FRY6_FRY7_FRY10_20121201_omb

Supporting Statement for
Report of Changes in Organizational Structure; Supplement to the Report of Changes in
Organizational Structure; Annual Report of Bank Holding Companies; and
Annual Report of Foreign Banking Organizations
(FR Y-10, FR Y-10E, FR Y-6, and FR Y-7; OMB No. 7100-0297)
Summary
The Board of Governors of the Federal Reserve System, under delegated authority from
the Office of Management and Budget (OMB) proposes to extend, with revision, the following
mandatory information collections (OMB No. 7100-0297):
 Report of Changes in Organizational Structure (FR Y-10),
 Annual Report of Bank Holding Companies (FR Y-6), and
 Annual Report of Foreign Banking Organizations (FR Y-7).
This family of reports also contains the following mandatory report, which is being extended
without revision:
 Supplement to the Report of Changes in Organizational Structure (FR Y-10E).
The FR Y-10 is an event-generated information collection submitted by foreign banking
organizations (FBOs); top-tier bank holding companies (BHCs); state member banks unaffiliated
with a BHC; Edge and agreement corporations that are not controlled by a member bank, a
domestic BHC, or a FBO; and nationally chartered banks that are not controlled by a BHC (with
regard to their foreign investments only), to capture changes in their regulated investments and
activities. The Federal Reserve uses the data to monitor structure information on subsidiaries
and regulated investments of these entities engaged in banking and nonbanking activities. The
FR Y-10E is a free-form supplement that may be used to collect additional structural information
deemed to be critical and needed in an expedited manner.
The FR Y-6 is an annual information collection submitted by top-tier BHCs and
nonqualifying FBOs. It collects financial data, an organization chart, verification of domestic
branch data, and information about shareholders. The Federal Reserve uses the data to monitor
holding company operations and determine holding company compliance with the provisions of
the Bank Holding Company Act (BHC Act) and Regulation Y (12 CFR 225).
The FR Y-7 is an annual information collection submitted by qualifying FBOs to update
their financial and organizational information with the Federal Reserve. The FR Y-7 collects
financial, organizational, and managerial information. The Federal Reserve uses information to
assess an FBO’s ability to be a continuing source of strength to its U.S. operations and to
determine compliance with U.S. laws and regulations.
The Federal Reserve proposes to revise the FR Y-10 reporting forms and instructions by
(1) expanding the entities that must report to include savings and loan holding companies
(SLHCs) and securities holding companies (SHCs) as authorized under Sections 312 and 618 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank
Act), 12 U.S.C. 5412 and 1850a(c)(1), (2) adding a Savings and Loan Schedule, (3) adding Legal

Authority Codes on Appendix A for SLHCs, (4) deleting several Nonbanking Company Types
on the Nonbanking Schedule (since these entities would now be reported on the Savings and
Loan Schedule), (5) expanding data item 3 on the Large Merchant Banking or Insurance
Company Investments Section for respondents to report changes to information previously
reported, and (6) incorporating several instructional clarifications. In addition, the Federal
Reserve proposes to collect a one-time verification of an SLHC's organizational structure as a
supplement to the FR Y-10, derived from the Federal Reserve’s National Information Center
(NIC) database. These data would allow the Federal Reserve to establish baseline information
before SLHCs become subject to the FR Y-10 event-generated reporting.
The Federal Reserve proposes to revise the FR Y-6 reporting form and instructions by (1)
revising the title from the Annual Report of Bank Holding Companies to the Annual Report of
Holding Companies and (2) expanding the entities that must report to include SHCs as
authorized 618 of the Dodd-Frank Act (12 U.S.C. 1850a(c)(1)). In addition, the Federal Reserve
proposes to incorporate several FR Y-6 instructional clarifications.
The Federal Reserve proposes to consolidate the FR Y-7 glossary definitions into the FR
Y-10 glossary and add a footnote to RI-5 for the definition of “Combined Financial Statements.”
In addition, the Federal Reserve proposes incorporating several FR Y-7 instructional
clarifications.
The proposed changes to the FR Y-6 and FR Y-7 reporting form and instructions would
be effective with fiscal year-ends beginning December 31, 2012. The proposed FR Y-10
verification for SLHCs would be effective as of October 1, 2012. The proposed changes to the
FR Y-10 reporting form and instructions would be effective December 1, 2012.
The current annual reporting burden for the structure reporting forms and instructions is
estimated to be 45,402 hours. The proposed revisions would result in a net increase in burden of
12,610 hours.
Background and Justification
FR Y-10
The Changes in Investments and Activities of Top-Tier Financial Holding Companies,
Bank Holding Companies, and State Member Banks (FR Y-6A; OMB No. 7100–0124) was
created in 1985 to capture structure information for new BHCs or BHCs that had undergone a
change in their structure. In April 2000, the Federal Reserve revised the FR Y-6A to collect
information on changes in investments and activities related to the Gramm-Leach-Bliley Act of
1999 (GLB Act) from Financial Holding Companies (FHCs) and unaffiliated state member
banks. In September 2001, the Federal Reserve replaced the FR Y-6A with the FR Y-10 to
reduce the burden and costs associated with submitting this information. This revision made the
submission of structure information by domestic and foreign banking organizations more similar,
increased the thresholds for investments to be included, reduced the types of investments to be
included, streamlined the method for indicating the percentage ownership of nonbanking
investments, and simplified the submission of legal authority and activity codes. Finally, the

2

submission of certain information on the structure of foreign investments was moved from the
Report of Changes in Foreign Investments (Made Pursuant to Regulation K) (FR 2064; OMB
No. 7100-0109) to the FR Y-10, and the FR 2064 was changed to a recordkeeping requirement.
In 2004, the Federal Reserve revised the FR Y-10 reporting forms and instructions to
reduce respondent burden. The revisions to the reporting forms consisted primarily of
reorganizing data items into separate schedules for banking and nonbanking investments. In
addition, the Federal Reserve replaced FRS activity codes with the North American Industrial
Classification System codes. In 2007, the Federal Reserve combined the FR Y-10 with the
Report of Changes in FBO Organizational Structure (FR Y-10F), the Supplement to the Report
of Changes in Organizational Structure (FR Y-10S), and the Notification of Foreign Branch
Status (FR 2058) to streamline the reporting of organizational structure data. In April 2008, the
Federal Reserve implemented a new schedule on the FR Y-10 to collect data on domestic
branches of depository institutions and Edge and agreement corporations. Later in 2008, the
Federal Reserve revised the FR Y-10 reporting forms and instructions by adding a data item to
collect the tax identification number to the Banking and Nonbanking Schedules.
In 2011, the Federal Reserve added “State or Country (if foreign) of Incorporation” to the
FR Y-10 form and instructions to make the distinction between physical location and state or
country of incorporation. In addition, the Federal Reserve added the following to the FR Y-10
reporting form (1) a new business organization type for limited liability limited partnership, (2) a
check box to report whether ownership is in the form of a general partner or limited partner, and
(3) event types to the large merchant banking schedule. The Federal Reserve also revised the FR
Y-10 to require the reporting of the parent of the representative office when there are no other
reportable offices in the United States.
The Federal Reserve System uses this information to monitor the activities of reportable
companies to ensure that the activities are conducted in a safe and sound manner. The FR Y-10
data provide the Federal Reserve with information integral to monitoring compliance with the
BHC Act, the GLB Act, the Federal Reserve Act, Regulation Y, and Regulation K.
Additionally, the FR Y-10 is the only source of information collected by a banking agency that
captures detailed information on the structure of the banking organizations described in the
Respondent Panel section below. This information is not available from other sources.
FR Y-10E
The Federal Reserve implemented the FR Y-10E, effective June 30, 2007, to create a
free-form supplement to the FR Y-10 so that, should there be an immediate need for critical
organizational structural information, the necessary data could be collected on this supplement at
the earliest practicable date. This supplement may only be used to meet new legislative
requirements, answer Congressional inquiries, or respond to critical market events that could not
be addressed in a timely manner if the Federal Reserve were required to seek approval through
the reports clearance process.

3

FR Y-6
Section 5(c) of the BHC Act authorizes the Federal Reserve to require BHCs to keep the
Federal Reserve informed, in part, of their financial condition, risk management systems, and
transactions with bank subsidiaries. Annual reports have been collected in some form since the
implementation of the Bank Holding Company Act of 1956. In 1976, the FR Y-6 was revised to
eliminate certain information no longer required and to redefine the types of financial and
structural information for regulatory purposes. In 1985, the Annual Report of Domestic Bank
Holding Companies (FR Y-6) was restructured to collect only financial information.
Data from the FR Y-6 enable the Federal Reserve to monitor holding company
operations, ensure that operations are conducted in a safe and sound manner, and determine
holding company compliance with the provisions of the BHC Act and Regulation Y. The data
collected about shareholders, directors, officers and others provide valuable information, which
is used for supervisory purposes in various ways. For example, data on outside business interests
of directors and officers aid in identifying chain banking organizations by indicating when an
individual owns 25 percent or more of each of two or more banking organizations. In addition,
information on the principal owners and directors is of supervisory importance since these
individuals have a significant effect on the policies and condition of banking organizations.
Furthermore, information on the outside business interests of insiders can be useful in
uncovering situations that involve a conflict of interest or preferential treatment in the granting of
credit. Finally, information on ownership helps the Federal Reserve monitor compliance with
the Change in Bank Control Act.
In December 2007, the Federal Reserve added a requirement for institutions to verify a
list of domestic branches for each depository institution and Edge or agreement corporation in
the organization. In 2008, the Federal Reserve added a certification requirement to the FR Y-6
reporting forms related to information regarding individuals contained in the submission. In
2011, the Federal Reserve approved the addition of “State or Country (if foreign) of
Incorporation,” with a delayed implementation of December 31, 2012. In addition, the Federal
Reserve approved adding SLHCs to the FR Y-6 respondent panel; SLHCs will begin filing the
annual FR Y-6 report with fiscal year ends beginning December 31, 2012.1
A number of BHCs are not inspected annually. Therefore, annual submission of this
information in the FR Y-6 is essential for supervisory purposes because it provides information
between BHC inspections. The timely collection of these data in a supervisory report enhances
the Federal Reserve’s efforts to monitor BHC activities.
The FR Y-6 data are available to other federal banking agencies for use in their
supervision of national and state nonmember banks. In addition, the FR Y-6 serves as a source
of information on BHCs for the public and for responses to information requests from Congress.
This information is not available from other sources.

1 (76 FR 53129) August 25, 2011 and (76 FR 81933) December 29, 2011.

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FR Y-7
The Federal Reserve implemented the FR Y-7 in January 1972 and required only foreign
banks that controlled U.S. subsidiary banks to file. With the enactment of the International
Banking Act of 1978 (IBA), the Congress established a framework for federal regulation of
foreign banks operating in U.S. financial markets. Section 7 of the IBA authorizes the Federal
Reserve to examine U.S. branches, agencies, and subsidiary commercial lending companies of
foreign banks and to assess the condition of the multi-state banking operations of foreign banks.
Section 8(a) of the IBA states that foreign banks that engage in banking in the United States
through a U.S. branch, agency or subsidiary commercial lending company and companies that
control such foreign banks are subject to the provisions of the BHC Act, as amended.
Given these statutory responsibilities, the Federal Reserve issued two policy statements2
on the supervision of FBOs that control a U.S. subsidiary bank. They stated that the Federal
Reserve needed full financial information on foreign parent organizations to assess the foreign
parent’s ability to continue to serve as a source of strength for their U.S. operations. In 1980, as
part of its implementation of those policy statements, the Federal Reserve issued a revised FR Y7 reporting form setting forth annual reporting requirements for FBOs engaged in banking in the
United States. In 2008, the Federal Reserve added a certification requirement to the FR Y-7
reporting forms related to information regarding individuals contained in the submission.
In 2011, the Federal Reserve clarified the FR Y-7 instructions with regard to the
confidentiality of the reporter’s submission and revised the organizational chart to include
information on physical address and general and limited partners. In addition, the Federal
Reserve revised the FR Y-7 instructions to require the reporting of the representative office when
there are no other reportable offices in the United States and also added language to provide
confidential treatment for street addresses of securities holders who are individuals. Finally, in
2011, the Federal Reserve approved the addition of “State or Country (if foreign) of
Incorporation,” with a delayed implementation of December 31, 2012.
The Federal Reserve System uses information collected on this reporting form to assess a
FBO’s ability to be a continuing source of strength to its U.S. operations, to determine eligibility
as a qualifying FBO, and to determine compliance with U.S. laws and regulations. This
information is not available from other sources.
Description of Information Collection
The FR Y-10 comprises seven schedules for collecting data on organizational structural
changes for the reportable companies listed in the respondent panel section. The Banking
Schedule collects information on a banking organization and its directly or indirectly held
interests in a BHC, bank organized under U.S. law, or FBO. The Nonbanking Schedule collects
information about a banking organization’s directly or indirectly held interests in a nonbanking
company. The Merger Schedule collects information on the survivors and nonsurvivors of
mergers involving any reportable company. The 4(k) Schedule collects post-transaction notices
for activities, formations, and acquisitions of companies and for large merchant banking and
2

These policy statements were dated February 23, 1979, and July 20, 1979.

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insurance company investments authorized under Section 4(k) of the BHC Act. The Domestic
Branch Schedule collects structure information on domestic branches and offices of depository
institutions held directly or indirectly by a top-tier BHC and domestic branches of state member
banks or banking Edge or agreement corporations that are not affiliated with a BHC. The
Foreign Branches of U.S. Banking Organizations Schedule collects structure information on
foreign branches of U.S. banking organizations. The Branch, Agency, and Representative Office
(BARO) of FBOs Schedule collects structure information on U.S. branches, agencies,
representative offices, and non-U.S. managed branches of FBOs.
The FR Y-10E supplement collects additional structural information deemed to be critical
and needed in an expedited manner. This supplement may only be used to meet new legislative
requirements, answer Congressional inquiries, or respond to critical market events that could not
be addressed in a timely manner if the Federal Reserve were required to seek approval through
the reports clearance process. Subsequent to the implementation of this supplement, if the data
were needed on a permanent basis, the Federal Reserve would complete the report clearance
process, including a request for public comment.
The annual FR Y-6 is submitted by top-tier BHCs and nonqualifying FBOs and contains
the requirement that BHCs not registered with the SEC submit, if one is created, their annual
report to shareholders. The FR Y-6 also requires the submission of an organizational chart,
verification of domestic branch data, and collection of information on the identity, percentage
ownership, and business interests of principal shareholders, directors, and executive officers.
The annual FR Y-7 is submitted by qualifying FBOs that are directly or indirectly
engaged in the business of banking in the United States as of the end of the respondent’s fiscal
year.3 The FR Y-7 collects financial, organizational, and managerial information.
Proposed Revisions to the FR Y-10 only
Respondent Panel. The Federal Reserve proposes to add SLHCs to the FR Y-10
respondent panel. The Dodd-Frank Act was enacted into law on July 21, 2010. Title III of the
Dodd-Frank Act abolished the Office of Thrift Supervision (OTS) effective as of July 21, 2011,
and transferred supervisory functions (including rulemaking) related to SLHCs and their nondepository subsidiaries to the Federal Reserve. The Federal Reserve is responsible for the
consolidated supervision of SLHCs beginning July 21, 2011. In addition, the Federal Reserve
proposes to add language to include SHCs as authorized under Sections 618 of the Dodd-Frank
Act, 12 U.S.C. 1850a(c)(1).
Savings and Loan Schedule. The Federal Reserve proposes to add a Savings and Loan
Schedule to the FR Y-10 report to collect information from SLHCs and Savings Associations.
The addition of a separate schedule to report interests in SLHCs and Savings Associations would
allow the Federal Reserve to collect information specific to these companies. The proposed
2

Under the International Banking Act of 1978, banks organized under the laws of Puerto Rico and other American
possessions are generally not required to file the FR Y-7. Such banks are insured by the FDIC and examined by
U.S. supervisory agencies. Also, FBOs that are BHCs or that have a U.S. BHC subsidiary are required to report on
the FR Y-6 all interests held through the top-tier U.S. BHC.

6

Savings and Loan Schedule would be modeled after the existing Banking Schedule. A separate
schedule would be necessary because (1) Savings and Loan Companies do not meet the FR Y-10
definition of a “banking company,” (2) expanding the existing Banking Schedule with items not
applicable to banking companies could negatively affect the quality and accuracy of reporting,
and (3) the existing Banking Schedule lacks the necessary space for the numerous options in data
item 9 that are applicable only to Savings and Loan Companies.
4(k) Schedule. On the Large Merchant Banking or Insurance Company Investments
Section of the 4(k) Schedule, the Federal Reserve proposes to split data item 3 so that
respondents reporting a name change may provide the previous name of the reportable company.
This would be consistent with the information collected for a name change on other schedules
and would prevent further burden on respondents by eliminating the need for the Federal Reserve
to contact the respondent for that information. Also, the legal authority for a financial holding
company to conduct business under section 4(k) of the BHC Act, has been added to items 2.a.
through 2.c. for SLHCs.
Instructions. The Federal Reserve proposes the following revisions to the instructions.
On the Nonbanking Schedule, the Federal Reserve proposes to remove “Cooperative
Bank,” “Savings and Loan Association,” and “Federal Savings Bank” from the list of
Nonbanking Company Types for data item 9. Cooperative banks would no longer be filed on the
Nonbanking Schedule. Cooperative banks that do not meet the definition of a “bank” (i.e.,
cooperative banks with a HOLA 10(l) election) would be reported on the Savings and Loan
Schedule. Savings and Loan Associations and Federal Savings Banks would also be reported on
the Savings and Loan Schedule since they meet the definition of a Savings and Loan Company.
In addition, the Federal Reserve proposes to clarify the FRY-10 instructions for the
Merchant Banking or Insurance Company Investment section of the 4(k) Schedule to note that
investments are in a “Nonfinancial Company” rather than in a Nonbanking Company. This
would be consistent with the wording used in the Consolidated Bank Holding Company Report
of Equity Investments in Nonfinancial Companies (FR Y-12). The 4(k) Schedule reporting
requirements would remain unchanged.
The Federal Reserve proposes to add Legal Authority Codes contained in Appendix A for
Savings and Loan Holding Company organization. The legal authority codes would be added for
SLHCs to report their legal authority for conducting their activities.
The Federal Reserve also proposes to add definitions to the FR Y-10 Glossary for the
following terms: Company, Control, Cooperative Bank HOLA 10(l) Election, Director, Limited
Liability Company Savings Association, Savings and Loan Company, Savings and Loan Holding
Company, State Savings Bank HOLA 10(l) Election.
The Federal Reserve also proposes to collect a one-time verification of each SLHC's
organizational structure as a supplement to the FR Y-10. Each SLHC will be provided a listing
of its organizational structure derived from the Federal Reserve's NIC database. The NIC is a
central repository of structure data of institutions. Upon receipt of the one-time verification,

7

institutions will have 60 days to review the listing and provide any changes to the Federal
Reserve. This one-time verification will provide baseline information regarding each SLHC's
organizational structure which will support certain financial data to be submitted by SLHCs in
2013.
Proposed Revisions to the FR Y-6 only
The Federal Reserve proposes to add language to include SHCs to the FR Y-6 respondent
panel as authorized under Sections 618 of the Dodd-Frank Act, 12 U.S.C. 1850a(c)(1) and revise
the title from the Annual Report of Bank Holding Companies to the Annual Report of Holding
Companies to reflect the revised respondent panel. In addition, the Federal Reserve proposes to
revise the instructions for Report Item 3 to include Small Business Lending Fund (SBLF)
instructions. Inclusion of SBLF would reflect the senior perpetual noncumulative preferred
stock owned by the U.S. Treasury, which would allow report users to determine if there had been
borrowings from (or investments made) by the U.S. government. The SBLF program is a new
program and has similar funding mechanisms as the Capital Purchase Program and thus should
have similar reporting requirements.
In addition, the Federal Reserve proposes to clarify the difference between Debt
Previously Contracted (DPC) subsidiaries and subsidiaries set up to hold Other Real Estate
Owned (OREO). Currently nonbanking DPC subs are not reportable while subs set up to hold
OREO are reportable but the instructions are unclear. This proposed revision was approved and
implemented in 2011 for the FR Y-10. Lastly, the Federal Reserve proposes to incorporate
several instructional clarifications.
Proposed Revisions to the FR Y-7 only
The Federal Reserve proposes to consolidate the FR Y-7 glossary definitions into the FR
Y-10 glossary and add a footnote to RI-5 for the definition of “Combined Financial Statements.”
In addition, the Federal Reserve proposes incorporating several instructional clarifications.
Respondent Panel
The current FR Y-10 and FR Y-10E panel comprises FBOs; top-tier BHCs; state member
banks that are not controlled by a BHC; Edge and agreement corporations that are not controlled
by a member bank, a domestic BHC, or a FBO; and nationally chartered banks that are not
controlled by a BHC (with regard to their foreign investments only). The FR Y-6 panel
comprises top-tier BHCs and nonqualifying FBOs. The FR Y-7 panel comprises all qualifying
FBOs that engage in banking in the United States, either directly or indirectly.
Time Schedule for Information Collection and Publication
The current FR Y-10 is event-generated, and the data are submitted within 30 calendar
days of a reportable transaction or event. Individual respondent data are available to the public
upon request through the appropriate Reserve Bank. Under certain circumstances, however,
respondents may request confidential treatment. Limited data from the FR Y-10 are published

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on the NIC website. The FR Y-10E is event-generated and the data are submitted on an ad-hoc
basis as needed.
SLHCs would file the FR Y-10 data by June 30, 2013, for their nonbank subsidiaries that
meet the quarterly financial reporting criteria. SLHCs would file the FR Y-10 data by September
30, 2013, for their nonbank subsidiaries that file financial reports annually. SLHCS would file
the FR Y-10 data by December 31, 2013, for their nonbank subsidiaries that do not file financial
reports.
The FR Y-6 is submitted annually, no later than 90 calendar days after the BHC’s or
nonqualifying FBO’s fiscal year end. Individual respondent data are available to the public upon
request through the appropriate Reserve Bank. Under certain circumstances, however,
respondents may request confidential treatment. Data from the FR Y-6 are not published by the
Federal Reserve but may be published by the Reserve Bank where the report is filed.
All qualifying FBOs file the FR Y-7 annually as of the FBO’s fiscal year end; the data
are due no later than four months after the report date. Data from these reporting forms are not
published, but nonconfidential data would be available to the public upon request.
Legal Status
The Federal Reserve Board’s Legal Division has determined that the following statutes
authorize the Federal Reserve to require the collections of information:
FR Y-10 and FR Y-10E: Sections 4(k) and 5(c)(1)(A) of the Bank Holding Company
Act (BHC Act) (12 U.S.C. 1843(k), 1844(c)(1)(A)); Section 8(a) of the International Banking
Act (IBA) (12 U.S.C. 3106(a)); Sections 11(a)(1), 25(7), and 25A of the Federal Reserve Act (12
U.S.C. 248(a)(1), 321, 601, 602, 611a, 615, and 625; as implemented by Section 211.13(c) of the
Board’s Regulation K (12 CFR 211.13(c)) Sections 225.5(b) and 225.87 of the Board’s
Regulation Y (12 CFR 225.5(b) and 225.87); and Sections 312 and 618 of the Dodd-Frank Act
(12 U.S.C. 5412 and 1850a(c)(1).
FR Y-6: Section 5(c)(1)(A) of the BHC Act (12 U.S.C. 1844(c)(1)(A)); Sections 8(a)
and 13(a) of the IBA (12 U.S.C. 3106(a) and 3108(a)); Sections 11(a)(1), 25, and 25A of the
Federal Reserve Act (12 U.S.C. 248(a)(1), 602, and 611a); as implemented by Section 211.13(c)
of Regulation K (12 CFR 211.13(c)); Section 225.5(b) of Regulation Y (12 CFR 225.5(b)); and
Section Sections 312 and 618 of the Dodd-Frank Act (12 U.S.C. 5412 and 1850a(c)(1).
FR Y-7: Sections 8(a) and 13(a) of the IBA (12 U.S.C. 3106(a) and 3108(a)).
The Federal Reserve Board’s Legal Division has also determined that the data collected
in the FR Y-10, FR Y-10E, FR Y-6, and FR Y-7 are not considered confidential. However, a
company may request confidential treatment pursuant to sections (b)(4) and (b)(6) of the FOIA
(5 U.S.C. 522(b)(4) and (b)(6)). Section (b)(4) provides exemption for trade secrets and
commercial or financial information obtained from a person as privileged or confidential.

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Section (b)(6) provides exemption for personnel and medical files and similar files the disclosure
of which will constitute a clearly unwarranted invasion of personal privacy.
Estimate of Respondent Burden
As shown in the following table, the current annual reporting burden for the structure
report forms and instructions is estimated to be 45,402 hours. The proposed revisions result in a
net increase in burden of 12,610 hours. The Federal Reserve estimates that most of the burden
increase would be attributed to the 765 SLHCs that would be required to file the FR Y-10 and
FR Y-6 reports. Since SLHCs represent less than 20 percent of all FR Y-10 respondents, the
Federal Reserve estimates that the average hours per response for the FR Y-10 would only
increase by 30 minutes across all respondents. In addition, the Federal Reserve estimates it
would take, on average, 1.25 hours for SLHCs to complete the FR Y-10 supplement. The Federal
Reserve does not believe that the changes to the ongoing FR Y-6 and FR Y-7 are significant
enough to warrant a change in the average hours per response. This information collection
represents less than 1 percent of the total Federal Reserve System paperwork burden.

Current
FR Y-10
FR Y-10E
FR Y-6
FR Y-7

Estimated
annual
burden hours

Number of
respondents

Estimated
annual
frequency

Estimated
average hours
per response

3,400
3,400
4,807
164

3
1
1
1

1.75
.50
5.25
3.75

17,850
1,700
25,237
615
45,402

3,750
3,750
765
5,572
164

3
1
1
1
1

2.25
.50
1.25
5.25
3.75

25,313
1,875
956
29,253
615
58,012

Total
Proposed
FR Y-10
FR Y-10E
FR Y-10 supplement
FR Y-6
FR Y-7
Total

12,610

change

Based on the proposed revisions the total annual reporting cost to the public for these collections
of information is estimated to increase from $2,036,280 to $2,601,838.4
3

Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rate (30% Office & Administrative Support @ $17, 45% Financial Managers @
$52, 15% Legal Counsel @ $55, and 10% Chief Executives @ $81). Hourly rate for each occupational group are
the median hourly wages (rounded up) from the Bureau of Labor and Statistics (BLS), Occupational Employment
and Wages 2011, www.bls.gov/news.release/ocwage.nr0.htm Occupations are defined using the BLS Occupational
Classification System, www.bls.gov/soc/

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Estimate of Cost to the Federal Reserve System
The cost to the Federal Reserve System for collecting and processing these reports are
$2,362,850 per year.
Consultation Outside the Agency
On June 11, 2012, the Federal Reserve published a notice in the Federal Register
(77 FR 34384) requesting public comment for 60 days on the revision, with extension, of the FR
Y-10, FR Y-7, and FR Y-6. The comment period for this notice expired on August 10, 2012.
The Federal Reserve received three comment letters addressing the proposed changes to the FR
Y-10 and the FR Y-6: two from bankers’ organizations and one from a BHC. On September 14,
2012, the Federal Reserve published a final notice in the Federal Register (77 FR 56842) on the
FR Y-10, FR Y-7, and FR Y-6, including a more detailed discussion of the comments received.
On November 29, 2012, the Federal Reserve published a second final notice in the Federal
Register (77 FR 71192) on the FR Y-10 and FR Y-6, which removed the reporting requirement
for nonbank financial companies supervised by the Board and designated financial market
utilities to submit the FR Y-10 and the FR Y-6 reports.
Public Comments
The Federal Reserve received three comment letters on the proposed revisions to the FR
Y-10 and the FR Y-6. One commenter expressed concerns on the proposed timeline to submit
(as a supplement to the FR Y-10) a one-time verification of each SLHC’s organizational
structure.
Two commenters also requested a phased approach for submitting the FR Y-6 and FR Y10 data based on the schedule for submitting nonbank financial data that are due commencing in
2013. In addition, the bankers’ organizations asked for clarification on the requirement for
intermediate holding companies to report the FR Y-6 and FR Y-10.
The bankers’ organizations also expressed concern about reporting on the activities of
certain SLHCs, namely “grandfathered SLHCs” and requested that the FR Y-10 instructions be
clarified. In addition, one commenter suggested using the term “nonfinancial company” instead
of “nonbanking company” on the 4(k) Schedule of the FR Y-10 whenever the reference is to
nonfinancial investments held by a qualified FHC and reported in the lower section of the 4(k)
Schedule.
In summary, after considering the comments received on the proposed FR Y-10 and FR
Y-6 revisions, the Federal Reserve will implement the reporting changes as proposed, with
certain modifications in response to the comments. For a more detailed discussion of the
changes, the comments received, and the Federal Reserve’s response, please refer to the “Current
Actions” section of the final Federal Register notice for this submission.

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Sensitive Questions
These collections of information contain no questions of a sensitive nature, as defined by
OMB guidelines.

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