66612 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 

(3) For EA service information identified in 

this AD, contact Engine Alliance, 411 Silver 

Lane, East Hartford, CT 06118; phone: 800– 

565–0140; email: help24@pw.utc.com; 

website: www.engineallianceportal.com. 

(4) You may view this service information 

at FAA, Engine and Propeller Standards 

Branch, 1200 District Avenue, Burlington, 

MA 01803. For information on the 

availability of this material at the FAA, call 

781–238–7759. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Burlington, Massachusetts, on 

December 19, 2018. 

Robert J. Ganley, 

Manager, Engine and Propeller Standards 

Branch, Aircraft Certification Service. 

[FR Doc. 2018–27926 Filed 12–26–18; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2018–0711; Product 

Identifier 2018–NM–062–AD; Amendment 

39–19533; AD 2018–26–03] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for all The 

Boeing Company Model 757–200 series 

airplanes. This AD was prompted by 

reports of uncommanded movement of 

the captain’s and first officer’s seats. 

This AD requires, for the captain’s and 

first officer’s seats, repetitive horizontal 

actuator identifications, repetitive 

checks of the horizontal movement 

system (HMS), a detailed inspection of 

the HMS, as applicable, and applicable 

on-condition actions. This AD also 

requires a general visual inspection to 

determine the seat part numbers of the 

captain’s and first officer’s seats, a cable 

adjustment check on seats with certain 

seat part numbers, and applicable oncondition actions. We are issuing this 

AD to address the unsafe condition on 

these products. 

DATES: This AD is effective January 31, 

2019. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of January 31, 2019. 

ADDRESSES: For service information 

identified in this final rule, contact 

Boeing Commercial Airplanes, 

Attention: Contractual & Data Services 

(C&DS), 2600 Westminster Blvd., MC 

110–SK57, Seal Beach, CA 90740–5600; 

telephone 562–797–1717; internet 

https://www.myboeingfleet.com. You 

may view this service information at the 

FAA, Transport Standards Branch, 2200 

South 216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

It is also available on the internet at 

http://www.regulations.gov by searching 

for and locating Docket No. FAA–2018– 

0711. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

0711; or in person at Docket Operations 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this final rule, 

the regulatory evaluation, any 

comments received, and other 

information. The address for Docket 

Operations (phone: 800–647–5527) is 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue SE, 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Myra Kuck, Aerospace Engineer, Cabin 

Safety and Environmental Systems 

Section, FAA, Los Angeles ACO Branch, 

3960 Paramount Boulevard, Lakewood, 

CA 90712–4137; phone: 562–627–5316; 

fax: 562–627–5210; email: myra.j.kuck@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all The Boeing Company Model 

757–200 series airplanes. The NPRM 

published in the Federal Register on 

August 16, 2018 (83 FR 40710). The 

NPRM was prompted by reports of 

uncommanded movement of the 

captain’s and first officer’s seats. The 

NPRM proposed to require, for the 

captain’s and first officer’s seats, 

repetitive horizontal actuator 

identifications, repetitive checks of the 

HMS, a detailed inspection of the HMS, 

as applicable, and applicable oncondition actions. The NPRM also 

proposed to require a general visual 

inspection to determine seat part 

numbers of the captain’s and first 

officer’s seats, a cable adjustment check 

on seats with certain seat part numbers, 

and applicable on-condition actions. 

Comments 

We gave the public the opportunity to 

participate in developing this final rule. 

The following presents the comments 

received on the NPRM and the FAA’s 

response to each comment. 

Support for the NPRM 

Air Line Pilots Association, 

International (ALPA) stated its support 

for the NPRM. United Airlines stated 

that it has no technical objections to the 

NPRM. 

Effect of Winglets on Accomplishment 

of the Proposed Actions 

Aviation Partners Boeing (APB) stated 

that the installation of winglets per 

Supplemental Type Certificate (STC) 

ST01518SE does not affect the 

accomplishment of the manufacturer’s 

service instructions. 

We agree with APB that STC 

ST01518SE does not affect the 

accomplishment of the manufacturer’s 

service instructions. Therefore, the 

installation of STC ST01518SE does not 

affect the ability to accomplish the 

actions required by this AD. We have 

not changed this AD in this regard. 

Request To Add Airplane Models to 

Applicability 

Delta Air Lines (DAL) requested that 

the FAA consider expanding the 

applicability of the proposed AD to 

address all affected fleets that share the 

identified unsafe condition, or consider 

requiring effectivity at the manufacturer 

part number. DAL reasoned that 

expanding the applicability of the 

proposed AD to include all affected 

airplane models or affected 

manufacturer part numbers would ease 

the burden on operators by allowing 

them to forgo commenting on multiple 

proposed fleet ADs and processing 

separate AD-related service information 

by individual fleet type. DAL pointed 

out that this would greatly assist 

operators with implementation for 

operators that share the same affected 

part number among different affected 

fleets. 

We disagree with the commenter’s 

request. Not all of the service 

information for all affected airplane 

models is available, and we do not agree 

to delay issuance of this AD until new 

service information is released. 

Moreover, adding airplanes to the 

applicability would necessitate (under 

the provisions of the Administrative 

Procedure Act) reissuing the notice, 


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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 66613 

reopening the comment period, 

considering additional comments 

subsequently received, and eventually 

issuing a final rule. In consideration of 

the urgency of the unsafe condition 

identified in this final rule, we have 

determined that delay of this final rule 

is not appropriate. However, we might 

consider further rulemaking on this 

issue. We have not changed this AD in 

this regard. 

Request To Establish Predetermined 

Interval for Performing Service 

Information 

Air Astana Airlines commented that 

although its Boeing Model 767 fleet is 

not affected by Boeing Special Attention 

Service Bulletin 757–25–0308, Revision 

1, dated June 7, 2018, Boeing Special 

Attention Service Bulletin 757–25– 

0309, Revision 1, dated July 2, 2018, or 

the proposed AD, its fleet is affected by 

similar Boeing Service Bulletin 767–25– 

0549. The commenter stated that it 

would be useful to perform this 

inspection at a predetermined interval. 

We acknowledge Air Astana Airlines’ 

recommendation, and we infer that the 

commenter is asking whether Boeing 

Service Bulletin 767–25–0549 will be 

mandated by an AD. We may consider 

issuing similar rulemaking for other 

Boeing airplanes using seats in the flight 

deck that have the same actuators 

identified in this final rule. We have not 

changed this AD in this regard. 

Request To Clarify Relationship of Seat 

Actuators Between Different Airplane 

Models 

Boeing explained that the relationship 

of seat actuators among the Boeing 

Model 757, 767, and 777 fleet is 

inaccurate in the ‘‘Discussion’’ section. 

Boeing points out that the seat actuators 

are the same among the Boeing Model 

757, 767, and 777 airplanes, not 

necessarily the seats themselves. 

We agree that the description 

provided by the commenter is more 

accurate. Since that section of the 

preamble does not reappear in the final 

rule, however, we have not changed the 

final rule regarding this issue. 

Request for Alternative Compliance 

Method 

DAL requested that paragraph (g) of 

the proposed AD be revised to explicitly 

allow the seats in the flight 

compartment to be removed prior to 

performing the requirements of 

paragraph (g) of the proposed AD. We 

infer from the comment that DAL 

contends that Boeing Special Attention 

Service Bulletin 757–25–0308, Revision 

1, dated June 7, 2018, appears to specify 

that the detailed inspection of the 

captain’s seat HMS can be performed 

only in the flight compartment. DAL 

pointed out that removing the seats and 

performing the detailed inspection in a 

dedicated shop would increase the level 

of safety by improving the inspection 

conditions. 

We disagree with the request to revise 

paragraph (g) of the proposed AD. We 

note that the seat removal step, which 

is Step 1, Part 1, of the Accomplishment 

Instructions of Boeing Special Attention 

Service Bulletin 757–25–0308, Revision 

1, dated June 7, 2018, is exempt from 

Required for Compliance (RC) steps, 

meaning that the RC requirement does 

not apply to this step in accordance 

with the provisions of paragraph (j)(4) of 

this AD. The detailed inspection of the 

captain’s seat HMS as specified in Part 

1 of the Accomplishment Instructions of 

Boeing Special Attention Service 

Bulletin 757–25–0308, Revision 1, dated 

June 7, 2018, may be accomplished 

either in the flight compartment or on 

a suitable test fixture in a dedicated 

shop or other appropriate location. 

Additionally, the service information 

referenced within Part 1 of the 

Accomplishment Instructions of Boeing 

Special Attention Service Bulletin 757– 

25–0308, Revision 1, dated June 7, 2018, 

allows for the detailed inspection to be 

completed on the aircraft or on a test 

fixture in a dedicated shop or other 

appropriate location, such as the one 

suggested by DAL. We have not changed 

this AD in this regard. 

Conclusion 

We reviewed the relevant data, 

considered the comments received, and 

determined that air safety and the 

public interest require adopting this 

final rule as proposed, except for minor 

editorial changes. We have determined 

that these minor changes: 

• Are consistent with the intent that 

was proposed in the NPRM for 

addressing the unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the NPRM. 

Related Service Information Under 1 

CFR Part 51 

We reviewed Boeing Special 

Attention Service Bulletin 757–25– 

0308, Revision 1, dated June 7, 2018. 

This service information describes 

procedures for repetitive horizontal 

actuator identifications, repetitive 

checks of the HMS, a detailed 

inspection of the HMS, as applicable, 

and applicable on-condition actions. 

On-condition actions include an 

overhaul of the HMS and checks of the 

HMS. 

We reviewed Boeing Special 

Attention Service Bulletin 757–25– 

0309, Revision 1, dated July 2, 2018. 

This service information describes 

procedures for a general visual 

inspection to determine the seat part 

numbers on the captain’s and first 

officer’s seats, and, for seats with certain 

part numbers, a manual override cable 

adjustment check of the captain’s and 

first officer’s seats, and applicable oncondition actions. On-condition actions 

include moving the adjustment nut, 

tightening the lock nut, and readjusting 

the control lever. 

This service information is reasonably 

available because the interested parties 

have access to it through their normal 

course of business or by the means 

identified in the ADDRESSES section. 

Costs of Compliance 

We estimate that this AD affects 17 

airplanes of U.S. registry. We estimate 

the following costs to comply with this 

AD: 

ESTIMATED COSTS FOR REQUIRED ACTIONS

Action Labor cost Parts cost Cost per product Cost on U.S. 

operators 

Identification/ 

Check.

Up to 11 work-hours × $85 per 

hour = $935 per identification/ 

check cycle.

Up to $4,820 ..... Up to $5,755 per identification/ 

check cycle.

Up to $97,835 per identification/ 

check cycle. 

Inspection .......... Up to 1 work-hour × $85 per hour 

= $85.

$0 ...................... Up to $85 ..................................... Up to $1,445. 


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66614 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 

We have received no definitive data 

that would enable us to provide cost 

estimates for the on-condition actions 

specified in this AD. 

Certain configurations of captain’s 

and first officer’s seats may require 

special tooling to align the seats. Special 

tooling for one set of captain’s and first 

officer’s seats will cost $22,000, and a 

certain other set will cost $23,000. If an 

operator owns both combinations of 

seats, the special tooling will cost up to 

$45,000 per operator. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. Subtitle VII: 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

Part A, Subpart III, Section 44701: 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

This AD is issued in accordance with 

authority delegated by the Executive 

Director, Aircraft Certification Service, 

as authorized by FAA Order 8000.51C. 

In accordance with that order, issuance 

of ADs is normally a function of the 

Compliance and Airworthiness 

Division, but during this transition 

period, the Executive Director has 

delegated the authority to issue ADs 

applicable to transport category 

airplanes and associated appliances to 

the Director of the System Oversight 

Division. 

Regulatory Findings 

This AD will not have federalism 

implications under Executive Order 

13132. This AD will not have a 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2018–26–03 The Boeing Company: 

Amendment 39–19533; Docket No. 

FAA–2018–0711; Product Identifier 

2018–NM–062–AD. 

(a) Effective Date 

This AD is effective January 31, 2019. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to all The Boeing 

Company Model 757–200 series airplanes, 

certificated in any category. 

(d) Subject 

Air Transport Association (ATA) of 

America Code 25, Equipment/furnishings. 

(e) Unsafe Condition 

This AD was prompted by reports of 

uncommanded movement of the captain’s 

and first officer’s seats. We are issuing this 

AD to address the uncommanded movement 

of the captain’s or first officer’s seat, which 

could lead to reduced controllability of the 

airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Identification, Check, Inspection, OnCondition Actions (Includes Overhaul of 

Horizontal Movement System), and 

Repetitive Actions 

For airplanes identified in Boeing Special 

Attention Service Bulletin 757–25–0308, 

Revision 1, dated June 7, 2018: Except as 

required by paragraph (h) of this AD, at the 

applicable times specified in paragraph 1.E., 

‘‘Compliance,’’ of Boeing Special Attention 

Service Bulletin 757–25–0308, Revision 1, 

dated June 7, 2018, do all applicable actions 

identified as ‘‘RC’’ (required for compliance) 

in, and in accordance with, the 

Accomplishment Instructions of Boeing 

Special Attention Service Bulletin 757–25– 

0308, Revision 1, dated June 7, 2018. 

(h) Exceptions to Service Information 

Specifications 

For purposes of determining compliance 

with the requirements of this AD: Where 

Boeing Special Attention Service Bulletin 

757–25–0308, Revision 1, dated June 7, 2018, 

uses the phrase ‘‘the original issue date of 

this service bulletin,’’ this AD requires using 

‘‘the effective date of this AD.’’ 

(i) Seat Inspection, Adjustment Check for 

Certain Seats, and On-Condition Actions 

For airplanes identified in Boeing Special 

Attention Service Bulletin 757–25–0309, 

Revision 1, dated July 2, 2018: Within 36 

months after the effective date of this AD, do 

all applicable actions identified as RC in, and 

in accordance with, the Accomplishment 

Instructions of Boeing Special Attention 

Service Bulletin 757–25–0309, Revision 1, 

dated July 2, 2018. A review of the airplane 

maintenance records may be used for the seat 

inspection if the part number can be 

conclusively determined from that review. 

(j) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Los Angeles ACO Branch, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. In accordance with 

14 CFR 39.19, send your request to your 

principal inspector or local Flight Standards 

District Office, as appropriate. If sending 

information directly to the manager of the 

certification office, send it to the attention of 

the person identified in paragraph (k) of this 

AD. Information may be emailed to: 9-ANMLAACO-AMOC-Requests@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(3) An AMOC that provides an acceptable 

level of safety may be used for any repair, 

modification, or alteration required by this 

AD if it is approved by the Boeing 

Commercial Airplanes Organization 

Designation Authorization (ODA) that has 

been authorized by the Manager, Los Angeles 

ACO Branch, FAA, to make those findings. 

To be approved, the repair method, 

modification deviation, or alteration 

deviation must meet the certification basis of 

the airplane, and the approval must 

specifically refer to this AD. 

(4) For service information that contains 

steps that are labeled as RC, the provisions 

of paragraphs (j)(4)(i) and (j)(4)(ii) of this AD 

apply. 

(i) The steps labeled as RC, including 

substeps under an RC step and any figures 

identified in an RC step, must be done to 

comply with the AD. If a step or substep is 


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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 66615 

1Public Law 99–571, 100 Stat. 3208 (1986). 

2 52 FR 27910 (July 24, 1987). 

3Securities Act Release No. 33–10532, Disclosure 

Update and Simplification, retrieved from https:// 

www.sec.gov/rules/final/2018/33–10532.pdf. 

labeled ‘‘RC Exempt,’’ then the RC 

requirement is removed from that step or 

substep. An AMOC is required for any 

deviations to RC steps, including substeps 

and identified figures. 

(ii) Steps not labeled as RC may be 

deviated from using accepted methods in 

accordance with the operator’s maintenance 

or inspection program without obtaining 

approval of an AMOC, provided the RC steps, 

including substeps and identified figures, can 

still be done as specified, and the airplane 

can be put back in an airworthy condition. 

(k) Related Information 

For more information about this AD, 

contact Myra Kuck, Aerospace Engineer, 

Cabin Safety and Environmental Systems 

Section, FAA, Los Angeles ACO Branch, 

3960 Paramount Boulevard, Lakewood, CA 

90712–4137; phone: 562–627–5316; fax: 562– 

627–5210; email: myra.j.kuck@faa.gov. 

(l) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) Boeing Special Attention Service 

Bulletin 757–25–0308, Revision 1, dated June 

7, 2018. 

(ii) Boeing Special Attention Service 

Bulletin 757–25–0309, Revision 1, dated July 

2, 2018. 

(3) For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, Attention: Contractual & Data 

Services (C&DS), 2600 Westminster Blvd, MC 

110–SK57, Seal Beach, CA 90740–5600; 

telephone 562–797–1717; internet https://

www.myboeingfleet.com. 

(4) You may view this service information 

at the FAA, Transport Standards Branch, 

2200 South 216th St, Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Des Moines, Washington on 

December 13, 2018. 

Michael Kaszycki, 

Acting Director, System Oversight Division, 

Aircraft Certification Service. 

[FR Doc. 2018–27886 Filed 12–26–18; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

17 CFR Parts 404 and 449 

Disclosure Update 

AGENCY: Office of the Assistant 

Secretary for Financial Markets, 

Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury (Treasury) is issuing this final 

rule to amend certain regulations issued 

under the Government Securities Act of 

1986 (GSA). Treasury’s recordkeeping 

and reporting requirements for 

registered government securities brokers 

and dealers cross-reference existing 

Securities and Exchange Commission 

(SEC) regulations, with modifications. 

The SEC recently amended certain of its 

disclosure requirements that may have 

become redundant, duplicative, 

overlapping, outdated, or superseded as 

a result of changes to U.S. Generally 

Accepted Accounting Principles (U.S. 

GAAP). The technical amendments to 

the Treasury recordkeeping rules and 

Form G–405, referenced in the 

regulations, conform to SEC 

amendments regarding the reporting of 

extraordinary gains and losses, the 

cumulative effect of changes in 

accounting principles, and 

comprehensive income on the annual 

reports and Form X–17A–5 (Financial 

and Operational Combined Uniform 

Single Report or ‘‘FOCUS Report’’). 

DATES: This final rule is effective 

January 1, 2019. 

ADDRESSES: This final rule is available at 

http://www.treasurydirect.gov and 

http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Lori 

Santamorena, Executive Director, or 

Kevin Hawkins, Associate Director, 

Department of the Treasury, Bureau of 

the Fiscal Service, Government 

Securities Regulations Staff, (202) 504– 

3632 or email us at govsecreg@

fiscal.treasury.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The GSA requires the Secretary of the 

Treasury to adopt rules with respect to 

transactions in government securities 

effected by government securities 

brokers and dealers in the areas of 

financial responsibility, protection of 

investor securities and funds, 

recordkeeping, reporting, and audit. The 

regulatory framework established by the 

GSA requires the Secretary in 

promulgating these rules to ‘‘consider 

the sufficiency and appropriateness of 

then existing law and rules applicable’’ 

to government securities brokers and 

dealers.1 In issuing the final GSA rules, 

Treasury considered existing regulation 

with a view toward preventing overly 

burdensome and duplicative 

regulation.2 Treasury’s GSA rules 

therefore generally provide that 

compliance by registered government 

securities brokers and dealers with 

certain applicable SEC rules constitutes 

compliance with the GSA rules. 

Treasury seeks to maintain consistency, 

where practical, with parallel rules that 

have been adopted or amended by the 

SEC for registered brokers and dealers. 

Treasury’s recordkeeping rules in part 

404 (Recordkeeping and Preservation of 

Records), and the reporting 

requirements in part 405 (Reports and 

Audit) for registered government 

securities brokers and dealers, crossreference existing SEC regulations, with 

modifications. The format of reporting 

under the GSA regulations in part 405 

is also substantially similar to that 

required pursuant to SEC rules. Sections 

17 CFR 405.2 and 449.5 of the GSA 

regulations require that registered 

government securities brokers and 

dealers use Form G–405 (Report on 

Finances and Operations of Government 

Securities Brokers and Dealers, or the 

‘‘FOGS Report’’) to make the required 

monthly, quarterly and annual financial 

reports to the SEC or to their selfregulatory organization. 

Treasury adopted the FOGS Report in 

17 CFR 449.5 of the GSA regulations 

based on the SEC’s FOCUS Report. 

Registered government securities 

brokers and dealers are required to file 

financial reports which include 

information on their assets, liabilities, 

liquid capital, total haircuts, and ratio of 

liquid capital to total haircuts, among 

other items, on the FOGS Report. 

II. Analysis 

Certain SEC rules contain accounting 

and disclosure requirements including 

U.S. GAAP accounting standards. The 

SEC periodically reviews and amends 

its disclosure requirements to eliminate 

rules that become redundant, 

duplicative, or overlapping as the 

Financial Accounting Standards Board 

(FASB) updates U.S. GAAP. 

In keeping with this practice, on 

August 17, 2018, the SEC amended 

several of its disclosure requirements 

related to information that is addressed 

by more recently updated U.S. GAAP 

requirements.3 This included 

amendments regarding the reporting of 


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