[Federal Register Volume 87, Number 66 (Wednesday, April 6, 2022)]
[Notices]
[Pages 19934-19936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07227]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend for three years, without revision, the 
Uniform Application for Municipal Securities Principal or Municipal 
Securities Representative Associated with a Bank Municipal Securities 
Dealer (Form MSD-4; OMB No. 7100-0100) and the Uniform Termination 
Notice for Municipal Securities Principal or Municipal Securities 
Representative Associated with a Bank Municipal Securities Dealer (Form 
MSD-5; OMB No. 7100-0101).

FOR FURTHER INFORMATION CONTACT: 
    Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of 
the Chief Data Officer, Board of Governors of the Federal Reserve 
System, Washington, DC 20551, (202) 452-3829.
    Office of Management and Budget (OMB) Desk Officer for the Federal 
Reserve Board, Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 725 
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the Paperwork Reduction Act (PRA) to approve and assign 
OMB control numbers to collections of information conducted or 
sponsored by the Board. Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. The OMB inventory, as well as copies of the 
PRA Submission, supporting statements, and approved collection of 
information instrument(s) are available at https://www.reginfo.gov/public/do/PRAMain. These documents are also available on the Federal 
Reserve Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency

[[Page 19935]]

clearance officer, whose name appears above.

Final Approval Under OMB Delegated Authority of the Extension for Three 
Years, Without Revision, of the Following Information Collections

    Report title: Uniform Application for Municipal Securities 
Principal or Municipal Securities Representative Associated with a Bank 
Municipal Securities Dealer.\1\
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    \1\ As part of this clearance, the Board cleared the Form MSD-4 
and Form MSD-5 under the Form MSD-4 OMB control number (7100-0100), 
and then discontinued the Form MSD-5's separate OMB control number 
(7100-0101). This non-substantive change is aimed at simplifying the 
tracking and clearance process for the two related forms. This 
change did not modify the reporting or recordkeeping requirements of 
the forms in any way. The collection is now titled ``The Uniform 
Application and the Uniform Termination Notice for Municipal 
Securities Principal or Municipal Securities Representative 
Associated with a Bank Municipal Securities Dealer'' (Form MSD-4 and 
Form MSD-5; 7100-0100).
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    Agency form number: Form MSD-4.
    OMB control number: 7100-0100.
    Frequency: Event generated.
    Respondents: Each municipal securities dealer (MSD) that is a state 
member bank (SMB), bank holding company (BHC), or a savings and loan 
holding company (SLHC), certain subsidiaries of such firms, or a 
foreign dealer bank.\2\
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    \2\ 15 U.S.C. 78c(34)(A)(ii).
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    Estimated number of respondents: Reporting, 13; Recordkeeping, 13.
    Estimated average hours per response: Reporting, 0.92; 
Recordkeeping, 0.08.
    Estimated annual burden hours: Reporting, 11.96; Recordkeeping, 
1.04.
    General description of report: The Municipal Securities Rulemaking 
Board (MSRB) rule G-7, Information Concerning Associated Persons, 
requires persons who are or seek to be an associated person of an MSD, 
either as a municipal securities principal (a person performing 
supervisory functions) or representative (a person engaged in 
underwriting, trading, or sales of municipal securities or furnishing 
financial advice to issuers in connection with the issuance of 
municipal securities) or in any other manner set forth under the rule, 
to provide certain background information to the MSD. The rule also 
requires MSDs to obtain and report this information. MSDs for which the 
Board is the appropriate regulatory agency (ARA) must report to the 
Board information required by MSRB rule G-7 using Form MSD-4. 
Generally, the information required by Form MSD-4 relates to employment 
history and professional background, including any disciplinary 
sanctions, as well as any claimed basis for exemption from MSRB 
examination requirements. Certain information reported on Form MSD-4 is 
filled out by the employee, with the rest completed by the MSD. As 
required by MSRB rule G-7, bank municipal securities dealers must 
retain copies of Form MSD-4 for each associated person during the 
entire term of employment.
    Report title: Uniform Termination Notice for Municipal Securities 
Principal or Municipal Securities Representative Associated with a Bank 
Municipal Securities Dealer.
    Agency form number: Form MSD-5.
    OMB control number: 7100-0101.
    Frequency: Event generated.
    Respondents: Each MSD that is an SMB, BHC, or an SLHC, certain 
subsidiaries of such firms, or a foreign dealer bank.\3\
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    \3\ 15 U.S.C. 78c(34)(A)(ii).
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    Estimated number of respondents: Reporting, 21; Recordkeeping, 21.
    Estimated average hours per response: Reporting, 0.16; 
Recordkeeping; 0.08.
    Estimated annual burden hours: Reporting, 3.36; Recordkeeping 1.68.
    General description of report: An MSD for which the Board is the 
ARA must file Form MSD-5 with the Board when any employee previously 
registered as a municipal securities principal or representative is 
terminated for any reason. Form MSD-5 requires information such as the 
reason for termination and whether any investigations or actions by 
agencies or self-regulatory organizations (SROs) involving the 
associated person occurred during the period of employment.
    Any SMB, BHC, or SLHC, as well as certain subsidiaries of such 
firms, and any foreign dealer bank that is an MSD is required to file 
Forms MSD-4 and MSD-5 with the Board with respect to its employees. As 
required by MSRB rule G-7, an MSD must retain both Form MSD-4 and Form 
MSD-5 for three years from the date of termination of employment.
    Legal authorization and confidentiality: The Securities Exchange 
Act of 1934 (Exchange Act) authorizes the Securities and Exchange 
Commission (SEC) and MSRB to promulgate rules requiring MSDs to file 
reports about associated persons with the SEC and ARAs,\4\ and the 
Board is the ARA for most Form MSD-4 and Form MSD-5 respondents.\5\ The 
Exchange Act further authorizes the Board to enforce compliance with 
the SEC's and MSRB's rules,\6\ and make rules and regulations to 
implement the portions of the Exchange Act for which it is 
responsible.\7\
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    \4\ 15 U.S.C. 78o-4(a)-(b) and (q).
    \5\ 15 U.S.C. 78c(a)(34)(A)(ii) (establishing the Board as the 
ARA for an MSD that is, or is the subsidiary of, an SLHC, SMB, or 
BHC (including a subsidiary of the BHC if the subsidiary does not 
already report to another ARA or to the SEC). While the Exchange Act 
does not specify the ARA for MSD activities of foreign dealer banks, 
the SEC has agreed that the Board should examine their MSD 
activities. See Letter from Catherine McGuire, Chief Counsel, SEC 
Division of Market Regulation, to Laura M. Homer, Assistant Director 
of Board S&R, June 14, 1994.
    \6\ 15 U.S.C. 78o-4(c).
    \7\ 15 U.S.C. 78w(a).
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    Several additional statutes also authorize the Board to require 
submission of the Forms MSD-4 and MSD-5 by specific entities, including 
the Federal Reserve Act (for SMBs and their affiliates),\8\ the 
International Banking Act (for branches and agencies of foreign 
banks),\9\ the Bank Holding Company Act of 1956 (for BHCs and their 
subsidiaries),\10\ and the Home Owners' Loan Act (for SLHCs and their 
subsidiaries).\11\
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    \8\ 12 U.S.C. 248(a)(1) (authorizing the Board to ``require such 
statements and reports'' of member banks as it may deem necessary).
    \9\ 12 U.S.C. 3105(c)(2) (subjecting branches and agencies of 
foreign banks to reporting requirements in the same manner as if the 
branch or agency were a State member bank).
    \10\ 12 U.S.C. 1844(c)(1)(A)(ii)(II) (authorizing the Board to 
require from a BHC or any subsidiary reports as to compliance with 
federal laws that the Board has jurisdiction to enforce).
    \11\ 12 U.S.C. 1467a(b)(2) (authorizing the Board to require 
reports from SLHCs and their subsidiaries containing such 
information concerning the operations of the SLHC or subsidiary as 
the Board may require).
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    Filing of the Forms MSD-4 and MSD-5 is mandatory. Information 
provided on Forms MSD-4 and MSD-5 may be kept confidential pursuant to 
exemption 6 of the Freedom of Information Act (FOIA) to the extent 
disclosure of such information ``would constitute a clearly unwarranted 
invasion of personal privacy.'' \12\ Information contained on Forms 
MSD-4 and MSD-5 may also be kept confidential under FOIA exemption 4 if 
it is confidential commercial or financial information that is both 
customarily and actually treated as private \13\ or under FOIA 
exemption 8 if it is obtained as part of an examination or supervision 
of a financial institution.\14\
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    \12\ 5 U.S.C. 552(b)(6).
    \13\ 5 U.S.C. 552(b)(4).
    \14\ 5 U.S.C. 552(b)(8).
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    Current actions: On December 8, 2021, the Board published a notice 
in the Federal Register (86 FR 69643) requesting public comment for 60 
days on the extension, without revision, of the Form MSD-4 and Form 
MSD-5. The comment period for this notice expired on February 7, 2022. 
The Board did not receive any comments.


[[Page 19936]]


    Board of Governors of the Federal Reserve System, April 1, 2022.
Ann Misback,
Secretary of the Board.
[FR Doc. 2022-07227 Filed 4-5-22; 8:45 am]
BILLING CODE 6210-01-P