86566 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

13Public Law 115–174, Title IV 401(a) and (e), 

132 Stat. 1296, 1356–59 (2018). 

14Section 165(b)(2) of the Dodd-Frank Act, 12 

U.S.C. 5365(b)(2), refers to ‘‘foreign-based bank 

holding company.’’ Section 102(a)(1) of the DoddFrank Act, 12 U.S.C. 5311(a)(1), defines ‘‘bank 

holding company’’ for purposes of Title I of the 

Dodd-Frank Act to include foreign banking 

organizations that are treated as bank holding 

companies under section 8(a) of the International 

Banking Act of 1978, 12 U.S.C. 3106(a). The Board 

has required, pursuant to section 165(b)(1)(B)(iv) of 

the Dodd-Frank Act, 12 U.S.C. 5365(b)(1)(B)(iv), 

certain foreign banking organizations subject to 

section 165 of the Dodd-Frank Act to form U.S. 

intermediate holding companies. Accordingly, the 

parent foreign-based organization of a U.S. IHC is 

treated as a BHC for purposes of the BHC Act and 

section 165 of the Dodd-Frank Act. Because Section 

5(c) of the BHC Act authorizes the Board to require 

reports from subsidiaries of BHCs, section 5(c) 

provides additional authority to require U.S. IHCs 

to report the information contained in the FR Y– 

14 reports. 

15The Board’s Final Rule referenced in section 

401(g) of EGRRCPA specifically stated that the 

Board would require IHCs to file the FR Y–14 

reports. See 79 FR 17240, 17304 (March 27, 2014). 

16Please note that the Board publishes a summary 

of the results of the Board’s CCAR testing pursuant 

to 12 CFR 225.8(f)(2)(v), and publishes a summary 

of the results of the Board’s DFAST stress testing 

pursuant to 12 CFR 252.46(b) and 12 CFR 238.134, 

which includes aggregate data. In addition, under 

the Board’s regulations, covered companies must 

also publicly disclose a summary of the results of 

the Board’s DFAST stress testing. See 12 CFR 

252.58; 12 CFR 238.146. The public disclosure 

requirement contained in 12 CFR 252.58 for 

covered BHCs and covered IHCs is separately 

accounted for by the Board in the Paperwork 

Reduction Act clearance for FR YY (OMB No. 7100– 

0350) and the public disclosure requirement for 

covered SLHCs is separately accounted for in by the 

Board in the Paperwork Reduction Act clearance for 

FR LL (OMB No. 7100–0380). 

Seed Capital Invested in Mutual Funds 

The Board did not temporarily revise 

or propose to revise the reporting of 

seed capital invested in mutual funds. 

The current FR Y–14Q, Schedule F 

(Trading) instructions require firms to 

report seed capital invested in mutual 

funds as private equity exposures. One 

commenter noted that this treatment 

may subject firms to unfavorable 

stressed losses, as the underlying 

investments of seed capital invested in 

mutual funds are in liquid, marketable 

securities across multiple asset classes, 

including fixed income and equity. 

Given the liquid, marketable nature of 

these underlying investments, the 

commenter recommended that these 

exposures should not be reported as 

private equity exposures, but rather 

reported within the respective subschedules of Schedule F, according to 

the underlying exposure. 

The Board intends to consider 

revising the reporting of seed capital 

invested in mutual funds as part of a 

future notice. 

Legal authorization and 

confidentiality: The Board has the 

authority to require BHCs to file the FR 

Y–14 reports pursuant to section 5(c) of 

the Bank Holding Company Act (‘‘BHC 

Act’’), 12 U.S.C. 1844(c), and pursuant 

to section 165(i) of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act), 12 U.S.C. 5365(i), 

as amended by section 401(a) and (e) of 

the Economic Growth, Regulatory 

Relief, and Consumer Protection Act 

(EGRRCPA).13 The Board has authority 

to require SLHCs to file the FR Y–14 

reports pursuant to section 10(b) of the 

Home Owners’ Loan Act (12 U.S.C. 

1467a(b)), as amended by section 369(8) 

and 604(h)(2) of the Dodd-Frank Act. 

Lastly, the Board has authority to 

require U.S. IHCs of FBOs to file the FR 

Y–14 reports pursuant to section 5 of 

the BHC Act, as well as pursuant to 

sections 102(a)(1) and 165 of the DoddFrank Act, 12 U.S.C. 5311(a)(1) and 

5365.14 In addition, section 401(g) of 

EGRRCPA, 12 U.S.C. 5365 note, 

provides that the Board has the 

authority to establish enhanced 

prudential standards for foreign banking 

organizations with total consolidated 

assets of $100 billion or more, and 

clarifies that nothing in section 401 

‘‘shall be construed to affect the legal 

effect of the final rule of the Board . . . 

entitled ‘Enhanced Prudential Standard 

for [BHCs] and Foreign Banking 

Organizations’ (79 FR 17240 (March 27, 

2014)), as applied to foreign banking 

organizations with total consolidated 

assets equal to or greater than $100 

million.’’ 15 The FR Y–14 reports are 

mandatory. The information collected in 

the FR Y–14 reports is collected as part 

of the Board’s supervisory process, and 

therefore, such information is afforded 

confidential treatment pursuant to 

exemption 8 of the Freedom of 

Information Act (FOIA), 5 U.S.C. 

552(b)(8). In addition, confidential 

commercial or financial information, 

which a submitter actually and 

customarily treats as private, and which 

has been provided pursuant to an 

express assurance of confidentiality by 

the Board, is considered exempt from 

disclosure under exemption 4 of the 

FOIA, 5 U.S.C. 552(b)(4).16

Board of Governors of the Federal Reserve 

System, December 22, 2020. 

Margaret Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2020–28788 Filed 12–29–20; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

Corporation To Do Business Under 

Section 25A of the Federal Reserve Act 

The companies listed in this notice 

have applied to the Board for approval, 

pursuant to Section 25A of the Federal 

Reserve Act (Edge Corporation) (12 

U.S.C. 611 et seq.), and all other 

applicable statutes and regulations to 

establish an Edge Corporation. The Edge 

Corporation will operate as a subsidiary 

of the applicant, First-Citizens Bank & 

Trust Company, Raleigh, North 

Carolina. The factors that are to be 

considered in acting on the application 

are set forth in the Board’s Regulation K 

(12 CFR 211.5). 

The public portions of the 

applications listed below, as well as 

other related filings required by the 

Board, if any, are available for 

immediate inspection at the Federal 

Reserve Bank(s) indicated below and at 

the offices of the Board of Governors. 

This information may also be obtained 

on an expedited basis, upon request, by 

contacting the appropriate Federal 

Reserve Bank and from the Board’s 

Freedom of Information Office at 

https://www.federalreserve.gov/foia/ 

request.htm. Interested persons may 

express their views in writing on the 

standards enumerated in Section 25A of 

the Federal Reserve Act. 

Comments regarding each of these 

applications must be received at the 

Reserve Bank indicated or the offices of 

the Board of Governors, Ann E. 

Misback, Secretary of the Board, 20th 

Street and Constitution Avenue NW, 

Washington, DC 20551–0001, not later 

than January 14, 2021. 

A. Federal Reserve Bank of Richmond 

(Adam M. Drimer, Assistant Vice 

President) 701 East Byrd Street, 

Richmond, Virginia 23219. Comments 

can also be sent electronically to or 

Comments.applications@rich.frb.org: 

1. First-Citizens Bank & Trust 

Company, Raleigh, North Carolina; to 

establish FC International, Inc., Raleigh, 

North Carolina, as an Edge Corporation. 

Board of Governors of the Federal Reserve 

System, December 23, 2020. 

Margaret McCloskey Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2020–28854 Filed 12–29–20; 8:45 am] 

BILLING CODE 6210–01–P