This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
5571
Vol. 70, No. 22
Thursday, February 3, 2005
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Chap. I
[Docket No. 05–01]
FEDERAL RESERVE SYSTEM
12 CFR Chap. II
[Docket No. OP–1220]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Chap. III
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Chap. V
[No. 2005–02]
Request for Burden Reduction
Recommendations; Money
Laundering, Safety and Soundness,
and Securities Rules; Economic
Growth and Regulatory Paperwork
Reduction Act of 1996 Review
AGENCIES: Office of the Comptroller of
the Currency (OCC), Treasury; Board of
Governors of the Federal Reserve
System (Board); Federal Deposit
Insurance Corporation (FDIC); and
Office of Thrift Supervision (OTS),
Treasury.
ACTION: Notice of regulatory review;
request for comments.
SUMMARY: The OCC, Board, FDIC, and
OTS (‘‘we’’ or ‘‘the Agencies’’) are
reviewing our regulations to identify
outdated, unnecessary, or unduly
burdensome regulatory requirements
pursuant to the Economic Growth and
Regulatory Paperwork Reduction Act of
1996 (EGRPRA). Today, we request your
comments and suggestions on ways to
reduce burden in rules we have
categorized as Money Laundering,
Safety and Soundness, and Securities.
All comments are welcome. We
specifically invite comment on the
following issues: Whether statutory
changes are needed; whether the
regulations contain requirements that
are not needed to serve the purposes of
the statutes they implement; the extent
to which the regulations may adversely
affect competition; whether the cost of
compliance associated with reporting,
recordkeeping, and disclosure
requirements, particularly on small
institutions, is justified; whether any
regulatory requirements are inconsistent
or redundant; and whether any
regulations are unclear.
We will analyze the comments
received and propose burden-reducing
changes to our regulations where
appropriate. Some of your suggestions
for burden reduction might require
legislative changes. Where legislative
changes would be required, we will
consider your suggestions in
recommending appropriate changes to
Congress.
DATES: Written comments must be
received no later than May 4, 2005.
ADDRESSES: You may submit comments
by any of the following methods:
EGRPRA Web site: http://
www.EGRPRA.gov.
• Comments submitted at the
Agencies’ joint Web site will
automatically be distributed to all the
Agencies. Comments received at the
EGRPRA Web site and by other means
will be posted on the Web site to the
extent possible.
Individual agency addresses: You are
also welcome to submit comments to
the Agencies at the following contact
points (due to delays in paper mail
delivery in the Washington area,
commenters may prefer to submit their
comments by alternative means):
OCC: You may submit comments,
identified by [docket 05–01], by any of
the following methods:
• E-mail:
regs.comments@occ.treas.gov. Include
[docket 05–01] in the subject line of the
message.
• Fax: (202) 874–4448.
• Mail: Public Information Room,
Office of the Comptroller of the
Currency, 250 E Street, SW., Mailstop
1–5, Washington, DC 20219; Attention:
Docket ##.
Public Inspection: You may inspect
and photocopy comments at the Public
Information Room. You can make an
appointment to inspect the comments
by calling (202) 874–5043.
Board: You may submit comments,
identified by Docket Number OP–1220,
by any of the following methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
Include docket number in the subject
line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm, as submitted,
except as necessary for technical
reasons. Accordingly, your comments
will not be edited to remove any
identifying or contact information.
Public comments may also be viewed
electronically or in paper in Room MP–
500 of the Board’s Martin Building (20th
and C Streets, NW.) between 9 a.m. and
5 p.m. on weekdays.
FDIC: You may submit comments,
identified as EGRPRA burden reduction
comments, by any of the following
methods:
• http://www.fdic.gov/regulations/
laws/federal/propose.html.
• E-mail: comments@fdic.gov.
Include ‘‘EGRPRA burden reduction
comment’’ in the subject line of the
message.
• Mail: Robert E. Feldman, Executive
Secretary, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7 a.m. and 5 p.m.
Public Inspection: You may inspect
comments at the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., between 9 a.m. and 4:30
p.m. on business days.
VerDate jul<14>2003 14:49 Feb 02, 2005 Jkt 205001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\03FEP1.SGM 03FEP1
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
5571
Vol. 70, No. 22
Thursday, February 3, 2005
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Chap. I
[Docket No. 05–01]
FEDERAL RESERVE SYSTEM
12 CFR Chap. II
[Docket No. OP–1220]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Chap. III
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Chap. V
[No. 2005–02]
Request for Burden Reduction
Recommendations; Money
Laundering, Safety and Soundness,
and Securities Rules; Economic
Growth and Regulatory Paperwork
Reduction Act of 1996 Review
AGENCIES: Office of the Comptroller of
the Currency (OCC), Treasury; Board of
Governors of the Federal Reserve
System (Board); Federal Deposit
Insurance Corporation (FDIC); and
Office of Thrift Supervision (OTS),
Treasury.
ACTION: Notice of regulatory review;
request for comments.
SUMMARY: The OCC, Board, FDIC, and
OTS (‘‘we’’ or ‘‘the Agencies’’) are
reviewing our regulations to identify
outdated, unnecessary, or unduly
burdensome regulatory requirements
pursuant to the Economic Growth and
Regulatory Paperwork Reduction Act of
1996 (EGRPRA). Today, we request your
comments and suggestions on ways to
reduce burden in rules we have
categorized as Money Laundering,
Safety and Soundness, and Securities.
All comments are welcome. We
specifically invite comment on the
following issues: Whether statutory
changes are needed; whether the
regulations contain requirements that
are not needed to serve the purposes of
the statutes they implement; the extent
to which the regulations may adversely
affect competition; whether the cost of
compliance associated with reporting,
recordkeeping, and disclosure
requirements, particularly on small
institutions, is justified; whether any
regulatory requirements are inconsistent
or redundant; and whether any
regulations are unclear.
We will analyze the comments
received and propose burden-reducing
changes to our regulations where
appropriate. Some of your suggestions
for burden reduction might require
legislative changes. Where legislative
changes would be required, we will
consider your suggestions in
recommending appropriate changes to
Congress.
DATES: Written comments must be
received no later than May 4, 2005.
ADDRESSES: You may submit comments
by any of the following methods:
EGRPRA Web site: http://
www.EGRPRA.gov.
• Comments submitted at the
Agencies’ joint Web site will
automatically be distributed to all the
Agencies. Comments received at the
EGRPRA Web site and by other means
will be posted on the Web site to the
extent possible.
Individual agency addresses: You are
also welcome to submit comments to
the Agencies at the following contact
points (due to delays in paper mail
delivery in the Washington area,
commenters may prefer to submit their
comments by alternative means):
OCC: You may submit comments,
identified by [docket 05–01], by any of
the following methods:
• E-mail:
regs.comments@occ.treas.gov. Include
[docket 05–01] in the subject line of the
message.
• Fax: (202) 874–4448.
• Mail: Public Information Room,
Office of the Comptroller of the
Currency, 250 E Street, SW., Mailstop
1–5, Washington, DC 20219; Attention:
Docket ##.
Public Inspection: You may inspect
and photocopy comments at the Public
Information Room. You can make an
appointment to inspect the comments
by calling (202) 874–5043.
Board: You may submit comments,
identified by Docket Number OP–1220,
by any of the following methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
Include docket number in the subject
line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm, as submitted,
except as necessary for technical
reasons. Accordingly, your comments
will not be edited to remove any
identifying or contact information.
Public comments may also be viewed
electronically or in paper in Room MP–
500 of the Board’s Martin Building (20th
and C Streets, NW.) between 9 a.m. and
5 p.m. on weekdays.
FDIC: You may submit comments,
identified as EGRPRA burden reduction
comments, by any of the following
methods:
• http://www.fdic.gov/regulations/
laws/federal/propose.html.
• E-mail: comments@fdic.gov.
Include ‘‘EGRPRA burden reduction
comment’’ in the subject line of the
message.
• Mail: Robert E. Feldman, Executive
Secretary, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7 a.m. and 5 p.m.
Public Inspection: You may inspect
comments at the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., between 9 a.m. and 4:30
p.m. on business days.
VerDate jul<14>2003 14:49 Feb 02, 2005 Jkt 205001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\03FEP1.SGM 03FEP1
5572 Federal Register / Vol. 70, No. 22 / Thursday, February 3, 2005 / Proposed Rules
1 The National Credit Union Administration has
participated in planning the EGRPRA review but
has issued, and will issue, requests for comment
separately.
2 Public Law 104–208, Sept. 30, 1996, 12 U.S.C.
3311. We published our first notice in the Federal
Register on June 16, 2003, at 68 FR 35589; our
second notice on January 21, 2004, at 69 FR 2852;
and our third notice on July 20, 2004, at 69 FR
43347. You may view the notices at our Web site,
http://www.EGRPRA.gov.
OTS: You may submit comments,
identified by ‘‘No. 2005–02.’’ by any of
the following methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-Mail:
regs.comments@ots.treas.gov. Include
‘‘No. 2005–02’’ in the subject line of the
message, and provide your name and
telephone number.
• Fax: (202) 906–6518.
• Mail: Regulation Comments, Chief
Counsel’s Office, Office of Thrift
Supervision, 1700 G Street, NW.,
Washington, DC 20552.
• Hand Delivery: Comments may be
hand delivered to the Guard’s Desk, East
Lobby Entrance, 1700 G Street, NW.,
from 9 a.m. to 4 p.m. on business days,
Attention: Regulation Comments, Chief
Counsel’s Office.
Public Inspection: OTS will post
comments and the related index on the
OTS Internet site at http://
www.ots.treas.gov/
pagehtml.cfm?catNumber=67&an=1. In
addition, you may inspect comments at
the Public Reading Room, 1700 G Street,
NW., by appointment. To make an
appointment for access, call (202) 906–
5922, send an e-mail to
public.info@ots.treas.gov, or send a fax
to (202) 906–7755. (Please identify the
material you would like to inspect to
assist us in serving you.) OTS schedules
appointments on business days between
10 a.m. and 4 p.m. In most cases,
appointments will be available the next
business day following the date OTS
receives a request.
FOR FURTHER INFORMATION CONTACT:
OCC:
• Stuart Feldstein, Assistant Director,
Legislative and Regulatory Activities
Division, (202) 874–5090.
• Heidi Thomas, Special Counsel,
Legislative and Regulatory Activities
Division, (202) 874–5090.
• Lee Walzer, Counsel, Legislative
and Regulatory Activities Division,
(202) 874–5090.
Board:
• Patricia A. Robinson, Managing
Senior Counsel, Legal Division, (202)
452–3005.
• Michael J. O’Rourke, Counsel, Legal
Division, (202) 452–3288.
• John C. Wood, Counsel, Division of
Consumer and Community Affairs, (202)
452–2412.
• Kevin H. Wilson, Supervisory
Financial Analyst, Division of Banking
Supervision and Regulation, (202) 452–
2362.
• For users of Telecommunications
Device for the Deaf (TDD) only, contact
(202) 263–4869.
FDIC:
• Claude A. Rollin, Special Assistant
to the Vice Chairman, (202) 898–8741.
• Steven D. Fritts, Associate Director,
Division of Supervision and Consumer
Protection, (202) 898–3723.
• Ruth R. Amberg, Senior Counsel,
Legal Division, (202) 898–3736.
• Thomas Nixon, Counsel, Legal
Division, (202) 898–8766.
OTS:
• Glenn Gimble, Senior Project
Manager, Thrift Policy, Supervision
Policy, (202) 906–7158.
• Josephine Battle, Program Analyst,
Thrift Policy, Supervision Policy, (202)
906–6870.
• Karen Osterloh, Special Counsel,
Regulations and Legislation Division,
Chief Counsel’s Office, (202) 906–6639.
SUPPLEMENTARY INFORMATION:
I. Overview of the EGRPRA Review and
the Steps Taken so Far
The Agencies 1 are asking for your
comments and suggestions on ways in
which we can reduce regulatory
burdens consistent with our statutory
obligations. Today, we request your
input to help us identify which
regulatory requirements in three
categories—Money Laundering, Safety
and Soundness, and Securities—are
outdated, unnecessary, or unduly
burdensome. We list the rules in these
categories in a chart at the end of this
notice. Please send us your
recommendations at our Web site,
http://www.EGRPRA.gov, or to one of
the listed addresses.
Today’s request for comment is the
fourth notice in our multi-year review of
regulations for burden reduction
required by section 2222 of EGRPRA.2
We described the EGRPRA review’s
requirements in our first EGRPRA
notice. In summary, EGRPRA requires
us to:
• Categorize our regulations by type.
• Publish the regulations by category
to request comments on which
regulations contain requirements that
are: outdated, unnecessary, or unduly
burdensome.
• Publish a summary of those
comments.
• Eliminate unnecessary regulations
to the extent appropriate.
• Report to Congress: summarizing
the significant issues raised and their
relative merits, and analyzing whether
legislative change is required to reduce
burden.
The first publication cycle must be
complete by September 2006.
We have identified 13 categories of
rules to implement our EGRPRA review.
The categories are: Applications and
Reporting; Banking Operations; Capital;
Community Reinvestment Act;
Consumer Protection: Lending Related
Rules; Consumer Protection: Account/
Deposit Relationships and
Miscellaneous Consumer Rules;
Directors, Officers and Employees;
International Operations; Money
Laundering; Powers and Activities;
Rules of Procedure; Safety and
Soundness; and Securities. You may see
the categories and the rules placed
within them at our Web site, http://
www.EGRPRA.gov.
We previously requested public
comment about possible burden
reduction in five categories of rules. Our
June 16, 2003, notice requested
comment on three categories:
Applications and Reporting, Powers and
Activities, and International Operations.
Our January 21, 2004, notice requested
comment on Consumer Protection:
Lending Related Rules. Our July 20,
2004, notice requested comment on
Consumer Protection: Account/Deposit
Relationships and Miscellaneous
Consumer Rules. Today, we request
comment on rules related to Money
Laundering, Safety and Soundness, and
Securities.
We plan to continue to publish one or
more categories of rules approximately
every six months between 2003 and
2006 and provide a 90-day comment
period for each publication. As noted
earlier, we must publish all our covered
categories of rules for comment and
review them by the end of September
2006.
In addition to soliciting written
comments, we held banker outreach
meetings in Orlando, St. Louis, Denver,
San Francisco, New York City,
Nashville, Seattle, and Chicago to hear
directly from the industry about ways
the Agencies could reduce regulatory
burden. More than 400 representatives
from the industry have attended the
outreach meetings. The Agencies have
also held three outreach meetings with
over 100 participants for representatives
of consumer and community groups to
obtain their input on regulatory burden
reduction. The consumer meetings were
held in Arlington, Virginia; San
Francisco; and Chicago. These meetings
have helped focus our regulatory burden
reduction efforts. We anticipate holding
VerDate jul<14>2003 14:49 Feb 02, 2005 Jkt 205001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\03FEP1.SGM 03FEP1
1 The National Credit Union Administration has
participated in planning the EGRPRA review but
has issued, and will issue, requests for comment
separately.
2 Public Law 104–208, Sept. 30, 1996, 12 U.S.C.
3311. We published our first notice in the Federal
Register on June 16, 2003, at 68 FR 35589; our
second notice on January 21, 2004, at 69 FR 2852;
and our third notice on July 20, 2004, at 69 FR
43347. You may view the notices at our Web site,
http://www.EGRPRA.gov.
OTS: You may submit comments,
identified by ‘‘No. 2005–02.’’ by any of
the following methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-Mail:
regs.comments@ots.treas.gov. Include
‘‘No. 2005–02’’ in the subject line of the
message, and provide your name and
telephone number.
• Fax: (202) 906–6518.
• Mail: Regulation Comments, Chief
Counsel’s Office, Office of Thrift
Supervision, 1700 G Street, NW.,
Washington, DC 20552.
• Hand Delivery: Comments may be
hand delivered to the Guard’s Desk, East
Lobby Entrance, 1700 G Street, NW.,
from 9 a.m. to 4 p.m. on business days,
Attention: Regulation Comments, Chief
Counsel’s Office.
Public Inspection: OTS will post
comments and the related index on the
OTS Internet site at http://
www.ots.treas.gov/
pagehtml.cfm?catNumber=67&an=1. In
addition, you may inspect comments at
the Public Reading Room, 1700 G Street,
NW., by appointment. To make an
appointment for access, call (202) 906–
5922, send an e-mail to
public.info@ots.treas.gov, or send a fax
to (202) 906–7755. (Please identify the
material you would like to inspect to
assist us in serving you.) OTS schedules
appointments on business days between
10 a.m. and 4 p.m. In most cases,
appointments will be available the next
business day following the date OTS
receives a request.
FOR FURTHER INFORMATION CONTACT:
OCC:
• Stuart Feldstein, Assistant Director,
Legislative and Regulatory Activities
Division, (202) 874–5090.
• Heidi Thomas, Special Counsel,
Legislative and Regulatory Activities
Division, (202) 874–5090.
• Lee Walzer, Counsel, Legislative
and Regulatory Activities Division,
(202) 874–5090.
Board:
• Patricia A. Robinson, Managing
Senior Counsel, Legal Division, (202)
452–3005.
• Michael J. O’Rourke, Counsel, Legal
Division, (202) 452–3288.
• John C. Wood, Counsel, Division of
Consumer and Community Affairs, (202)
452–2412.
• Kevin H. Wilson, Supervisory
Financial Analyst, Division of Banking
Supervision and Regulation, (202) 452–
2362.
• For users of Telecommunications
Device for the Deaf (TDD) only, contact
(202) 263–4869.
FDIC:
• Claude A. Rollin, Special Assistant
to the Vice Chairman, (202) 898–8741.
• Steven D. Fritts, Associate Director,
Division of Supervision and Consumer
Protection, (202) 898–3723.
• Ruth R. Amberg, Senior Counsel,
Legal Division, (202) 898–3736.
• Thomas Nixon, Counsel, Legal
Division, (202) 898–8766.
OTS:
• Glenn Gimble, Senior Project
Manager, Thrift Policy, Supervision
Policy, (202) 906–7158.
• Josephine Battle, Program Analyst,
Thrift Policy, Supervision Policy, (202)
906–6870.
• Karen Osterloh, Special Counsel,
Regulations and Legislation Division,
Chief Counsel’s Office, (202) 906–6639.
SUPPLEMENTARY INFORMATION:
I. Overview of the EGRPRA Review and
the Steps Taken so Far
The Agencies 1 are asking for your
comments and suggestions on ways in
which we can reduce regulatory
burdens consistent with our statutory
obligations. Today, we request your
input to help us identify which
regulatory requirements in three
categories—Money Laundering, Safety
and Soundness, and Securities—are
outdated, unnecessary, or unduly
burdensome. We list the rules in these
categories in a chart at the end of this
notice. Please send us your
recommendations at our Web site,
http://www.EGRPRA.gov, or to one of
the listed addresses.
Today’s request for comment is the
fourth notice in our multi-year review of
regulations for burden reduction
required by section 2222 of EGRPRA.2
We described the EGRPRA review’s
requirements in our first EGRPRA
notice. In summary, EGRPRA requires
us to:
• Categorize our regulations by type.
• Publish the regulations by category
to request comments on which
regulations contain requirements that
are: outdated, unnecessary, or unduly
burdensome.
• Publish a summary of those
comments.
• Eliminate unnecessary regulations
to the extent appropriate.
• Report to Congress: summarizing
the significant issues raised and their
relative merits, and analyzing whether
legislative change is required to reduce
burden.
The first publication cycle must be
complete by September 2006.
We have identified 13 categories of
rules to implement our EGRPRA review.
The categories are: Applications and
Reporting; Banking Operations; Capital;
Community Reinvestment Act;
Consumer Protection: Lending Related
Rules; Consumer Protection: Account/
Deposit Relationships and
Miscellaneous Consumer Rules;
Directors, Officers and Employees;
International Operations; Money
Laundering; Powers and Activities;
Rules of Procedure; Safety and
Soundness; and Securities. You may see
the categories and the rules placed
within them at our Web site, http://
www.EGRPRA.gov.
We previously requested public
comment about possible burden
reduction in five categories of rules. Our
June 16, 2003, notice requested
comment on three categories:
Applications and Reporting, Powers and
Activities, and International Operations.
Our January 21, 2004, notice requested
comment on Consumer Protection:
Lending Related Rules. Our July 20,
2004, notice requested comment on
Consumer Protection: Account/Deposit
Relationships and Miscellaneous
Consumer Rules. Today, we request
comment on rules related to Money
Laundering, Safety and Soundness, and
Securities.
We plan to continue to publish one or
more categories of rules approximately
every six months between 2003 and
2006 and provide a 90-day comment
period for each publication. As noted
earlier, we must publish all our covered
categories of rules for comment and
review them by the end of September
2006.
In addition to soliciting written
comments, we held banker outreach
meetings in Orlando, St. Louis, Denver,
San Francisco, New York City,
Nashville, Seattle, and Chicago to hear
directly from the industry about ways
the Agencies could reduce regulatory
burden. More than 400 representatives
from the industry have attended the
outreach meetings. The Agencies have
also held three outreach meetings with
over 100 participants for representatives
of consumer and community groups to
obtain their input on regulatory burden
reduction. The consumer meetings were
held in Arlington, Virginia; San
Francisco; and Chicago. These meetings
have helped focus our regulatory burden
reduction efforts. We anticipate holding
VerDate jul<14>2003 14:49 Feb 02, 2005 Jkt 205001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\03FEP1.SGM 03FEP1