[Federal Register Volume 61, Number 179 (Friday, September 13, 1996)]
[Rules and Regulations]
[Pages 48402-48403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23228]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 308 and 342
RIN 3064-AB81
Rules of Practice and Procedure; Applications for a Stay or
Review of Actions of Bank Clearing Agencies
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Final rule.
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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) has conducted
a review of its regulations pursuant to Section 303 of the Riegle
Community Development and Regulatory Improvement Act of 1994. As a
result, the FDIC is deleting its rules and regulations which pertain to
Applications for a Stay or Review of Actions of Bank Clearing Agencies,
and replacing them with new, more concise provisions. At the same time,
the FDIC is moving those shorter provisions to a new subpart, which
contains the FDIC's Rules of Practice and Procedure. The changes are
intended to streamline the FDIC's regulations and to remove duplicative
provisions, while maintaining uniformity in approach among the other
banking agencies and the Securities and Exchange Commission (SEC).
EFFECTIVE DATE: October 15, 1996.
FOR FURTHER INFORMATION CONTACT: John F. Harvey, Trust Review Examiner,
(202) 898-6762, or Andrea Winkler, Counsel, (202) 736-0762, Federal
Deposit Insurance Corporation, 550 17th Street, N.W., Washington, D.C.
20429.
SUPPLEMENTARY INFORMATION:
I. Background
The Securities Exchange Act of 1934 (Exchange Act) (15 U.S.C. 78 et
seq.) requires the registration of clearing agencies and implements a
system of self-regulation by registered clearing agencies. Registered
clearing agencies have the authority to impose certain disciplinary
sanctions upon participants, to deny participation in the clearing
agency, or to prohibit or limit a participant's access to services
provided by clearing agencies. (15 U.S.C. 78q-1 (b)(3)(g), (b)(5)(C)).
Persons aggrieved by such adverse actions by clearing agencies may
request a stay of such action or may appeal the action to the
appropriate regulatory agency. The FDIC is the appropriate regulatory
agency with regard to FDIC-insured banks (other than members of the
Federal Reserve System), when the appropriate regulatory agency for the
clearing agency is not the SEC. The Office of the Comptroller of the
Currency (OCC) and the Board of Governors of the Federal Reserve System
(FRB) have similar regulatory responsibilities with regard to banks
under their jurisdiction.
The FDIC's current regulations are contained in Part 342 of its
Rules and Regulations. (12 CFR Part 342) Those regulations are
identical in substance to the regulations of the SEC. (17 CFR 240.19d-2
to 240.19d-3) Therefore, the FDIC is shortening its regulatory
provisions by deleting those provisions contained in Part 342 which are
the same as those contained in the regulations of the SEC. Instead, the
FDIC is including a cross-reference to the SEC regulations in new
Subpart S to Part 308 of its Rules and Regulations.
II. Section-by-Section Summary
Part 308--Rules of Practice and Procedure
Subpart S--Applications for a Stay or Review of Actions of Bank
Clearing Agencies
Section 308.400 Scope
This section is identical to current section 342.1 of the FDIC's
regulations and sets forth the authority for the regulations and the
entities to which the regulations apply.
Section 308.401 Applications for Stays of Disciplinary Sanctions or
Summary Suspensions by a Bank Clearing Agency
This section has been shortened to reflect that applications for a
stay of a disciplinary action pursuant to section 17(b)(3)(G) of the
Exchange Act, or summary suspension or limitation or prohibition of
access to services under section 17(b)(5)(C) of the Exchange Act, may
be filed with the Corporation according to the procedures set forth in
the regulations of the SEC (17 CFR 240.19d-2), which are identical in
substance to those currently contained in Sec. 342.2 of the FDIC's
regulations. References to the Commission in the regulations of the SEC
will be deemed to be references to the Corporation for purposes of this
section.
Section 308.402 Applications for Review of Final Disciplinary
Sanctions, Denials of Participation, or Prohibitions or Limitations of
Access to Services Imposed by Bank Clearing Agencies
This section has been shortened to reflect that an application to
the Corporation under section 19(d)(2) of the Exchange Act for review
of any final disciplinary sanctions, denials of participation, or
prohibitions or limitations of access to services imposed by bank
clearing agencies shall be conducted according to the procedures set
forth in the regulations of the SEC (17 CFR 240.19d-3), which are
identical in substance to those currently contained in Sec. 342.3 of
the FDIC's regulations. References to the Commission in the regulations
of the SEC will be deemed references to the Corporation for purposes of
this section.
III. Regulatory Flexibility Act
Chapter 6 of Title 5 of the United States Code which pertains to
``The Analysis of Regulatory Functions'' does not apply to the final
rule regarding Part 342. The revision to Part 342 is not a ``rule'' for
purposes of that statute (see 5 U.S.C. 601(2)) as it is not a rule for
which the FDIC is required to publish a general notice of proposed
rulemaking under section 553(b) of Title 5 of the United States Code.
This is because the final rule contains only technical changes and
makes no substantive or procedural changes to existing rules, and
therefore, the FDIC has determined for good cause that public notice
and comment is unnecessary, and that the rule should be published in
final form.
IV. Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act of 1996
(Pub. L. 104-121, 104th Cong., 2d Sess. (1996)) provides generally for
agencies to report rules to Congress and for Congress to review the
rules. The reporting requirement is triggered in instances where the
FDIC issues a final rule as defined by the Administrative Procedure Act
at 5 U.S.C. 551. The FDIC will file the appropriate reports pursuant to
the statute.
The Office of Management and Budget has determined that this final
revision
[[Page 48403]]
to Part 342 does not constitute a ``major'' rule as defined by the
statute.
V. Exemption From Public Notice and Comment
Because the FDIC finds that the new rules are the same in substance
as those currently found in Part 342, and that the changes are purely
technical in nature, the FDIC has determined for good cause that public
notice and comment is unnecessary, and that the rule should be
published in final form.
VI. Effective Date
The Administrative Procedure Act (5 U.S.C. 551 et seq.) provides
that regulations shall become effective thirty days after their
publication in the Federal Register. 5 U.S.C. 553. Thus, this amendment
to Part 308 and Part 342 of the FDIC's regulations shall become
effective on October 15, 1996.
List of Subjects
12 CFR Part 308
Administrative practice and procedure, Banks, banking, Claims,
Crime, Equal access to justice, Lawyers, Penalties, State nonmember
banks.
12 CFR Part 342
Administrative practice and procedure, Banks, banking.
For the reasons set out in the preamble, and under the authority of
12 U.S.C. 1819, chapter III of title 12 of the Code of Federal
Regulations is amended as set forth below:
PART 308--RULES OF PRACTICE AND PROCEDURE
1. The authority citation for part 308 is revised to read as
follows:
Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 164, 505,
1817, 1818, 1820, 1831o, 1972, 3102, 3108(a), 3909, 4717; 15 U.S.C.
78 (h) and (i), 78o-4(c), 78o-5, 78q-1, 78s, 78u, 78u-2, 78u-3, and
78w; 31 U.S.C. 330, 5321; 42 U.S.C. 4012a.
2. A new Subpart S comprising Secs. 308.400 through 308.402 is
added to Part 308 to read as follows:
Subpart S--Applications for a Stay or Review of Actions of Bank
Clearing Agencies
Sec.
308.400 Scope.
308.401 Applications for stays of disciplinary sanctions or summary
suspensions by a bank clearing agency.
308.402 Applications for review of final disciplinary sanctions,
denials of participation, or prohibitions or limitations of access
to services imposed by bank clearing agencies.
Subpart S--Applications for a Stay or Review of Actions of Bank
Clearing Agencies
Sec. 308.400 Scope.
This subpart is issued by the Corporation pursuant to sections
17A(b)(3)(g), 17A(b)(5)(C), 19 and 23 of the Securities Exchange Act of
1934 (Exchange Act), as amended (15 U.S.C. 78q-1 (b)(3)(g), (b)(5)(C),
78s, 78w). It applies to applications by banks insured by the
Corporation (other than members of the Federal Reserve System) for a
stay or review of certain actions by clearing agencies registered under
the Exchange Act, for which the Securities and Exchange Commission
(Commission) is not the appropriate regulatory agency under section
3(a)(34)(B) of the Exchange Act (bank clearing agencies).
Sec. 308.401 Applications for stays of disciplinary sanctions or
summary suspensions by a bank clearing agency.
Applications to the Corporation for a stay of disciplinary action
imposed by registered clearing agencies pursuant to section 17(b)(3)(G)
of the Exchange Act, or summary suspension or limitation or prohibition
of access under section 17(b)(5)(C) of the Exchange Act shall be made
according to the rules adopted by the Commission (17 CFR 240.19d-2).
References to the ``Commission'' in 17 CFR 240.19d-2 are deemed to
refer to the ``Corporation.''
Sec. 308.402 Applications for review of final disciplinary sanctions,
denials of participation, or prohibitions or limitations of access to
services imposed by bank clearing agencies.
Proceedings on an application to the Corporation under section
19(d)(2) of the Exchange Act for review of any final disciplinary
sanctions, denials of participation, or prohibitions or limitations of
access to services imposed by bank clearing agencies shall be conducted
according to the procedures set forth in rules adopted by the
Commission (17 CFR 240.19d-3). References to the ``Commission'' in 17
CFR 240.19d-3 are deemed to refer to the ``Corporation.''
PART 342--[REMOVED AND RESERVED]
1. Part 342 is removed and reserved.
By order of the Board of Directors.
Dated at Washington, DC, this 13th day of August 1996.
Federal Deposit Insurance Corporation.
Jerry L. Langley,
Executive Secretary.
[FR Doc. 96-23228 Filed 9-12-96; 8:45 am]
BILLING CODE 6714-01-P
