Unknown. Final rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2012-06-04.xml --- 77 107 Monday, June 4, 2012 Contents Agency Health Agency for Healthcare Research and Quality NOTICES Patient Safety Organizations; Expired Listings: American Cancer Biorepository, Inc., 32975 2012-13307 Workgroups on ICD-10-CM/PCS Conversion of Quality Indicators, 32975-32977 2012-13306 Agriculture Agriculture Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32928 2012-13422 Centers Medicare Centers for Medicare & Medicaid Services NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 32977 2012-13402 Coast Guard Coast Guard RULES Safety and Security Zones: OPSAIL 2012 Connecticut, Thames River, New London, CT, 32898-32900 2012-13503 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32928-32929 2012-13428 Consumer Product Consumer Product Safety Commission NOTICES Public Hearings:

Commission Agenda and Priorities, 32951-32952 2012-13429 Defense Department Defense Department NOTICES Meetings: Defense Intelligence Agency National Intelligence University Board of Visitors, 32952 2012-13382 Department of Transportation See Pipeline and Hazardous Materials Safety Administration Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Exploratory Study on Identification of English Learners with Disabilities;

Correction, 32952 2012-13412 Applications for New Awards: Technology and Media Services for Individuals with Disabilities--Models Promoting Young Children's Use of Assistive Technology, 32952-32959 2012-13500 Requests for Information: Strategies for Improving Outcomes for Disconnected Youth, 32959-32962 2012-13473 Energy Department Energy Department PROPOSED RULES Energy Conservation Standards for Distribution Transformers: Public Meeting and Availability of Supplementary Analysis, 32916-32918 2012-13401 NOTICES Applications:

Gulf Coast LNG Export, LLC; Long-Term Authorization to Export Domestically Produced Liquefied Natural Gas for 25-Year Period, 32962-32965 2012-13430 Environmental Protection Environmental Protection Agency PROPOSED RULES Approvals, Disapprovals and Promulgations of Implementation Plans: Wyoming; Regional Haze State Implementation Plan; Federal Implementation Plan for Regional Haze, 33022-33062 2012-12923 NOTICES Certain New Chemicals: Receipt and Status Information, 32965-32969 2012-13437 Executive Office of the President See Trade Representative, Office of United States Federal Aviation Federal Aviation Administration RULES Airworthiness Directives:

Bombardier Inc. Airplanes, 32892-32895 2012-12911 Burkhart GROB Luft- und Raumfahrt GmbH Powered Sailplanes, 32887-32889 2012-12409 Eurocopter Deutschland GMBH Helicopters, 32884-32887 2012-12672 The Boeing Company Airplanes, 32889-32892 2012-12910 Modifications of Class D and Class E Airspace and Revocations of Class E Airspace: Bellingham, WA, 32895-32896 2012-13370 Modifications of Class E Airspace: Billings, MT, 32896-32897 2012-13373 PROPOSED RULES Airworthiness Directives:

The Boeing Company Airplanes, 32918-32921 2012-13439 Proposed Amendments of Class D and E Airspace: Lewiston, ID, 32921-32922 2012-13365 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Commercial Aviation Safety Team Safety Enhancements, 33016-33017 2012-13423 Federal Communications Federal Communications Commission RULES Radio Broadcasting Services: Llano, TX, 32900-32901 2012-13222 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32969-32970 2012-13449 Federal Election Federal Election Commission NOTICES Meetings;

Sunshine Act, 32970 2012-13395 Federal Motor Federal Motor Carrier Safety Administration RULES State Enforcement of Household Goods Consumer Protection, 32901-32903 2012-13530 NOTICES Qualifications of Drivers: Exemption Applications; Vision, 33017-33018 2012-13415 Federal Reserve Federal Reserve System RULES Supervised Securities Holding Company Registration, 32881-32884 2012-13311 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32970-32974 2012-13397 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Wildlife and Plants: 90-Day Finding on Petition to Delist or Reclassify from Endangered to Threatened Six California Species, 32922-32927 2012-13425 Food and Drug Food and Drug Administration RULES New Animal Drugs:

Change of Sponsor's Name, 32897-32898 2012-13409 Foreign Trade Foreign-Trade Zones Board NOTICES Expansions: Foreign-Trade Zone 163, Ponce, PR, 32929 2012-13478 Grant of Authority for Establishment of a Foreign-Trade Zone: Ada and Canyon Counties, ID, 32929 2012-13479 Reorganizations/Expansions under Alternative Site Framework: Foreign-Trade Zone 74, Baltimore, MD, 32930 2012-13477 Geological Geological Survey NOTICES Calls for Nominations: National Geospatial Advisory Committee, 32978-32979 2012-13049 Health and Human Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Medicare & Medicaid Services See Food and Drug Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 32974-32975 2012-13396 Healthcare Research and Quality Agency See Agency for Healthcare Research and Quality Homeland Homeland Security Department See Coast Guard Housing Housing and Urban Development Department NOTICES Funding Awards for Fiscal Year 2012 Transformation Initiative: Choice Neighborhoods Demonstration Small Research Grant Program, 32977-32978 2012-13440 Interior Interior Department See Fish and Wildlife Service See Geological Survey See Land Management Bureau See National Park Service See Ocean Energy Management Bureau NOTICES Meetings:

Exxon Valdez Oil Spill Trustee Council, 32978 2012-13380 International Trade Adm International Trade Administration NOTICES Antidumping and Countervailing Duty Determinations; Results, Extensions, Amendments, etc.: Certain Steel Wire Garment Hangers from Socialist Republic of Vietnam, 32930-32938 2012-13474 Antidumping Duty Administrative Reviews; Results, Extensions, Amendments, etc.: Certain Preserved Mushrooms from India, 32941-32942 2012-13475 Narrow Woven Ribbons with Woven Selvedge from Taiwan, 32938-32941 2012-13476 Application(s) for Duty-Free Entry of Scientific Instruments, 2012-13481 32942-32943 2012-13482 International Trade Com International Trade Commission NOTICES Complaints:

Certain Electronic Imaging Devices; Correction, 32995-32996 2012-13434 Investigations: Certain Drill Bits and Products Containing Same, 32997 2012-13390 Certain Handheld Electronic Computing Devices, Related Software, and Components Thereof; Termination, 32996-32997 2012-13364 Foundry Coke from China, 32998 2012-13438 Tin- and Chromium-Coated Steel Sheet from Japan, 32998 2012-13391 Justice Department Justice Department See Justice Programs Office See National Institute of Corrections NOTICES Requests for United States Assumptions of Concurrent Federal Criminal Jurisdictions:

Elk Valley Rancheria, 32998-32999 2012-13448 Justice Programs Justice Programs Office NOTICES Meetings: Science Advisory Board, 32999 2012-13389 Labor Department Labor Department See Mine Safety and Health Administration Land Land Management Bureau NOTICES Filings of Plats of Surveys: North Dakota, 2012-13427 32979-32980 2012-13432 2012-13436 Filings of Plats: Colorado; Correction, 32980 2012-13441 Legal Legal Services Corporation NOTICES Meetings; Sunshine Act, 33003 2012-13529 Mine Mine Safety and Health Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Health Standards for Diesel Particulate Matter Exposure (Underground Metal and Nonmetal Miners), 33002-33003 2012-13400 National Highway National Highway Traffic Safety Administration RULES Federal Motor Vehicle Theft Prevention Standard: 2013 Light Duty Truck Lines Subject to Standard and Exempted Vehicle Lines for Model Year 2013, 32903-32909 2012-13424 National Institute Corrections National Institute of Corrections NOTICES Cooperative Agreements;

Solicitations: Resources for NIC's Web site on Data Collection and Analysis in Corrections, 33000-33002 2012-13411 National Oceanic National Oceanic and Atmospheric Administration RULES Accountability Measures: Recreational Sector of Gray Triggerfish in Gulf of Mexico for 2012 Fishing Year; Closure, 32913-32914 2012-13463 Listing Endangered and Threatened Wildlife and Designating Critical Habitats: 12-month Determination on How to Proceed with Petition to Revise Designated Critical Habitat for Endangered Leatherback Sea Turtle, 32909-32913 2012-13528 Snapper-Grouper Fishery of the South Atlantic: 2012 Recreational Accountability Measure and Closure for South Atlantic Golden Tilefish, 32914-32915 2012-13464 NOTICES Takes of Marine Mammals Incidental to Specified Activities:

Pile Driving in Columbia River, WA, 32943-32950 2012-13468 Workshops: Schedules for Atlantic Shark Identification and Protected Species Safe Handling, Release, and Identification , 32950-32951 2012-13466 National Park National Park Service NOTICES Intents to Repatriate Cultural Items: Tennessee Valley Authority and University of Tennessee McClung Museum, Knoxville, TN, 2012-13452 32980-32982 2012-13453 Inventory Completions: Department of Agriculture, Forest Service, Rio Grande National Forest, CO, 32993-32994 2012-13451 Department of Anthropology Museum at University of California, Davis, Davis, CA, 2012-13455 32983-32984, 32991-32992 2012-13456 Department of the Interior Indian Arts and Crafts Board, Museum of the Plains Indian, Browning, MT, 32985 2012-13462 Marine Corps Base Camp Pendleton, U.S.

Marine Corps, San Diego County, CA, 32986 2012-13461 San Juan National Forest, Durango, CO, and University of Denver Department of Anthropology, Denver, CO; Correction, 32989-32990 2012-13459 Tennessee Valley Authority and University of Tennessee McClung Museum, Knoxville, TN, 32982 2012-13454 University of Alabama Museums, Tuscaloosa, AL, 32986-32989 2012-13460 University of Maine, Hudson Museum, Orono, ME, 2012-13457 32984-32985, 32990-32991 2012-13458 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Meetings:

Advisory Committee on Reactor Safeguards Subcommittee on Digital I and C, 33003-33004 2012-13417 Advisory Committee on Reactor Safeguards Subcommittee on Reliability and PRA, 33004 2012-13418 Requests for Partial Site Releases: Exelon Generation Co., LLC; Clinton Power Station, Unit 1, 33004-33005 2012-13419 Staff Evaluations; Exemptions: Connecticut Yankee Atomic Power Co. Haddam Neck Independent Spent Fuel Storage Installation, 33005-33007 2012-13420 Ocean Energy Management Ocean Energy Management Bureau NOTICES Environmental Impact Statements;

Availability, etc.: Geological and Geophysical Exploration on Atlantic Outer Continental Shelf, 32994-32995 2012-13403 Office of United States Trade Representative See Trade Representative, Office of United States Personnel Personnel Management Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Initial Certification of Full-Time School Attendance, RI 25-41, 33007-33008 2012-13444 Reinstatement of Disability Annuity Previously Terminated Because of Restoration to Earning Capacity, RI 30-9, 33008 2012-13445 Rollover Election (RI 38-117), Rollover Information (RI 38-118), and Special Tax Notice Regarding Rollovers (RI 37-22), 33007 2012-13442 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Meetings:

International Standards on Transport of Dangerous Goods, 33019 2012-13399 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33008-33010 2012-13407 2012-13408 Meetings; Sunshine Act, 33010 2012-13567 Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Credit LLC, 33013 2012-13410 NASDAQ OMX PHLX LLC, 33013-33014 2012-13406 NYSE Arca, Inc., 33010-33013 2012-13405 State Department State Department NOTICES Meetings:

Advisory Committee on International Economic Policy, 33014-33015 2012-13450 Trade Representative Trade Representative, Office of United States NOTICES Measures Concerning the Importation of Certain Agricultural Products: WTO Dispute Settlement Proceeding Regarding India, 33015-33016 2012-13471 Transportation Department Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See National Highway Traffic Safety Administration See Pipeline and Hazardous Materials Safety Administration Separate Parts In This Issue Part II Environmental Protection Agency, 33022-33062 2012-12923 Reader Aids Consult the Reader Aids section at the end of this page for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 77 107 Monday, June 4, 2012 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 241 [Regulation OO; Docket No. R-1430] RIN 7100-AD 81 Supervised Securities Holding Company Registration AGENCY: Board of Governors of the Federal Reserve System (“Board”).

ACTION: Final rule. SUMMARY: The Board is adopting this final rule to implement section 618 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act” or “Act”), which permits nonbank companies that own at least one registered securities broker or dealer, and that are required by a foreign regulator or provision of foreign law to be subject to comprehensive consolidated supervision, to register with the Board and subject themselves to supervision by the Board.

The final rule outlines the requirements that a securities holding company must satisfy to make an effective election, including filing the appropriate form with the responsible Reserve Bank, providing all additional required information, and satisfying the statutory waiting period of 45 days or such shorter period the Board determines appropriate. DATES: The rule is effective July 20, 2012. FOR FURTHER INFORMATION CONTACT: Amanda K. Allexon, Senior Counsel

(202)452-3818, or Bao Nguyen, Attorney,

(202)736-5599, Legal Division; or Michael J. Sexton, Assistant Director,

(202)452-3009, or Brendan Burke, Senior Supervisory Financial Analyst,

(202)452-2987, Division of Banking Supervision and Regulation; Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. Users of Telecommunication Device for the Deaf

(TTD)only, contact

(202)263-4869. SUPPLEMENTARY INFORMATION: I. Background Section 618 of the Dodd-Frank Act permits a company that owns at least one registered securities broker or dealer (a “nonbank securities company”), and that is required by a foreign regulator or provision of foreign law to be subject to comprehensive consolidated supervision, to register with the Board as a securities holding company and become subject to supervision and regulation by the Board. 1 A securities holding company that registers with the Board under section 618 is subject to the full examination, supervision, and enforcement regime applicable to a registered bank holding company, including capital requirements set by the Board (although the statute allows the Board to modify its capital rules to account for differences in activities and structure of securities holding companies and bank holding companies). The primary difference in regulatory frameworks between securities holding companies and bank holding companies is that the restrictions on nonbanking activities that apply to bank holding companies do not apply to securities holding companies. 1 12 U.S.C. 1850a. Under section 618 of the Act, a securities holding company that elects to be subject to supervision by the Board must submit a registration form that includes all such information and documents the Board, by regulation, deems necessary or appropriate. The statute also specifies that registration as a supervised securities holding company becomes effective 45 days after the date the Board receives all required information, or within such shorter period as the Board, by rule or order, may determine. Section 618 makes a registered securities holding company subject to all of the provisions of the Bank Holding Company Act of 1956 (12 U.S.C. 1841 *et seq.* ) (“BHC Act”) in the same manner as a bank holding company, other than the restrictions on nonbanking activities contained in section 4 of the BHC Act. 2 Consistent with the Dodd-Frank Act, the Board anticipates applying the same supervisory program, including examination procedures, reporting requirements, supervisory guidance, and capital standards, to supervised securities holding companies that the Board currently applies to bank holding companies. However, the Board may, based on experience gained during the supervision of supervised securities holding companies, modify these requirements as appropriate and consistent with section 618. 2 12 U.S.C. 1850a(d)(1) and (e)(2). II. Notice of Proposed Rulemaking: Summary of Comments On September 2, 2011, the Board invited public comment on a proposed rule implementing the registration requirements and procedures for securities holding companies pursuant to section 618 of the Act. 3 The Board received three comments, none of which addressed any substantive aspect of the proposed rule. One commenter expressed the view that firms should not elect to be supervised by the Federal Reserve because of a “lack of leadership at the FED Districts.” Another commenter included the phrase “supervised securities holding companies registration” in the subject line of the comment letter but provided no comment. The third commenter mistakenly believed that section 618 of the Dodd-Frank Act and the Board's proposed Regulation OO apply to foreign companies that own national banks in the United States. This commenter argued that such foreign companies should be subject to supervision by the Board as supervised securities holding companies if they wish to operate in the United States by owning national banks. The Board is finalizing the rule with only technical modifications. 3 12 U.S.C. 1850a. III. Description of Final Rule The final rule permits securities holding companies to elect to become supervised securities holding companies by registering with the Board. The final rule outlines the requirements that a securities holding company must satisfy to make an effective registration, including filing the appropriate form with the responsible Reserve Bank, providing all additional information requested by the Board, and satisfying the statutory waiting period of 45 days or such shorter period the Board determines appropriate. Section 241.1 of the final rule outlines the authority under which the Board is issuing the rule. Section 241.2 of the final rule changes the proposed definition of the term “securities holding company” in order to more closely reflect the statutory language. The revised definition contains additional language, which makes clear that to become a securities holding company, a company must, among other things, be “required by a foreign regulator or a provision of foreign law to be subject to comprehensive consolidated supervision.” Under the Dodd-Frank Act and final rule, a company that is currently subject to comprehensive consolidated supervision by a foreign regulator, a nonbank financial company supervised by the Board, a bank holding company, a savings and loan holding company, an insured bank, a savings association, or a foreign banking organization with U.S. banking operations would not qualify for registration as a supervised securities holding company. Under the final rule, terms such as “affiliate,” “bank,” “bank holding company,” “control,” and “subsidiary” are defined to have the same meaning as in section 225.2 of the Board's Regulation Y. Section 241.3 of the final rule requires a securities holding company that elects to register to become a supervised securities holding company to file the proper form with the responsible Reserve Bank. The Board is creating a new form for this purpose. The form, which is similar to the Board's current form Application for a Foreign Organization to Acquire a U.S. Bank or Bank Holding Company (FR Y-3F; OMB No. 7100-0119), used by a company registering to become a bank holding company, includes a number of questions relating to the organizational structure of the securities holding company, its capital structure, and its financial condition. Specifically, the form requires a securities holding company electing to be supervised to submit: 1. An organization chart for the securities holding company showing all subsidiaries. 2. The name, asset size, general activities, place of incorporation, and ownership share held by the securities holding company for each of the securities holding company's direct and indirect subsidiaries that comprise 1 percent or more of the securities holding company's worldwide consolidated assets. 3. A list of all persons (natural as well as legal) in the upstream chain of ownership of the securities holding company who, directly or indirectly, own 5 percent or more of the voting shares of the securities holding company. In addition, the Board would request information concerning any voting agreements or other mechanisms that exist among shareholders for the exercise of control over the securities holding company. 4. For the senior officers and directors with decision-making authority for the securities holding company, the biographical information requested in the Interagency Biographical and Financial Report FR 2081c (the Financial Report need not be provided). 5. Copies of the most recent quarterly and annual reports prepared for shareholders, if any, for the securities holding company and certain subsidiaries. 6. Income statements, balance sheets, and audited GAAP statements, as well as any other financial statements submitted to the securities holding company's current consolidated supervisor, if any, each on a parent-only and consolidated basis, showing separately each principal source of revenue and expense, through the end of the most recent fiscal quarter and for the past two

(2)fiscal years. 7. A description of the methods used by the securities holding company to monitor and control its operations, including those of its domestic and foreign subsidiaries and offices (e.g., through internal reports and internal audits). 8. A description of the bank regulatory system that exists in the home country of any of the securities holding company's foreign bank subsidiaries. The description also should include a discussion of each of the following: a. The scope and frequency of on-site examinations by the home country supervisor; b. Off-site monitoring by the home country supervisor; c. The role of external auditors; d. Transactions with affiliates; e. Other applicable prudential requirements; f. Remedial authority of the home country supervisor; g. Prior approval requirements; and, h. Any applicable regulatory capital framework. 9. A description of any other regulatory capital framework to which the securities holding company is subject. The final rule further provides that the Board may at any time request additional information that it believes is necessary to complete the registration. Under the rule, the registration is considered filed when all information required by the Board is received. Section 241.3 of the final rule also states that a registration filed by a securities holding company becomes effective and supervision by the Board begins on the 45th calendar day after the date that a complete filing is received. Under the final rule, the Board also reserves the right to shorten the 45-day waiting period and begin consolidated supervision at such earlier date as the Board specifies to the securities holding company in writing. The final rule provides that, upon an effective registration, a supervised securities holding company would be supervised and regulated as if it were a bank holding company, and that the nonbanking restrictions contained in section 4 of the BHC Act will not apply to a supervised securities holding company. This treatment will generally mean that supervised securities holding companies will, among other things, be required to submit the same reports and be subject to the same examination procedures, supervisory guidance, and capital standards that currently apply to bank holding companies. The final rule provides the Board with flexibility to adjust these requirements as appropriate to ensure that securities holding companies operate in a manner that is consistent with safety and soundness and that addresses the risks they pose to financial stability. IV. Administrative Law Matters A. Paperwork Reduction Act Analysis In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ) (“PRA”), the Board may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget

(OMB)control number. The OMB control numbers for the existing information collections are provided below. The OMB control number will be assigned for the new information collection related to registrations described below. The Board reviewed the final rule under the authority delegated to the Board by OMB. *Title of Existing Information Collections:* • The Annual Report of Bank Holding Companies (FR Y-6), • The Report of Foreign Banking Organizations (FR Y-7), • The Consolidated Financial Statements for Bank Holding Companies (FR Y-9C), • The Parent Company Only Financial Statements for Large Bank Holding Companies (FR Y-9LP), • The Parent Company Only Financial Statements for Small Bank Holding Companies (FR Y-9SP), • The Financial Statements for Employee Stock Ownership Plan Bank Holding Companies (FR Y-9ES), • The Supplement to the Consolidated Financial Statements for Bank Holding Companies (FR Y-9CS), • The Financial Statements of U.S. Nonbank Subsidiaries of U.S. Bank Holding Companies (FR Y-11 and FR Y-11S), • The Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations (FR 2314 and FR 2314S), • The Bank Holding Company Report of Insured Depository Institutions' Section 23A Transactions with Affiliates (FR Y-8), • The Consolidated Bank Holding Company Report of Equity Investments in Nonfinancial Companies (FR Y-12) and the Annual Report of Merchant Banking Investments Held for an Extended Period (FR Y-12A), and • The Capital and Asset Report of Foreign Banking Organizations (FR Y-7Q), and the Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations (FR Y-7N and FR Y-7NS). *Frequency of Response:* Annually, semi-annually, quarterly, event-generated. *Affected Public:* Nonbank companies. *Abstract:* The information collection reporting requirements are found in sections 241.3(a)(1) and 241.3(b)(3)(i) of the final rule. These requirements implement regulations related to section 618 of the Dodd-Frank Act, which, as discussed above, permit securities holding companies to register with, and subject themselves to supervision by, the Board. As previously noted, a supervised securities holding company is subject to the provisions of the BHC Act in the same manner as a bank holding company, other than the restrictions on nonbanking activities contained in section 4 of the BHC Act. Section 241.3(a)(1) requires securities holding companies that elect to register to become supervised securities holding companies to file a registration form with the responsible Reserve Bank. The registration form asks for information on: the organization chart (including all subsidiaries), shareholders, senior officers and directors, methods used to monitor and control its operations, and foreign bank subsidiaries and the bank regulatory system in which these foreign bank subsidiaries operate. Section 241.3(b)(3)(i) requires supervised securities holding companies to be subject to supervision and regulation by the Board as if such companies were bank holding companies. Accordingly, the Board will require supervised securities holding companies to file the same reports as bank holding companies as follows: FR Y-6 and FR Y-7 (OMB No. 7100-0297); FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and FR Y-9CS (OMB No. 7100-0128); FR Y-11 and FR Y-11S (OMB No. 7100-0244); FR 2314 and FR 2314S (OMB No. 7100-0073); FR Y-8 (OMB No. 7100-0126); FR Y-12 and FR Y-12A (OMB No. 7100-0300); FR Y-7Q, FR Y-7N and FR Y-7NS (OMB No. 7100-0125). Estimated Burden The estimated burden per filing for the registration form in section 241.3(a)(1) is eight hours (one business day). The Board estimates that approximately five securities holding companies would file a request to become a supervised securities holding company. Therefore, the total annual burden for the registration form is estimated to be 40 hours. Effective upon registration, and except as otherwise provided by order of the Board, a supervised securities holding company shall file the existing bank holding company reporting forms listed above on the calendar quarter-end under section 241.3(b)(3)(i). The hourly burden estimates associated with each of these reporting forms is not expected to change materially as the information to be collected is substantively similar to that which is currently being collected from bank holding companies. Presently, the Board is aware of only one company that would register as a supervised securities holding company. For additional information on the current burden associated with any of the existing information collections, please see OMB's public Web site at: *http://www.reginfo.gov/public/do/PRAMain.* For copies of the current reporting forms, please see the Federal Reserve's public Web site at: *http://www.federalreserve.gov/reportforms/default.cfm.* The Board has a continuing interest in the public's opinions of collections of information. At any time, comments regarding the burden estimate, or any other aspect of this collection of information, including suggestions for reducing the burden, may be sent to: Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551; and to the Office of Management and Budget, Paperwork Reduction Project (7100-NEW), Washington, DC 20503. B. Regulatory Flexibility Act Analysis The Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ) (“RFA”) requires each federal agency to prepare a final regulatory flexibility analysis in connection with the promulgation of a final rule, or certify that the final rule will not have a significant economic impact on a substantial number of small entities. 4 The Board believes that the final rule will not have a significant economic impact on a substantial number of small entities, but nonetheless is conducting the Regulatory Flexibility Act Analysis for this final rule. 4 See 5 U.S.C. 603, 604 and 605. In accordance with section 618 of the Dodd-Frank Act, the Board is adopting Regulation OO (12 CFR part 241 *et seq.* ) to establish a process for a securities holding company to elect to be supervised by the Board. The final rule would establish the requirements and procedures for registering with the Board in order to become a supervised securities holding company. As noted above, a supervised securities holding company would be supervised and regulated as if it were a bank holding company and would be required to submit the same reports that currently apply to bank holding companies. The reasons and justification for the final rule are described in the Supplementary Information. The Board does not believe that the final rule duplicates, overlaps, or conflicts with any other Federal rules. Under regulations issued by the Small Business Administration (“SBA”), a “small entity” includes those firms within the “Finance and Insurance” sector with asset sizes that vary from $7 million or less in assets to $175 million or less in assets. 5 The Board believes that the Finance and Insurance sector constitutes a reasonable universe of firms for these purposes because such firms generally engage in activities that are financial in nature. Consequently, securities holding companies with assets sizes of $175 million or less are small entities for purposes of the RFA. 5 13 CFR 121.201. As discussed in the SUPPLEMENTARY INFORMATION , the final rule applies to any securities holding company that elects to be supervised by the Board regardless of such a company's asset size. However, the statute applies only to registered securities broker and dealers that operate on an international basis and are required by a foreign jurisdiction to be supervised on a comprehensive consolidated basis. To the Board's knowledge, no registered securities broker or dealer with total assets under $175 million meets this requirement. At this time, only one company, which has assets well in excess of $175 million, has expressed interest in electing to become a supervised securities holding company. Moreover, only one company ever elected to be supervised under the investment bank holding company framework administered by the Securities and Exchange Commission, which is the statutory framework replaced by this final rule. In light of the foregoing, the Board does not believe that the final rule would have a significant economic impact on a substantial number of small entities supervised by the Board. C. Use of Plain Language Section 722 of the Gramm-Leach-Bliley Act requires the Federal banking agencies to use plain language in all proposed and final rules published after January 1, 2000. The Board invited comment on whether the proposed rule was written plainly and clearly, or whether there were ways the Board could make the rule easier to understand. The Board received no comment on these matters and believes that the final rule is written plainly and clearly. List of Subjects in 12 CFR Part 241 Administrative practice and procedure, Holding companies, Securities, Federal Reserve System, Brokers and dealers, Foreign law, Reporting and recordkeeping requirements. Authority and Issuance For the reasons set forth in the Supplementary Information, the Board of Governors of the Federal Reserve System adds new Part 241 to Chapter II of Title 12 as follows: 12 CFR Chapter II 1. Add part 241 to read as follows: PART 241—SECURITIES HOLDING COMPANIES (REGULATION OO) Sec. 241.1 Authority and purpose. 241.2 Definitions. 241.3 Registration as a supervised securities holding company. Authority: 12 U.S.C. 1850a. § 241.1 Authority and purpose.

(a)*Authority.* This part is issued by the Board pursuant to section 618 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 1850a).

(b)*Purpose.* This part establishes the procedures by which a securities holding company may elect to register to be supervised by the Board. § 241.2 Definitions. Except as defined below, terms used in this part have the same meaning given them in 12 CFR 225.2.

(a)*Securities holding company.*

(1)A securities holding company means—

(i)Any company that directly or indirectly owns or controls, is controlled by, or is under common control with, one or more brokers or dealers registered with the Securities and Exchange Commission; and

(ii)Is required by a foreign regulator or provision of foreign law to be subject to comprehensive consolidated supervision.

(2)A securities holding company does not include a company that is—

(i)A nonbank financial company supervised by the Board pursuant to Title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 *et seq.* );

(ii)An insured bank (other than an institution described in subparagraphs (D), (F), or

(H)of section 2(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2))) or a savings association;

(iii)An affiliate of an insured bank (other than an institution described in subparagraphs (D), (F), or

(H)of section 2(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2))) or an affiliate of a savings association;

(iv)A foreign bank, foreign company, or company that is described in section 8(a) of the International Banking Act of 1978 (12 U.S.C. 3106(a));

(v)A foreign bank that controls, directly or indirectly, a corporation chartered under section 25A of the Federal Reserve Act (12 U.S.C. 611 *et seq.* ); or

(vi)Currently subject to comprehensive consolidated supervision by a foreign regulator.

(b)*Supervised securities holding company* means a securities holding company that is supervised by the Board pursuant to this part. § 241.3 Registration as a supervised securities holding company.

(a)*Registration.*

(1)*Filing Requirement.* A securities holding company may elect to register to become a supervised securities holding company by filing the appropriate form with the responsible Reserve Bank. The responsible Reserve Bank is determined by the Director of Banking Supervision and Regulation at the Board, or the Director's delegee.

(2)*Request for additional information.* The Board may, at any time, request additional information that it believes is necessary to complete the registration.

(3)*Complete filing.* A registration by a securities holding company is considered to be filed on the date that all information required on the appropriate form is received.

(b)*Effective date of registration.*

(1)*In general.* A registration filed by a securities holding company under paragraph

(a)of this section is effective on the 45th calendar day after the date that a complete filing is received by the responsible Reserve Bank.

(2)*Earlier notification that a registration is effective.* The Board may notify a securities holding company that its registration to become a supervised securities holding company is effective prior to the 45th calendar day after the date that a complete filing is received by the responsible Reserve Bank. Such a notification must be in writing.

(3)*Supervision and regulation of securities holding companies.*

(i)Upon an effective registration and except as otherwise provided by order of the Board, a supervised securities holding company shall be treated, and shall be subject to supervision and regulation by the Board, as if it were a bank holding company, or as otherwise appropriate to protect the safety and soundness of the supervised securities holding company and address the risks posed by such company to financial stability.

(ii)The provisions of section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841 *et seq.* ) do not apply to a supervised securities holding company. By order of the Board of Governors of the Federal Reserve System, May 29, 2012. Jennifer J. Johnson, Secretary of the Board. [FR Doc. 2012-13311 Filed 6-1-12; 8:45 am]

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U.S. Code