[Federal Register Volume 81, Number 251 (Friday, December 30, 2016)]
[Notices]
[Pages 96566-96568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31651]
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DEPARTMENT OF THE TREASURY
Proposed Collection; Comment Request
AGENCY: Departmental Offices, Treasury.
ACTION: Notice and request for comments.
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SUMMARY: The Department of the Treasury, as part of its continuing
effort to reduce paperwork burdens, invites the general public and
other Federal agencies to comment on revisions for 2017 of a currently
approved information collection that is proposed for approval by the
Office of Management and Budget. The Office of International Affairs
within the Department of the Treasury is soliciting comments concerning
the revision of the Treasury International Capital (TIC) Form SHL/SHLA.
DATES: Written comments should be received on or before February 28,
2017 to be assured of consideration.
ADDRESSES: Direct all written comments to Dwight Wolkow, International
Portfolio Investment Data Systems, Department of the Treasury, Room
5422 MT, 1500 Pennsylvania Avenue NW., Washington, DC 20220. In view of
possible delays in mail delivery, you may also wish to send a copy to
Mr. Wolkow by email ([email protected]) or FAX (202-622-2009).
Mr. Wolkow can also be reached by telephone (202-622-1276).
FOR FURTHER INFORMATION CONTACT: Copies of the proposed form and
instructions are available at Part II of the Treasury International
Capital (TIC) Forms Web page ``Forms SHL/SHLA & SHC/SHCA'', at: http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/forms-sh.aspx. Requests for additional information should be directed to Mr.
Wolkow.
SUPPLEMENTARY INFORMATION:
Title: Treasury International Capital (TIC) Form SHL/SHLA,
``Foreign-Residents' Holdings of U.S. Securities, including Selected
Money Market Instruments''.
OMB Control Number: 1505-0123.
Abstract: This form collects foreign-residents' holdings of U.S.
securities.
[[Page 96567]]
These data are used by the U.S. Government in the formulation of
international financial and monetary policies, and for the computation
of the U.S. balance of payments accounts and of the U.S. international
investment position. These data are also used to provide information to
the public and to meet international reporting commitments. The data
collection includes large benchmark surveys conducted every five years,
and smaller annual surveys conducted in the non-benchmark years. The
data collected under an annual survey are used in conjunction with the
results of the preceding benchmark survey to make economy-wide
estimates for that non-benchmark year. Currently, the determination of
who must report in the annual surveys is based primarily on the data
submitted during the preceding benchmark survey. The data requested in
the annual survey will generally be the same as requested in the
preceding benchmark report. Form SHL is used for the benchmark survey
of all significant U.S.-resident custodians and U.S.-resident issuers
of securities regarding foreign-residents' holdings of U.S. securities.
In non-benchmark years, Form SHLA is used for the annual surveys of
primarily the largest U.S.-resident custodians and issuers.
Current Actions: No changes in the forms/schedules will be made
from the previous survey that was conducted as of June 30, 2016. The
proposed changes in the instructions are:
(1) In ``Consolidation Rules'' (section II.B in the instructions)
the first sentence is expanded to list out separately ``Intermediate
Holding Companies'' (IHCs), which are defined by Regulation YY, 12 CFR
252, to clarify that IHCs should follow the same consolidation rules
that are applicable to Bank Holding Companies (BHCs), Financial Holding
Companies (FHCs), and Savings and Loan Holding Companies.
(2) In ``Funds and Related Equity Ownership'' (section III.E in the
instructions) the illustrative list of fund types in the second
paragraph is expanded to list out separately ``private funds'', where
``private funds'' refers to the same class of financial entities that
must report to the Securities and Exchange Commission as private funds
on Form PF.
(3) In ``Funds and Related Equity Ownership'' (section III.E in the
instructions) the last section, ``Direct Investment exception for
private funds'', is new, to explain that in TIC reports as of 01
January 2017 and afterwards, investments in private funds, or between
the entities of a private fund, are included in TIC surveys regardless
of ownership share if they meet BOTH of the following two criteria: (i)
The private fund does not own, directly or indirectly through another
business enterprise, an ``operating company''--i.e., a business
enterprise that is not a private fund or a holding company--in which
the foreign parent owns at least 10 percent of the voting interest; and
(ii) If the private fund is owned indirectly (through one or more other
U.S. business enterprises), so there are no ``operating companies''
between the foreign parent and the indirectly owned private fund.
(4) In ``Stripped Securities'' (section III.G in the instructions)
the next to last sentence in the second paragraph is revised and reads
``In addition, all `teddy bears' (TBRs), `tigers' (TIGRs), `cats'
(CATS) and `cougars' (COUGRs) should also be classified as U.S.
Treasury securities.''
(5) In ``DIRECT INVESTMENT'' (section III.I in the instructions)
the next to last sentence is new, refers to proposed change (3) above,
and reads ``Also, certain cross-border investments by or into private
funds where these investments do not involve operating companies
(companies that are not other private funds or holding companies)
should be reported as portfolio investment on TIC reports rather than
on BEA reports as direct Investment (see section III.F).''
(6) In the ``Line-by-Line Instructions for Schedule 1'' (section IV
in the instructions), the reporter type 5 in line 8 is expanded, refers
to proposed change (1) above, and reads ``5 = Other Financial
Organizations (including BHC, FHC & IHC)''.
(7) In the ``Line-by-Line Instructions for Schedule 1'' (section IV
in the instructions), the phrase in parentheses in line 20 is clarified
and reads ``(records with Schedule 2, Item 18 = security types 1, 2, 3,
or 4)''.
(8) In the ``Line-by-Line Instructions for Schedule 1'' (section IV
in the instructions), the phrase in parentheses in line 21 is clarified
and reads ``(records with Schedule 2, Item 19 = security types 5, 6, 7,
8, 9, 10, or 11)''.
(9) In the ``Line-by-Line Instructions for Schedule 1'' (section IV
in the instructions), the phrase in parentheses in line 22 is clarified
and reads ``(records with Schedule 2, Item 19 = security type 5, 6, 7,
8, 9, 10, or 11)''.
(10) In the ``Line-by-Line Instructions for Schedule 1'' (section
IV in the instructions), the phrase in parentheses in line 23 is
clarified and reads ``(records with Schedule 2, Item 20 = security type
12)''.
(11) In the ``Line-by-Line Instructions for Schedule 2'' (section V
in the instructions), the fifth type of issuer in line 11 is expanded,
refers to proposed change (1) above, and reads ``Enter ``5'' if the
security was issued by all other financial organizations (including
BHC, FHC and IHC).''.
(12) In the ``Line-by-Line Instructions for Schedule 2'' (section V
in the instructions), the note for ``Type 11'' in line 12 is expanded,
refers to proposed change (4) above, and reads ``Type 11 should include
all debt other than asset-backed securities that is not covered in
types 5-10, including U.S. Treasury bills, TBRs, TIGRs, CATS and
COUGRs.''
(13) In ``Appendix E: List of Currency Codes'', some names and/or
symbols have been changed/updated, for example Romania, Serbia, Sudan,
Turkey, Turkmenistan, Venezuela, and Zambia.
(14) In ``Funds and Related Equity Ownership'' (section III.E in
the instructions), under the subsection ``Reporting guidelines for
Hedge Funds and other alternative investments'', the list of legal
entities is expanded to include fund ``administrators''.
(15) The exemption level (the threshold for reporting) for filing
schedules 2 and 3 for a benchmark survey is increased from $100 million
to $200 million.
(16) Some clarifications may be made in other parts of the
instructions.
The changes will improve overall survey reporting.
Type of Review: Revision of a currently approved data collections.
Affected Public: Business/Financial Institutions.
Form: TIC SHL/SHLA, Schedules 1 and 2 (1505-0123).
Estimated Number of Respondents: An annual average (over five
years) of 206, but this varies widely from about 590 in benchmark years
(once every five years) to about 110 in other years (four out of every
five years).
Estimated Average Time per Respondent: An annual average (over five
years) of about 168 hours, but this will vary widely from respondent to
respondent. (a) In the year of a benchmark survey, which is conducted
once every five years, it is estimated that exempt respondents will
require an average of 17 hours; for custodians of securities, the
estimate is a total of 321 hours on average, but this figure will vary
widely for individual custodians; and for issuers of securities that
have data to report and are not custodians, the estimate is 61 hours on
average. (b) In a non-benchmark year, which occurs four years out of
every five years, it is
[[Page 96568]]
estimated that the largest custodians of securities will require a
total of 486 hours on average; and for the largest issuers of
securities that have data to report and are not custodians, the
estimate is 110 hours on average. The exemption level for custodians
and for end-investors is the holding of less than $200 million in
reportable U.S. securities owned by foreign residents. The exemption
level applies only in benchmark years.
Estimated Total Annual Burden Hours: An annual average (over five
years) of 33,720 hours.
Frequency of Response: Annual.
Request for Comments: Comments submitted in response to this notice
will be summarized and/or included in the request for Office of
Management and Budget approval. All comments will become a matter of
public record. The public is invited to submit written comments
concerning: (a) Whether the Survey is necessary for the proper
performance of the functions of the Office of International Affairs
within the Department of the Treasury, including whether the
information collected will have practical uses; (b) the accuracy of the
above estimate of the burdens; (c) ways to enhance the quality,
usefulness and clarity of the information to be collected; (d) ways to
minimize the reporting and/or record keeping burdens on respondents,
including the use of information technologies to automate the
collection of the data requested; and (e) estimates of capital or
start-up costs of operation, maintenance and purchase of services to
provide the information requested.
Dwight Wolkow,
Administrator, International Portfolio Investment Data Systems.
[FR Doc. 2016-31651 Filed 12-29-16; 8:45 am]
BILLING CODE 4810-25-P