31554 Federal Register / Vol. 87, No. 100 / Tuesday, May 24, 2022 / Notices 

1 15 U.S.C. 1693o–2(a)(3) (authorizing the Board 

to prescribe regulations regarding interchange 

transaction fees and require issuers or payment card 

networks to provide to the Board such information 

as deemed necessary). 

to respond for the exemption notice, 

therefore, is required to obtain a benefit. 

The exemption disqualification notice is 

mandatory for a Board-regulated transfer 

agent that no longer qualifies for the 

exemption. 

The information collected in the FR 

4013 regarding a Board-regulated 

transfer agent’s volume of transactions 

is public information through the filing 

and publication of the transfer agent’s 

Form TA–2 with the SEC. Therefore, 

individual respondent data collected by 

the FR 4013 are not confidential. 

Current actions: On January 25, 2022, 

the Board published a notice in the 

Federal Register (87 FR 3807) 

requesting public comment for 60 days 

on the extension, without revision, of 

the FR 4013. The comment period for 

this notice expired on March 28, 2022. 

The Board did not receive any 

comments. 

Board of Governors of the Federal Reserve 

System, May 17, 2022. 

Michele Taylor Fennell, 

Deputy Associate Secretary of the Board. 

[FR Doc. 2022–11092 Filed 5–23–22; 8:45 am] 

BILLING CODE 6210–01–P 

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 

Recordkeeping and Disclosure 

Requirements Associated with 

Regulation II (FR II; OMB No. 7100– 

0349). 

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. Boardapproved 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 clearance 

officer, whose name appears above. 

Final Approval Under OMB Delegated 

Authority of the Extension for Three 

Years, Without Revision, of the 

Following Information Collection 

Report title: Recordkeeping and 

Disclosure Requirements Associated 

with Regulation II. 

Agency form number: FR II. 

OMB control number: 7100–0349. 

Frequency: On occasion, annually. 

Respondents: Debit card issuers and 

payment card networks. 

Estimated number of respondents: 

Implement policies and procedures, 1; 

Review and update policies and 

procedures, 527; General recordkeeping, 

527; Annual notification and change in 

status, 527. 

Estimated average hours per response: 

Implement policies and procedures, 

160; Review and update policies and 

procedures, 40; General recordkeeping, 

1; Annual notification and change in 

status, 1. 

Estimated annual burden hours: 

Implement policies and procedures, 

160; Review and update policies and 

procedures, 21,080; General 

recordkeeping, 527; Annual notification 

and change in status, 527. 

General description of report: 

Regulation II—Debit Card Interchange 

Fees and Routing (12 CFR part 235) 

implements standards for assessing 

whether interchange transaction fees for 

electronic debit transactions are 

reasonable and proportional to the cost 

incurred by the issuer with respect to 

the transaction, and establishes rules for 

payment card transactions as required 

by section 920(a) of the Electronic Fund 

Transfer Act (EFTA) (15 U.S.C. 1693o– 

2(a)). 

Section 235.4(b)(1) requires that, in 

order to be eligible to receive or charge 

the fraud-prevention adjustment, an 

issuer that is subject to Regulation II’s 

interchange fee standards (a ‘‘covered 

issuer’’) must develop and implement 

policies and procedures reasonably 

designed to take effective steps to 

reduce the occurrence of, and costs to 

all parties from, fraudulent electronic 

debit transactions, including through 

the development and implementation of 

cost-effective fraud-prevention 

technology. Section 235.4(b)(2) 

describes the specific requirements that 

a covered issuer’s fraud-prevention 

policies and procedures must address. 

Section 235.4(b)(3) requires that a 

covered issuer must review its fraudprevention policies and procedures, and 

their implementation, at least annually, 

and update them as necessary. Section 

235.4(c) requires that, to be eligible to 

receive or charge a fraud-prevention 

adjustment, a covered issuer must 

annually notify its payment card 

networks that it complies with the 

standards under section 235.4(b). 

Section 235.4(d) requires that, no later 

than 10 days after a covered issuer 

determines or receives a notification 

from the appropriate agency under 

section 235.9 that the covered issuer is 

substantially non-compliant with the 

standards set forth in section 235.4(b), a 

covered issuer must notify its payment 

card networks that it is no longer 

eligible to receive or charge a fraudprevention adjustment. The covered 

issuer must stop receiving and charging 

the fraud-prevention adjustment within 

30 days after providing such notification 

to its payment card networks. 

Section 235.8(c)(1) requires that any 

debit card issuer subject to Regulation II 

(i.e., not just covered issuers) shall 

retain evidence of compliance with the 

requirements in Regulation II for a 

period of not less than five years after 

the end of the calendar year in which 

the electronic debit transaction 

occurred. In addition, section 

235.8(c)(2) requires that, where any 

person subject to Regulation II (e.g., an 

issuer or payment card network) 

receives actual notice that it is subject 

to an investigation by an enforcement 

agency, such person must retain the 

records until final disposition of the 

matter. Compliance with this general 

recordkeeping requirement involves 

retaining records to demonstrate 

fulfillment of the other requirements in 

Regulation II. 

Legal authorization and 

confidentiality: The Recordkeeping and 

Disclosure Requirements Associated 

with Regulation II are authorized by 

section 920(a)(3) of the EFTA.1 The 

fraud-prevention and disclosure 

requirements are additionally 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 100 / Tuesday, May 24, 2022 / Notices 31555 

2 15 U.S.C. 1693o–2(a)(5) (permitting the Board to 

allow for the fraud-prevention adjustment and 

condition it upon compliance with fraud-related 

standards promulgated by the Board). 

3 5 U.S.C. 552(b)(4). 

4 5 U.S.C. 552(b)(8). 

authorized by section 920(a)(5) of the 

EFTA.2 Regulation II’s general 

recordkeeping requirement for issuers is 

mandatory. Regulation II’s fraudprevention recordkeeping requirements 

and disclosure requirements are 

required to obtain a benefit. 

The Recordkeeping and Disclosure 

Requirements Associated with 

Regulation II are generally not 

submitted to the Board or to any of the 

federal financial regulatory agencies. In 

the event that the Board obtains such 

information, it may be kept confidential 

under exemption 4 of the Freedom of 

Information Act (FOIA) to the extent 

that it contains commercial or financial 

information both customarily and 

actually treated as private.3 If such 

information is obtained through the 

examination or enforcement process, it 

may be kept confidential under 

exemption 8 of the FOIA.4

Current actions: On December 3, 

2021, the Board published a notice in 

the Federal Register (86 FR 68667) 

requesting public comment for 60 days 

on the extension, without revision, of 

the Recordkeeping and Disclosure 

Requirements Associated with 

Regulation II. The comment period for 

this notice expired on February 1, 2022. 

The Board received two comments. 

Detailed Discussion of Public 

Comments 

The first comment letter was from 

trade associations representing debit 

card issuers; these commenters 

supported the proposal to extend for 

three years, without revision, the 

Recordkeeping and Disclosure 

Requirements Associated with 

Regulation II. The second comment 

letter was from trade associations 

representing merchants; these 

commenters did not provide comments 

related to the Recordkeeping and 

Disclosure Requirements Associated 

with Regulation II. Both comment letters 

addressed substantive issues pertaining 

to Regulation II that were unrelated to 

the regulation’s information collections. 

Board of Governors of the Federal Reserve 

System, May 17, 2022. 

Michele Taylor Fennell, 

Deputy Associate Secretary of the Board. 

[FR Doc. 2022–11095 Filed 5–23–22; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

Privacy Act of 1974; System of 

Records 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Notice of a modified system of 

records. 

SUMMARY: Pursuant to the provisions of 

the Privacy Act of 1974, notice is given 

that the Board of Governors of the 

Federal Reserve System (Board) 

proposes to modify an existing system 

of records, entitled BGFRS–30, ‘‘FRB— 

Academic Assistance Program Files’’ to 

reflect the outsourcing of Academic 

Assistance program administration. 

BGFRS–30 includes applications for 

academic assistance and related 

documents in addition to documents 

relating to requests for exceptions to the 

Academic Assistance Policy. 

DATES: Comments must be received on 

or before June 23, 2022. This modified 

system of records will become effective 

June 23, 2022, without further notice, 

unless comments dictate otherwise. 

The Office of Management and Budget 

(OMB), which has oversight 

responsibility under the Privacy Act, 

requires a 30-day period prior to 

publication in the Federal Register in 

which to review the system and to 

provide any comments to the agency. 

The public is then given a 30-day period 

in which to comment, in accordance 

with 5 U.S.C. 552a(e)(4) and (11). 

ADDRESSES: You may submit comments, 

identified by BGFRS–30 ‘‘FRB— 

Academic Assistance Program Files,’’ by 

any of the following methods: 

• Agency Website: https://

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

https://www.federalreserve.gov/apps/ 

foia/proposedregs.aspx. 

• Email: regs.comments@

federalreserve.gov. Include SORN name 

and number in the subject line of the 

message. 

• Fax: (202) 452–3819 or (202) 452– 

3102. 

• Mail: Ann E. Misback, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue NW, Washington, 

DC 20551. 

All public comments will be made 

available on the Board’s website at 

https://www.federalreserve.gov/apps/ 

foia/proposedregs.aspx as submitted, 

unless modified for technical reasons. 

Public comments may also be viewed 

electronically and in-person in Room 

M–4365A, 2001 C St. NW, Washington, 

DC 20551, between 9:00 a.m. and 5:00 

p.m. during federal business weekdays. 

FOR FURTHER INFORMATION CONTACT: 

David B. Husband, Senior Counsel, 

(202) 530–6270, or david.b.husband@

frb.gov; Legal Division, Board of 

Governors of the Federal Reserve 

System, 20th Street and Constitution 

Avenue NW, Washington, DC 20551. If 

you are deaf, hard of hearing, or have a 

speech disability, please dial 7–1–1 to 

access telecommunication relay 

services. 

SUPPLEMENTARY INFORMATION: The Board 

is primarily modifying BGFRS–30, 

‘‘FRB—Academic Assistance Program 

Files’’ to reflect the outsourcing of 

Academic Assistance program 

administration to a managed service 

provider, Bright Horizons EdAssist, 

which replaces the manual process 

previously used by participants. The 

new service allows program 

participants, among other actions, to 

submit and receive approval for requests 

for academic assistance; add and drop 

classes; submit grades; request 

exceptions or waivers; and upload 

supporting documents. Requests for 

exceptions to the Academic Assistance 

Policy, however, will be reviewed and 

approved by the People, Strategy, & 

Operations Function through the 

Board’s Service Now Customer 

Relationship Manager portal rather than 

by the plan administrator. 

Accordingly, the Board is updating 

the system manager and the system 

location. The Board is also taking this 

opportunity to update the record 

retention, record source categories, 

categories of records in the system, the 

policies for record storage, and the 

administrative, technical, and physical 

safeguards for the system. In addition, 

the Board is also updating the ‘‘Routine 

Uses’’ section to incorporate a link to 

the Board’s general routine uses. The 

Board, however, is not amending or 

establishing any new routine uses. 

The Board is also making technical 

changes to BGFRS–30 consistent with 

the template laid out in OMB Circular 

No. A–108. Accordingly, the Board has 

made technical corrections and nonsubstantive language revisions to the 

following categories: ‘‘Policies and 

Practices for Storage of Records,’’ 

‘‘Policies and Practices for Retrieval of 

Records,’’ ‘‘Policies and Practices for 

Retention and Disposal of Records,’’ 

‘‘Administrative, Technical and 

Physical Safeguards,’’ ‘‘Record Access 

Procedures,’’ ‘‘Contesting Record 

Procedures,’’ and ‘‘Notification 

Procedures.’’ The Board has also created 

the following new fields: ‘‘Security 

Classification’’ and ‘‘History.’’ 


jspears on DSK121TN23PROD with NOTICES1