RegTT_20160415_omb

Supporting Statement for the
Reporting Requirements Associated with
Supervision and Regulation Assessments of Fees (Regulation TT)
(Reg TT; OMB No. to be obtained)
Supervision and Regulation Assessments for Bank Holding Companies and Savings and Loan
Holding Companies With Total Consolidated Assets of $50 Billion or More and Nonbank
Financial Companies Supervised by the Federal Reserve (Regulation TT)
(Docket No. R-1457) (RIN 7100-AD95)
Summary
The Board of Governors of the Federal Reserve System, under delegated authority from
the Office of Management and Budget (OMB), proposes to implement the Reporting
Requirements Associated with Supervision and Regulation Assessments of Fees
(Regulation TT); (Reg TT; OMB No. to be obtained). The Paperwork Reduction Act (PRA)
classifies reporting, recordkeeping, or disclosure requirements of a regulation as an “information
collection.”1
On August 23, 2013 the Federal Reserve published a final rule in the Federal Register
(78 FR 52391). This final rule implements section 318 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act2 (Dodd-Frank Act), which directs the Federal Reserve to collect
assessments, fees, or other charges equal to the total expenses the Federal Reserve estimates are
necessary or appropriate to carry out the supervisory and regulatory responsibilities of the
Federal Reserve for bank holding companies and savings and loan holding companies with total
consolidated assets of $50 billion or more and nonbank financial companies designated for
Federal Reserve supervision by the Financial Stability Oversight Council. The final rule is
effective on October 25, 2013.
Each assessed company would have thirty calendar days from June 30 or, for the 2012
assessment period, thirty calendar days from the Board’s issuance of a notice of assessment for
that assessment period, to submit a written statement to appeal the Board’s determination (1) that
the company is an assessed company or (2) of the company’s total assessable assets. These
reporting requirements are found in section 246.5(b) of the final rule.
The total annual burden for this information collection is estimated to be 280 hours for
the seven assessed companies that would submit a written request for appeal annually. There are
no required reporting forms associated with this information collection.
Background and Justification
The Dodd-Frank Act directs the Board to collect assessments, fees, or other charges
(assessments) from bank holding companies (BHCs) and savings and loan holding companies
(SLHCs) with $50 billion or more in total consolidated assets, and from nonbank financial
1
2

See 44 U.S.C. § 3501 et seq.
Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376 (2010).

companies designated by the Financial Stability Oversight Council (Council) pursuant to section
113 of the Dodd-Frank Act for supervision by the Board (Board-supervised nonbank financial
companies), (collectively, assessed companies), equal to the expenses the Board estimates are
necessary or appropriate to carry out its supervision and regulation of those companies.
Each calendar year would be an assessment period (assessment period) and a BHC or
SLHC would be an assessed company for that assessment period if the company’s average total
consolidated assets over the assessment period met or exceeded $50 billion, and a nonbank
financial company would be an assessed company if it was a Board-supervised nonbank
financial company on December 31 of the assessment period. The Board proposed to notify
assessed companies of the amount of their assessment no later than July 15 of the year following
each assessment period. After an opportunity for appeal, each assessed company would have
been required to pay its assessment by September 30 of the year following the assessment period.
The Board proposed to collect assessments beginning with the 2012 assessment period.
Description of Information Collection
Section 246.5(b) Notice of Assessment and Appeal Period. The Board would issue a
notice of assessment to each assessed company no later than June 30 of each calendar year
following the assessment period, provided, however, that for the 2012 assessment period, the
Board would issue a notice of assessment as soon as reasonably practical after publication of the
final rule in the Federal Register. Each assessed company would have thirty calendar days from
June 30, or, for the 2012 assessment period, thirty calendar days from the Board’s issuance of a
notice of assessment for that assessment period, to submit a written statement to appeal the
Board’s determination (1) that the company is an assessed company or (2) of the company’s total
assessable assets. The Board would respond with the results of its consideration to an assessed
company that has submitted a written appeal within 15 calendar days from the end of the appeal
period.
Time Schedule for Information Collection
This information collection is event-generated. As stated above, this information
collection would be used whenever an assessed company elects to appeal the Board’s
determination (1) that the company is an assessed company or (2) of the company’s total
assessable assets. The company would have 30 calendar days from June 30, or, for the 2012
assessment period, 30 calendar days from the Board’s issuance of a notice of assessment for that
assessment period, to submit a written statement to appeal the Board’s determination.
Legal Status
Section 11(s) of the Federal Reserve Act (12 U.S.C. § 248) requires the Board to
collect assessment fees from assessed companies. The Board has used its discretion to
provide a method for assessed companies to appeal the assessment fees. The Board’s
authority to provide this opportunity is implicit in, and generally authorized by, section 11(s).
The response is required to obtain the benefit of reconsideration of an assessed company’s
status or assessed amount.

2

There is no information for this information collection that is routinely considered
confidential. An assessed company may request confidential treatment if it believes that
disclosure of specific commercial or financial information in the statement would likely result in
substantial harm to its competitive position. The determination that such information is
confidential and not subject to disclosure under the Freedom of Information Act (FOIA)
(5 U.S.C. § 552), would need to made on a case-by-case basis, consistent with FOIA
exemption 4 (5 U.S.C. § 552(b)(4)).
Consultation Outside the Agency
On April 18, 2013, the Federal Reserve published a notice of proposed rulemaking in the
Federal Register (78 FR 23162) requesting public comment on the proposed information
collection. The comment period for this notice expired on June 15, 2013. The Federal Reserve
did not receive any comments on the reporting requirements contained in section 246.5(b). On
August 23, 2013, the Federal Reserve published a final rule in the Federal Register
(78 FR 52391) and is effective on October 25, 2013.
Estimate of Respondent Burden
The total annual burden for this information collection is estimated to be 280 hours. The
estimated average burden per request is 40 hours. The Federal Reserve estimates that
approximately seven assessed companies would submit a written request for appeal annually.
These reporting requirements represent less than 1 percent of the total Federal Reserve System
paperwork burden.

Reg TT
Section 246.5(b)

Number of
respondents3

Annual
frequency

Estimated
average hours
per response

Estimated
annual burden
hours

7

1

40

280

The total cost to the public for this information collection is estimated to be $14,882.4
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.

3

Of these respondents, none are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $550 million in total assets) www.sba.gov/content/small-business-size-standards.
4
Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $17, 45% Financial Managers at
$65, 15% Lawyers at $66, and 10% Chief Executives at $89). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2015, published March 30, 2016 www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.

3

Estimate of Cost to the Federal Reserve System
The annual cost to the Federal Reserve System for collecting this information is
negligible.

4