FR 2021-03092

General Summary

The document is a notice from the Board of Governors of the Federal Reserve System, asking for public commentary on a proposed extension of existing recordkeeping requirements. Specifically, these requirements concern changes in foreign investments by certain U.S. banking organizations, including member banks and related entities. The proposal, referred to officially as form FR 2064, is set to be extended for three more years without any changes. Comments from the public need to be submitted by April 19, 2021, through various methods, such as the Federal Reserve's website or mail. The feedback collected will be used to gauge if adjustments to the proposal are necessary.

Significant Issues or Concerns

One issue relates to the complexity and clarity of the language used in outlining the recordkeeping requirements. These points could benefit from simplification to ensure they are understandable to a broader audience. Additionally, the summary estimates 20 respondents with a burden of 160 hours annually; however, no detailed explanation is provided to justify these figures, which might obscure the full extent and implications of the requirements.

Furthermore, the notice indicates that public comments will be made available for view but lacks clear guidance on protecting personal information, beyond stating that it will not be edited for removal. Legal references to sections of the U.S. Code are present but might be challenging for those without legal expertise to understand, hindering an evaluation of the legal basis for the collection efforts. Lastly, while confidentiality provisions are mentioned, more detailed assurances of how confidentiality will be maintained for records obtained by the Board are lacking.

Impact on the Public

For the general public, particularly those involved in banking or finance, this notice highlights the Federal Reserve's efforts to maintain transparency and invite public participation in regulatory processes. It underscores the importance of compliance and record maintenance in financial activities to adhere to investment rules.

However, the lack of clarity around respondent figures and annual burden may lead to misunderstandings about the scope and impact of these requirements. Moreover, the limited explanation regarding the confidentiality of public submissions could deter some individuals from participating in the commentary process.

Impact on Specific Stakeholders

U.S. banking organizations, which include member banks, Edge Act and agreement corporations, and bank holding companies, are the primary stakeholders. These entities are directly affected by the proposal as they must ensure compliance with the recordkeeping requirements. The extension of these requirements without changes should provide continuity and allow these organizations to plan and allocate resources accordingly.

For legal and financial professionals, the proposal highlights areas of potential scrutiny and enforcement concerning international investments. However, the absence of detailed explanations regarding legal citations and confidentiality provisions might pose challenges in interpreting the document fully.

In conclusion, while the proposal seeks to extend a necessary regulatory measure, improving the clarity of its language, justifying the estimated burden figures, and reinforcing privacy protections for public comments could enhance understanding and participation from a broad audience.