[Federal Register Volume 63, Number 42 (Wednesday, March 4, 1998)]
[Notices]
[Pages 10621-10623]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5492]
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FEDERAL RESERVE SYSTEM
[Docket No. R-1000]
Privacy Act of 1974; Notice of Amendment of System of Records
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Amendment of system of records.
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SUMMARY: In accordance with the Privacy Act, the Board of Governors of
the Federal Reserve System (Board) is amending two systems of records,
entitled Individuals Who Extend Margin Credit (BGFRS-16) and Municipal
or Government Securities Principals and Representatives (BGFRS-17).
These amendments include new routine uses and reflect changes due to
revisions in the Board's regulations and relocation of some of the
records. We invite public comment on this publication.
DATES: Comment must be received on or before April 3, 1998.
ADDRESSES: Comments, which should refer to Docket No. R-1000, may be
mailed to Mr. William W. Wiles, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue, NW.,
Washington, DC 20551. Comments addressed to Mr. Wiles also may be
delivered to the Board's mail room between 8:45 a.m. and 5:15 p.m. and
to the security control room outside of those hours. The mail room and
the security control room are accessible from the courtyard entrance on
20th Street between Constitution Avenue and C Street, NW. Comments may
be inspected in Room MP-500 between 9 a.m. and 5 p.m.
FOR FURTHER INFORMATION CONTACT: Elaine M. Boutilier, Senior Counsel,
(202/452-2418), or Scott Holz, Senior Attorney, (202/452-2966), Legal
Division. For the hearing impaired only, contact Diane Jenkins,
Telecommunications Device for the Deaf (TDD)(202/452-3544), Board of
Governors of the Federal Reserve System, 20th and Constitution, NW,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
I. BGFRS-16
The amendments to this system of records, previously entitled FRB-
Regulation G Reports, reflects the Board's recent repeal of Regulation
G (12 CFR part 207) and the incorporation of its provisions into
Regulation U (12 CFR part 221). (See, 63 FR 2806, January 16, 1998.)
This system of records has also been amended to add new routine uses
that would (a) permit release of the name of a registered individual
upon
[[Page 10622]]
request; (b) permit release of information to the appropriate
governmental agency or self-regulatory organization charged with the
responsibility of enforcing or investigating the securities laws; and
(c) permit release of information in the course of litigation.
II. BGFRS-17
This system of records, previously entitled FRB-Municipal
Securities Principal and Municipal Securities Representative Records,
has been amended to reflect the Board's practice of including similar
records on government securities principals and representatives in this
database. The amendments also reflect the fact that the records are now
maintained at the Board, not at the NASD. No additions have been made
to the routine uses for this system of records.
III. Compatibility of Proposed Routine Uses
The Board is proposing these routine uses in accordance with the
Privacy Act (5 U.S.C. 552a(b)(3)). The Privacy Act permits the
disclosure of information about individuals without their consent for a
routine use where the information will be used for a purpose which is
compatible with the purpose for which the information was originally
collected. The Office of Management and Budget has indicated that a
``compatible'' use is a use which is necessary and proper. See OMB
Guidelines, 51 FR 18982, 18985 (1986). The records in BGFRS-16 are a
subset of a larger data base, the purpose of which is to maintain
records of the registration status of margin lenders (primarily
business entities) to permit the government to monitor their activities
and the public to verify their registration status. The proposed
routine uses of the data are intended to further these purposes, e.g.,
to provide borrowers with knowledge of the registered status of those
providing margin credit, which can affect the borrowers legal
liabilities; and to aid in the enforcement of the securities laws.
Accordingly, they are clearly necessary and proper uses, and therefore
``compatible'' uses which meet Privacy Act requirements.
In accordance with 5 U.S.C. 552a(r), a report of these amended
systems of records is being filed with the President of the Senate, the
Speaker of the House of Representatives, and the Director of the Office
of Management and Budget. These amendments will become effective on
April 13, 1998, without further notice, unless the Board publishes a
notice to the contrary in the Federal Register.
Accordingly, two systems of records entitled FRB-Individuals Who
Extend Margin Credit (BGFRS-16) and FRB-Municipal or Government
Securities Principals and Representatives (BGFRS-17) are amended as set
forth below.
BGFRS--16
SYSTEM NAME:
FRB--Individuals Who Extend Margin Credit.
SECURITY CLASSIFICATION:
None.
SYSTEM LOCATION:
Board of Governors of the Federal Reserve System, 20th and
Constitution, NW., Washington, DC 20551.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
Individuals other than banks, brokers and dealers who extend credit
in specified amounts secured by margin stock.
CATEGORIES OF RECORDS IN THE SYSTEM:
G-1, G-2 and G-4 Reports filed by persons registered pursuant to
Regulation U, 12 CFR part 221.
PURPOSE(s):
To maintain a current list of persons registered as margin lenders
under the securities laws.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Secs. 3, 7, 17, and 23 of the Securities Exchange Act of 1934 (15
U.S.C. 78c, 78g, 78q, and 78w), and Regulation U (12 CFR part 221).
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
The information in these records may be used to--
(a) Disclose, upon request, the name of a registered individual who
extends credit secured by margin stock;
(b) Provide information or records to any appropriate governmental
department or agency or self-regulatory organization charged with the
responsibility of administering law or investigating or prosecuting
violations of law or charged with enforcing or implementing a statute,
rule, regulation, order, policy, or license;
(c) Disclose information, when appropriate, to foreign governmental
authorities in accordance with law, and formal or informal
international agreements; and
(d) Disclose information, in the event of litigation or enforcement
action, to the appropriate court, magistrate, or administrative
tribunal; or to counsel or witnesses for the presentation of evidence
in the course of discovery, to the extent permitted by law.
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
Paper forms and files; electronic data base.
RETRIEVABILITY:
Indexed by name.
SAFEGUARDS:
Papers are retained in a secured space. Access to papers and
electronic data base by Federal Reserve staff on restricted basis.
RETENTION AND DISPOSAL:
Indefinite.
SYSTEM MANAGER(S) AND ADDRESS:
Director, Division of Banking Supervision and Regulation, Board of
Governors of the Federal Reserve System, 20th and Constitution Avenue,
NW, Washington, DC 20551.
NOTIFICATION PROCEDURE:
Inquiries should be sent to the Secretary of the Board, Board of
Governors of the Federal Reserve System, 20th and Constitution Avenue,
NW, Washington, DC 20551. The request should contain the individual's
name, date of birth, and Social Security number.
RECORD ACCESS PROCEDURES:
Same as ``Notification procedure'' above.
CONTESTING RECORD PROCEDURES:
Same as ``Notification procedure'' above.
RECORD SOURCE CATEGORIES:
Reports and forms filed by individuals to whom records pertain.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
BGFRS-17
SYSTEM NAME:
FRB--Municipal or Government Securities Principals and
Representatives.
SECURITY CLASSIFICATION:
None.
SYSTEM LOCATION:
Board of Governors of the Federal Reserve System, 20th and
Constitution, NW., Washington, DC 20551.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
Persons who are, or seek to be, municipal or government securities
[[Page 10623]]
principals or municipal or government securities representatives
associated with a municipal or government securities dealer that is a
State member bank of the Federal Reserve System or a U.S. branch of a
foreign bank, or a subsidiary or a department or division thereof.
CATEGORIES OF RECORDS IN THE SYSTEM:
These records may contain identifying information as well as
educational, employment, and disciplinary information; scores on
professional qualification examinations; and, where applicable,
information regarding termination of employment of individuals covered
by the system. Identifying information includes name, address, date and
place of birth, and may include social security account number.
PURPOSE:
To permit the Board to perform its responsibilities under the
securities laws with regard to the persons described in this system of
records.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Secs. 3, 15B, 15C, 17, and 23 of the Securities Exchange Act of
1934 (15 USC 78c, 78o-4, 78o-5, 78q, and 78w) and section 11 of the
Federal Reserve Act (12 USC 248).
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
The information in these records may be used:
(a) To refer, where there is an indication of a violation or
potential violation of law, whether civil, criminal, or regulatory in
nature, to the appropriate governmental authority, whether federal,
state, local, or foreign, or self-regulatory organization.
(b) To refer, in the event of litigation, whether civil, criminal,
or regulatory in nature, to the appropriate court, magistrate, or
administrative law judge.
(c) To assist in any proceeding in which the federal securities or
banking laws are in issue or in which the Federal Reserve Board or a
past or present member of its staff is a party or otherwise involved in
an official capacity.
(d) To disclose to a federal, state, local, or foreign governmental
authority or a self-regulatory organization if necessary in order to
obtain information relevant to a Federal Reserve Board inquiry
concerning a person who is or seeks to be associated with a municipal
or government securities dealer.
(e) To respond to a request from a federal, state, local, or
foreign governmental authority or a self-regulatory organization for
information in connection with the issuance of a license or other
benefit to the extent that such information is relevant and necessary.
(f) To disclose to a congressional office from the record of an
individual in response to an inquiry from the congressional office made
at the request of that individual.
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
Records are maintained in file folders and on computer discs.
RETRIEVABILITY:
Records are indexed by name.
SAFEGUARDS:
File folders are stored in lockable metal cabinets and computer
discs are accessed only by authorized personnel.
RETENTION AND DISPOSAL:
Records may be maintained indefinitely.
SYSTEM MANAGER(S) AND ADDRESS:
Director, Division of Banking Supervision and Regulation, Board of
Governors of the Federal Reserve System, 20th and Constitution Avenue,
NW, Washington, DC 20551.
NOTIFICATION PROCEDURE:
Inquiries should be sent to the Secretary of the Board, Board of
Governors of the Federal Reserve System, 20th and Constitution Avenue,
NW, Washington, DC 20551. The request should contain the individual's
name, date of birth, and Social Security number.
RECORD ACCESS PROCEDURES:
Same as ``Notification procedure'' above.
CONTESTING RECORD PROCEDURES:
Same as ``Notification procedure'' above.
RECORD SOURCE CATEGORIES:
Individuals on whom the records are maintained as well as municipal
or government securities dealers with whom the individuals are
associated, and federal, state, local, and foreign governmental
authorities, and self-regulatory organizations, which regulate the
securities industry.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, February 26, 1998.
William W. Wiles,
Secretary of the Board.
[FR Doc. 98-5492 Filed 3-3-98; 8:45 am]
BILLING CODE 6210-01-P
