Recordkeeping Requirements Associated with the Guidance on Sound Incentive Compensation Policies

Forms and Documents

Document Name	Status
FR4027_20151214_omb.pdf Supporting Statement A	2015-12-14

IC Document Collections

IC ID	Document Title	Status
193397	Ongoing maintenance Other-Final Guidance	Modified
193396	One-time Implementation Small Institutions Other-Final Guidance	Modified
191525	One-time Implementation Large Institutions Other-Final Guidance	Modified

ICR Details

OMB Control No: 7100-0327	ICR Reference No: 201512-7100-006
Status: Historical Active	Previous ICR Reference No: 201512-7100-005
Agency/Subagency: FRS	Agency Tracking No: FR 4027
Title: Recordkeeping Requirements Associated with the Guidance on Sound Incentive Compensation Policies
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Delegated
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/14/2015
	Date Received in OIRA: 12/14/2015
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2018	36 Months From Approved	12/31/2015
Responses	5,720	0	5,720
Time Burden (Hours)	231,200	0	231,200
Cost Burden (Dollars)	0	0	0

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Abstract: The Guidance on Sound Incentive Compensation Policies is based on three key principles. These principles provide that incentive compensation arrangements at a banking organization should 1) provide employees incentives that appropriately balance risk and reward, 2) be compatible with effective controls and risk-management, and 3) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors. The Board identified certain aspects of the guidance (policies and procedures) that 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 of directors 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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Authorizing Statute(s): US Code: 12 USC 248(i) Name of Law: Federal Reserve Act
   US Code: 12 USC 324 Name of Law: Federal Reserve Act
   US Code: 12 USC 602 Name of Law: Federal Reserve Act
   US Code: 12 USC 625 Name of Law: Federal Reserve Act
   US Code: 12 USC 1844 Name of Law: Bank Holding Company Act
   US Code: 12 USC 3105(c) Name of Law: International Banking Act
   US Code: 12 USC 1467a(b)(2) Name of Law: Home Owners’ Loan Act
   US Code: 12 USC 248(a) Name of Law: Federal Reserve 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:
	80 FR 35953	06/23/2015
30-day Notice:	Federal Register Citation:	Citation Date:
	80 FR 54790	09/11/2015
Did the Agency receive public comments on this ICR? No

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

IC Title	Form No.	Form Name
Ongoing maintenance
One-time Implementation Small Institutions
One-time Implementation Large 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	5,720	5,720	0	0	0	0
Annual Time Burden (Hours)	231,200	231,200	0	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement:

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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]? No

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: 12/14/2015

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