Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Rules and Regulations 18733

1 17 CFR 405.2 and 17 CFR 449.5, respectively.

2 60 FR 5602 (January 30, 1995).

93 Stat. 503 (50 U.S.C. App. 2401 et seq.), as

amended; Pub. L. 102–484, 106 Stat. 2575 (22

U.S.C. 6004); E.O. 12002 of July 7, 1977 (42

FR 35623, July 7, 1977), as amended; E.O.

12058 of May 11, 1978 (43 FR 20947, May

16, 1978); E.O. 12214 of May 2, 1980 (45 FR

29783, May 6, 1980); E.O. 12730 of

September 30, 1990 (55 FR 40373, October 2,

1990), as continued by Notice of September

25, 1992 (57 FR 44649, September 28, 1992);

E.O. 12924 of August 19, 1994 (59 FR 43437,

August 23, 1994); and E.O. 12938 of

November 14, 1994 (59 FR 59099 of

November 16, 1994).

PART 771—[AMENDED]

3. Part 771 is amended by adding a

new § 771.27 to read as follows:

§ 771.27 General license G–BETA; Exports

of beta test software.

(a) Scope. A General License

designated G–BETA is established

subject to the provisions of this section

authorizing exports and reexports to

eligible countries of beta test software

intended for distribution to the general

public.

(b) Eligible countries. The countries

that are eligible to receive exports and

reexports under this General License are

all countries except those listed in

Country Groups S and Z, Iran, Iraq,

Sudan, and Syria.

(c) Eligible software. All software that

is controlled by the Commerce Control

List (see Supplement No. 1 to Part 799.1

of this subchapter), and under

Commerce licensing jurisdiction, is

eligible for export and reexport under

General License G–BETA, subject to the

restrictions set forth in this section.

(d) Conditions for use. Any beta test

software program may be exported or

reexported to eligible countries if all of

the conditions under this section are

met:

(1) The software producer intends to

market the software to the general

public after completion of the beta

testing, as described in the General

Software Note found in Supplement No.

2 to Part 799.1 of this subchapter;

(2) The software producer provides

the software to the testing consignee

free-of-charge or at a price that does not

exceed the cost of reproduction and

distribution; and

(3) The software is designed for

installation by the end-user without

further substantial support from the

supplier.

(e) Importer statement. Prior to

shipping any eligible software under

General License G–BETA, the exporter

or reexporter must obtain the following

statement from the testing consignee,

which may be included in a contract,

non-disclosure agreement, or other

document that identifies the importer,

the software to be exported, the country

of destination, and the testing

consignee:

We certify that this beta test software will

only be used for beta testing purposes, and

will not be rented, leased, sold, sublicensed,

assigned, or otherwise transferred. Further,

we certify that we will not transfer or export

any product, process, or service that is the

direct product of the beta test software.

(f) Use limitations. Only testing

consignees that provide the importer

statement required by paragraph (e) of

this section may execute any software

received under General License G–

BETA.

(g) Return or disposal of software. All

beta test software exported under

General License G–BETA must be

destroyed abroad or returned to the

exporter within 30 days of the end of

the beta test period as defined by the

software producer or, if the software

producer does not define a test period,

within 30 days of completion of the

consignee’s role in the test. Among

other methods, this requirement may be

satisfied by a software module that will

destroy the software and all its copies at

or before the end of the beta test period.

PART 779—[AMENDED]

4. Part 779.2 is amended in the last

sentence by revising the phrase ‘‘exports

to Canada 7,8’’ to read ‘‘exports to

Canada 7,8, and exports of beta test

software eligible for General License G–

BETA.’’.

Dated: April 10, 1995.

Sue E. Eckert,

Assistant Secretary for Export

Administration.

[FR Doc. 95–9157 Filed 4–12–95; 8:45 am]

BILLING CODE 3510–DT–P

DEPARTMENT OF THE TREASURY

Office of the Under Secretary for

Domestic Finance

17 CFR Parts 400, 403, 405 and 449

Form G–405

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–405

(Report on Finances and Operations of

Government Securities Brokers and

Dealers, or the ‘‘FOGS Report’’), which

is the form that registered government

securities brokers and dealers are

required to file pursuant to §§ 405.2 and

449.5 of the regulations issued under

the Government Securities Act of 1986

(the ‘‘Government Securities Act’’ or

‘‘GSA’’). The amendments revise

Schedule I of the FOGS Report filed

with the Securities and Exchange

Commission (‘‘SEC’’) to require

registered government securities brokers

and dealers to disclose their affiliations,

if any, with U.S. banks. 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:

Background and Analysis

The Department adopted Form G–405

in the implementing regulations for the

GSA issued on July 24, 1987 (52 FR

27910). Sections 405.2 and 449.5 1 of the

GSA regulations require that registered

government securities brokers and

dealers use the form to make the

required monthly, quarterly and annual

financial reports to the SEC or to their

self-regulatory organization in

accordance with a plan approved by the

SEC. Pursuant to the regulations,

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 as determined in

accordance with § 402.2, among other

items, on Form G–405.

To supplement either Part II or IIA of

the FOGS Report, registered government

securities brokers and dealers are also

required to file Schedule I at the end of

each calendar year. The purpose of this

schedule is to obtain information about

the economic and financial

characteristics of the reporting

government securities broker or dealer.

The Department published the

amendments to Form G–405 in

proposed form on January 30, 1995,2

and the comment period closed on

March 1, 1995. Treasury received no

comments and these final changes to the

form are identical to the proposed

changes.

The amendments to Form G–405 add

a new item 15 to request information

about an affiliation with, or control by,

a U.S. bank. Current items 15 through

18 become items 16 through 19,

respectively. The new inquiry requires a

yes or no response, and if the response
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