Recordkeeping Provisions Associated with the Guidance on Sound Incentive Compensation Policies

Forms and Documents

Document	Type	Status	Availability
FR4027_20100625_omb.doc	Supporting Statement A	Uploaded 2010-06-25	Available
FR4027_OP1374_20100625_ICG_nfrm_.pdf	Supplementary Document	Uploaded 2010-06-25	Available
FR4027_OP1374_20100621_ICG_nfrm_pr.pdf	Supplementary Document	Uploaded 2010-06-25	Available
FR4027.OP_1374.20091022.ICG.PR.Q_A.pdf	Supplementary Document	Uploaded 2009-12-11	Available
FR4027.OP_1374.20091027.ICG.nprm.pdf	Supplementary Document	Uploaded 2009-12-09	Available
FR4027.OP_1374.20091022.ICG.PR.pdf	Supplementary Document	Uploaded 2009-12-09	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
193397	Incentive Compensation Policy and Procedures Ongoing maintenance	Other-Final Guidance	New
193396	Incentive Compensation Policy and Procedures (One-time Implementation) Small Institutions	Other-Final Guidance	New
191525	Incentive Compensation Policy and Procedures (One-time Implementation) Large Institutions	Other-Final Guidance	New

ICR Details

OMB Control No: 7100-0327	ICR Reference No: 200912-7100-004
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: FRS	Agency Tracking No: FR 4027
Title: Recordkeeping Provisions Associated with the Guidance on Sound Incentive Compensation Policies
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Delegated
OIRA Conclusion Action: Approved without change	Conclusion Date: 06/25/2010
	Date Received in OIRA: 06/25/2010
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2013	36 Months From Approved
Responses	13,120	0	0
Time Burden (Hours)	1,388,000	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: The proposed guidance includes two supervisory initiatives. First, the Federal Reserve would conduct a special horizontal review of incentive compensations practices at 28 large complex banking organizations. The policies and implementing practices adopted by these firms in response to the final supervisory principles would become a part of the supervisory expectations for each firm and would be monitored for compliance. Second, the Federal Reserve would review incentive compensation practices at regional, community, and other banking organizations not classified as large and complex as part of the regular, risk-focused examination process. These reviews would be tailored to take account of the size, complexity, and other characteristics of the banking organization.

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Authorizing Statute(s): US Code: 12 USC 248(a), 248(i), 324,602,625 Name of Law: Federal Reserve Act
   US Code: 12 USC 1844 Name of Law: Bank Holding Company Act
   US Code: 12 USC 1305(c) Name of Law: International Banking Act
   US Code: 5 USC 552(b)(8) and 552(b)(4) Name of Law: Freedom of Information Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	74 FR 55227	10/27/2009
30-day Notice:	Federal Register Citation:	Citation Date:
	75 FR 36395	06/25/2010
Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Incentive Compensation Policy and Procedures (One-time Implementation) Large Institutions
Incentive Compensation Policy and Procedures Ongoing maintenance
Incentive Compensation Policy and Procedures (One-time Implementation) Small Institutions

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	13,120	0	0	13,120	0	0
Annual Time Burden (Hours)	1,388,000	0	0	1,388,000	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The Federal Reserve has identified certain aspects of the proposed guidance (policies and procedures) that may constitute a collection of information. Under Principle 2 of the Guidance (Compatibility with Effective Controls and Risk Management) a banking organization should establish strong controls governing its process for designing, implementing, and monitoring incentive compensation arrangements. Under Principle 3 of the Guidance (Strong Corporate Governance) a banking organization’s board of directors should review and approve the overall goals and purposes of the firm’s incentive compensation system. The board should provide clear direction to management to ensure that its policies and procedures are carried out in a manner that achieves balance and is consistent with safety and soundness.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 06/25/2010

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