Agency Information Collection Activities: Proposed Collection Renewal; Comment Request, 72076-72078 [2023-23054]

Agencies

• FEDERAL DEPOSIT INSURANCE CORPORATION

[Federal Register Volume 88, Number 201 (Thursday, October 19, 2023)]
[Notices]
[Pages 72076-72078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23054]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0083; -0182; -0198]


Agency Information Collection Activities: Proposed Collection 
Renewal; Comment Request

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The FDIC, as part of its obligations under the Paperwork 
Reduction Act of 1995 (PRA), invites the general public and other 
Federal agencies to take this opportunity to comment on the renewal of 
the existing information collections described below (OMB Control No. 
3064-0083; -0182 and -0198).

DATES: Comments must be submitted on or before December 18, 2023.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications/.
     Email: [email protected]. Include the name and number of 
the collection in the subject line of the message.
     Mail: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery: Comments may be hand-delivered to the guard 
station at the rear of the 17th Street NW building (located on F Street 
NW), on business days between 7 a.m. and 5 p.m.
    All comments should refer to the relevant OMB control number. A 
copy of the comments may also be submitted to the OMB desk officer for 
the FDIC: Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Washington, DC 
20503.

FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, [email protected], MB-3128, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: 
    Proposal to renew the following currently approved collection of 
information:
    1. Title: Recordkeeping and Disclosure Requirements in Connection 
with Regulation M (Consumer Leasing).
    OMB Number: 3064-0083.
    Affected Public: State nonmember banks and state savings 
associations engaging in consumer leasing.
    Burden Estimate:

                                       Summary of Estimated Annual Burden
                                               [OMB No. 3064-0083]
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                                 Type of burden                      Number of       Time per
    Information collection        (frequency of      Number of     responses per     response      Annual burden
    (obligation to respond)         response)       respondents     respondent        (HH:MM)         (hours)
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Recordkeeping Requirements in   Recordkeeping                 17             100         00:22.5             638
 Connection with Regulation M    (On occasion).
 (Consumer Leasing), 12 CFR
 1013.8.
Third-Party Disclosure          Third-Party                   17             100         00:22.5             638
 Requirements in Connection      Disclosure (On
 with Regulation M (Consumer     occasion).
 Leasing), 12 CFR 1013.3.
                                                 ---------------------------------------------------------------
    Total Annual Burden         ................  ..............  ..............  ..............           1,276
     (Hours).
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Source: FDIC.

    General Description of Collection: Regulation M (12 CFR 1013), 
issued by the Bureau of Consumer Financial Protection, implements the 
consumer leasing provisions of the Truth in Lending Act. Regulation M 
requires lessors of personal property to provide consumers with 
meaningful disclosures about the costs and terms of the leases for 
personal property. Lessors are required to retain evidence of 
compliance with Regulation M for twenty-four months. There is no change 
in the methodology or substance of this information collection. The 
change in burden is due solely to the decrease in the estimated number 
of respondents from 19 in 2021 to 17.
    2. Title: Retail Foreign Exchange Transactions.
    OMB Number: 3064-0182.
    Forms: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                       Summary of Estimated Annual Burden
                                               [OMB No. 3064-0182]
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                                 Type of burden                      Number of       Time per
    Information collection        (frequency of      Number of     responses per     response      Annual burden
    (obligation to respond)         response)       respondents     respondent        (HH:MM)         (hours)
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1. Recordkeeping Requirements,  Recordkeeping                  1               1        1,332:00           1,332
 12 CFR 349.19, 12 CFR           (Annual).
 349.21(b)(2), 12 CFR
 349.25(a) (Mandatory).
2. Reporting Requirements, 12   Reporting                      1               1           16:00              16
 CFR 349.16 (Mandatory).         (Annual).

[[Page 72077]]

 
3. Disclosure Requirements, 12  Third-Party                    1               1          276:00             276
 CFR 349.22(a), 12 CFR           Disclosure
 349.17(a)(4)(ii), 12 CFR        (Annual).
 349.18, 12 CFR 349.25(c) and
 (d), 12 CFR 349.27, 12 CFR
 349.28(a) and (b) (Mandatory).
                                                 ---------------------------------------------------------------
    Total Annual Burden         ................  ..............  ..............  ..............           1,624
     (Hours).
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Source: FDIC.

    General Description of Collection: This information collection 
implements section 742(c)(2) of the Dodd-Frank Act (7 U.S.C. 
2(c)(2)(E)) and FDIC regulations governing retail foreign exchange 
transactions as set forth at 12 CFR part 349, subpart B. The regulation 
allows banking organizations under FDIC supervision to engage in off-
exchange transactions in foreign currency with retail customers 
provided they comply with various reporting, recordkeeping and third-
party disclosure requirements specified in the rule. If an institution 
elects to conduct such transactions, compliance with the information 
collection is mandatory. Reporting Requirements--part 349, subpart B 
requires that, prior to initiating a retail foreign exchange business; 
a banking institution must provide the FDIC with a notice certifying 
that the institution has written policies and procedures, and risk 
measurement and management systems and controls in place to ensure that 
retail foreign exchange transactions are conducted in a safe and sound 
manner. The institution must also provide information about how it 
intends to manage customer due diligence, new product approvals and 
haircuts applied to noncash margin. Recordkeeping Requirements--part 
349 subpart B requires that institutions engaging in retail foreign 
exchange transactions keep full, complete and systematic records of 
account, financial ledger, transaction, memorandum orders and post 
execution allocations of bunched orders. In addition, institutions are 
required to maintain records regarding their ratio of profitable 
accounts, possible violations of law, records of noncash margin and 
monthly statements and confirmations issued. Disclosure Requirements--
The regulation requires that, before opening an account that will 
engage in retail foreign exchange transactions, a banking institution 
must obtain from each retail foreign exchange customer an 
acknowledgement of receipt and understanding of a written disclosure 
specified in the rule and of disclosures about the banking 
institution's fees and other charges and of its profitable accounts 
ratio. The institution must also provide monthly statements to each 
retail foreign exchange customer and must send confirmation statements 
following every transaction. The customer dispute resolution provisions 
of the regulation require certain endorsements, acknowledgements and 
signature language as well as the timely provision of a list of persons 
qualified to handle a customer's request for arbitration.
    After reviewing the requirements in Subpart B and the similar ICRs 
currently approved by OMB for the OCC and the Federal Reserve, the FDIC 
has determined that subpart B imposes more recordkeeping requirements 
than those listed in the 2021 ICR. While the 2021 ICR listed 12 CFR 
349.19 as the only recordkeeping requirement in Subpart B,\1\ the FDIC 
notes that the requirement in 12 CFR 349.21(b)(2) \2\ also meets the 
definition of a recordkeeping requirement, as does the requirement in 
12 CFR 349.25(a).\3\ The OCC and the Federal Reserve each listed 
requirements that are analogous to those in 12 CFR 349.21(b)(2) and 12 
CFR 349.25(a) as recordkeeping requirements in their similar ICRs,\4\ 
in addition to recordkeeping requirements that are analogous to those 
in 12 CFR 349.19.\5\ The FDIC is revising its information collection to 
include this burden.
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    \1\ See footnote 7.
    \2\ 12 CFR 349.21(b)(2) requires FDIC-supervised institutions 
that are engaged in, or that offer to engage in, retail foreign 
exchange transactions to establish written policies and procedures 
that include: Haircuts for noncash margin collected pursuant to 12 
CFR 349.21 (12 CFR 349.21(b)(2)(i)), and annual evaluation and, if 
appropriate, modification of the haircuts (12 CFR 349.21(b)(2)(ii)).
    \3\ 12 CFR 349.25(a)(1) requires FDIC-supervised institutions 
that are engaged in retail foreign exchange transactions to 
establish and implement internal policies, procedures, and controls 
designed to ensure that orders placed for retail foreign exchange 
transactions by retail foreign exchange customers are given priority 
over orders placed for retail foreign exchange transactions for a 
proprietary account of the FDIC-supervised institution (12 CFR 
349.25(a)(1)(i)), or an account in which a related person has an 
interest (12 CFR 349.25(a)(1)(ii), (iii), and (iv)). 12 CFR 349.14 
defines ``related person'' as (1). Any general partner, officer, 
director, or owner of ten percent or more of the capital stock of 
the FDIC-supervised insured depository institution; (2). An 
associated person or employee of the retail foreign exchange 
counterparty, if the retail foreign exchange counterparty is not an 
FDIC-supervised insured depository institution; (3). An institution-
affiliated party, as that term is defined in 12 U.S.C. 1813(u)(1), 
(2), or (3), or employee of the retail foreign exchange 
counterparty, if the retail foreign exchange counterparty is not an 
FDIC-supervised insured depository institution, or; (4). And 
relative or spouse of any of the foregoing persons, or any relative 
of such spouse, who shares the same home as any of the foregoing 
persons. 12 CFR 349.25(a)(2) requires FDIC-supervised institutions 
that are engaged in retail foreign exchange transactions to 
establish and implement internal policies, procedures, and controls 
designed to prevent FDIC-supervised insured depository institution 
related persons from placing orders, directly or indirectly, with 
another person in a manner designed to circumvent the provisions of 
12 CFR 349.25(a)(1). 12 CFR 349.25(a)(3) requires FDIC-supervised 
institutions that are engaged in retail foreign exchange 
transactions to establish and implement internal policies, 
procedures, and controls designed to fairly and objectively 
establish settlement prices for retail foreign exchange 
transactions.
    \4\ For the Federal Reserve, these requirements include those in 
12 CFR 240.9(b)(2) and 12 CFR 240.13(a). For the OCC, these 
requirements include those in 12 CFR 48.13 and 12 CFR 48.9.
    \5\ These requirements include the Federal Reserve's regulations 
at 12 CFR 240.7 and the OCC's regulations at 12 CFR 48.7.
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    3. Title: Generic Information Collection for Qualitative Research.
    OMB Number: 3064-0198.
    Affected Public: General public including FDIC insured depository 
institutions.
    Burden Estimate:

[[Page 72078]]



                                       Summary of Estimated Annual Burden
                                               [OMB No. 3064-0198]
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                                 Type of burden                      Number of       Time per
    Information collection        (frequency of      Number of     responses per     response      Annual burden
    (obligation to respond)         response)       respondents     respondent        (HH:MM)         (hours)
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1. Generic Information          Reporting (Once)          10,000               1           01:00          10,000
 Collection for Qualitative
 Research, (Voluntary).
                                                 ---------------------------------------------------------------
    Total Annual Burden         ................  ..............  ..............  ..............          10,000
     (Hours).
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Source: FDIC.

    General Description of Collection: The FDIC is requesting renewal 
of this approved collection to use occasional qualitative surveys to 
gather information from the public to inform qualitative research. 
While the subject and nature of the surveys to be deployed under this 
information collection are yet to be determined, based on prior 
experience it is expected that the number or respondents will range 
from a few to, at times, several thousands, but, in general, these 
surveys are expected to involve an average of 500 respondents. 
Likewise, the time to respond to the surveys can range from a few 
minutes to several hours, but, it is expected that the average time to 
respond to a survey is approximately one hour. These surveys are 
completely voluntary in nature. FDIC estimates that approximately 20 
such surveys will be conducted in any given year. Currently, the FDIC 
has a variety of methods to collect quantitative information from 
consumers and institutions (e.g., Call Reports, FDIC National Survey of 
Unbanked and Underbanked Households, etc.). Qualitative data would 
provide complementary information on insights, opinions, and 
perceptions that will inform how the FDIC approaches its mission to 
safeguard financial stability of the banking system and promote 
consumer protection and economic inclusion. This clearance would allow 
the FDIC to engage with consumers and other relevant stakeholders 
through qualitative research methods such as focus groups, in-depth 
interviews, cognitive testing, and/or qualitative virtual methods. The 
purpose of the surveys is, in general terms, to obtain anecdotal 
information about regulatory burden, problems or successes in the bank 
supervisory process (including both safety-and-soundness and consumer 
related exams), the perceived need for regulatory or statutory change, 
and similar concerns. The information in these surveys is anecdotal in 
nature, that is, samples are not necessarily random, the results are 
not necessarily representative of a larger class of potential 
respondents, and the goal is not to produce a statistically valid and 
reliable database. Rather, the surveys are expected to yield anecdotal 
information about the particular experiences and opinions of members of 
the public, primarily staff at respondent banks or bank customers. The 
collection is noncontroversial and does not raise issues of concern to 
other Federal agencies; with the exception of information needed to 
provide remuneration for participants of focus groups and cognitive 
laboratory studies, personally identifiable information (PII) is 
collected only to the extent necessary and is not retained. 
Participation in this information collection will be voluntary and 
conducted in-person, by phone, or using other methods, such as virtual 
technology. The types of collections that this generic clearance covers 
include, but are not limited to: Small discussion groups; focus groups 
of consumers, financial industry professionals, or other stakeholders; 
cognitive laboratory studies, such as those used to refine questions or 
assess usability of a website; qualitative customer satisfaction 
surveys (e.g., post- transaction surveys; opt-out web surveys); and in-
person observation testing (e.g., website or software usability tests).
    There is no change in the substance or methodology of this 
information collection.

Request for Comment

    Comments are invited on: (a) Whether the collections of information 
are necessary for the proper performance of the FDIC's functions, 
including whether the information has practical utility; (b) the 
accuracy of the estimates of the burden of the information collections, 
including the validity of the methodology and assumptions used; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (d) ways to minimize the burden of the collections of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology. All 
comments will become a matter of public record.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on October 13, 2023.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2023-23054 Filed 10-18-23; 8:45 am]
BILLING CODE 6714-01-P