70512 Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules

Signing Authority DEPARTMENT OF THE TREASURY not create binding legal obligations for the public. The proposal would also This document of the Department of Office of the Comptroller of the clarify that the 2018 Statement, as Energy was signed on October 22, 2020, Currency amended, is binding on the agencies. by Alexander N. Fitzsimmons, Deputy DATES: Comments must be received by Assistant Secretary for Energy 12 CFR Part 4 January 4, 2021. Efficiency, Energy Efficiency and [Docket No. OCC–2020–0005] ADDRESSES: Renewable Energy, pursuant to OCC: You may submit comments to delegated authority from the Secretary RIN 1557–AE80 the OCC by any of the methods set forth of Energy. That document with the FEDERAL RESERVE SYSTEM below. Commenters are encouraged to original signature and date is submit comments through the Federal maintained by DOE. For administrative 12 CFR Part 262 eRulemaking Portal or email, if possible. purposes only, and in compliance with Please use the title ‘‘Role of Supervisory requirements of the Office of the Federal [Docket No. R–1725] Guidance’’ to facilitate the organization Register, the undersigned DOE Federal and distribution of the comments. You RIN 7100–AF96 Register Liaison Officer has been may submit comments by any of the authorized to sign and submit the FEDERAL DEPOSIT INSURANCE following methods: • document in electronic format for CORPORATION Federal eRulemaking Portal— publication, as an official document of ‘‘Regulations.gov’’: Go to the Department of Energy. This 12 CFR Part 302 www.regulations.gov. Enter ‘‘Docket ID administrative process in no way alters OCC–2020–0005’’ in the Search Box and the legal effect of this document upon RIN 3064–AF32 click ‘‘Search.’’ Click on ‘‘Comment publication in the Federal Register. Now’’ to submit public comments. NATIONAL CREDIT UNION • Click on the ‘‘Help’’ tab on the Signed in Washington, DC, on October 23, ADMINISTRATION Regulations.gov home page to get 2020. information on using Regulations.gov, Treena V. Garrett, 12 CFR Part 791 including instructions for submitting Federal Register Liaison Officer, U.S. [Docket No. NCUA–2020–0098] public comments. Department of Energy. • Email: regs.comments@ [FR Doc. 2020–23817 Filed 11–4–20; 8:45 am] RIN 3133–AF28 occ.treas.gov. • Mail: Chief Counsel’s Office, BILLING CODE 6450–01–P BUREAU OF CONSUMER FINANCIAL Attention: Comment Processing, Office PROTECTION of the Comptroller of the Currency, 400 7th Street SW, Suite 3E–218, 12 CFR Part 1074 Washington, DC 20219. [Docket No. CFPB–2020–0033] • Hand Delivery/Courier: 400 7th Street SW, Suite 3E–218, Washington, RIN 3710–AB02 DC 20219. Role of Supervisory Guidance Instructions: You must include ‘‘OCC’’ as the agency name and ‘‘Docket AGENCY: Office of the Comptroller of the ID OCC–2020–0005’’ in your comment. Currency, Treasury (OCC); Board of In general, the OCC will enter all Governors of the Federal Reserve comments received into the docket and System (Board); Federal Deposit publish the comments on the Insurance Corporation (FDIC); National Regulations.gov website without Credit Union Administration (NCUA); change, including any business or and Bureau of Consumer Financial personal information that you provide Protection (Bureau). such as name and address information, ACTION: Notice of proposed rulemaking. email addresses, or phone numbers. Comments received, including SUMMARY: The OCC, Board, FDIC, attachments and other supporting NCUA, and Bureau (collectively, the materials, are part of the public record agencies) are inviting comment on a and subject to public disclosure. Do not proposed rule that would codify the include any information in your Interagency Statement Clarifying the comment or supporting materials that Role of Supervisory Guidance issued by you consider confidential or the agencies on September 11, 2018 inappropriate for public disclosure. (2018 Statement). By codifying the 2018 You may review comments and other Statement, the proposed rule is related materials that pertain to this intended to confirm that the agencies rulemaking action by the following will continue to follow and respect the method: limits of administrative law in carrying • Viewing Comments Electronically: out their supervisory responsibilities. Go to www.regulations.gov. Enter The 2018 Statement reiterated well- ‘‘Docket ID OCC 2020–0005’’ in the established law by stating that, unlike a Search box and click ‘‘Search.’’ Click on law or regulation, supervisory guidance ‘‘Open Docket Folder’’ on the right side does not have the force and effect of of the screen. Comments and supporting law. As such, supervisory guidance does materials can be viewed and filtered by

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules 70513

clicking on ‘‘View all documents and NCUA: You may submit comments to • Click on the ‘‘Help’’ tab on the comments in this docket’’ and then the NCUA by any of the methods set Regulations.gov home page to get using the filtering tools on the left side forth below. Commenters are information on using Regulations.gov. of the screen. encouraged to submit comments The docket may be viewed after the • Click on the ‘‘Help’’ tab on the through the Federal eRulemaking Portal close of the comment period in the same Regulations.gov home page to get or email, if possible. Please use the title manner as during the comment period. information on using Regulations.gov. ‘‘Role of Supervisory Guidance’’ to • Due to social distancing measures The docket may be viewed after the facilitate the organization and in effect, the usual opportunity to close of the comment period in the same distribution of the comments. You may inspect paper copies of comments in the manner as during the comment period. submit comments by any of the NCUA’s law library is not currently Board: You may submit comments, following methods: available. After social distancing identified by Docket No. R–1725 and • Federal eRulemaking Portal— measures are relaxed, visitors may make RIN No. 7100–AF96, by any of the ‘‘Regulations.gov’’: Go to an appointment to review paper copies following methods: www.regulations.gov. Enter ‘‘Docket ID by calling (703) 518–6540 or emailing • Agency Website: http:// NCUA–[2020–0098]’’ in the Search Box [email protected]. www.federalreserve.gov. Follow the and click ‘‘Search.’’ Click on ‘‘Comment Bureau: You may submit comments, instructions for submitting comments at Now’’ to submit public comments. identified by Docket No. CFPB–2020– http://www.federalreserve.gov/ • Click on the ‘‘Help’’ tab on the 0033 or RIN 3170–AB02, by any of the generalinfo/foia/ProposedRegs.cfm. Regulations.gov home page to get following methods: • Email: regs.comments@ information on using Regulations.gov, • Federal eRulemaking Portal: http:// federalreserve.gov. Include the docket including instructions for submitting www.regulations.gov. Follow the number in the subject line of the public comments. instructions for submitting comments. message. • • • Mail: Melane Conyers-Ausbrooks, Email: 2020-NPRM- Fax: (202) 452–3819 or (202) 452– Secretary of the Board, National Credit [email protected]. Include 3102. Union Administration, 1775 Duke Docket No. CFPB–2020–0033 or RIN • Mail: Ann Misback, Secretary, Street, Alexandria, VA. 22314. 3170–AB02 in the subject line of the Board of Governors of the Federal • Fax: (703) 518–6319. Include email. Reserve System, 20th Street and ‘‘[Your name]—Comments on Proposed • Mail/Hand Delivery/Courier: Constitution Avenue NW, Washington, Rule: Role of Supervisory Guidance’’ Comment Intake, Bureau of Consumer DC 20551. • with the transmittal. Financial Protection, 1700 G Street NW, All public comments will be made • available on the Board’s website at Hand Delivery/Courier: Office of Washington, DC 20552. Please note that http://www.federalreserve.gov/ General Counsel, National Credit Union due to circumstances associated with generalinfo/foia/ProposedRegs.cfm as Administration, 1775 Duke Street, the COVID–19 pandemic, the Bureau submitted, unless modified for technical Alexandria, VA 22314. You must discourages the submission of reasons or to remove personally include ‘‘NCUA’’ as the agency name comments by hand delivery, mail, or identifiable information at the and ‘‘Docket ID NCUA–[2020–0098]’’ in courier. commenter’s request. Accordingly, your your comment. Instructions: The Bureau encourages comments will not be edited to remove In general, the NCUA will enter all the early submission of comments. All any identifying or contact information. comments received into the docket and submissions should include the agency Public comments may also be viewed publish the comments on the name and docket number or Regulatory electronically or in paper in Room 146, Regulations.gov website without Information Number (RIN) for this 1709 New York Avenue NW, change, including any business or rulemaking. Because paper mail in the Washington, DC 20006, between 9:00 personal information that you provide Washington, DC area and at the Bureau a.m. and 5:00 p.m. on weekdays. such as name and address information, is subject to delay and in light of FDIC: You may submit comments on email addresses, or phone numbers. difficulties associated with mail and the notice of proposed rulemaking using Comments received, including hand deliveries during the COVID–19 any of the following methods: attachments and other supporting pandemic, commenters are encouraged • Agency Website: https:// materials, are part of the public record to submit comments electronically. In www.fdic.gov/regulations/laws/federal. and subject to public disclosure. Do not general, all comments received will be Follow the instructions for submitting include any information in your posted without change to http:// comments on the agency website. comment or supporting materials that www.regulations.gov. In addition, once • Email: [email protected]. Include you consider confidential or the Bureau’s headquarters reopens, RIN 3064–AF32 on the subject line of inappropriate for public disclosure. comments will be available for public the message. You may review comments and other inspection and copying at 1700 G Street • Mail: Robert E. Feldman, Executive related materials that pertain to this NW, Washington, DC 20552, on official Secretary, Attention: Comments, Federal rulemaking action by any of the business days between the hours of Deposit Insurance Corporation, 550 17th following methods: 10:00 a.m. and 5:00 p.m. Eastern Time. Street NW, Washington, DC 20429. • Viewing Comments Electronically: At that time, you can make an • Hand Delivery: Comments may be Go to www.regulations.gov. Enter appointment to inspect the documents hand delivered to the guard station at ‘‘Docket ID NCUA–[2020–0098]’’ in the by telephoning 202–435–9169. the rear of the 550 17th Street Building Search box and click ‘‘Search.’’ Click on All comments, including attachments (located on F Street) on business days ‘‘Open Docket Folder’’ on the right side and other supporting materials, will between 7 a.m. and 5 p.m. of the screen. Comments and supporting become part of the public record and • Public Inspection: All comments materials can be viewed and filtered by subject to public disclosure. Proprietary received, including any personal clicking on ‘‘View all documents and or sensitive personal information, such information provided, will be posted comments in this docket’’ and then as account numbers, Social Security generally without change to https:// using the filtering tools on the left side numbers, or names of other individuals, www.fdic.gov/regulations/laws/federal. of the screen. should not be included. Comments will

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 70514 Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules

not be edited to remove any identifying I. Background outlines the agencies’ supervisory or contact information. The OCC, Board, FDIC, NCUA, and expectations or priorities and articulates FOR FURTHER INFORMATION CONTACT: Bureau (collectively, the agencies) the agencies’ general views regarding OCC: Mitchell Plave, Special Counsel, recognize the important distinction appropriate practices for a given subject (202) 649–5490; or Henry Barkhausen, between issuances that serve to area. Supervisory guidance often Counsel, Chief Counsel’s Office (202) implement acts of Congress (known as provides examples of practices that 649–5490; or Steven Key, Associate ‘‘regulations’’ or legislative rules’’) and mitigate risks, or that the agencies Deputy Comptroller for Bank non-binding supervisory guidance generally consider to be consistent with Supervision Policy, (202) 649–6770, documents.1 Regulations create binding safety-and-soundness standards or other Office of the Comptroller of the legal obligations. Supervisory guidance applicable laws and regulations, Currency, 400 7th Street SW, is issued by an agency to ‘‘advise the including those designed to protect 5 Washington, DC 20219. For persons public prospectively of the manner in consumers. The agencies noted in the who are deaf or hearing impaired, TTY which the agency proposes to exercise 2018 Statement that supervised users may contact (202) 649–5597. a discretionary power’’ and does not institutions at times request supervisory Board: Laurie Schaffer, Deputy create binding legal obligations.2 guidance and that guidance is important General Counsel, (202) 452–2272, The agencies issued the Interagency to provide clarity to these institutions, Benjamin McDonough, Associate Statement Clarifying the Role of as well as supervisory staff, in a General Counsel, (202) 452–2036, Steve Supervisory Guidance on September 11, transparent way that helps to ensure Bowne, Senior Counsel, (202) 452–3900, 2018 (2018 Statement) to explain the consistency in the supervisory 6 Christopher Callanan, Senior Counsel, role of supervisory guidance and approach. (202) 452–3594, or Kelley O’Mara, describe the agencies’ approach to The 2018 Statement restates existing Counsel, (202) 973–7497, Legal supervisory guidance.3 As noted in the law and reaffirms the agencies’ Division; Anna Lee Hewko, Associate 2018 Statement, the agencies issue understanding that supervisory Director, (202) 530–6260; David Palmer, various types of supervisory guidance to guidance does not create binding, Lead Financial Institution and Policy their respective supervised institutions, enforceable legal obligations. The 2018 Analyst, (202) 452–2904, or Jinai including, but not limited to, Statement reaffirms that the agencies do Holmes, Lead Financial Institution and interagency statements, advisories, not issue supervisory criticisms for Policy Analyst, (202) 452–2834, bulletins, policy statements, questions ‘‘violations’’ of supervisory guidance Division of Supervision and Regulation; and answers, and frequently asked questions.4 Supervisory guidance also, e.g., American Mining Congress v. Mine Safety Suzanne Killian, Senior Associate & Health Administration, 995 F.2d 1106, 1112 (DC Director, (202) 452–2090, Jeremy Cir. 1993) (outlining tests in the D.C. Circuit for Hochberg, Managing Counsel, (202) 1 Regulations are commonly referred to as assessing whether an agency issuance is an 452–6496, or Dana Miller, Senior legislative rules because regulations have the ‘‘force interpretive rule). and effect of law.’’ Perez v. Mortgage Bankers Ass’n, Questions concerning the status of interpretive Counsel, (202) 452–2751, Division of 575 U.S. 92, 96 (2015) (citations omitted). rules are case-specific and have engendered debate Consumer and Community Affairs; 2 See Chrysler v. Brown, 441 U.S. 281, 302 (1979) among courts and administrative law Board of Governors of the Federal (quoting the Attorney General’s Manual on the commentators. See, e.g., R. Levin, Rulemaking and Reserve System, 20th and C Streets NW, Administrative Procedure Act at 30 n.3 (1947) the Guidance Exemption, 70 Admin. L. Rev. 263 (Attorney General’s Manual) and discussing the (2018) (discussing the doctrinal differences Washington, DC 20551. For users of distinctions between regulations and general concerning the status of interpretive rules under the Telecommunications Device for the Deaf statements of policy, of which supervisory guidance APA); see also ACUS, Recommendation 2019–1, (TDD), (202) 263–4869. is one form). Agency Guidance Through Interpretive Rules FDIC: William Piervincenzi, 3 See https://www.federalreserve.gov/ (Adopted June 13, 2019), available at https:// supervisionreg/srletters/sr1805a1.pdf; https:// www.acus.gov/recommendation/agency-guidance- Supervisory Counsel, (202) 898–6957, www.occ.gov/news-issuances/news-releases/2018/ through-interpretive-rules (discussing the range of Kathryn Marks, Counsel, (202) 898– nr-ia-2018-97a.pdf. opinions concerning the ‘‘binding’’ nature of 3896, Jennifer M. Jones, Counsel, (202) 4 These types of materials are not always interpretive rules). For these reasons, the 2018 898–6768, [email protected], supervisory guidance. They may, for example, be Statement and this proposed rule do not address Supervision and Legislation Branch, interpretive rules addressing regulatory interpretive rules. requirements. The 2018 Statement does not address 5 While policy statements offer guidance to the Legal Division, Federal Deposit interpretive rules, and interpretive rules are outside public on the agencies’ approach to supervision Insurance Corporation, 550 17th Street the scope of this rulemaking, because interpretive under statutes and regulations and safe and sound NW, Washington, DC 20429. For the rules are distinct from general statements of policy practices, the issuance of guidance is discretionary hearing impaired only, (i.e. guidance) under the APA and its jurisprudence. and is not a prerequisite to an agency’s exercise of Interpretive rules are ‘‘issued by an agency to advise its statutory and regulatory authorities. This point Telecommunication Device for the Deaf the public of the agency’s construction of the reflects the fact that statutes and legislative rules, (TDD), (800) 925–4618. statutes and rules which it administers.’’ Mortgage not statements of policy, set legal requirements. NCUA: Ian Marenna, Associate Bankers Ass’n, 575 U.S. at 97 (citing Shalala v. 6 The Administrative Conference of the United General Counsel, or Marvin Shaw, Staff Guernsey Memorial Hospital, 514 U.S. 87, 99 States (ACUS) has recognized the important role of (1995)). While the APA does not define the term guidance documents and has stated that guidance Attorney, Office of General Counsel, at ‘‘interpretive rule,’’ the APA refers to general can ‘‘make agency decision-making more the above address or telephone (703) statements of policy and interpretive rules predictable and uniform and shield regulated 518–6540. National Credit Union separately in addressing notice and comment parties from unequal treatment, unnecessary costs, Administration, 1775 Duke Street, requirements. See 5 U.S.C. 553(b)(A) (providing that and unnecessary risk, while promoting compliance notice and comment requirements do not apply to with the law.’’ ACUS, Recommendation 2017–5, Alexandria, VA 22314. ‘‘interpretive rules, general statements of policy, or Agency Guidance Through Policy Statements at 2 Bureau: Bradley Lipton or rules of agency organization, procedure, or (adopted December 14, 2017), available at https:// Christopher Shelton, Senior Counsels, practice’’). www.acus.gov/recommendation/agency-guidance- Legal Division, (202) 435–7700. Bureau The Attorney General’s Manual also defines through-policy-statements. ACUS also suggests that policy statements and interpretive rules separately. ‘‘policy statements are generally better [than of Consumer Financial Protection, 1700 The Manual defines interpretive rules as rules or legislative rules] for dealing with conditions of G Street NW, Washington, DC 20552. If statements issued by an agency to advise the public uncertainty and often for making agency policy you require this document in an of the agency’s construction of the statutes and accessible.’’ Id. ACUS was chartered by Congress alternative electronic format, please rules which it administers, whereas, as outlined and charged with convening expert representatives _ earlier, general statements of policy are defined as from the public and private sectors to recommend contact CFPB [email protected]. advising the public of how an agency may exercise improvements to administrative process and SUPPLEMENTARY INFORMATION: its discretionary powers. See Manual at 30 n.3; see procedure. See https://www.acus.gov/acus.

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules 70515

and describes the appropriate use of Clarification of the 2018 Statement The Petition requests further that supervisory guidance by the agencies. In The Petition expressed support for the these supervisory criticisms should not the 2018 Statement, the agencies also 2018 Statement and acknowledged that include ‘‘generic’’ or ‘‘conclusory’’ expressed their intention to (1) limit the it addresses many issues of concern for references to safety and soundness. The use of numerical thresholds in the Petitioners relating to the use of agencies agree that supervisory guidance; (2) reduce the issuance of supervisory guidance. The Petition criticisms should continue to be specific multiple supervisory guidance on the expressed concern, however, that the as to practices, operations, financial same topic; (3) continue efforts to make 2018 Statement’s reference to not basing conditions, or other matters that could the role of supervisory guidance clear in ‘‘criticisms’’ on violations of have a negative effect on the safety and communications to examiners and supervisory guidance has led to soundness of the financial institution, supervised institutions; and (4) confusion about whether MRAs are could cause consumer harm, or could encourage supervised institutions to covered by the 2018 Statement. cause violations of laws, regulations, discuss their concerns about Accordingly, the agencies are clarifying final agency orders, or other legally supervisory guidance with their in the proposed Statement that the term enforceable conditions. Accordingly, the appropriate agency contact. ‘‘criticize’’ includes the issuance of agencies have included language On November 5, 2018, the OCC, MRAs and other supervisory criticisms, reflecting this practice in the proposed Board, FDIC, and Bureau each received including those communicated through Statement. a petition for a rulemaking (Petition), as matters requiring board attention, permitted under the Administrative The Petition also suggests that MRAs, 7 documents of resolution, and as well as memoranda of understanding, Procedure Act (APA), requesting that supervisory recommendations the agencies codify the 2018 Statement.8 examination downgrades, and any other (collectively, supervisory criticisms).9 formal examination mandate or The Petition argues that a rule on As such, the agencies reiterate that guidance is necessary to bind future sanction, should be based only on a examiners will not base supervisory violation of a statute, regulations, or agency leadership and staff to the 2018 criticisms on a ‘‘violation’’ of or ‘‘non- Statement’s terms. The Petition also order, including a ‘‘demonstrably unsafe compliance with’’ supervisory or unsound practice.’’ 12 The agencies’ suggests there are ambiguities in the 10 guidance. The agencies note that, in examiners all take steps to identify 2018 Statement concerning how some situations, examiners may supervisory guidance is used in deficient practices before they rise to reference (including in writing) violations of law or regulation or before connection with matters requiring supervisory guidance to provide attention, matters requiring immediate they constitute unsafe or unsound examples of safe and sound conduct, attention (collectively, MRAs), and banking practices. The agencies appropriate consumer protection and other supervisory actions that should be continue to believe that early risk management practices, and other clarified through a rulemaking. Finally, identification of deficient practices actions for addressing compliance with the Petition calls for the rulemaking to serves the interest of the public and of laws or regulations. The agencies also implement changes in the agencies’ supervised institutions. Doing so reiterate that they will not issue an standards for issuing MRAs. protects the safety and soundness of enforcement action on the basis of a Specifically, the Petition requests that banks, promotes consumer protection, ‘‘violation’’ of or ‘‘non-compliance’’ the agencies limit the role of MRAs to and reduces the costs and risk of with supervisory guidance. The addressing circumstances in which deterioration of financial condition from proposed Statement reflects these there is a violation of a statute, deficient practices resulting in clarifications.11 regulation, or order, or demonstrably violations of laws or regulations, unsafe or unsound conditions, or unsafe or unsafe or unsound practices. 9 The agencies use different terms to refer to unsound banking practices. II. The Proposed Rule supervisory actions that are similar to MRAs and Matters Requiring Immediate Attention (MRIAs), Additionally, the agencies have The 2018 Statement’s description of including matters requiring board attention, different supervisory processes, the appropriate parameters concerning documents of resolution, and supervisory including for issuing supervisory the use of supervisory guidance recommendations. criticisms. For these reasons, the 10 For the sake of clarification, one source of law continues to reflect accurately the among many that can serve as a basis for a agencies are not proposing, as part of agencies’ policies concerning the use of supervisory criticism is the Interagency Guidelines this rulemaking, revisions to their supervisory guidance. The proposed Establishing Standards for Safety and Soundness, see 12 CFR part 30, appendix A, and 12 CFR part rule, therefore, would codify the 2018 Statement also removes the sentences in the 2018 208, appendix D–1. These Interagency Guidelines Statement that referred to ‘‘citation,’’ which the Statement, with clarifying changes, as were issued using notice and comment and Petition suggested had been confusing. These an appendix to the proposed rule text pursuant to express statutory authority in 12 U.S.C. sentences were also removed to clarify that the 1831p–1(d)(1) to adopt safety and soundness (proposed Statement), and would focus of the proposed Statement relates to the use standards either by ‘‘regulation or guideline.’’ supersede the 2018 Statement. The rule of guidance, not the standards for MRAs. 11 The 2018 Statement contains the following text would provide that the proposed 12 The Petition asserts that the federal banking sentence: agencies rely on 12 U.S.C. 1818(b)(1) when issuing Statement is binding on each respective Examiners will not criticize a supervised agency. MRAs based on safety-and-soundness matters. financial institution for a ‘‘violation’’ of supervisory Through statutory examination and reporting guidance. authorities, Congress has conferred upon the 7 5 U.S.C. 553(e). 2018 Statement at 2. As revised in the proposed agencies the authority to exercise visitorial powers 8 See Petition for Rulemaking on the Role of Statement, this sentence reads as follows: with respect to supervised institutions. The Supervisory Guidance, available at https://bpi.com/ Examiners will not criticize (including through Supreme Court has indicated support for a broad wp-content/uploads/2018/11/BPI_PFR_on_Role_of_ the issuance of matters requiring attention, matters reading of the agencies’ visitorial powers. See, e.g., Supervisory_Guidance_Federal_Reserve.pdf. The requiring immediate attention, matters requiring Cuomo v. Clearing House Assn L.L.C., 557 U.S. 519 Petitioners did not submit a petition to the NCUA, board attention, documents of resolution, and (2009); United States v. Gaubert, 499 U.S. 315 which has no supervisory authority over the supervisory recommendations) a supervised (1991); and United States v. Philadelphia Nat. financial institutions that are represented by financial institution for, and agencies will not issue Bank, 374 U.S. 321 (1963). The visitorial powers Petitioners. The NCUA has chosen to join this an enforcement action on the basis of, a ‘‘violation’’ facilitate early identification of supervisory rulemaking on its own initiative. References in the of or ‘‘non-compliance’’ with supervisory guidance. concerns that may not rise to a violation of law, preamble to ‘‘agencies’’ therefore include the Proposed Statement (emphasis added). As unsafe or unsound banking practice, or breach of NCUA. discussed infra in footnote [18], the proposed fiduciary duty under 12 U.S.C. 1818.

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 70516 Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules

respective supervisory practices relating IV. Administrative Law Matters rule will not have a significant to supervisory criticisms. economic impact on a substantial A. Solicitation of Comments and Use of number of small entities and publishes The agencies also note that the 2018 Plain Language Statement was intended to focus on the its certification and a brief explanatory appropriate use of supervisory guidance Section 722 of the Gramm-Leach- statement in the Federal Register along in the supervisory process, rather than Bliley Act 14 requires the Federal with its rule. the standards for supervisory criticisms. banking agencies to use plain language The OCC currently supervises To address any confusion concerning in all proposed and final rules approximately 782 small entities.17 the scope of the 2018 Statement, the published after January 1, 2000. The Because the proposed rule would apply agencies have removed two sentences agencies have sought to present the to all OCC-supervised depository from the 2018 Statement concerning proposed rule in a simple and institutions, the proposed rule would grounds for ‘‘citations’’ and the straightforward manner and invite affect a substantial number of OCC- handling of deficiencies that do not comment on the use of plain language. supervised entities. While the proposed constitute violations of law.13 For example: rule does clarify that the Statement is • Have the agencies organized the binding on the agencies, it would not III. Request for Comment material to suit your needs? If not, how impose any new mandates on the 1. The proposed Statement provides could they present the proposed rule banking industry. As such, we estimate that in some situations, examiners may more clearly? that the costs, if any, associated with the • reference (including in writing) Are the requirements in the proposal would be negligible. For these supervisory guidance to provide proposed rule clearly stated? If not, how reasons, the OCC certifies that the examples of safe and sound conduct, could the proposed rule be more clearly proposed rule will not have a significant economic impact significant economic appropriate consumer protection and stated? • impact on a substantial number of small risk management practices, and other Do the regulations contain technical language or jargon that is not clear? If entities. actions for addressing compliance with Board: The Regulatory Flexibility Act laws or regulations. so, which language requires clarification? (RFA) generally requires an agency to Should examiners reference • conduct an initial regulatory flexibility supervisory guidance to provide Would a different format (grouping and order of sections, use of headings, analysis (IRFA) and a final regulatory examples of safe and sound conduct, flexibility analysis (FRFA) of any rule appropriate consumer protection and paragraphing) make the regulation easier to understand? If so, what subject to notice-and-comment risk management practices, and other rulemaking requirements, unless the actions for addressing compliance with changes would achieve that? • Would more, but shorter, sections head of the agency certifies that the rule laws or regulations when criticizing will not, if promulgated, have a (through the issuance of matters be better? If so, which sections should be changed? significant economic impact on a requiring attention, matters requiring 18 • What other changes can the substantial number of small entities. immediate attention, matters requiring This proposed rule would not impose board attention, documents of agencies incorporate to make the regulation easier to understand? any obligations on regulated entities, resolution, supervisory and regulated entities would not need to recommendations, or otherwise) a B. Paperwork Reduction Act Analysis take any action in response to this supervised financial institution? Are The Paperwork Reduction Act of proposed rule. The Board certifies that there specific situations where 1995 15 (PRA) states that no agency may the rule will not have a significant providing such examples would be conduct or sponsor, nor is the economic impact on a substantial appropriate, or specific situations where 19 respondent required to respond to, an number of small entities. The Board providing such examples would not be information collection unless it displays requests comments on this analysis and appropriate? a currently valid Office of Management any relevant data. 2. Is it sufficiently clear what types of and Budget (OMB) control number. The FDIC: The Regulatory Flexibility Act agency communications constitute agencies have reviewed this notice of (RFA) generally requires that, in supervisory guidance? If not, what steps proposed rulemaking and determined connection with a proposed rulemaking, could the agencies take to clarify this? that it does not contain any information an agency prepare and make available 3. Are there any additional collection requirements subject to the for public comment an initial regulatory clarifications to the 2018 Statement that PRA. Accordingly, no submissions to flexibility analysis describing the would be helpful? impact of the proposed rule on small OMB will be made with respect to this 20 4. Are there other aspects of the proposed rule. entities. However, a regulatory proposal where you would like to offer C. Regulatory Flexibility Act Analysis 17 We base our estimate of the number of small comment? entities on the SBA’s size thresholds for commercial OCC: In general, the Regulatory banks and savings institutions, and trust 13 The following sentences from the 2018 Flexibility Act 16 (RFA) requires that in companies, which are $600 million and $41.5 Statement are not present in the proposed connection with a rulemaking, an million, respectively. Consistent with the General Statement: agency prepare and make available for Principles of Affiliation 13 CFR 121.103(a), we Rather, any citations will be for violations of law, count the assets of affiliated financial institutions regulation, or non-compliance with enforcement public comment a regulatory flexibility when determining if we should classify an OCC- orders or other enforceable conditions. During analysis that describes the impact of the supervised institution as a small entity. We use examinations and other supervisory activities, rule on small entities. Under section December 31, 2018, to determine size because a examiners may identify unsafe or unsound 605(b) of the RFA, this analysis is not ‘‘financial institution’s assets are determined by practices or other deficiencies in risk management, averaging the assets reported on its four quarterly including compliance risk management, or other required if an agency certifies that the financial statements for the preceding year.’’ See areas that do not constitute violations of law or footnote 8 of the U.S. Small Business regulation. 14 Public Law 106–102, sec. 722, 113 Stat. 1338, Administration’s Table of Size Standards. 2018 Statement at 2. The agencies do not intend 1471 (1999), 12 U.S.C. 4809. 18 5 U.S.C. 601–612. these deletions to indicate a change in supervisory 15 44 U.S.C. 3501–3521. 19 5 U.S.C. 605(b). policy. 16 5 U.S.C. 601, et seq. 20 5 U.S.C. 601 et seq.

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules 70517

flexibility analysis is not required if the the RFA to include federally insured mandates on the banking industry. agency certifies that the proposed rule credit unions with assets less than $100 Therefore, we conclude that if will not have a significant economic million) 23 and publishes its implemented, the proposal would not impact on a substantial number of small certification and a short, explanatory result in an expenditure of $157 million entities. The Small Business statement in the Federal Register or more annually by State, local, and Administration (SBA) has defined together with the rule. This proposed Tribal governments, or by the private ‘‘small entities’’ to include banking rule would not impose any obligations sector. organizations with total assets of less on federally insured credit unions, and than or equal to $600 million that are regulated entities would not need to F. Riegle Community Development and independently owned and operated or take any action in response to this Regulatory Improvement Act of 1994 owned by a holding company with less proposed rule. The NCUA certifies that Pursuant to section 302(a) of the than or equal to $600 million in total the rule will not have a significant Riegle Community Development and 21 assets. Generally, the FDIC considers a economic impact on a substantial Regulatory Improvement Act significant effect to be a quantified effect number of small entities. The NCUA (RCDRIA),27 in determining the effective in excess of 5 percent of total annual requests comments on this analysis and date and administrative compliance salaries and benefits per institution, or any relevant data. requirements for new regulations that 2.5 percent of total non-interest Bureau: The Regulatory Flexibility impose additional reporting, disclosure, expenses. The FDIC believes that effects Act (RFA) generally requires an agency or other requirements on insured in excess of these thresholds typically to conduct an initial regulatory depository institutions (IDIs), each flexibility analysis (IRFA) and a final represent significant effects for FDIC- Federal banking agency must consider, regulatory flexibility analysis (FRFA) of supervised institutions. consistent with principles of safety and As of June 30, 2020, the FDIC any rule subject to notice-and-comment soundness and the public interest, any supervised 3,270 institutions, of which rulemaking requirements, unless the administrative burdens that such 2,492 were considered small for head of the agency certifies that the rule regulations would place on depository purposes of RFA.22 This proposed rule, will not, if promulgated, have a institutions, including small depository if adopted, would not impose any significant economic impact on a institutions, and customers of obligations on FDIC-supervised entities, substantial number of small entities.24 depository institutions, as well as the and FDIC-supervised entities would not The Bureau also is subject to certain benefits of such regulations. In addition, need to take any action in response to additional procedures under the RFA this proposed rule. For these reasons, involving the convening of a panel to section 302(b) of RCDRIA requires new and under section 605(b) of the RFA, the consult with small business regulations and amendments to FDIC certifies that the proposed rule representatives prior to proposing a rule regulations that impose additional will not have a significant economic for which an IRFA is required.25 This reporting, disclosures, or other new impact on a substantial number of small proposed rule would not impose any requirements on IDIs generally to take FDIC-supervised institutions. The FDIC obligations on regulated entities, and effect on the first day of a calendar invites comments on all aspects of the regulated entities would not need to quarter that begins on or after the date supporting information provided in this take any action in response to this on which the regulations are published 28 RFA section. In particular, would this proposed rule. Accordingly, the Director in final form. Each Federal banking proposed rule have any significant of the Bureau certifies that the rule will agency has determined that the effects on small entities that the FDIC not, if promulgated, have a significant proposed rule would not impose has not identified? economic impact on a substantial additional reporting, disclosure, or other NCUA: The Regulatory Flexibility Act number of small entities. Thus, neither requirements on IDIs; therefore, the (RFA) generally requires that, in an IRFA nor a small business review requirements of the RCDRIA do not connection with a notice of proposed panel is required for this proposed rule. apply. However, the agencies invite rulemaking, an agency prepare and The Bureau requests comments on this comments that will further inform their make available for public comment an analysis and any relevant data. consideration of RCDRIA. initial regulatory flexibility analysis that G. Bureau Matters describes the impact of a proposed rule E. OCC Unfunded Mandates Reform Act on small entities. A regulatory flexibility of 1995 Determination The Bureau issues its portion of the analysis is not required, however, if the The OCC analyzed the proposed rule proposed rule based on the Bureau’s agency certifies that the rule will not under the factors set forth in the authorities under sections 1012(a)(1) have a significant economic impact on Unfunded Mandates Reform Act of 1995 and 1022(b)(1) of the Dodd-Frank Wall a substantial number of small entities (UMRA).26 Under this analysis, the OCC Street Reform and Consumer Protection (defined by the NCUA for purposes of considered whether the proposed rule Act (Dodd-Frank Act).29 Section includes a Federal mandate that may 1012(a)(1) authorizes the Bureau to 21 The SBA defines a small banking organization result in the expenditure by State, local, establish rules for conducting the as having $600 million or less in assets, where an and Tribal governments, in the general business of the Bureau, in a organization’s ‘‘assets are determined by averaging aggregate, or by the private sector, of the assets reported on its four quarterly financial manner not inconsistent with title X of statements for the preceding year.’’ See 13 CFR $157 million or more in any one year the Dodd-Frank Act.30 Section 121.201 (as amended by 84 FR 34261, effective (adjusted for inflation). The OCC has 1022(b)(1) authorizes the Bureau to August 19, 2019). In its determination, the ‘‘SBA determined that the proposal, if issue rules as may be necessary or counts the receipts, employees, or other measure of implemented, would not impose new size of the concern whose size is at issue and all appropriate to enable the Bureau to of its domestic and foreign affiliates.’’ See 13 CFR administer and carry out the purposes 121.103. Following these regulations, the FDIC uses 23 NCUA Interpretive Ruling and Policy and objectives of the Federal consumer a covered entity’s affiliated and acquired assets, Statement (IRPS) 87–2, as amended by IRPS 03–2 averaged over the preceding four quarters, to and 15–1, available at https://www.ncua.gov/files/ determine whether the covered entity is ‘‘small’’ for publications/irps/IRPS1987-2.pdf. 27 12 U.S.C. 4802(a). the purposes of RFA. 24 5 U.S.C. 601–612. 28 12 U.S.C. 4802. 22 FDIC Consolidated Reports of Condition and 25 5 U.S.C. 609. 29 Public Law 111–203, 124 Stat. 1376 (2010). Income Data, June 30, 2020. 26 2 U.S.C. 1532. 30 12 U.S.C. 5492(a)(1).

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 70518 Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules

financial laws.31 The Bureau Potential Benefits and Costs to total assets,37 and so the Bureau does preliminarily believes that the Consumers and Covered Persons. The not normally address supervisory additional clarity regarding the status of proposed rule would reiterate the guidance to these institutions. supervisory guidance provided by the Interagency Statement Clarifying the Accordingly, the Bureau does not expect proposed rule will enable the Bureau to Role of Supervisory Guidance, which is there to be any appreciable impact on carry out its supervisory responsibilities already the policy of the Bureau, and these institutions from the Bureau’s under Federal consumer financial law make it binding on the Bureau. The portion of the proposed rule. more effectively. Bureau evaluates its portion of the Impact on Access to Credit. The Consistent with section 1022(b)(2)(B) proposed rule against a baseline in Bureau does not expect the Bureau’s of the Dodd-Frank Act, in developing which no such rule is adopted, and the portion of the proposed rule to affect the proposed rule, the Bureau has Bureau is therefore less definitively consumers’ access to credit, except to consulted, or offered to consult with, bound to implement the Interagency the extent that reduced compliance the prudential regulators and the Statement in all supervisory activities. costs and additional assurance, relative Federal Trade Commission, including Accordingly, the Bureau’s portion of the to the baseline, that the Bureau will regarding consistency with any proposed rule provides the relevant follow the Interagency Statement in the prudential, market, or systemic institutions with additional assurance future might indirectly make some objectives administered by those that the Bureau’s implementation of credit more available, as discussed agencies.32 current and future supervisory guidance above. will follow the Interagency Statement. Additionally, consistent with section Impact on Consumers in Rural Areas. 1022(b)(2)(A) of the Dodd-Frank Act, the The proposed rule should provide the The Bureau does not believe that the Bureau has considered the potential relevant institutions with greater Bureau’s portion of the proposed rule benefits, costs, and impacts of the certainty about legal obligations that are would have any unique impact on 33 Bureau’s portion of the proposed rule. addressed in supervisory guidance. This consumers in rural areas, and so the The Bureau requests comment on the in turn may reduce compliance costs. It impact on these consumers should be preliminary analysis presented below as is not feasible, however, to quantify or similar to consumers generally. well as submissions of additional data monetize this benefit. The Bureau can that could inform the Bureau’s analysis only speculate on the greater certainty List of Subjects of the benefits, costs, and impacts. about legal obligations and the 12 CFR Part 4 Institutions Affected by the Proposed reduction in compliance costs if the rule Rule. The Bureau’s portion of the is adopted as proposed. Further, the Administrative practice and proposed rule applies to supervisory benefit from the greater certainty about procedure, Freedom of information, guidance issued by the Bureau, which is legal obligations pertains to future as Individuals with disabilities, Minority addressed to those institutions that are well as current supervisory guidance. businesses, Organization and functions examined by the Bureau. Accordingly, The Bureau can only speculate on the (Government agencies), Reporting and the Bureau’s portion of the proposed frequency of future supervisory recordkeeping requirements, Women. rule may affect those nondepository guidance. Supervisory guidance is 12 CFR Part 262 institutions that are subject to the issued from time to time as the need Bureau’s examination authority under arises, and the Bureau cannot forecast Administrative practice and section 1024 of the Dodd-Frank Act.34 It the volume and nature of future procedure, Banks, banking, Federal may also affect those insured depository supervisory guidance with sufficient Reserve System. institutions and insured credit unions precision to quantify or monetize this that have more than $10 billion in total benefit. 12 CFR Part 302 assets, together with their affiliates, The Bureau’s portion of the proposed Administrative practice and which are subject to the Bureau’s rule may also indirectly benefit those procedure, Banks, banking. examination authority under section consumers that are customers of the 35 12 CFR Part 791 1025 of the Dodd-Frank Act. The relevant institutions, if reduced Bureau’s portion of the proposed rule compliance costs translate into better Administrative practice and may additionally affect service terms or availability of consumer procedure, Sunshine Act. providers that are subject to the financial products and services. For the 36 Bureau’s examination authority. reasons given above, this benefit cannot 12 CFR Part 1074 be quantified or monetized. 31 12 U.S.C. 5512(b)(1). Administrative practice and 32 12 U.S.C. 5512(b)(2)(B). The prudential Finally, the Bureau’s portion of the procedure. proposed rule does not impose any new regulators are the OCC, Board, FDIC, and NCUA. DEPARTMENT OF THE TREASURY See 12 U.S.C. 5481(24) (defining ‘‘prudential obligations on institutions. Thus, the regulators’’). proposed rule should have no costs for Office of the Comptroller of the 33 Section 1022(b)(2)(A) of the Dodd-Frank Act, institutions. The effects of the rule, as Currency 12 U.S.C. 5512(b)(2)(A), requires the Bureau to consider the potential benefits and costs of the described above, impose no clear costs 12 CFR Chapter I regulation to consumers and covered persons, on any consumers. Authority and Issuance including the potential reduction of access by Impact on Depository Institutions and consumers to consumer financial products or services; the impact of the proposed rule on insured Credit Unions With No More Than $10 For the reasons stated in the depository institutions and credit unions with no Billion in Assets. Under section 1026 of Supplementary Information, chapter I of more than $10 billion in total assets as described the Dodd-Frank Act, the Bureau has title 12 of the Code of Federal in section 1026 of the Dodd-Frank Act, 12 U.S.C. only limited examination authority with 5516; and the impact on consumers in rural areas. Regulations is proposed to be amended 34 12 U.S.C. 5514. respect to those insured depository as follows: 35 12 U.S.C. 5515. institutions and insured credit unions 36 12 U.S.C. 5514(e), 5515(d), 5516(e). that have no more than $10 billion in 37 12 U.S.C. 5516.

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules 70519

PART 4—ORGANIZATION AND promoting safety and soundness and effective examiners may reference (including in FUNCTIONS, AVAILABILITY AND consumer protection at supervised writing) supervisory guidance to provide RELEASE OF INFORMATION, institutions. The Bureau of Consumer examples of safe and sound conduct, Financial Protection (‘‘Bureau,’’ and, with the CONTRACTING OUTREACH appropriate consumer protection and risk prudential agencies, the ‘‘agencies’’) is management practices, and other actions for PROGRAM, POST-EMPLOYMENT generally responsible for regulating the addressing compliance with laws or RESTRICTIONS FOR SENIOR offering and provision of consumer financial regulations. EXAMINERS products or services under the Federal • Supervisory criticisms should continue consumer financial laws. The agencies are to be specific as to practices, operations, ■ 1. The authority citation for part 4 issuing this statement to explain the role of financial conditions, or other matters that continues to read as follows: supervisory guidance and to describe the could have a negative effect on the safety and agencies’ approach to supervisory guidance. Authority: 5 U.S.C. 301, 552; 12 U.S.C. 1, soundness of the financial institution, could 93a, 161, 481, 482, 484(a), 1442, 1462a, 1463, Difference Between Supervisory Guidance cause consumer harm, or could cause 1464 1817(a), 1818, 1820, 1821, 1831m, and Laws or Regulations violations of laws, regulations, final agency orders, or other legally enforceable 1831p–1, 1831o, 1833e, 1867, 1951 et seq., The agencies issue various types of 2601 et seq., 2801 et seq., 2901 et seq., 3101 conditions. supervisory guidance, including interagency • The agencies also have at times sought, et seq., 3401 et seq., 5321, 5412, 5414; 15 statements, advisories, bulletins, policy U.S.C. 77uu(b), 78q(c)(3); 18 U.S.C. 641, and may continue to seek, public comment statements, questions and answers, and on supervisory guidance. Seeking public 1905, 1906; 29 U.S.C. 1204; 31 U.S.C. frequently asked questions, to their 5318(g)(2), 9701; 42 U.S.C. 3601; 44 U.S.C. comment on supervisory guidance does not respective supervised institutions. A law or mean that the guidance is intended to be a 3506, 3510; E.O. 12600 (3 CFR, 1987 Comp., regulation has the force and effect of law.1 p. 235). regulation or have the force and effect of law. Unlike a law or regulation, supervisory The comment process helps the agencies to ■ 2. Subpart F is added to part 4 to read guidance does not have the force and effect improve their understanding of an issue, to as follows: of law, and the agencies do not take gather information on institutions’ risk enforcement actions based on supervisory management practices, or to seek ways to Subpart F—Use of Supervisory Guidance guidance. Rather, supervisory guidance achieve a supervisory objective most Sec. outlines the agencies’ supervisory effectively and with the least burden on 4.81 Purpose. expectations or priorities and articulates the institutions. 4.82 Implementation of the Interagency agencies’ general views regarding appropriate • The agencies will aim to reduce the Statement. practices for a given subject area. Supervisory issuance of multiple supervisory guidance 4.83 Rule of construction. guidance often provides examples of documents on the same topic and will Appendix A to Subpart F of Part 4— practices that the agencies generally consider generally limit such multiple issuances going consistent with safety-and-soundness Interagency Statement Clarifying the forward. standards or other applicable laws and Role of Supervisory Guidance • The agencies will continue efforts to regulations, including those designed to make the role of supervisory guidance clear protect consumers. Supervised institutions at § 4.81 Purpose. in their communications to examiners and to times request supervisory guidance, and such supervised financial institutions and The OCC issues regulations and guidance is important to provide insight to encourage supervised institutions with guidance as part of its supervisory industry, as well as supervisory staff, in a questions about this statement or any function. This subpart reiterates the transparent way that helps to ensure applicable supervisory guidance to discuss distinctions between regulations and consistency in the supervisory approach. guidance, as stated in the Interagency the questions with their appropriate agency Ongoing Agency Efforts To Clarify the Role contact. Statement Clarifying the Role of of Supervisory Guidance Supervisory Guidance (appendix A to BOARD OF GOVERNORS OF THE this subpart) (Interagency Statement). The agencies are clarifying the following FEDERAL RESERVE SYSTEM policies and practices related to supervisory § 4.82 Implementation of the Interagency guidance: 12 CFR Chapter II • Statement. The agencies intend to limit the use of numerical thresholds or other ‘‘bright-lines’’ Authority and Issuance The Interagency Statement describes in describing expectations in supervisory For the reasons set forth in the the official policy of the OCC with guidance. Where numerical thresholds are preamble, the Board of Governors of the respect to the use of supervisory used, the agencies intend to clarify that the Federal Reserve System proposes to guidance in the supervisory process. thresholds are exemplary only and not amend part 262 to 12 CFR chapter II as The Interagency Statement is binding on suggestive of requirements. The agencies will follows: the OCC. continue to use numerical thresholds to tailor, and otherwise make clear, the § 4.83 Rule of construction. applicability of supervisory guidance or PART 262—RULES OF PROCEDURE programs to supervised institutions, and as This subpart does not alter the legal ■ 3. The authority citation for part 262 status of guidelines authorized by required by statute. • Examiners will not criticize (through the is revised to read as follows: statute, including but not limited to, 12 issuance of matters requiring attention, Authority: 5. U.S.C. 552; 12 U.S.C. 248, U.S.C. 1831p–1, to create binding legal matters requiring immediate attention, 321, 325, 326, 483, 602, 611a, 625, 1467a, obligations. matters requiring board attention, documents 1828(c), 1842, 1844, 1850a, 1867, 3105, 3106, Appendix A to Subpart F of Part 4— of resolution, and supervisory 3108, 5361, 5368, 5467, and 5469. recommendations) a supervised financial Interagency Statement Clarifying the institution for, and agencies will not issue an ■ 4. Section 262.7 is added to read as Role of Supervisory Guidance enforcement action on the basis of, a follows: ‘‘violation’’ of or ‘‘non-compliance’’ with Interagency Statement Clarifying the Role of § 262.7 Use of supervisory guidance. Supervisory Guidance supervisory guidance. In some situations, (a) Purpose. The Board issues The Board of Governors of the Federal 1 Reserve System, Federal Deposit Insurance Government agencies issue regulations that regulations and guidance as part of its generally have the force and effect of law. Such supervisory function. This subpart Corporation, National Credit Union regulations generally take effect only after the Administration, and Office of the agency proposes the regulation to the public and reiterates the distinctions between Comptroller of the Currency (together, the responds to comments on the proposal in a final regulations and guidance, as stated in ‘‘prudential agencies’’) are responsible for rulemaking document. the Interagency Statement Clarifying the

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 70520 Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules

Role of Supervisory Guidance (appendix guidance is important to provide insight to FEDERAL DEPOSIT INSURANCE A to this part) (Interagency Statement). industry, as well as supervisory staff, in a CORPORATION (b) Implementation of the Interagency transparent way that helps to ensure 12 CFR Chapter III Statement. The Interagency Statement consistency in the supervisory approach. describes the official policy of the Board Ongoing Agency Efforts To Clarify the Role Authority and Issuance with respect to the use of supervisory of Supervisory Guidance For the reasons set forth in the guidance in the supervisory process. The agencies are clarifying the following preamble, the Federal Deposit Insurance The Interagency Statement is binding on policies and practices related to supervisory Corporation proposes to add part 302 to the Board. guidance: 12 CFR chapter III, subchapter A, to (c) Rule of construction. This subpart • The agencies intend to limit the use of read as follows: does not alter the legal status of numerical thresholds or other ‘‘bright-lines’’ guidelines authorized by statute, in describing expectations in supervisory PART 302—USE OF SUPERVISORY including but not limited to, 12 U.S.C. guidance. Where numerical thresholds are GUIDANCE 1831p–1, to create binding legal used, the agencies intend to clarify that the obligations. thresholds are exemplary only and not Sec. ■ 5. Appendix A is added to read suggestive of requirements. The agencies will 302.1 Purpose. 302.2 Implementation of the interagency follows: continue to use numerical thresholds to tailor, and otherwise make clear, the statement. Appendix A to Part 262—Interagency applicability of supervisory guidance or 302.3 Rule of construction. Statement Clarifying the Role of programs to supervised institutions, and as Appendix A to Part 302—Interagency Supervisory Guidance required by statute. Statement Clarifying the Role of • Examiners will not criticize (through the Supervisory Guidance Interagency Statement Clarifying the Role of issuance of matters requiring attention, Authority: 5. U.S.C. 552; 12 U.S.C. 1818, Supervisory Guidance matters requiring immediate attention, 1819(a) (Seventh and Tenth), 1831p–1. The Board of Governors of the Federal matters requiring board attention, documents Reserve System, Federal Deposit Insurance of resolution, and supervisory § 302.1 Purpose. Corporation, National Credit Union recommendations) a supervised financial The FDIC issues regulations and Administration, and Office of the institution for, and agencies will not issue an guidance as part of its supervisory Comptroller of the Currency (together, the enforcement action on the basis of, a function. This subpart reiterates the ‘‘prudential agencies’’) are responsible for ‘‘violation’’ of or ‘‘non-compliance’’ with distinctions between regulations and promoting safety and soundness and effective supervisory guidance. In some situations, consumer protection at supervised examiners may reference (including in guidance, as stated in the Interagency institutions. The Bureau of Consumer writing) supervisory guidance to provide Statement Clarifying the Role of Financial Protection (‘‘Bureau,’’ and, with the examples of safe and sound conduct, Supervisory Guidance (appendix A to prudential agencies, the ‘‘agencies’’) is appropriate consumer protection and risk this part) (Interagency Statement). generally responsible for regulating the management practices, and other actions for § 302.2 Implementation of the interagency offering and provision of consumer financial addressing compliance with laws or statement. products or services under the Federal regulations. consumer financial laws. The agencies are • Supervisory criticisms should continue The Interagency Statement describes issuing this statement to explain the role of to be specific as to practices, operations, the official policy of the FDIC with supervisory guidance and to describe the financial conditions, or other matters that respect to the use of supervisory agencies’ approach to supervisory guidance. could have a negative effect on the safety and guidance in the supervisory process. Difference Between Supervisory Guidance soundness of the financial institution, could The Interagency Statement is binding on and Laws or Regulations cause consumer harm, or could cause the FDIC. violations of laws, regulations, final agency The agencies issue various types of orders, or other legally enforceable § 302.3 Rule of construction. supervisory guidance, including interagency conditions. This subpart does not alter the legal statements, advisories, bulletins, policy • The agencies also have at times sought, statements, questions and answers, and status of guidelines authorized by and may continue to seek, public comment statute, including but not limited to, 12 frequently asked questions, to their on supervisory guidance. Seeking public respective supervised institutions. A law or comment on supervisory guidance does not U.S.C. 1831p–1, to create binding legal 1 regulation has the force and effect of law. mean that the guidance is intended to be a obligations. Unlike a law or regulation, supervisory regulation or have the force and effect of law. guidance does not have the force and effect Appendix A to Part 302—Interagency The comment process helps the agencies to Statement Clarifying the Role of of law, and the agencies do not take improve their understanding of an issue, to Supervisory Guidance enforcement actions based on supervisory gather information on institutions’ risk guidance. Rather, supervisory guidance management practices, or to seek ways to Interagency Statement Clarifying the Role of outlines the agencies’ supervisory achieve a supervisory objective most Supervisory Guidance expectations or priorities and articulates the effectively and with the least burden on agencies’ general views regarding appropriate The Board of Governors of the Federal institutions. Reserve System, Federal Deposit Insurance practices for a given subject area. Supervisory • The agencies will aim to reduce the guidance often provides examples of Corporation, National Credit Union issuance of multiple supervisory guidance practices that the agencies generally consider Administration, and Office of the documents on the same topic and will consistent with safety-and-soundness Comptroller of the Currency (together, the generally limit such multiple issuances going standards or other applicable laws and ‘‘prudential agencies’’) are responsible for forward. regulations, including those designed to promoting safety and soundness and effective • The agencies will continue efforts to protect consumers. Supervised institutions at consumer protection at supervised make the role of supervisory guidance clear times request supervisory guidance, and such institutions. The Bureau of Consumer in their communications to examiners and to Financial Protection (‘‘Bureau,’’ and, with the supervised financial institutions and 1 prudential agencies, the ‘‘agencies’’) is Government agencies issue regulations that encourage supervised institutions with generally have the force and effect of law. Such generally responsible for regulating the regulations generally take effect only after the questions about this statement or any offering and provision of consumer financial agency proposes the regulation to the public and applicable supervisory guidance to discuss products or services under the Federal responds to comments on the proposal in a final the questions with their appropriate agency consumer financial laws. The agencies are rulemaking document. contact. issuing this statement to explain the role of

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules 70521

supervisory guidance and to describe the could have a negative effect on the safety and distinctions between regulations and agencies’ approach to supervisory guidance. soundness of the financial institution, could guidance, as stated in the Interagency cause consumer harm, or could cause Difference Between Supervisory Guidance Statement Clarifying the Role of violations of laws, regulations, final agency Supervisory Guidance (Interagency and Laws or Regulations orders, or other legally enforceable The agencies issue various types of conditions. Statement) in appendix A to this supervisory guidance, including interagency • The agencies also have at times sought, subpart and provides that the Statement statements, advisories, bulletins, policy and may continue to seek, public comment is binding on the NCUA. statements, questions and answers, and on supervisory guidance. Seeking public frequently asked questions, to their comment on supervisory guidance does not § 791.20 Implementation of the respective supervised institutions. A law or mean that the guidance is intended to be a Interagency Statement. regulation has the force and effect of law.1 regulation or have the force and effect of law. The Interagency Statement describes Unlike a law or regulation, supervisory The comment process helps the agencies to the official policy of the NCUA with guidance does not have the force and effect improve their understanding of an issue, to respect to the use of supervisory of law, and the agencies do not take gather information on institutions’ risk guidance in the supervisory process. enforcement actions based on supervisory management practices, or to seek ways to The Interagency Statement is binding on guidance. Rather, supervisory guidance achieve a supervisory objective most outlines the agencies’ supervisory effectively and with the least burden on the NCUA. expectations or priorities and articulates the institutions. § 791.21 Rule of construction. agencies’ general views regarding appropriate • The agencies will aim to reduce the practices for a given subject area. Supervisory issuance of multiple supervisory guidance This subpart does not alter the legal guidance often provides examples of documents on the same topic and will status of guidance that is authorized by practices that the agencies generally consider generally limit such multiple issuances going statute, including but not limited to 12 consistent with safety-and-soundness forward. U.S.C. 1781, 1786, and 1789, to create standards or other applicable laws and • The agencies will continue efforts to binding legal obligations. regulations, including those designed to make the role of supervisory guidance clear protect consumers. Supervised institutions at in their communications to examiners and to Appendix A to Subpart D of Part 791— times request supervisory guidance, and such supervised financial institutions and Interagency Statement Clarifying the guidance is important to provide insight to encourage supervised institutions with Role of Supervisory Guidance industry, as well as supervisory staff, in a questions about this statement or any transparent way that helps to ensure applicable supervisory guidance to discuss Interagency Statement Clarifying the Role of consistency in the supervisory approach. the questions with their appropriate agency Supervisory Guidance contact. The Board of Governors of the Federal Ongoing Agency Efforts To Clarify the Role Reserve System, Federal Deposit Insurance of Supervisory Guidance NATIONAL CREDIT UNION Corporation, National Credit Union The agencies are clarifying the following ADMINISTRATION Administration, and Office of the policies and practices related to supervisory 12 CFR Chapter VII Comptroller of the Currency (together, the guidance: ‘‘prudential agencies’’) are responsible for • The agencies intend to limit the use of Authority and Issuance promoting safety and soundness and effective numerical thresholds or other ‘‘bright-lines’’ For the reasons stated in the consumer protection at supervised in describing expectations in supervisory institutions. The Bureau of Consumer guidance. Where numerical thresholds are Supplementary Information, chapter VII Financial Protection (‘‘Bureau,’’ and, with the used, the agencies intend to clarify that the of title 12 of the Code of Federal prudential agencies, the ‘‘agencies’’) is thresholds are exemplary only and not Regulations is proposed to be amended generally responsible for regulating the suggestive of requirements. The agencies will as follows: offering and provision of consumer financial continue to use numerical thresholds to products or services under the Federal tailor, and otherwise make clear, the PART 791—RULES OF NCUA BOARD consumer financial laws. The agencies are applicability of supervisory guidance or PROCEDURE; PROMULGATION OF issuing this statement to explain the role of programs to supervised institutions, and as NCUA RULES AND REGULATIONS; supervisory guidance and to describe the required by statute. PUBLIC OBSERVATION OF NCUA agencies’ approach to supervisory guidance. • Examiners will not criticize (through the issuance of matters requiring attention, BOARD MEETINGS Difference Between Supervisory Guidance and Laws or Regulations matters requiring immediate attention, ■ 7. The authority citation for part 791 matters requiring board attention, documents is revised to read as follows: The agencies issue various types of of resolution, and supervisory supervisory guidance, including interagency recommendations) a supervised financial Authority: 12 U.S.C. 1766, 1781, 1786, statements, advisories, bulletins, policy institution for, and agencies will not issue an 1787, 1789, and 5 U.S.C. 552b. statements, questions and answers, and enforcement action on the basis of, a ■ 8. Subpart D is added to part 791 to frequently asked questions, to their ‘‘violation’’ of or ‘‘non-compliance’’ with read as follows: respective supervised institutions. A law or supervisory guidance. In some situations, regulation has the force and effect of law.1 examiners may reference (including in Subpart D—Use of Supervisory Unlike a law or regulation, supervisory writing) supervisory guidance to provide guidance does not have the force and effect examples of safe and sound conduct, Guidance of law, and the agencies do not take appropriate consumer protection and risk Sec. enforcement actions based on supervisory management practices, and other actions for 791.19 Purpose. guidance. Rather, supervisory guidance addressing compliance with laws or 791.20 Implementation of the Interagency outlines the agencies’ supervisory regulations. expectations or priorities and articulates the • Statement. Supervisory criticisms should continue 791.21 Rule of construction. agencies’ general views regarding appropriate to be specific as to practices, operations, Appendix A to Subpart D of Part 791— practices for a given subject area. Supervisory financial conditions, or other matters that Interagency Statement Clarifying the guidance often provides examples of Role of Supervisory Guidance 1 Government agencies issue regulations that 1 Government agencies issue regulations that generally have the force and effect of law. Such § 791.19 Purpose. generally have the force and effect of law. Such regulations generally take effect only after the regulations generally take effect only after the agency proposes the regulation to the public and The NCUA issues regulations and agency proposes the regulation to the public and responds to comments on the proposal in a final guidance as part of its supervisory responds to comments on the proposal in a final rulemaking document. function. This subpart reiterates the rulemaking document.

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 70522 Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules

practices that the agencies generally consider encourage supervised institutions with Appendix A to Part 1074—Interagency consistent with safety-and-soundness questions about this statement or any Statement Clarifying the Role of standards or other applicable laws and applicable supervisory guidance to discuss Supervisory Guidance regulations, including those designed to the questions with their appropriate agency Interagency Statement Clarifying the Role of protect consumers. Supervised institutions at contact. times request supervisory guidance, and such Supervisory Guidance guidance is important to provide insight to Bureau of Consumer Financial The Board of Governors of the Federal industry, as well as supervisory staff, in a Protection Reserve System, Federal Deposit Insurance transparent way that helps to ensure Corporation, National Credit Union consistency in the supervisory approach. Authority and Issuance Administration, and Office of the Comptroller of the Currency (together, the Ongoing Agency Efforts To Clarify the Role For the reasons set forth above, the of Supervisory Guidance ‘‘prudential agencies’’) are responsible for Bureau proposes to amend 12 CFR part promoting safety and soundness and effective The agencies are clarifying the following 1074 as set forth below: consumer protection at supervised policies and practices related to supervisory institutions. The Bureau of Consumer guidance: PART 1074—RULEMAKING AND Financial Protection (‘‘Bureau,’’ and, with the • The agencies intend to limit the use of GUIDANCE prudential agencies, the ‘‘agencies’’) is numerical thresholds or other ‘‘bright-lines’’ generally responsible for regulating the in describing expectations in supervisory ■ offering and provision of consumer financial guidance. Where numerical thresholds are 9. The authority citation for part 1074 products or services under the Federal used, the agencies intend to clarify that the continues to read as follows: consumer financial laws. The agencies are thresholds are exemplary only and not Authority: 12 U.S.C. 5492(a)(1), 5512(b). issuing this statement to explain the role of suggestive of requirements. The agencies will supervisory guidance and to describe the continue to use numerical thresholds to ■ 10. The heading to part 1074 is agencies’ approach to supervisory guidance. tailor, and otherwise make clear, the revised as set forth above. applicability of supervisory guidance or Difference Between Supervisory Guidance and Laws or Regulations programs to supervised institutions, and as § 1074.1 [Designated as Subpart A] required by statute. The agencies issue various types of • Examiners will not criticize (through the ■ 11. Designate § 1074.1 as subpart A supervisory guidance, including interagency issuance of matters requiring attention, and add a heading for newly designated statements, advisories, bulletins, policy matters requiring immediate attention, subpart A to read as follows: statements, questions and answers, and matters requiring board attention, documents frequently asked questions, to their of resolution, and supervisory Subpart A—Procedure for Issuance of respective supervised institutions. A law or recommendations) a supervised financial regulation has the force and effect of law.1 institution for, and agencies will not issue an Bureau Rules Unlike a law or regulation, supervisory enforcement action on the basis of, a guidance does not have the force and effect ‘‘violation’’ of or ‘‘non-compliance’’ with ■ 12. Add subpart B, consisting of of law, and the agencies do not take supervisory guidance. In some situations, §§ 1074.2 and 1074.3, to read as enforcement actions based on supervisory examiners may reference (including in follows: guidance. Rather, supervisory guidance writing) supervisory guidance to provide outlines the agencies’ supervisory examples of safe and sound conduct, Subpart B—Use of Supervisory expectations or priorities and articulates the appropriate consumer protection and risk Guidance agencies’ general views regarding appropriate management practices, and other actions for practices for a given subject area. Supervisory addressing compliance with laws or Sec. guidance often provides examples of practices that the agencies generally consider regulations. 1074.2 Purpose. • Supervisory criticisms should continue consistent with safety-and-soundness 1074.3 Implementation of the Interagency standards or other applicable laws and to be specific as to practices, operations, Statement. financial conditions, or other matters that regulations, including those designed to protect consumers. Supervised institutions at could have a negative effect on the safety and § 1074.2 Purpose. soundness of the financial institution, could times request supervisory guidance, and such cause consumer harm, or could cause The Bureau issues regulations and guidance is important to provide insight to violations of laws, regulations, final agency guidance as part of its supervisory industry, as well as supervisory staff, in a orders, or other legally enforceable transparent way that helps to ensure function. This subpart reiterates the consistency in the supervisory approach. conditions. distinctions between regulations and • The agencies also have at times sought, guidance, as stated in the Interagency Ongoing Agency Efforts To Clarify the Role and may continue to seek, public comment of Supervisory Guidance on supervisory guidance. Seeking public Statement Clarifying the Role of The agencies are clarifying the following comment on supervisory guidance does not Supervisory Guidance (appendix A to policies and practices related to supervisory mean that the guidance is intended to be a this part) (Interagency Statement) and guidance: regulation or have the force and effect of law. provides that the Statement is binding • The agencies intend to limit the use of The comment process helps the agencies to on the Bureau. numerical thresholds or other ‘‘bright-lines’’ improve their understanding of an issue, to in describing expectations in supervisory gather information on institutions’ risk § 1074.3 Implementation of the guidance. Where numerical thresholds are management practices, or to seek ways to Interagency Statement. used, the agencies intend to clarify that the achieve a supervisory objective most thresholds are exemplary only and not effectively and with the least burden on The Interagency Statement describes suggestive of requirements. The agencies will institutions. the official policy of the Bureau with • continue to use numerical thresholds to The agencies will aim to reduce the respect to the use of supervisory tailor, and otherwise make clear, the issuance of multiple supervisory guidance guidance in the supervisory process. applicability of supervisory guidance or documents on the same topic and will The Interagency Statement is binding on generally limit such multiple issuances going 1 forward. the Bureau. Government agencies issue regulations that generally have the force and effect of law. Such The agencies will continue efforts to make ■ 13. Appendix A to part 1074 is added regulations generally take effect only after the the role of supervisory guidance clear in their to read as follows: agency proposes the regulation to the public and communications to examiners and to responds to comments on the proposal in a final supervised financial institutions and rulemaking document.

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules 70523

programs to supervised institutions, and as Dated at Washington, DC, on or about 30, West Building Ground Floor, Room required by statute. October 20, 2020. W12–140, 1200 New Jersey Avenue SE, • Examiners will not criticize (through the James P. Sheesley, Washington, DC 20590. issuance of matters requiring attention, Assistant Executive Secretary. • Hand Delivery: Deliver to Mail matters requiring immediate attention, By the National Credit Union address above between 9 a.m. and 5 matters requiring board attention, documents Administration Board on October 28, 2020. p.m., Monday through Friday, except of resolution, and supervisory Melane Conyers-Ausbrooks, Federal holidays. recommendations) a supervised financial Secretary of the Board. For material incorporated by reference institution for, and agencies will not issue an Kathleen L. Kraninger, (IBR) in this AD, contact the EASA, enforcement action on the basis of, a Director, Bureau of Consumer Financial Konrad-Adenauer-Ufer 3, 50668 ‘‘violation’’ of or ‘‘non-compliance’’ with Cologne, Germany; telephone +49 221 supervisory guidance. In some situations, Protection. Dated: On or about October 29, 2020. 8999 000; email [email protected]; examiners may reference (including in internet www.easa.europa.eu. You may writing) supervisory guidance to provide [FR Doc. 2020–24484 Filed 11–4–20; 8:45 am] find this IBR material on the EASA examples of safe and sound conduct, BILLING CODE 4810–33–P; 6210–01–P; 7535–01–P; website at https://ad.easa.europa.eu. 6714–01–P; 4810–AM–P appropriate consumer protection and risk You may view this IBR material at the management practices, and other actions for FAA, Airworthiness Products Section, addressing compliance with laws or Operational Safety Branch, 2200 South regulations. DEPARTMENT OF TRANSPORTATION 216th St., Des Moines, WA. For • Supervisory criticisms should continue information on the availability of this to be specific as to practices, operations, Federal Aviation Administration material at the FAA, call 206–231–3195. financial conditions, or other matters that It is also available in the AD docket on could have a negative effect on the safety and 14 CFR Part 39 the internet at https:// soundness of the financial institution, could [Docket No. FAA–2020–0982; Project cause consumer harm, or could cause www.regulations.gov by searching for Identifier MCAI–2020–01037–T] violations of laws, regulations, final agency and locating Docket No. FAA–2020– 0982. orders, or other legally enforceable RIN 2120–AA64 conditions. Examining the AD Docket • The agencies also have at times sought, Airworthiness Directives; Airbus SAS and may continue to seek, public comment Airplanes You may examine the AD docket on on supervisory guidance. Seeking public the internet at https:// AGENCY: comment on supervisory guidance does not Federal Aviation www.regulations.gov by searching for mean that the guidance is intended to be a Administration (FAA), DOT. and locating Docket No. FAA–2020– regulation or have the force and effect of law. ACTION: Notice of proposed rulemaking 0982; or in person at Docket Operations The comment process helps the agencies to (NPRM). between 9 a.m. and 5 p.m., Monday improve their understanding of an issue, to through Friday, except Federal holidays. gather information on institutions’ risk SUMMARY: The FAA proposes to adopt a The AD docket contains this NPRM, any management practices, or to seek ways to new airworthiness directive (AD) for all comments received, and other achieve a supervisory objective most Airbus SAS Model A318, A319, A320, information. The street address for effectively and with the least burden on and A321 series airplanes. This Docket Operations is listed above. institutions. proposed AD was prompted by a report Comments will be available in the AD • The agencies will aim to reduce the that the oil used to protect the nose docket shortly after receipt. issuance of multiple supervisory guidance landing gear (NLG) main fittings for FOR FURTHER INFORMATION CONTACT: documents on the same topic and will transportation and storage was not Sanjay Ralhan, Aerospace Engineer, generally limit such multiple issuances going removed before final heat treatment of Large Aircraft Section, International forward. the affected parts, possibly generating Validation Branch, FAA, 2200 South The agencies will continue efforts to make sub-surface cavities during heat 216th St., Des Moines, WA 98198; the role of supervisory guidance clear in their treatment of the affected parts. This telephone and fax 206–231–3223; email communications to examiners and to proposed AD would require replacing [email protected]. each affected NLG main fitting with a supervised financial institutions and SUPPLEMENTARY INFORMATION: encourage supervised institutions with serviceable part, as specified in a questions about this statement or any European Union Aviation Safety Agency Comments Invited applicable supervisory guidance to discuss (EASA) AD, which will be incorporated The FAA invites you to send any the questions with their appropriate agency by reference. The FAA is proposing this written relevant data, views, or contact. AD to address the unsafe condition on arguments about this proposal. Send these products. Brian P. Brooks, your comments to an address listed DATES: The FAA must receive comments Acting Comptroller of the Currency. under ADDRESSES. Include ‘‘Docket No. on this proposed AD by December 21, FAA–2020–0982; Product Identifier By order of the Board of Governors of the 2020. MCAI–2020–01037–T’’ at the beginning Federal Reserve System. ADDRESSES: You may send comments, of your comments. The most helpful Ann E. Misback, using the procedures found in 14 CFR comments reference a specific portion of Secretary of the Board. 11.43 and 11.45, by any of the following the proposal, explain the reason for any methods: recommended change, and include Federal Deposit Insurance Corporation. • Federal eRulemaking Portal: Go to supporting data. The FAA will consider By order of the Board of Directors. https://www.regulations.gov. Follow the all comments received by the closing instructions for submitting comments. date and may amend the proposal • Fax: 202–493–2251. because of those comments. • Mail: U.S. Department of Except for Confidential Business Transportation, Docket Operations, M– Information (CBI) as described in the

VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS