Unknown. Notification of policy statement
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/register/2012/06/08/2012-13937A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
--- schema: federal-register doc_type: fedreg source_file: FR-2012-06-08.xml --- 77 111 Friday, June 8, 2012 Contents Agency Health Agency for Healthcare Research and Quality NOTICES Meetings, 2012-13771 34045 2012-13773 Agriculture Agriculture Department See Food and Nutrition Service See National Agricultural Statistics Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 34003-34005 2012-13871 2012-13897 2012-13898 2012-13899 Alcohol Tobacco Tax Alcohol and Tobacco Tax and Trade Bureau PROPOSED RULES Proposed Establishment of the Indiana Uplands Viticultural Area and Modification of the Ohio River Valley Viticultural Area, 33985-33995 2012-13865 Antitrust Division Antitrust Division NOTICES National Cooperative Research and Production Act:
ASTM International Standards, 34069 2012-13967 IMS Global Learning Consortium, Inc., 34069 2012-13974 National Center for Manufacturing Sciences, Inc., 34068 2012-13976 National Warheads and Energetics Consortium, 34067 2012-13994 Network Centric Operations Industry Consortium, Inc., 34066-34067 2012-13990 Robotics Technology Consortium, Inc., 34067-34068 2012-13992 Secure Content Storage Association, LLC, 34068 2012-13971 Antitrust See Antitrust Division Army Army Department See Engineers Corps Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Centers Disease Centers for Disease Control and Prevention NOTICES Meetings:
Advisory Committee to the Director (ACD), Centers for Disease Control and Prevention
(CDC)- Ethics Subcommittee (ES), 34046 2012-13922 Disease, Disability, and Injury Prevention and Control Special Emphasis Panel, 34045-34046 2012-13908 Centers Medicare Centers for Medicare & Medicaid Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 34046-34047 2012-13869 Medicare Programs: Proposal Evaluation Criteria and Standards for End Stage Renal Disease
(ESRD)Network Organizations, 34047-34050 2012-13998 Meetings: Medicare Economic Index Technical Advisory, 34050-34051 2012-13988 Coast Guard Coast Guard RULES Safety Zones: Recurring Events in Captain of the Port New York Zone, 33970-33971 2012-13889 Special Local Regulations: OPSAIL 2012 Connecticut, Niantic Bay, Long Island Sound, Thames River and New London Harbor, New London, CT, 33967-33969 2012-13890 Standards for Living Organisms in Ships Ballast Water Discharged in U.S. Waters, 33969-33970 2012-13888 Commerce Commerce Department See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 34011-34012 2012-13927 Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement List; Additions and Deletions, 34025-34027 2012-13939 2012-13940 Community Development Community Development Financial Institutions Fund NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 34126-34127 2012-13930 Consumer Product Consumer Product Safety Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Testing and Recordkeeping Requirements for Carpets and Rugs, 34027-34028 2012-13935 Meetings: Chronic Hazard Advisory Panel on Phthalates and Phthalate Substitutes; Teleconference, 34028-34029 2012-13934 Defense Department Defense Department See Engineers Corps See Navy Department NOTICES Meetings: National Security Education Board Members; Cancellation, 34029 2012-13942 Defense Nuclear Defense Nuclear Facilities Safety Board PROPOSED RULES FOIA Fee Schedule Update, 33980 2012-13978 Department of Transportation See Pipeline and Hazardous Materials Safety Administration Drug Drug Enforcement Administration NOTICES Importer of Controlled Substances; Application: Research Triangle Institute, 34069-34072 2012-13920 Importer of Controlled Substances; Registration: Meda Pharmaceuticals, 34072 2012-13916 Manufacturer of Controlled Substances; Application: Rhodes Technologies, 34072-34073 2012-13919 S and B Pharma, Inc., 34073 2012-13918 Manufacturer of Controlled Substances; Registration: Pharmagra Labs, Inc., 34073 2012-13917 Energy Department Energy Department See Federal Energy Regulatory Commission See Southeastern Power Administration Engineers Engineers Corps NOTICES Environmental Impact Statements; Availability, etc.: Chatfield Reservoir Storage Reallocation, Littleton, CO, 34029-34030 2012-13914 Environmental Protection Environmental Protection Agency RULES Heavy-Duty Highway Program: Revisions for Emergency Vehicles, 34130-34148 2012-13088 PROPOSED RULES Heavy-Duty Highway Program: Revisions for Emergency Vehicles and SCR Maintenance, 34149-34178 2012-13087 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Trade Secret Claims for Emergency Planning and Community Right-to-Know Information, 34037-34039 2012-13959 Draft Toxicological Review of Ammonia: In Support of the Summary Information in the Integrated Risk Information System, 34039-34041 2012-13825 Environmental Impact Statements; Availability, etc., 34041-34042 2012-13956 Receipt of Requests for Amendments to Delete Uses in Certain Pesticide Registrations, 34042-34043 2012-13958 Executive Office of the President See Presidential Documents Federal Communications Federal Communications Commission RULES Channel Spacing and Bandwidth Limitations: Certain Economic Area (EA)-based 800 MHz Specialized Mobile Radio
(SMR)Licensees, 33972-33979 2012-13872 PROPOSED RULES Emergency Alert System: Petition for Partial Reconsideration, 33995-33997 2012-13901 Television Broadcasting Services: Greenville, NC, 33997-33998 2012-13864 Federal Energy Federal Energy Regulatory Commission NOTICES Applications: American River Power III, LLC, 34032-34033 2012-13876 American River Power IX, LLC, 34033 2012-13877 BOST1 Hydroelectric LLC, 34030-34031 2012-13881 FFP Project 70, LLC, 34032 2012-13882 Petal Gas Storage, L.L.C.; Hattiesburg Industrial Gas Sales, L.L.C., 34031-34032 2012-13883 Authorizations for Continued Project Operations: Public Utility District No. 1 of Douglas County, 34033-34034 2012-13880 Combined Filings, 34034 2012-13885 Commission Staff Attendances, 34034 2012-13879 Environmental Assessments; Availability, etc.: Corpus Christi Liquefaction, LLC; Cheniere Corpus Christi Pipeline, L.P., 34034-34037 2012-13875 Meetings: PPL Montana, LLC, 34037 2012-13878 Federal Housing Finance Agency Federal Housing Finance Agency RULES Prudential Management and Operations Standards, 33950-33964 2012-13997 Federal Maritime Federal Maritime Commission RULES Non-Vessel-Operating Common Carriers Negotiated Rate Arrangements: Tariff Filing Exemption, 33971-33972 2012-14005 Federal Procurement Federal Procurement Policy Office NOTICES Value Engineering, 34073-34074 2012-13903 Federal Reserve Federal Reserve System RULES Statements of Policy: Conformance Period for Entities Engaged in Prohibited Proprietary Trading or Private Equity Fund or Hedge Fund Activities, 33949-33950 2012-13937 NOTICES Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 34043 2012-13983 Formations of, Acquisitions by, and Mergers of Savings and Loan Holding Companies, 34043-34044 2012-13981 Federal Transit Federal Transit Administration NOTICES Limitations on Claims: Proposed Public Transportation Projects, 34122-34123 2012-13904 Fiscal Fiscal Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Electronic Transfer Account Financial Agency Agreement, 34127 2012-13946 Fish Fish and Wildlife Service NOTICES Endangered Species; Receipt of Applications for Permit, 34059-34061 2012-13915 Permits: Endangered Species, 34061-34062 2012-13924 Food and Drug Food and Drug Administration NOTICES Determination of Regulatory Review Period for Purposes of Patent Extension; KALBITOR; Correction, 34051 2012-13902 Meetings: Drug Safety and Risk Management Advisory Committee, 34051-34052 2012-13868 Pfizer, Inc.; Withdrawal of Approval of Familial Adenomatous Polyposis Indication for CELEBREX, 34052 2012-13900 Food and Nutrition Food and Nutrition Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals Determining Eligibility for Free and Reduced Price Meals and Free Milk, 34005-34010 2012-13943 Geological Geological Survey NOTICES Announcement of the U.S. Geological Survey Science Strategy Planning Feedback Process, 34062-34063 2012-13905 Health and Human Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration NOTICES Meetings: National Committee on Vital and Health Statistics, 34044-34045 2012-13987 National Committee on Vital and Health Statistics Standards Subcommittee, 34044 2012-13986 Healthcare Research and Quality Agency See Agency for Healthcare Research and Quality Homeland Homeland Security Department See Coast Guard See U.S. Citizenship and Immigration Services See U.S. Customs and Border Protection Housing Housing and Urban Development Department NOTICES Federal Properties Suitable as Facilities to Assist Homeless, 34056-34059 2012-13595 Interior Interior Department See Fish and Wildlife Service See Geological Survey See Land Management Bureau International Trade Adm International Trade Administration NOTICES Antidumping Duty Orders; Results, Extensions, Amendments, etc.: Foundry Coke Products from People's Republic of China, 34012 2012-13996 Preliminary Results of the First Antidumping Duty Administrative Review, etc.: Certain Oil Country Tubular Goods from the People's Republic of China, 34013-34020 2012-13972 International Trade Com International Trade Commission NOTICES Investigations: Certain Electronic Devices, Including Mobile Phones and Tablet Computers, and Components Thereof, 34063-34064 2012-13870 Justice Department Justice Department See Antitrust Division See Drug Enforcement Administration NOTICES Lodging of Consent Decrees under Clean Air Act, CERCLA, and Emergency Planning and Community Right-to-Know Act, 34065 2012-13928 Lodging of Modification to Consent Decree under CERCLA, 34065-34066 2012-13966 Lodgings of Consent Decrees under Clean Air Act, 2012-13887 34064-34066 2012-13961 Lodgings of Proposed Consent Decrees, 34066 2012-13873 Land Land Management Bureau NOTICES Filing of Plats of Survey; Montana, 34063 2012-13923 Management Management and Budget Office See Federal Procurement Policy Office Maritime Maritime Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 34123 2012-13995 Millenium Millennium Challenge Corporation NOTICES Meetings; Sunshine Act, 34074-34075 2012-14025 Quarterly Reports: January 1, 2012 through March 31, 2012, 34075-34092 2012-13948 NASA National Aeronautics and Space Administration NOTICES Meetings: NASA Advisory Council; Science Committee; Heliophysics Subcommittee, 34093 2012-13936 National Agricultural National Agricultural Statistics Service NOTICES Opportunity to Submit Comment on the Public Release Time of Several Major USDA Statistical Reports, 34010-34011 2012-13951 National Highway National Highway Traffic Safety Administration PROPOSED RULES Make Inoperative Exemptions; Retrofit On-Off Switches for Air Bags, 33998-34002 2012-13957 National Institute National Institute of Standards and Technology NOTICES National Fire Codes: Request for Public Input for Revision of Codes and Standards, 34020-34023 2012-13952 Public Workshop: Designing for Impact; Workshop on Building the National Network for Manufacturing Innovation, 34023 2012-13945 National Oceanic National Oceanic and Atmospheric Administration PROPOSED RULES National Appeals Office Rules of Procedure, 33980-33985 2012-13979 NOTICES Meetings: Atlantic Highly Migratory Species, 34025 2012-13985 New England Fishery Management Council, 34024 2012-13982 Western Pacific Fishery Management Council, 34024-34025 2012-13984 Navy Navy Department NOTICES Intents to Grant Partially Exclusive Patent Licenses: Lumedyne Technologies, Inc., 34030 2012-13867 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Environmental Assessments; Availability, etc.: License Renewal for Calvert Cliffs Nuclear Power Plant, LLC's, 34093-34094 2012-13926 Meetings; Sunshine Act, 34094-34095 2012-14050 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Meetings: Integrity Management of Gas Distribution Pipelines, 34123-34124 2012-13991 Presidential Documents Presidential Documents ADMINISTRATIVE ORDERS Belarus Democracy Act of 2004; Delegation of Reporting Functions (Memorandum of April 24, 2012), 33945 2012-14039 Palestinian Authority; Waiver of Restriction on Providing Funds (Presidential Determination) No. 2012-07 of April 25, 2012, 33947 2012-14040 Public Debt Public Debt Bureau See Fiscal Service Securities Securities and Exchange Commission NOTICES Application: Federated Investment Management Company and Federated ETF Trust, 34095-34101 2012-13860 Meetings; Sunshine Act, 34101-34102 2012-14031 Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, 34107-34108 2012-13963 NASDAQ OMX BX, Inc., 34114-34115 2012-13894 NASDAQ OMX PHLX LLC, 34108-34110 2012-13896 NYSE Arca, Inc., 34102-34107, 34115-34121 2012-13892 2012-13893 2012-13964 The NASDAQ Stock Market LLC, 34110-34114 2012-13895 Southeastern Southeastern Power Administration NOTICES Georgia-Alabama-South Carolina System of Projects, 34037 2012-13925 State Department State Department NOTICES Culturally Significant Objects Imported for Exhibition Determinations: Lucian Freud, Portraits, 34121 2012-13975 Revealing the African Presence in Renaissance Europe, 34121 2012-13977 Designation and Determination Pursuant to the Foreign Missions Act, 34121-34122 2012-13973 Statistical Reporting Service See National Agricultural Statistics Service Surface Transportation Surface Transportation Board NOTICES 2011 Tax Information for use in Revenue Shortfall Allocation Method, 34124-34125 2012-13962 Indexing the Annual Operating Revenues of Railroads, 34125 2012-13938 Intra-Corporate Family Merger Exemptions: Wisconsin Central Ltd.; Elgin, Joliet and Eastern Railway Co., 34125-34126 2012-13941 Transportation Department Transportation Department See Federal Transit Administration See Maritime Administration See National Highway Traffic Safety Administration See Pipeline and Hazardous Materials Safety Administration See Surface Transportation Board NOTICES Applications for Commuter Authority: Sun Air Express, LLC d/b/a Sun Air International, 34122 2012-13953 Treasury Treasury Department See Alcohol and Tobacco Tax and Trade Bureau See Community Development Financial Institutions Fund See Fiscal Service RULES Customs Broker Recordkeeping Requirements Regarding Location And Method Of Record Retention, 33964-33967 2012-13907 U.S. Citizenship U.S. Citizenship and Immigration Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Replacement/Initial Nonimmigrant Arrival-Departure Document, 34052-34053 2012-13799 Registration for Classification as Refugee, 34053-34054 2012-13794 Customs U.S. Customs and Border Protection RULES Customs Broker Recordkeeping Requirements Regarding Location And Method Of Record Retention, 33964-33967 2012-13907 NOTICES Accreditation and Approval of Amspec Services LLC, as a Commercial Gauger and Laboratory, 34054 2012-13910 2012-13911 Accreditation and Approval of Inspectorate America Corporation, as a Commercial Gauger and Laboratory, 34054-34055 2012-13912 Accreditation and Approval Of Saybolt LP, as a Commercial Gauger and Laboratory, 34055 2012-13909 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Certificate of Registration, 34055-34056 2012-13913 Guam-CNMI Visa Waiver Information, 34056 2012-13906 U.S. China U.S.-China Economic and Security Review Commission NOTICES Public Hearings: U.S.-China Economic and Security Review Commission, 34127-34128 2012-13989 Veteran Affairs Veterans Affairs Department NOTICES Meetings: Advisory Committee on Disability Compensation, 34128 2012-13891 Separate Parts In This Issue Part II Environmental Protection Agency, 34130-34178 2012-13088 2012-13087 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. 77 111 Friday, June 8, 2012 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 225 [Docket No. OP-1441] Statement of Policy Regarding the Conformance Period for Entities Engaged in Prohibited Proprietary Trading or Private Equity Fund or Hedge Fund Activities AGENCY: Board of Governors of the Federal Reserve System (“Board”). ACTION: Notification of policy statement. SUMMARY: The Board is issuing this guidance to provide clarity on the manner in which the conformance period would apply to various activities and investments covered by the requirements of section 619 of the Dodd-Frank Act. This guidance is identical to what the Board announced on its public Web site on April 19, 2012. DATES: Effective June 8, 2012. FOR FURTHER INFORMATION CONTACT: *Board:* Christopher M. Paridon, Counsel,
(202)452-3274, or Anna M. Harrington, Attorney, Legal Division,
(202)452-6406; Jeremy R. Newell, Division of Bank Supervision and Regulation,
(202)452-3239, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. SUPPLEMENTARY INFORMATION: Introduction On February 9, 2011, the Board issued its final rule to implement the provisions of section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) 1 that grant banking entities and nonbank financial companies supervised by the Board a period of time to conform their activities and investments with the prohibitions and restrictions imposed by that section on proprietary trading activities and on hedge fund and private equity funds activities. Subsequently, the Board received a number of requests for clarification of the manner in which this conformance period would apply to various activities and investments covered by the requirements of section 619 of the Dodd-Frank Act. The Board is issuing this interpretation to address this question. 1 *See* Conformance Period for Entities Engaged in Prohibited Proprietary Trading or Private Equity Fund or Hedge Fund Activities, 76 FR 8265 (Feb. 14, 2011). As more fully explained in this statement, the Board confirms that banking entities by statute have two years from July 21, 2012, to conform all of their activities and investments to section 619, unless that period is extended by the Board. During the conformance period, banking entities should engage in good-faith planning efforts, appropriate for their activities and investments, to enable them to conform their activities and investments to the requirements of section 619 and final implementing rules by no later than the end of the conformance period. This may include complying with reporting or recordkeeping requirements if such elements are included in the final rules implementing section 619 and the agencies determine such actions are required during the conformance period. Background Section 619 of the Dodd-Frank Act added a new section 13 to the Bank Holding Company Act (“BHC Act”) that imposes certain prohibitions and requirements on a banking entity 2 and a nonbank financial company supervised by the Board 3 that engages in proprietary trading and has certain interests in, or relationships with, a hedge fund or private equity fund (each a “covered fund”). 4 As required by section 13(b)(2) of the BHC Act, the Board, the Office of the Comptroller of the Currency (“OCC”), Federal Deposit Insurance Corporation (“FDIC”), and Securities and Exchange Commission (“SEC”) in October 2011 invited the public to comment on proposed rules implementing that section's prohibitions and requirements. 5 Those proposed rules may be found at 76 FR 68846 *et seq.* (Nov. 7, 2011). The period for filing public comments on this proposal was extended for an additional 30 days, until February 13, 2012. On January 11, 2012, the CFTC requested comment on a substantially similar proposed rule to implement section13 of the BHC Act and invited public comment through April 16, 2012. 6 2 The term “banking entity” includes any insured depository institution (other than certain limited purpose trust institutions), any company that controls an insured depository institution, any company that is treated as a bank holding company for purposes of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106), and any affiliate or subsidiary of any of the foregoing. *See* 12 U.S.C. 1851(h)(1); *see also Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds,* 76 FR 68846, 68944 (Nov. 7, 2011). 3 A “nonbank financial company supervised by the Board” is a nonbank financial company or other company that the Financial Stability Oversight Council (“Council”) has determined, under section 113 of the Dodd-Frank Act, shall be subject to supervision by the Board and prudential standards. *See* 12 U.S.C. 1851(h)(3); 76 FR at 68945. 4 *See* 12 U.S.C. 1851. Section 13 of the BHC Act defines the terms “hedge fund” and “private equity fund” as any issuer that would be an investment company, as defined under the Investment Company Act of 1940 (15 U.S.C. 80a-1 *et seq.* ), but for section 3(c)(1) or 3(c)(7) of that Act, or any such similar funds as the appropriate Federal banking agencies, the SEC, and the CFTC may, by rule, determine should be treated as a hedge fund or private equity fund. *See* 12 U.S.C. 1851(h)(2); *see also* 76 FR at 68950. 5 *See* 12 U.S.C. 1851(b)(2). 6 This proposed rule may be found at 77 FR 8332 (Feb. 14, 2012). Section 13(c)(6) of the BHC Act required the Board, acting alone, to adopt rules regarding the conformance periods for activities and investments restricted by section 13. 7 The Board issued its final conformance rule (“Conformance Rule”) on February 9, 2011. 8 7 *See* 12 U.S.C. 1851(c)(6). 8 *See* 76 FR 8264. The Board proposed to relocate the Board's Conformance Rule, which was added as §§ 225.180-182 of the Board's Regulation Y, as subpart E of the Board's proposed rule to implement the substantive portions of section 13 of the BHC Act. *See* 76 FR at 68850, 68968. As part of that proposed rule, the Board also sought public comment on whether any part of the Conformance Rule should be revised. *See id.* at 68923. Board Guidance After adoption by the Board of the Conformance Rule, a number of commenters on the interagency proposed rules to implement section 13 requested advice regarding the period of time a banking entity would have to conform its activities and investments to the requirements of section 13 and the implementing rules and whether certain activities would be prohibited prior to the expiration of the conformance period. 9 In particular, commenters sought confirmation that the Conformance Rule would allow a banking entity the full period permitted by statute to conform all of its investments and activities to section 13 and the final implementing rules. In addition, commenters sought confirmation that activities conducted and investments made during the conformance period would not be subjected to the requirements of the implementing rules during the conformance period. 9 *See, e.g.,* comment letters to the agencies from the Securities Industry and Financial Markets Association *et al.,* “Comment Letter on the Notice of Proposed Rulemaking Implementing the Volcker Rule—Proprietary Trading” (Feb. 13, 2011); The Bank of New York Mellon Corporation *et al.* (Feb. 13, 2012); and Credit Suisse, “Covered Funds Issues in the Volcker Rule Proposal” (Feb. 13, 2012). Section 13 of the BHC Act generally provides that, unless the period for conformance is extended by the Board, a banking entity must conform its activities and investments to the prohibitions and requirements of that section and any final implementing rules no later than 2 years after the statutory effective date of section 13. 10 The effective date of section 13 is July 21, 2012. 11 10 *See* 12 U.S.C. 1851(c)(2); see also proposed 12 CFR 248.31(a), 76 FR 68969. Pursuant to section 13(c)(2) of the BHC Act, the Board may, by rule or order, extend the two-year conformance period provided in the Conformance Rule for not more than one year at a time, with a maximum of three one-year extensions, if the Board determines that such an extension is consistent with the purposes of this section and would not be detrimental to the public interest. *See* 12 U.S.C. 1851(c)(2), proposed 12 CFR 248.31(a)(3), 76 FR at 68969. The Board may further extend the period of time within which a banking entity may acquire or retain an ownership interest in, or otherwise provide additional capital to, an illiquid fund, provided that certain criteria are satisfied. *See* 12 U.S.C. 1851(c)(3), proposed 12 CFR 248.31(b), 76 FR at 68969. 11 Section 13(c)(1) of the BHC Act provides that section 13 shall take effect on the earlier of
(i)12 months after the date of issuance of final rules implementing that section, or
(ii)2 years after the date of enactment of section 13, which is July 21, 2012. *See* 12 U.S.C. 1851(c)(1). Because the agencies did not issue final rules implementing section 13 of the BHC Act by July 21, 2011, section 13 of the BHC Act specifies that the effective date for its provisions will be July 21, 2012. *Id.* As noted in the issuing release for the Conformance Rule and the legislative history of section 13, the conformance period for banking entities is intended to give markets and firms an opportunity to adjust to the prohibitions and requirements of that section and any implementing rules adopted by the agencies. 12 Consistent with this purpose and the statute, the Conformance Rule provides each banking entity with a period of 2 years after the effective date of section 13 (i.e., until July 21, 2014) in which to fully conform its activities and investments to the prohibitions and requirements of section 13 and the final implementing rules, unless that period is extended by the Board (the “conformance period”). The Conformance Rule also provides a nonbank financial company supervised by the Board with 2 years after the date the company becomes a nonbank financial company supervised by the Board to comply with any applicable requirements of section 13 of the BHC Act, including any applicable capital requirements or quantitative limitations adopted thereunder, unless that period is extended by the Board. 13 12 *See* 76 FR at 8265 (citing 156 Cong. Reg. S5898 (daily ed. July 15, 2010) (statement of Sen. Merkley)). 13 *See* proposed 12 CFR 248.32, 76 FR 68970. As noted in the October 2011 proposed rule to implement section 13 of the BHC Act, the Board has not proposed at this time to require any additional capital requirements, quantitative limits, or other restrictions on nonbank financial companies pursuant to section 13, in light of the fact that the Council has not yet finalized the criteria for designation of, nor yet designated, any nonbank financial company. *See* 76 FR at 68847. Under the Conformance Rule, all proprietary trading activity conducted by each banking entity must conform to the prohibitions and requirements of section 13 of the BHC Act and any final implementing rules by no later than the end of the conformance period. Similarly, all activities, investments and transactions with or involving a covered fund, including a covered fund organized and offered or sponsored by the banking entity, must conform to section 13 of the BHC Act and final implementing rules by no later than the end of the relevant conformance period. During the conformance period, every banking entity that engages in an activity or holds an investment covered by section 13 is expected to engage in good-faith efforts, appropriate for its activities and investments, which will result in the conformance of all of its activities and investments to the requirements of section 13 of the BHC Act by no later than the end of the conformance period. This includes evaluating the extent to which the banking entity is engaged in activities and investments that are covered by section 13 of the BHC Act, as well as developing and implementing a conformance plan that is as specific as possible about how the banking entity will fully conform all of its covered activities and investments with section 13 of the BHC Act and any final implementing rules by July 21, 2014, unless that period is extended by the Board. These good-faith efforts should take account of the statutory provisions in section 13 of the BHC Act as they will apply to the activities and investments of the banking entity at the end of the conformance period as well as any applicable implementing rules adopted in final by the primary financial regulatory agency for the banking entity. Good-faith conformance efforts may also include complying with reporting or recordkeeping requirements if such elements are included in the final rules implementing section 13 of the BHC Act and the agencies determine such actions are required during the conformance period. Nothing in this guidance restricts in any way the authority of any agency to use its supervisory or other authority to limit any activity the agency determines to be unsafe or unsound or otherwise in violation of law. By order of the Board of Governors of the Federal Reserve System, June 5, 2012. Jennifer J. Johnson, Secretary of the Board. [FR Doc. 2012-13937 Filed 6-7-12; 8:45 am]
Connectionstraces to 3
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- 12 CFR 225
- 12 CFR 248.31(a)
- 12 CFR 248.31(a)(3)
- 12 CFR 248.31(b)
- 12 CFR 248.32
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Notification of policy statement
Cite12 CFR 225
Cite12 CFR 248.31(a)
Cite12 CFR 248.31(a)(3)
Cite12 CFR 248.31(b)
Cite12 CFR 248.32
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