Overview
Title
Agency Information Collection Activities; Proposed Collection; Comment Request; Determinations Regarding Certain Nonbank Financial Companies
Agencies
ELI5 AI
The Treasury Department wants to hear what people think about how they collect information to keep an eye on big financial companies that might cause problems for the country's money system. They want to make sure this is done in a way that doesn't waste time or money, and people have until June 23, 2025, to share their thoughts.
Summary AI
The U.S. Department of the Treasury is inviting public comments on proposed information collections aimed at reducing paperwork, as part of the Paperwork Reduction Act of 1995 efforts. These collections involve the Financial Stability Oversight Council's (FSOC) authority to monitor nonbank financial companies that might pose a threat to U.S. financial stability. The public can comment on aspects such as the necessity and utility of the information, the accuracy of burden estimates, and ways to improve data collection processes. Feedback will be part of the request for approval to the Office of Management and Budget (OMB), and comments need to be submitted by June 23, 2025.
Abstract
The U.S. Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to comment on the proposed information collections listed below, in accordance with the Paperwork Reduction Act of 1995.
Keywords AI
Sources
AnalysisAI
The document under review is a notice from the U.S. Department of the Treasury, specifically from its Departmental Offices, as part of a routine effort to streamline paperwork and lessen the burden on respondents. This initiative falls under the broader mandates of the Paperwork Reduction Act of 1995, which aims to make it easier and more efficient for governmental agencies to collect necessary data without overburdening the public or industry stakeholders.
General Summary
The notice invites feedback from the public on proposed information collection activities concerning nonbank financial companies. This is part of the Financial Stability Oversight Council's (FSOC) duty under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The FSOC has the authority to determine if certain nonbank financial companies could pose a threat to the U.S. financial stability and whether they should be supervised in a manner similar to banks.
Significant Issues or Concerns
There are several issues and ambiguities within the document that could pose challenges:
Minimization of Costs and Burdens: The document implies a commitment to efficiency but does not describe the specific measures to minimize costs and burdens. This might raise concerns about potential wasteful spending.
Number of Respondents: The estimation that only one respondent will be involved appears surprisingly low, potentially questioning the accuracy or scope of the burden assessment.
Clarity on Purpose and Necessity: There is a lack of detail on how the information collection specifically aids FSOC’s functions and why it is necessary. This absence of clarity might make stakeholders question the practicality and utility of the data collected.
Language Complexity: Terms such as "material financial distress" and "financial stability of the United States" might benefit from clearer definitions to ensure broader understanding.
Vague Frequency of Response: Stating the "Frequency of Response" as "On occasion" lacks precision, which might lead to varied interpretations.
Impact on the Public
For the general public, this document represents an ongoing government initiative to involve citizens and stakeholders in decision-making processes, ideally leading to more efficient and effective regulatory practices. However, the document’s lack of clarity and specificity could limit its usefulness for those attempting to provide informed feedback.
Impact on Specific Stakeholders
Nonbank Financial Companies: These entities are directly affected, as they might be subject to increased scrutiny and potential supervisory actions if deemed to pose a threat. More clarity on criteria and processes would benefit them by providing clearer expectations and preparation guidelines.
Regulatory Bodies and Policymakers: By receiving feedback, these entities can better understand public perceptions and concerns, potentially leading to improved regulatory frameworks.
OMB and Administrative Bodies: The feedback collected will assist in refining the information collection processes and ensuring alignment with broader administrative burdens and efficiencies.
In summary, while the document establishes a platform for public engagement, it could benefit significantly from increased transparency and precision to foster more meaningful and informed participation from its stakeholders.
Issues
• The document doesn't specify what mechanisms are in place to ensure that the costs associated with the information collection activities are minimized, raising concerns about potentially wasteful spending.
• The estimated number of respondents is very low (1), which might imply that the burden estimate could be inaccurate or not reflective of all involved parties.
• The purpose of the information collection and how it specifically aids the Financial Stability Oversight Council in its functions is not fully detailed, which could lead to ambiguity regarding its necessity.
• Language could be simplified; terms like 'material financial distress' and 'financial stability of the United States' might benefit from further clarity or definition.
• The 'Frequency of Response' section states 'On occasion', which is vague and could be open to interpretation. A more precise frequency could enhance clarity.