18734 Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Rules and Regulations

3 15 U.S.C. 78c(a)(6). Under this section, the term

‘‘bank’’ is defined as: (a) a banking institution

organized under the laws of the United States; (b)

a member bank of the Federal Reserve System; (c)

any other banking institution doing business under

the laws of any state or the United States, a

substantial portion of which consists of receiving

deposits or exercising fiduciary powers similar to

those permitted to national banks under the

authority of the Comptroller of the Currency, and

which is supervised and examined by state or

federal authority having supervision over banks;

and (d) a receiver, conservator, or other liquidating

agent of any institution or firm included in the

above paragraphs.

4Securities Exchange Act Release No. 31398

(November 4, 1992), 57 FR 53261 (November 9,

1992). 1 17 CFR 400.4 and 17 CFR 449.3, respectively.

is yes, the respondent must provide the

name of the parent or affiliate and the

type of institution. The ‘‘General

Instructions’’ to Schedule I also are

amended to refer to the definition of

‘‘bank’’ in § 3(a)(6) of the Securities

Exchange Act of 1934 (‘‘Exchange

Act’’).3

Form G–405 is required to be

submitted by registered government

securities brokers and dealers to the SEC

or to a self-regulatory organization

according to an SEC approved plan.

Financial institutions that have filed

notice as government securities brokers

and dealers are not required to file Form

G–405.

The disclosure of this additional

information would correspond to

similar changes made by the SEC to

Form X–17A–5, also known as the

‘‘FOCUS’’ Report, in November 1992.4

The Treasury shares the SEC’s belief

that having knowledge of the economic

and financial characteristics of brokers

and dealers, including organizational

affiliations with U.S. banks, is useful for

regulatory purposes. This form change

will also achieve consistency with the

SEC approach and will assure consistent

treatment for all government securities

brokers and dealers.

The amendments to Form G–405

become effective June 12, 1995. The

Department has consulted with the

National Association of Securities

Dealers (‘‘NASD’’) regarding the

implementation of the form changes.

The Department understands that the

NASD will distribute the amended Form

G–405 to its members that are registered

government securities brokers and

dealers. Copies of the Form G–405 may

also be obtained by contacting the

NASD.

List of Subjects in 17 CFR Part 449

Banks, banking, Brokers, Government

securities, Reporting and recordkeeping

requirements.

For the reasons set out in the

Preamble, 17 CFR Chapter IV is

amended as follows:

PART 449—FORMS, SECTION 15C OF

THE SECURITIES EXCHANGE ACT OF

1934

1. The authority citation for Part 449

continues to read as follows:

Authority: 15 U.S.C. 78o–5(a), (b)(1)(B),

(b)(4).

2. Schedule I of Form G–405 is

amended to add new instruction 15(a),

(b) and (c) to the General Instructions,

to redesignate Questions 15–18 as

Questions 16–19, and add new Question

15 to read as follows:

Note: The text of Form G–405 does not

appear in the Code of Federal Regulations.

Form G–405, Report on Finances and

Operations of Government Securities

Brokers and Dealers, Schedule I:

* * * * *

General Instructions

* * * * *

15(a), (b) & (c)—Report whether

respondent directly or indirectly

controls, is controlled by, or is under

common control with, a U.S. bank. If the

answer is ‘‘yes,’’ provide the name of

the affiliated bank and/or bank holding

company, and describe the type of

institution. The term ‘‘bank’’ is defined

in § 3(a)(6) of the Securities Exchange

Act of 1934.

* * * * *

15. (a) Respondent directly or

indirectly controls, is controlled by, or

is under common control with, a U.S.

bank.

(Enter applicable code: 1=Yes 2=No)

llll

(b) Name of parent or affiliate

llllll

(c) Type of institution llllll

* * * * *

§§ 400.6 and 405.3 [Amended]

3. For each section indicated in the

list above, remove the Office of

Management and Budget control

number from the parenthetical

statement at the end of each section, and

add in its place ‘‘1535–0089’’.

§ 403.4 [Amended]

4. Add at the end of § 403.4 the

following parenthetical:

§ 403.4 Customer protection—reserves

and custody of securities.

(Approved by the Office of Management

and Budget under control number 1535–

0089)

Dated: April 3, 1995.

Frank N. Newman,

Deputy Secretary.

[FR Doc. 95–9057 Filed 4–12–95; 8:45 am]

BILLING CODE 4810–39–W

17 CFR Part 449

Form G–FIN–4

AGENCY: Office of the Under Secretary

for Domestic Finance, Treasury.

ACTION: Adoption of form amendments.

SUMMARY: The Department of the

Treasury (‘‘Department’’ or ‘‘Treasury’’)

is adopting amendments to Form G–

FIN–4, which is the form that associated

persons of financial institutions that are

government securities brokers and

dealers are required to file with such

financial institutions, pursuant to

sections 15C(a), (b)(1)(B) and (b)(4) of

the Securities Exchange Act of 1934 (the

‘‘Exchange Act’’) (15 U.S.C. 78o–5(a),

(b)(1)(B) and (b)(4)) and sections 400.4

and 449.3 of the regulations issued

under the Government Securities Act of

1986 (‘‘GSA’’). The amendments update

the disciplinary background provisions

of the form to reflect amendments to the

federal securities laws, and provide the

financial institutions of the associated

persons and the appropriate regulatory

authorities for the financial institutions

with more useful information. The

Department is adopting the amendments

unchanged from their proposed form.

EFFECTIVE DATE: June 12, 1995.

FOR FURTHER INFORMATION CONTACT: Ken

Papaj (Director), or Lee Grandy

(Government Securities Specialist) at

202–219–3632. (TDD for hearing

impaired: 202–219–3988.)

SUPPLEMENTARY INFORMATION:

I. Background and Analysis

The Department adopted Form G–

FIN–4 (Disclosure Form for Person

Associated with a Financial Institution

Government Securities Broker or Dealer)

in the implementing regulations for the

GSA issued on July 24, 1987 (52 FR

27910). Sections 400.4 and 449.3 1 of the

GSA regulations require the form to be

used by associated persons of financial

institutions that are government

securities brokers and dealers to provide

the financial institutions and the

appropriate regulatory agencies with

certain information concerning

employment, residence and statutory

disqualification. Under the GSA

regulations, associated persons that

have a current Form U–4 (Uniform

Application for Securities Industry

Registration or Transfer) or Form MSD–

4 (Uniform Application for Municipal

Securities Principal or Municipal

Securities Representative Associated

with a Bank Municipal Securities

Dealer) on file with their financial

institution are not required to file Form
Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Rules and Regulations 18735

2 59 FR 66496 (December 27, 1994).

3Pub. L. No. 101–429, 104 Stat. 931 (October 15,

1990). The Remedies Act gave the Securities and

Exchange Commission (‘‘SEC’’) the authority to seek

civil monetary penalties in court proceedings and

to impose monetary penalties and order

disgorgement in administrative proceedings. The

Remedies Act also provided the SEC with both

temporary and permanent cease and desist order

authority to prevent violations of securities laws.

4Pub. L. No. 101–550, 104 Stat. 2713 (November

15, 1990). The ISECA gave the SEC the authority

to bar, suspend or restrict the activities of brokerdealers and associated persons or those persons

seeking to become associated with a broker-dealer,

based upon the findings of a foreign court or foreign

securities authority. By amending the GSA, the

ISECA also gave similar authority to the appropriate

regulatory agencies for financial institutions that are

government securities brokers or dealers regarding

associated persons or those persons seeking to

become associated with such entities. The ISECA

also provided that certain types of actions taken by

foreign financial regulatory authorities will be

deemed a statutory disqualification.

5 15 U.S.C. 78c(a)(52).

6Pub. L. No. 103–202, 107 Stat. 2344 (1993).

7National Association of Securities Dealers

Notice to Members No. 91–73 (November, 1991).

8Securities Exchange Act Release No. 34–30958

(July 27, 1992), 57 FR 34028 (July 31, 1992).

G–FIN–4. Associated persons are not

required to file G–FIN–4 forms with

their financial institutions if the

institutions are exempt from filing

notice as government securities brokers

or dealers pursuant to Part 401 of the

GSA regulations.

The Department published the

amendments to Form G–FIN–4 in

proposed form on December 27, 1994,2

and the comment period closed on

January 26, 1995. Treasury received no

comments in response to the proposed

changes.

The changes to the body of Form G–

FIN–4 relate to Item 17, which requests

information concerning the disciplinary

history of the associated person. The

changes reflect amendments to the

Exchange Act by the Securities

Enforcement Remedies and Penny Stock

Reform Act of 1990 (‘‘Remedies Act’’) 3

and the International Securities

Enforcement Cooperation Act of 1990

(‘‘ISECA’’).4

Specifically, the amendments to Form

G–FIN–4 amend question C of Item 17

to add paragraph (5), which asks the

associated person whether the SEC or

the Commodity Futures Trading

Commission (‘‘CFTC’’) has ever imposed

a civil money penalty on the associated

person, or ordered the associated person

to cease and desist from any activity.

The disclosure of this additional

information corresponds to the SEC’s

expanded administrative and civil

enforcement authorities under the

Remedies Act.

The amendments to Form G–FIN–4

also add a definition of ‘‘foreign

financial regulatory authority’’ 5 to Item

17, and add this term to question 17.D.

Thus, question 17.D. now inquires

whether the associated person has ever

been the subject of a finding by any

federal regulatory agency, any state

regulatory agency or ‘‘foreign financial

regulatory authority’’. The definition of

‘‘foreign financial regulatory authority’’

added to Form G–FIN–4 is essentially

the definition the ISECA added to

section 3(a)(52) of the Exchange Act.

Questions 17.A. and 17.B. have been

amended to clarify that the inquiries

now apply to information related to

foreign as well as domestic courts.

Any associated person that

determines that additional disclosure is

required under revised Item 17 will

need to file an amendment to Form G–

FIN–4 on or promptly after the effective

date of the Form amendments. See part

II below for discussion of new filing

requirements.

The amendments also modify Item 5

to reflect the Office of Thrift

Supervision as the successor to the

Federal Home Loan Bank Board. Thus,

the ‘‘Director, Office of Thrift

Supervision’’ is now listed as one of the

appropriate regulatory agencies with

which the financial institutions may be

required to file the form.

In light of the technical changes made

by the Government Securities Act

Amendments of 1993 to the definition

of ‘‘appropriate regulatory agency’’,6 the

amendments also make corresponding

changes to Item 3 of the general

instructions for Form G–FIN–4.

These amendments ensure that Form

G–FIN–4 will provide a more complete

description of the associated person’s

disciplinary history. The amendments

to Form G–FIN–4 also conform to

similar changes made by the National

Association of Securities Dealers

(‘‘NASD’’) to Form U–4 in November

1991,7 and by the SEC to Form BD

(Uniform Application for Broker-Dealer

Registration) in July 1992.8

II. Filing Instructions

The amendments to Form G–FIN–4

become effective June 12, 1995. Thus,

all new associated persons of financial

institutions that are government

securities brokers and dealers filing on

or after that date will be required to file

the revised Form G–FIN–4 with their

institutions, though those filing before

the effective date are encouraged to use

the revised form. In addition, associated

persons that have previously filed a G–

FIN–4 should review their G–FIN–4

filings to determine whether they

contain all of the information required

by amended Item 17. To the extent that

revisions to Form G–FIN–4 result in an

affirmative answer to a question in Item

17, associated persons will be required

to file with their institution an

amendment to their Form G–FIN–4 by

June 12, 1995 (or as soon as possible

after that date). Financial institution

government securities brokers or dealers

are required to file the new or revised

G–FIN–4 forms with their appropriate

regulatory agency in accordance with

section 400.4(d)(1). Associated persons

who answer ‘‘no’’ to all of the questions

in amended Item 17 will not be required

to file an updated Form G–FIN–4 at that

time.

In consultations with the appropriate

regulatory agencies on the

implementation of the form changes, the

Department understands that the

agencies will distribute the revised

Form G–FIN–4 to their financial

institutions that are government

securities brokers and dealers so that the

institutions can provide the form to

their associated persons. Copies of the

G–FIN–4 may also be obtained by

contacting the appropriate regulatory

agencies for financial institutions.

III. Special Analysis

It has been determined that these

amendments are not a ‘‘significant

regulatory action’’ as defined in

Executive Order 12866. Therefore, a

Regulatory Assessment is not required.

In the preamble to the proposal,

pursuant to the Regulatory Flexibility

Act (5 U.S.C. 601, et seq.), the

Department certified that these

amendments to Form G–FIN–4, if

adopted, would not have a significant

economic impact on a substantial

number of small entities. Accordingly, a

regulatory flexibility analysis was not

prepared. In reviewing the final form

amendment herein and in light of the

fact that no comments were received,

the Department has concluded that

there is no reason to alter the previous

certification.

List of Subjects in 17 CFR Part 449

Banks, banking, Brokers, Government

securities, Reporting and recordkeeping

requirements.

For the reasons set out in the

Preamble, 17 CFR Part 449 is amended

as follows:

Part 449—FORMS, SECTION 15C OF

THE SECURITIES EXCHANGE ACT OF

1934

1. The authority citation for Part 449

is revised to read as follows:

Authority: 15 U.S.C. 78o–5(a), (b)(1)(B),

(b)(4).
18736 Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Rules and Regulations

2. Form G–FIN–4 is amended to revise

Item 5, Item 17 and the general

instructions to read as follows:

Note: The text of Form G–FIN–4 does not

appear in the Code of Federal Regulations.

Form G–FIN–4—Disclosure Form for

Person Associated with a Financial

Institution Government Securities

Broker or Dealer:

Item 5

Item 17

General Instructions

* * * * *

In Item 5, ‘‘Federal Home Loan Bank

Board’’ is deleted and ‘‘Director, Office

of Thrift Supervision’’ is added so that

the modified question reads: ‘‘To be

filed with the following (indicate one):

Board of Governors of the Federal

Reserve System * * * Comptroller of

the Currency * * * Federal Deposit

Insurance Corporation * * * Director,

Office of Thrift Supervision * * *

Securities and Exchange Commission.’’

In Item 17, Definitions, the term

‘‘Foreign Financial Regulatory

Authority’’ is added with the following

meaning: ‘‘Foreign Financial Regulatory

Authority—Includes any (A) foreign

securities authority; (B) other

governmental body or foreign equivalent

of a self-regulatory organization

empowered by a foreign government to

administer or enforce its laws relating to

the regulation of investment or

investment-related activities; or (C)

membership organization, a function of

which is to regulate the participation of

its members in the activities listed

above.’’

Item 17.A., ‘‘in a domestic or foreign

court’’ is added so that the modified

question reads: ‘‘Have you, within the

10 years preceding the date of this

filing, been convicted of or plead guilty

or nolo contendere (‘‘no contest’’) in a

domestic or foreign court to:’’

Item 17.B., ‘‘domestic or foreign’’ is

added so that the modified question

reads: ‘‘Has any domestic or foreign

court ever:’’

Item 17.C.(5) is added to read as

follows: ‘‘(5) imposed a civil money

penalty on you, or ordered you to cease

and desist from any activity?’’

Item 17.D., ‘‘foreign financial

regulatory authority’’ is added so that

the modified question reads: ‘‘Has any

other federal regulatory agency, any

state regulatory agency or foreign

financial regulatory authority ever:’’

Item 17.F., ‘‘other than as reported in

Items 17.A., B., or D.’’ is added so that

the modified question reads: ‘‘Has any

foreign government, court, regulatory

agency, or exchange ever entered an

order against you related to investments

or fraud other than as reported in Items

17.A., B., or D.?’’

In the general instructions to Form GFIN–4, Items 3.b., 3.c., and 3.d. are

revised to read as follows:

3.b. ‘‘The Board of Governors of the

Federal Reserve System, in the case of

a State member bank of the Federal

Reserve System, a foreign bank, an

uninsured State branch or State agency

of a foreign bank, a commercial lending

company owned or controlled by a

foreign bank (as such terms are used in

the International Banking Act of 1978),

or a corporation organized or having an

agreement with the Board of Governors

of the Federal Reserve System pursuant

to section 25 or section 25A of the

Federal Reserve Act;’’

3.c. ‘‘The Federal Deposit Insurance

Corporation, in the case of a bank

insured by the Federal Deposit

Insurance Corporation (other than a

member of the Federal Reserve System

or a Federal savings bank) or an insured

State branch of a foreign bank (as such

terms are used in the International

Banking Act of 1978);’’

3.d. ‘‘The Director of the Office of

Thrift Supervision, in the case of a

savings association (as defined in

section 3(b) of the Federal Deposit

Insurance Act) the deposits of which are

insured by the Federal Deposit

Insurance Corporation; and’’

Dated: April 3, 1995.

Frank N. Newman,

Deputy Secretary.

[FR Doc. 95–9056 Filed 4–12–95; 8:45 am]

BILLING CODE 4810–39–W

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 73

[Docket No. 87C–0316]

Listing of Color Additives Exempt

From Certification; Astaxanthin

AGENCY: Food and Drug Administration,

HHS.

ACTION: Final rule.

SUMMARY: The Food and Drug

Administration (FDA) is amending the

color additive regulations to provide for

the safe use of astaxanthin as a color

additive in the feed of salmonid fish to

enhance the color of their flesh. This

action is in response to a petition filed

by Hoffmann-La Roche, Inc.

DATES: Effective May 16, 1995, except as

to any provisions that may be stayed by

the filing of proper objections; written

objections and request for a hearing by

May 15, 1995.

ADDRESSES: Submit written objections to

the Dockets Management Branch (HFA–

305), Food and Drug Administration,

rm. 1–23, 12420 Parklawn Dr.,

Rockville, MD 20857.

FOR FURTHER INFORMATION CONTACT:

James C. Wallwork, Center for Food

Safety and Applied Nutrition (HFS–

217), Food and Drug Administration,

200 C St. SW., Washington, DC 20204,

202–418–3078.

SUPPLEMENTARY INFORMATION:

I. Background

In a notice published in the Federal

Register of December 2, 1987 (52 FR

45867), FDA announced that a color

additive petition (CAP 7C0211) had

been filed by Hoffmann-La Roche, Inc.,

340 Kingsland St., Nutley, NJ 07110–

1199. The petition requested that the

color additive regulations in part 73 (21

CFR part 73) be amended to provide for

the safe use of astaxanthin as a color

additive in the feed of salmonid fish.

The petition was filed under section

706(d) (now section 721(d)) of the

Federal Food, Drug, and Cosmetic Act

(the act) (21 U.S.C. 376(d) (now

379e(d)).

II. Safety of the Petitioned Use

Astaxanthin is 3, 3′-dihydroxy-β, βcarotene-4, 4′-dione. Pure crystalline

astaxanthin must be stored in the

absence of light, heat, and oxygen to

minimize chemical changes and

decomposition that would result in loss

of color. Thus, it is necessary to produce

a stabilized form of astaxanthin for it to

be marketed for addition to salmonid

feed for the purpose of coloring the fish

flesh.

The petitioner manufactures

crystalline astaxanthin in a stabilized

beadlet form and has presented

evidence in the petition to establish the

length of the shelf-life of this beadlet.

Under § 70.25(a)(4) (21 CFR 70.25(a)(4)),

expiration dates for the product in

sealed and open containers must be

stated on the label of a color additive.

FDA finds that, given the concerns

about shelf life, the expiration dates are

a material fact that must be disclosed on

the label of the product under sections

201(n) and 403(a)(1) of the act (21 U.S.C.

321(n) and 343(a)(1).

Astaxanthin occurs in the flesh of

wild salmon at levels ranging from

about 4 to 34 parts per million and is

responsible for its pink or red coloration

(Ref. 1). Wild salmon consume

astaxanthin as a component of their

natural diet and deposit a portion of the

astaxanthin unchanged in their flesh