Reg VV Extension

23

Proposed Rules

Federal Register
Vol. 77, No. 1
Tuesday, January 3, 2012

This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 44
[Docket No. OCC–2011–0014]
RIN 1557–AD44

FEDERAL RESERVE SYSTEM
12 CFR Part 248
[Docket No. 2011–1432]
RIN 7100–AD 82

FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 351
RIN 3064–AD85

SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 255
[Release No. 34–66057; File No. S7–41–11]
RIN 3235–AL07

Prohibitions and Restrictions on
Proprietary Trading and Certain
Interests in, and Relationships With,
Hedge Funds and Private Equity Funds
Office of the Comptroller of
the Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); Federal Deposit
Insurance Corporation (FDIC); and U.S.
Securities and Exchange Commission
(SEC).
ACTION: Proposed rule; extension of
comment period.
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AGENCIES:

On November 7, 2011, the
OCC, Board, FDIC, and SEC
(collectively, the ‘‘Agencies’’) published
in the Federal Register a joint notice of
proposed rulemaking for public
comment to implement section 619 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act (‘‘Dodd-Frank
Act’’) which contains certain

SUMMARY:

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prohibitions and restrictions on the
ability of a banking entity and nonbank
financial company supervised by the
Board to engage in proprietary trading
and have certain interests in, or
relationships with, a hedge fund or
private equity fund (‘‘proposed rule’’).
Due to the complexity of the issues
involved and to facilitate coordination
of the rulemaking among the
responsible agencies as provided in
section 619 of the Dodd-Frank Act, the
Agencies have determined that an
extension of the comment period until
February 13, 2012 is appropriate. This
action will allow interested persons
additional time to analyze the proposed
rules and prepare their comments.
DATES: Comments on the proposed rule
must be received on or before February
13, 2012.
ADDRESSES: You may submit comments
by any of the methods identified in the
proposed rule.1 Please submit your
comments using only one method.
FOR FURTHER INFORMATION CONTACT:
OCC: Deborah Katz, Assistant Director,
or Ursula Pfeil, Counsel, Legislative
and Regulatory Activities Division,
(202) 874–5090; Roman Goldstein,
Senior Attorney, Securities and
Corporate Practices Division, (202)
874–5210; Kurt Wilhelm, Director for
Financial Markets Group, (202) 874–
4660; Stephanie Boccio, Technical
Expert for Asset Management Group,
or Joel Miller, Group Leader for Asset
Management Group, (202) 874–4660,
Office of the Comptroller of the
Currency, 250 E Street SW.,
Washington, DC 20219.
Board: Christopher M. Paridon,
Counsel, Legal Division, (202) 452–
3274; Sean D. Campbell, Deputy
Associate Director, Division of
Research and Statistics, (202) 452–
3761; David Lynch, Manager, (202)
452–2081, or Jeremy R. Newell,
Division of Bank Supervision and
Regulation, (202) 452–3239, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW.,
Washington, DC 20551.
FDIC: Bobby R. Bean, Associate
Director, Capital Markets (202) 898–
6705, or Karl R. Reitz, Senior Capital
Markets Specialist, (202) 898–6775,
Division of Risk Management
Supervision; Michael B. Phillips,
Counsel, (202) 898–3581, or Gregory
1 See

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76 FR 68846.

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S. Feder, Counsel, (202) 898–8724,
Legal Division, Federal Deposit
Insurance Corporation, 550 17th
Street NW., Washington, DC 20429–
0002.
SEC: Josephine Tao, Assistant Director,
Elizabeth Sandoe, Senior Special
Counsel, David Bloom, Branch Chief,
or Angela Moudy, Attorney Advisor,
Office of Trading Practices, Division
of Trading and Markets, (202) 551–
5720; Daniel S. Kahl, Assistant
Director, Tram N. Nguyen, Branch
Chief, Michael J. Spratt, Senior
Counsel, Paul Schlichting, Senior
Counsel, or Parisa Haghshenas, Law
Clerk, Office of Investment Adviser
Regulation, Division of Investment
Management, (202) 551–6787, U.S.
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549.
On
November 7, 2011, the proposed rule
was published in the Federal Register.2
The proposed rule implements section
619 of the Dodd-Frank Act which added
a new section 13 to the Bank Holding
Company Act of 1956 (‘‘BHC Act’’) and
contains certain prohibitions and
restrictions on the ability of a banking
entity and nonbank financial company
supervised by the Board to engage in
proprietary trading and have certain
interests in, or relationships with, a
hedge fund or private equity fund.
In recognition of the complexities of
the issues involved and the variety of
considerations involved in its impact
and implementation, the Agencies
requested that commenters respond to
numerous questions. The proposed rule
stated that the public comment period
would close on January 13, 2012.3
The Agencies have received requests
from the public for an extension of the
comment period to allow for additional
time for comments related to the
provisions of the proposed rule.4 The
Agencies believe that the additional
period for comment will facilitate
public comment on the provisions of the
proposed rule and the questions posed
by the Agencies, and coordination of the
SUPPLEMENTARY INFORMATION:

2 See

id.
id.
4 See, e.g., comment letters to the Agencies from
Center for Capital Markets Competitiveness of the
U.S. Chamber of Commerce (November 17, 2011);
American Bankers Association et al. (November 30,
2011); and Representative Neugebauer et al.
(December 20, 2011).
3 See

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Federal Register / Vol. 77, No. 1 / Tuesday, January 3, 2012 / Proposed Rules

rulemaking among the responsible
agencies as provided in section 619 of
the Dodd-Frank Act. Therefore, the
Agencies are extending the comment
period for the proposed rule from
January 13, 2012 to February 13, 2012.
Dated: December 22, 2011.
John Walsh,
Acting Comptroller of the Currency.

Electronic Comments

By order of the Board of Governors of the
Federal Reserve System, acting through the
Secretary under delegated authority,
December 23, 2011.
Jennifer J. Johnson,
Secretary of the Board.
By delegated authority from the Board of
Directors of the Federal Deposit Insurance
Corporation.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
By the Securities and Exchange
Commission.
Dated: December 23, 2011.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–33623 Filed 12–30–11; 8:45 am]
BILLING CODE 4810–33–P; 6714–10–P; 6210–01–P

SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 230
[Release No. 34–66058; File No. S7–38–11]
RIN 3235–AL04

Prohibition Against Conflicts of
Interest in Certain Securitizations
Securities and Exchange
Commission.
ACTION: Proposed rule; extension of
comment period.
AGENCY:

The Securities and Exchange
Commission is extending the comment
period for a release proposing a new
rule to implement Section 621 of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 (the
‘‘Dodd-Frank Act’’) on material conflicts
of interest in connection with certain
securitizations (the ‘‘ABS Conflicts
Proposal’’). The original comment
period for the ABS Conflicts Proposal
was scheduled to end on December 19,
2011. On December 13, 2011, the
comment period was extended until
January 13, 2012. Today, the
Commission is again extending the time
period in which to provide the
Commission with comments on the ABS
Conflicts Proposal until February 13,
2012. This action will allow interested

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SUMMARY:

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persons additional time to analyze the
issues and prepare their comments.
DATES: Comments should be received on
or before February 13, 2012.
ADDRESSES: Comments may be
submitted by any of the following
methods:
Use the Commission’s Internet
comment form (http://www.sec.gov/
rules/proposed.shtml);
• Send an email to [email protected]. Please include File
Number S7–38–11 on the subject line;
or
• Use the Federal Rulemaking Portal
(http://www.regulations.gov). Follow the
instructions for submitting comments.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number S7–38–11. This file number
should be included on the subject line
if email is used. To help us process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(http://www.sec.gov/rules/
proposed.shtml). Comments are also
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10 a.m. and 3 p.m. All comments
received will be posted without change;
we do not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Sandoe, Senior Special
Counsel, Anthony Kelly, Special
Counsel, or Barry O’Connell, Attorney
Advisor, Office of Trading Practices,
Division of Trading and Markets, at
(202) 551–5720, and David Beaning,
Special Counsel and Katherine Hsu,
Chief, Office of Structured Finance,
Division of Corporation Finance, at
(202) 551–3850.
SUPPLEMENTARY INFORMATION: The
Commission has requested comment on
Proposed Rule 127B under the
Securities Act of 1933 (‘‘Securities Act’’)
in the ABS Conflicts Proposal to
implement Section 621 of the DoddFrank Act.1 Proposed Rule 127B under

the Securities Act would prohibit
certain persons who create and
distribute an asset-backed security,
including a synthetic asset-backed
security, from engaging in transactions,
within one year after the date of the first
closing of the sale of the asset-backed
security, that would involve or result in
a material conflict of interest with
respect to any investor in the assetbacked security. The proposed rule also
would provide exceptions from this
prohibition for certain risk-mitigating
hedging activities, liquidity
commitments, and bona fide marketmaking. The ABS Conflicts Proposal
was published in the Federal Register
on September 28, 2011.
The Commission originally requested
that comments on the ABS Conflicts
Proposal be received by December 19,
2011, including comment about any
potential interplay 2 between Proposed
Rule 127B and the ‘‘Volcker Rule
Proposal.’’ 3 The Volcker Rule Proposal
would implement Section 619 of the
Dodd-Frank Act concerning
prohibitions and restrictions on
proprietary trading and certain interests
in, and relationships with, hedge funds
and private equity funds. The original
comment period for the Volcker Rule
Proposal was scheduled to end on
January 13, 2012.
On December 13, 2011, the
Commission extended the ABS Conflicts
Proposal comment period from
December 19, 2011 to January 13, 2012
to coincide with the end of the comment
period for the Volcker Rule Proposal.
The Commission extended the Volcker
Rule Proposal comment period until
February 13, 2012.4 In an effort to
provide the public with a better
opportunity to consider any potential
interplay between the ABS Conflicts
and Volcker Rule Proposals, the
Commission is also extending the ABS
Conflicts Proposal comment period
until February 13, 2012.
The Commission has determined to
provide the public additional time to
consider simultaneously the ABS
Conflicts and the Volcker Rule
Proposals. This extended opportunity to
submit comprehensive comments
regarding the ABS Conflicts Proposal
and any potential interplay with the
Volcker Rule Proposal would benefit the
Commission in its consideration of any
final rules. Therefore, the Commission
is again extending the comment period
for the ABS Conflicts Proposal until
February 13, 2012 to coincide with the
2 See,

e.g., 76 FR 60320, 60341.
Act Release No. 34–65545 (October
12, 2011), 76 FR 68846 (November 7, 2011).
4 Exchange Act Release No. 34–66057.
3 Exchange

1 Exchange Act Release No. 34–65355 (September
19, 2011), 76 FR 60320 (September 28, 2011).

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