able to submit multiple entries in the
data fields for item 4 of the proposed FR
Y–6 report forms. In response to this
comment, the Board will ensure that the
implemented technology will allow
reporters to submit the necessary
information for each required field.
A commenter recommended that the
revised FR Y–6 form for reporting items
3 and 4, and the corresponding
electronic submission process, should
explicitly enable functionality to allow
firms to download the standard
template. The commenter further stated
that adding this functionality will
significantly decrease the potential
burdens associated with these items.
The Board agrees that a downloadable
format would be useful and will take
this comment into consideration during
the development of the new system.
Commenters recommended that the
Board permit the use of electronic
signatures as part of the proposed
recordkeeping requirement.
Additionally, commenters
recommended that firms maintain
electronic copies of the FR Y–6 and FR
Y–10 reports submitted to the Federal
Reserve instead of hard copies. In
response to these comments, the Board
has not adopted the proposal to require
respondents to maintain a physical copy
of the entire FR Y–6 or FR Y–10 report.
Instead, the Board has adopted a
requirement that FR Y–6 and FR Y–10
respondents maintain manually signed
cover pages for a period of three years
following submission. Because the cover
page signature will not be submitted to
the Federal Reserve with electronic
filing, this requirement is necessary for
examiners to verify that the cover pages
were signed. The Board will consider
the use of electronic signatures in future
technology enhancements.
A commenter made several
observations regarding the proposed
changes for Organization Chart and
Domestic Branch Listing items on the
FR Y–6:
• Noted a lack of clarity on changes
to the reconciliation and verification
requirements and data sources for the
verification. The commenter noted that
there is additional burden on
respondents to reconcile because of the
timing differences between when the FR
Y–6 data becomes available and the
high volume of FR Y–10 reports at yearend.
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• Recommended the Federal Reserve
remove the Organization Chart and
Domestic Branch Listing from the FR
Y–6 since the information is currently
available on the FR Y–10 on an event
driven basis. The commenter further
stated that if the recommendation is not
accepted, they suggested creating
automated tools to allow ad hoc
reconciliation between internal systems
and Federal Reserve databases for all FR
Y–10 reported data.
• Requested clarification of the filing
requirements for reporters that answer
‘‘Yes’’ for the Organization Chart item.
With regard to the sourcing of data,
reporters will reconcile data previously
submitted to the Board through an FR
Y–6 or FR Y–10 filing to confirm
accuracy of the data. Therefore, the
Board’s system should have the most
up-to-date data for firms to reconcile. If
the reporter identifies a discrepancy in
the reconciliation, an FR Y–10 report
must be submitted to update the
information on the Board’s system. In
response to the comment about
removing items 2.a and 2.b from the FR
Y–6 report, the Board will retain these
items on the FR Y–6 and is adopting the
changes to items 2.a and 2.b as
proposed. Retaining the information in
items 2.a and 2.b will ensure the
accuracy and completeness of structure
data on the Board’s system. Reporters
that use the online system to reconcile
items 2.a and 2.b will no longer be
required to submit an organizational
chart as part of their FR Y–6 report,
even if they indicated ‘‘Yes’’ for having
changes from the prior year. Further, the
Board will consider allowing ad hoc
reconciliation between organizational
structure information in the Federal
Reserve’s database and reporter’s
internal systems during the
development of the new system.
A commenter recommended that the
Federal Reserve update the attestation
language in the FR Y–6 instructions to
remove the reference to the supporting
attachments as they will no longer be
included in the report with the
proposed electronic submission. The
Board recognizes that there may be
instances where a reporter must use
another filing option, such as mailing
the FR Y–6 report or uploading a PDF
of the report to Reporting Central. Thus,
this language is still relevant and will
remain in the instructions.
A commenter stated that, although not
directly raised by changes reflected in
the proposal, the Board should revise
the FR Y–7 Report Item 2 to align the
perimeter of reportable non-bank
companies with the FR Y–10. The
commenter noted that this change
would allow the Board to meaningfully
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reduce the reporting burden associated
with the FR Y–7 without materially
impairing the usefulness of the
information to the Board. The Board
acknowledges the variance between the
FR Y–7 and the FR Y–10 in reporting
certain nonbanking companies in which
the reporting entity controls between
five and 25 percent of outstanding
shares of any class of voting securities.
However, this information is relevant
for supervisory purposes and is not
reported elsewhere. The Board will
continue to collect this information on
the FR Y–7 report at this time.
Aside from the changes discussed
above, the Board adopted the extension,
with revision, of the FR Y–6, FR Y–7,
FR Y–10, and FR Y–10E reports as
originally proposed.
Board of Governors of the Federal Reserve
System, November 23, 2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022–26035 Filed 11–28–22; 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
Annual Daylight Overdraft Capital
Report for U.S. Branches and Agencies
of Foreign Banks (FR 2225; OMB No.
7100–0216).
DATES: Comments must be submitted on
or before January 30, 2023.
ADDRESSES: You may submit comments,
identified by FR 2225, 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 the OMB
number or FR number in the subject line
of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Federal Reserve Board of
Governors, Attn: Ann E. Misback,
Secretary of the Board, Mailstop M–
4775, 2001 C St NW, Washington, DC
20551.
All public comments are available
from the Board’s website at https://
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SUMMARY:
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www.federalreserve.gov/apps/foia/
proposedregs.aspx as submitted, unless
modified for technical reasons or to
remove personally identifiable
information at the commenter’s request.
Accordingly, comments will not be
edited to remove any confidential
business information, identifying
information, or contact information.
Public comments may also be viewed
electronically or in paper in Room M–
4365A, 2001 C St NW, Washington, DC
20551, 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 Office of
Management and Budget (OMB) Desk
Officer for the Federal Reserve Board,
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:
Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, nuha.elmaghrabi@frb.gov, (202)
452–3884.
SUPPLEMENTARY INFORMATION: On June
15, 1984, OMB delegated to the Board
authority under the Paperwork
Reduction Act (PRA) to approve and
assign OMB control numbers to
collections of information 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.
During the comment period for this
proposal, a copy of the proposed PRA
OMB submission, including the draft
reporting form and instructions,
supporting statement, and other
documentation, will 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 above.
Final versions of these documents will
be made available at https://
www.reginfo.gov/public/do/PRAMain, if
approved.
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73307
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,
Without Revision, the Following
Information Collection
Collection title: Annual Daylight
Overdraft Capital Report for U.S.
Branches and Agencies of Foreign
Banks.
Collection identifier: FR 2225.
OMB control number: 7100–0216.
Frequency: Annually.
Respondents: Foreign banking
organizations (FBOs) with U.S. branches
or agencies.
Estimated number of respondents: 51.
Estimated average hours per response:
1.
Estimated annual burden hours: 51.
General description of collection: The
FR 2225 is required for FBOs that wish
to, and are eligible to, establish a nonzero net debit cap for their U.S.
branches and agencies under the
Federal Reserve Policy on Payment
System Risk. The FR 2225 reporting
form collects information needed to
identify the respondent and its fiscal
year end, and collects four items to
determine its year-end capital and assets
for purposes of daylight overdraft
monitoring. Four items, converted into
U.S. dollars, are collected for the capital
E:\FR\FM\29NON1.SGM
29NON1
]]>Agencies
[Federal Register Volume 87, Number 228 (Tuesday, November 29, 2022)]
[Notices]
[Pages 73304-73307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26035]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to extend for three years, with revision, the
Structure Reporting and Recordkeeping Requirements for Domestic and
Foreign Banking Organizations (FR Y-6, FR Y-7, FR Y-10, and FR Y-10E;
OMB No. 7100-0297).
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, [email protected], (202) 452-3884.
Office of Management and Budget (OMB) Desk Officer for the Federal
Reserve Board, 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.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collections of information conducted or
sponsored by the Board. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. The OMB inventory, as well as copies of the
PRA Submission, supporting statements (which contain more detailed
information about the information collections and burden estimates than
this notice), and approved collection of information instrument(s) are
available at https://www.reginfo.gov/public/do/PRAMain. These documents
are also available on the Federal Reserve Board's public website at
https://www.federalreserve.gov/apps/reportingforms/home/review or may
be requested from the agency clearance officer, whose name appears
above.
Final Approval Under OMB Delegated Authority of the Extension for Three
Years, With Revision, of the Following Information Collection
Collection title: Annual Report of Holding Companies; Annual Report
of Foreign Banking Organizations; Report of Changes in Organizational
Structure; Supplement to the Report of Changes in Organizational
Structure.
Collection identifier: FR Y-6; FR Y-7; FR Y-10; and FR Y-10E.
OMB control number: 7100-0297.
Effective Date: The effective dates are as follows:
March 31, 2023:
Revised the FR Y-10 definition of ``control'' in the
Glossary section of the instructions.
December 31, 2024:
Revised the FR Y-6 to automate and add a standard template
for reporting
[[Page 73305]]
item three, securities holders, and item four, insiders.
Revised the FR Y-6 and FR Y-7 instructions for how the
organizational chart and the tiered structure information are reported.
Revised the FR Y-6 instructions for how branches of
domestic depository institutions and Edge and agreement corporations
are verified and reconciled.
All other changes are effective December 31, 2022. There are no
changes to the FR Y-10E.
General description of collection: The FR Y-6 is filed by all top-
tier holding companies (HCs) and non-qualifying foreign banking
organizations (FBOs). The report collects an organizational chart and
annual verification of domestic branches within the organization and
includes information on the identity, percentage ownership, and
business interests of principal shareholders, directors, and executive
officers. The FR Y-6 can be filed via a paper or electronic (Portable
Document Format) submission to the appropriate Federal Reserve Bank.
The FR Y-7 is an annual report filed by qualifying FBOs that have a
U.S. banking presence. The report collects financial statements,
organizational information, shares and shareholder information, and
data on the eligibility to be a qualified FBO as defined by the Board's
Regulation K. The FR Y-7 can be filed via a paper submission mailed to
the appropriate Federal Reserve Bank.
The FR Y-10 is an event-generated information collection that
captures changes in organizational structure or the regulated
investments and activities of various entities. The FR Y-10 can be
filed electronically or via a paper, email, or fax submission to the
appropriate Federal Reserve Bank.
The FR Y-10E is a free-form supplement to the FR Y-10 that the
Board uses to collect additional structural information as needed on an
emergency basis. Responses for the FR Y-10E are voluntary. Submission
methods vary depending on the nature and time-sensitivity of the data
requests.
Frequency: FR Y-6: Annual; FR Y-7: Annual; FR Y-10: Event-
generated; \1\ FR Y-10E: Event-generated.\2\
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\1\ In 2020, there were 13,301 FR Y-10's processed for the 3,950
reporting institutions. This volume yields an approximate annual
frequency of 3.37.
\2\ The FR Y-10E is event-generated and the data are submitted
on an ad-hoc basis as needed.
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Respondents: Bank holding companies (BHCs), savings and loan
holding companies (SLHCs), securities holding companies, and
intermediate holding companies (IHCs) (collectively, HCs), FBOs, state
member banks that are not controlled by an HC, Edge and agreement
corporations that are not controlled by a member bank, a domestic HC,
or an FBO, and nationally chartered banks that are not controlled by a
BHC or an FBO (with regard to their foreign investments only).
Total estimated number of respondents: FR Y-6: 3,803; FR Y-7: 236;
FR Y-10: 3,950; FR Y-10E: 3,950.
Estimated average hours per response:
Reporting
FR Y-6: 2.5; FR Y-7: 3; FR Y-10: 2.5; FR Y-10E: 0.5.
Recordkeeping
FR Y-6: 0.5; FR Y-10: 0.5.
Total estimated change in burden: (3,210).
Total estimated annual burden hours:
Reporting
FR Y-6: 9,508; FR Y-7: 708; FR Y-10: 33,253; FR Y-10E: 1,975.
Recordkeeping
FR Y-6: 1,902; FR Y-10: 6,651.\3\
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\3\ More detailed information regarding this collection,
including more detailed burden estimates, can be found in the OMB
Supporting Statement posted at https://www.federalreserve.gov/apps/reportingforms/home/review. On the page displayed at the link, you
can find the OMB Supporting Statement by referencing the collection
identifier, FR Y-6, FR Y-7, FR Y-10, and FR Y-10E.
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Current actions: On May 9, 2022, the Board published a notice in
the Federal Register (87 FR 27639) requesting public comment for 60
days on the extension, with revision, of the FR Y-6, FR Y-7, FR Y-10,
and FR Y-10E reports. The Board proposed to modify the FR Y-6, FR Y-7
and FR Y-10 reports by (1) revising the FR Y-6 reporting requirements
for reporters who do not have any changes from their prior year's
submission, (2) revising the FR Y-6 to automate and add a standard
template for reporting item three, securities holders, and item four,
insiders, (3) revising the FR Y-6 and FR Y-7 instructions for how the
organizational chart and the tiered structure information are reported,
(4) revising the FR Y-7 instructions to require the top tier FBO to
file for its subsidiary FBOs, (5) revising the FR Y-6 instructions for
how branches of domestic depository institutions and Edge and agreement
corporations are verified and reconciled, (6) revising the FR Y-7
instructions language requirements for submission of the annual report
to shareholders, (7) revising the FR Y-10 definition of control in the
Glossary section of the instructions, (8) revising the FR Y-10
instructions for the legal authority codes and terminology for unitary
savings and loans holding company activities that meet the requirements
of section 10(c)(9)(C) of the Home Owners' Loan Act (HOLA), (9)
revising the FR Y-10 instructions to update descriptions for legal
authority codes 14, 68 and 999, (10) revising the FR Y-10 reporting
form to add an election to become a Covered Savings Association (CSA)
as a reportable event, (11) revising the FR Y-10 instructions to remove
savings associations from the definition of nonbanking company, (12)
clarifying the FR Y-10 instructions for the definition of a head office
location, (13) clarifying the FR Y-10 instructions for the state of
incorporation for federally chartered entities, (14) revising the FR Y-
6 and the FR Y-10 instructions to add a requirement that respondents
keep a record of the data submitted, and (15) making other minor
clarifications and conforming edits to the FR Y-6, FR Y-7, and FR Y-10
forms and instructions. The comment period for this notice expired on
July 8, 2022. The Board received comments from three commenters: two
from trade associations and one from an individual banking
organization. Board staff also conducted two follow-up calls with trade
associations along with banking organizations to better understand
their concerns and recommendations. The commenters generally supported
the proposed revisions.
Detailed Discussion of Public Comments
A commenter remarked that the effective date of the revision to the
definition of ``control'' in the FR Y-10 glossary should be delayed to
September 30, 2023. Specifically, the commenter noted that a delay
would allow companies additional time to implement the revision. The
commenter also sought confirmation regarding the application of the
revised definition to past and current structures.
The proposed revised definition of ``control'' was intended to
align the FR Y-10 and other structure reports to the Board's final
control rule. After this alignment, reporting companies will be
required to report subsidiaries--that is companies that are
controlled--for purposes of Regulations Y and LL (12 CFR parts 225 and
238) as subsidiaries under the FR Y-10 and other structure reports.
This will ensure that reported structure information matches reporting
companies' actual organizational structures.
Regarding the effective date of the revised definition of
``control'' on the FR Y-10, the Board will not move forward with the
September 30, 2022,
[[Page 73306]]
effective date. Instead, the Board adopted the effective date of March
31, 2023, to allow additional time for respondents to perform any
system enhancements.
As a result of the revised glossary definition of ``control,'' a
reporting company generally should ensure that filings are made to
reflect all current subsidiaries within 30 days of the effective date
of the revised definition, consistent with the standard filing period.
This revision does not require a reporting company to report a company
that is not a subsidiary as of the effective date of the revised
definition, even if the company would have been a subsidiary in the
past under the revised definition. In addition, consistent with
guidance previously provided in the final control rule, a reporting
company does not need to file to reflect a subsidiary that would be
controlled under the revised definition but for the fact that the
subsidiary (1) was reviewed by Federal Reserve System staff prior to
the effective date of the control rule and was not determined to be
controlled, or (2) was reasonably determined not to be controlled by
the reporting company at the time the relationship was established
based on the standards and interpretations then in effect.\4\ The
glossary has been revised to reflect the outstanding guidance on the
control rule.
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\4\ These exclusions do not apply if, subsequent to the review
by Federal Reserve System staff or the reporting company, the
relationship between the reporting company and the other company
changed materially.
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A commenter requested that the Board retain the flexibility in the
FR Y-7 for tiered FBOs to file separately, stating that the proposed
change would create significant challenges for certain FBOs. In
response to this comment, the Board will not move forward with
requiring the top tier FBO to file for its subsidiary FBOs.
A commenter recommended that the proposed automated system for the
FR Y-6 incorporate functionality to allow reporters to identify items
as confidential, similar to the current process. Additionally, the
commenter recommended revising the reporting instructions to provide
clarity on how to request confidentiality with the new electronic
filing process. The Board has not changed the existing process for
requesting confidentiality for the FR Y-6 report. Additionally, any
future system enhancements will allow for the current process for
requesting confidentiality to continue.
A commenter noted that the proposed FR Y-6 report item 4 has two
columns incorrectly labeled as (4)(b), and that one of the columns
should be column (4)(d). The Board acknowledges this discrepancy and
will adopt the proposed item with correctly labelled columns.
A commenter requested that the Federal Reserve confirm that firms
will be able to submit multiple entries in the data fields for item 4
of the proposed FR Y-6 report forms. In response to this comment, the
Board will ensure that the implemented technology will allow reporters
to submit the necessary information for each required field.
A commenter recommended that the revised FR Y-6 form for reporting
items 3 and 4, and the corresponding electronic submission process,
should explicitly enable functionality to allow firms to download the
standard template. The commenter further stated that adding this
functionality will significantly decrease the potential burdens
associated with these items. The Board agrees that a downloadable
format would be useful and will take this comment into consideration
during the development of the new system.
Commenters recommended that the Board permit the use of electronic
signatures as part of the proposed recordkeeping requirement.
Additionally, commenters recommended that firms maintain electronic
copies of the FR Y-6 and FR Y-10 reports submitted to the Federal
Reserve instead of hard copies. In response to these comments, the
Board has not adopted the proposal to require respondents to maintain a
physical copy of the entire FR Y-6 or FR Y-10 report. Instead, the
Board has adopted a requirement that FR Y-6 and FR Y-10 respondents
maintain manually signed cover pages for a period of three years
following submission. Because the cover page signature will not be
submitted to the Federal Reserve with electronic filing, this
requirement is necessary for examiners to verify that the cover pages
were signed. The Board will consider the use of electronic signatures
in future technology enhancements.
A commenter made several observations regarding the proposed
changes for Organization Chart and Domestic Branch Listing items on the
FR Y-6:
Noted a lack of clarity on changes to the reconciliation
and verification requirements and data sources for the verification.
The commenter noted that there is additional burden on respondents to
reconcile because of the timing differences between when the FR Y-6
data becomes available and the high volume of FR Y-10 reports at year-
end.
Recommended the Federal Reserve remove the Organization
Chart and Domestic Branch Listing from the FR Y-6 since the information
is currently available on the FR Y-10 on an event driven basis. The
commenter further stated that if the recommendation is not accepted,
they suggested creating automated tools to allow ad hoc reconciliation
between internal systems and Federal Reserve databases for all FR Y-10
reported data.
Requested clarification of the filing requirements for
reporters that answer ``Yes'' for the Organization Chart item.
With regard to the sourcing of data, reporters will reconcile data
previously submitted to the Board through an FR Y-6 or FR Y-10 filing
to confirm accuracy of the data. Therefore, the Board's system should
have the most up-to-date data for firms to reconcile. If the reporter
identifies a discrepancy in the reconciliation, an FR Y-10 report must
be submitted to update the information on the Board's system. In
response to the comment about removing items 2.a and 2.b from the FR Y-
6 report, the Board will retain these items on the FR Y-6 and is
adopting the changes to items 2.a and 2.b as proposed. Retaining the
information in items 2.a and 2.b will ensure the accuracy and
completeness of structure data on the Board's system. Reporters that
use the online system to reconcile items 2.a and 2.b will no longer be
required to submit an organizational chart as part of their FR Y-6
report, even if they indicated ``Yes'' for having changes from the
prior year. Further, the Board will consider allowing ad hoc
reconciliation between organizational structure information in the
Federal Reserve's database and reporter's internal systems during the
development of the new system.
A commenter recommended that the Federal Reserve update the
attestation language in the FR Y-6 instructions to remove the reference
to the supporting attachments as they will no longer be included in the
report with the proposed electronic submission. The Board recognizes
that there may be instances where a reporter must use another filing
option, such as mailing the FR Y-6 report or uploading a PDF of the
report to Reporting Central. Thus, this language is still relevant and
will remain in the instructions.
A commenter stated that, although not directly raised by changes
reflected in the proposal, the Board should revise the FR Y-7 Report
Item 2 to align the perimeter of reportable non-bank companies with the
FR Y-10. The commenter noted that this change would allow the Board to
meaningfully
[[Page 73307]]
reduce the reporting burden associated with the FR Y-7 without
materially impairing the usefulness of the information to the Board.
The Board acknowledges the variance between the FR Y-7 and the FR Y-10
in reporting certain nonbanking companies in which the reporting entity
controls between five and 25 percent of outstanding shares of any class
of voting securities. However, this information is relevant for
supervisory purposes and is not reported elsewhere. The Board will
continue to collect this information on the FR Y-7 report at this time.
Aside from the changes discussed above, the Board adopted the
extension, with revision, of the FR Y-6, FR Y-7, FR Y-10, and FR Y-10E
reports as originally proposed.
Board of Governors of the Federal Reserve System, November 23,
2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-26035 Filed 11-28-22; 8:45 am]
BILLING CODE 6210-01-P
