2016-18212

Federal Register, Volume 81 Issue 148 (Tuesday, August 2, 2016)

[Federal Register Volume 81, Number 148 (Tuesday, August 2, 2016)]

[Notices]

[Pages 50692-50693]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2016-18212]

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COMMODITY FUTURES TRADING COMMISSION

Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act of 1995 (PRA),

this notice announces that the Information Collection Request (ICR)

abstracted below has been forwarded to the Office of Management and

Budget (OMB) for review and comment. The ICR describes the nature of

the information collection and its expected costs and burden.

DATES: Comments must be submitted on or before September 1, 2016.

ADDRESSES: Comments regarding the burden estimated or any other aspect

of the information collection, including suggestions for reducing the

burden, may be submitted directly to the Office of Information and

Regulatory Affairs (OIRA) in OMB, within 30 days of the notice's

publication, by email at [email protected]. Please identify

the comments by OMB Control No. 3038-0067. Please provide the

Commission with a copy of all submitted comments at the address listed

below. Please refer to OMB Reference No. 3038-0067, found on http://reginfo.gov. Comments may also be mailed to the Office of Information

and Regulatory Affairs, Office of Management and Budget, Attention:

Desk Officer for the Commodity Futures Trading Commission, 725 17th

Street NW., Washington, DC 20503 or through the Agency's Web site at

http://comments.cftc.gov. Follow the instructions for submitting

comments through the Web site.

Comments may also be mailed to: Christopher Kirkpatrick, Secretary

of the Commission, Commodity Futures Trading Commission, Three

Lafayette Centre, 1155 21st Street NW., Washington, DC 20581 or by Hand

Delivery/Courier at the same address.

A copy of the supporting statements for the collection of

information discussed above may be obtained by visiting http://

RegInfo.gov. All comments must be submitted in English, or if not,

accompanied by an English translation. Comments will be posted as

received to http://www.cftc.gov.

For Further Information or a Copy Contact: Sue McDonough, Counsel,

Office of General Counsel, Commodity Futures Trading Commission, (202)

418-5132; email: [email protected], and refer to OMB Control No.

3038-0067.

SUPPLEMENTARY INFORMATION:

Title: Part 162 Subpart C--Identity Theft Rule (OMB Control No.

3038-0067). This is a request for extension of a currently approved

information collection.

Abstract: This collection of information is needed because under

part 162 subpart C--Identify Theft, CFTC-regulated entities are

required to develop and implement reasonable policies and procedures to

identify, detect, and respond to relevant red flags (the Identity Theft

Red Flags Rules) and, in the case of entities that issue credit or

debit cards, to assess the validity of, and communicate with

cardholders regarding, address changes. Section 162.30 includes the

following information collection requirements for each CFTC-regulated

entity that qualifies as a ``financial institution'' or ``creditor''

under part 162 subpart C and that offers or maintains covered accounts:

(i) Creation and periodic updating of an identity theft prevention

program (``Program'') that is approved by the board of directors, an

appropriate committee thereof, or a designated senior management

employee; (ii) periodic staff reporting to the board of directors on

compliance with the Identity Theft Red Flags Rules and related

guidelines; and (iii) training of staff to implement the Program.

Section 162.32 includes the following information collection

requirements for each CFTC-regulated entity that is a credit or debit

card issuer: (i) Establishment of policies and procedures that assess

the validity of a change of address notification if a request for an

additional or replacement card on the account follows soon after the

address change; and (ii) notification of a cardholder, before issuance

of an additional or replacement card, at the previous address or

through some other previously agreed-upon form of communication, or

alternatively, assessment of the validity of the address change request

through the entity's established policies and procedures. The

Commission uses the collection of information to discharge its

regulatory responsibilities to protect investors from the risks of

identity theft.

[[Page 50693]]

CFTC staff estimates of the hour burdens associated with section

162.30 include the one-time burden of complying with this section for

newly-formed CFTC-regulated entities, as well as the ongoing costs of

compliance for all CFTC-regulated entities. With respect to the one-

time burden hours, staff estimates that each newly-formed financial

institution or creditor would incur a burden of 2 hours to conduct an

initial assessment of covered accounts. Staff estimates that

approximately 572 CFTC-regulated financial institutions and creditors

are newly formed each year, and the total estimated one-time burden to

initially assess covered accounts is therefore 1,144 hours. Staff also

estimates that each financial institution or creditor that maintains

covered accounts would incur an additional initial burden of 29 hours

to develop and obtain board approval of a Program and hours to train

the staff of the financial institution or creditor. Staff estimates

that approximately 47 \1\ CFTC-regulated financial institutions and

creditors that maintain covered accounts are newly formed each year,

and thus the total estimated one-time burden to develop and obtain

board approval of a Program and train staff is 1,363 hours. Thus, the

total initial estimated burden for all newly-formed CFTC-regulated

entities is 2,507 hours (1,144 hours + 1,363 hours).

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\1\ Based on a review of new registrations typically filed with

the CFTC each year, CFTC staff estimates that approximately 6

futures commission merchants (``FCMs''), 83 introducing brokers

(``IBs''), 282 commodity trading advisors (``CTAs), and 198

commodity pool operators (``CPOs'') are newly formed each year, for

a total of 572 entities. CFTC staff also has observed that

approximately 50 percent of all CPOs are dually registered as CTAs.

With respect to RFEDs, CFTC staff has observed that all entities

registering as RFEDs also register as FCMs. Based on these

observation, CFTC has determined that the total number of newly-

formed financial institutions and creditors is 470 (569-99 CPOs that

are also registered as CTAs). There were no newly registered RFEDs,

SDs, or MSPs. Each of these 470 financial institutions or creditors

would bear the initial one-time burden of compliance. Of the total

470 newly-formed entities, staff estimates that all of the FCMs are

likely to carry covered accounts, 10 percent of CTAs and CPOs are

likely to carry covered accounts, and none of the IBs are likely to

carry covered accounts, for a total of 47 newly-formed financial

institutions or creditors carrying covered accounts that would be

required to conduct an initial one-time burden of compliance with

subpart C of part 162.

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With respect to ongoing annual burden hours, CFTC staff estimates

that each financial institution or creditor would incur a burden of 2

hours to periodically assess whether it offers or maintains covered

accounts. Staff estimates that there are approximately 3,956 CFTC-

regulated entities that are either financial institutions or creditors,

and the total estimated annual burden to periodically assess covered

accounts is therefore 7,912 hours. Staff also estimates that each

financial institution or creditor that maintains covered accounts would

incur an additional annual burden of 4 hours to prepare and present an

annual report to the board and 2 hours to periodically review and

update the Program. Staff estimates that there are approximately 47

CFTC-regulated entities that are financial institutions or creditors

that offer or maintain covered accounts, and thus the total estimated

additional annual burden for these entities is 282 hours. Thus, the

total ongoing annual estimated burden for all CFTC-regulated entities

is 8,194 hours (7912 hours + 282 hours).

The collections of information required by section 162.32 will

apply only to CFTC-regulated entities that issue credit or debit cards.

CFTC staff understands that CFTC-regulated entities generally do not

issue credit or debit cards, but instead may partner with other

entities, such as banks, that issue cards on their behalf. These other

entities, which are not regulated by the CFTC, are already subject to

substantially similar change of address obligations pursuant to other

federal regulators' identity theft red flags rules. Therefore, staff

does not expect that any CFTC-regulated entities will be subject to the

information collection requirements of section 163.32, and accordingly,

staff estimates that there is no hour burden related to section 162.32

for CFTC-regulated entities.

In total, CFTC staff estimates that the aggregate annual

information collection burden of part 162 subpart C is 10,701 hours

(2,507 hours + 8,194 hours). This estimate of burden hours is made

solely for the purposes of the Paperwork Reduction Act and is not

derived from a quantitative, comprehensive, or even representative

survey or study of the burdens associated with Commission rules and

forms. Compliance with part 162 subpart C, including compliance with

the information collection requirements thereunder, is mandatory for

each CFTC regulated entity that qualifies as a ``financial

institution'' or ``creditor'' under part 162 subpart C (as discussed

above, certain collections of information under part 162 subpart C are

mandatory only for financial institutions or creditors that offer or

maintain covered accounts).

The Commission did not receive any comments on the 60-day Federal

Register notice, 81 FR 35001, dated June 1, 2016.

Estimated Number of Respondents: 4,622.

Estimated Average Burden Hours per Respondent: 2.32.

Estimated Total Annual Burden Hours: 10,723.\2\

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\2\ This total annual burden hour reflects a slight increase in

the estimated total annual burden hours to account for the average

burden hours per respondent of 2.32 hours.

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Frequency of Collection: Once.

There are no capital costs or operating and maintenance costs

associated with this collection.

Authority: 44 U.S.C. 3501 et seq.

Dated: July 27, 2016.

Christopher J. Kirkpatrick,

Secretary of the Commission.

[FR Doc. 2016-18212 Filed 8-1-16; 8:45 am]

BILLING CODE 6351-01-P

 

Last Updated: August 2, 2016