83174 Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Proposed Rules
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010) (codified at 12 U.S.C. 5301 et seq.).
2 76 FR 39247 (July 6, 2011).
provide feedback on it as well.
Alternatively, if the regulatory basis
does not provide sufficient support for
a proposed rule, the NRC will publish
a Federal Register document
withdrawing this rulemaking activity
and addressing the public comments
received on the issues paper.
Dated at Rockville, Maryland, this 1st day
of November, 2016.
For the Nuclear Regulatory Commission.
Mark D. Lombard,
Director, Division of Spent Fuel Management.
[FR Doc. 2016–27944 Filed 11–18–16; 8:45 am]
BILLING CODE 7590–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 343 and 390
RIN 3064–AE49
Removal of Transferred OTS
Regulations Regarding Consumer
Protection in Sales of Insurance and
Amendments to FDIC Consumer
Protection in Sales of Insurance
Regulation
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Notice of proposed rulemaking.
SUMMARY: In this notice of proposed
rulemaking, the Federal Deposit
Insurance Corporation (‘‘FDIC’’)
proposes to rescind and remove from
the Code of Federal Regulations the
subpart entitled ‘‘Consumer Protection
in Sales of Insurance’’ (‘‘the subpart’’)
that was included in the regulations
transferred to the FDIC from the Office
of Thrift Supervision (‘‘OTS’’) on July
21, 2011 in connection with the
implementation of applicable provisions
of title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(‘‘Dodd-Frank Act’’). The requirements
for State savings associations in this
subpart are substantively similar to the
requirements in the FDIC’s part which
is also entitled ‘‘Consumer Protection in
Sales of Insurance’’ (‘‘the part’’) and is
applicable for all insured depository
institutions (‘‘IDIs’’) for which the FDIC
has been designated the appropriate
Federal banking agency.
The FDIC proposes to rescind in its
entirety the subpart and to modify the
scope of the part to include State
savings associations and their
subsidiaries to conform to and reflect
the scope of the FDIC’s current
supervisory responsibilities as the
appropriate Federal banking agency.
The FDIC also proposes to define
‘‘FDIC-supervised insured depository
institution or institution’’ and ‘‘State
savings association.’’ Finally, the FDIC
proposes to transfer an anticoercion and
antitying provision from the subpart
that is applicable to State savings
associations.
Upon removal of the subpart, the
Consumer Protection in Sales of
Insurance, regulations applicable for all
IDIs for which the FDIC has been
designated the appropriate Federal
banking agency will be found in the
part.
DATES: Comments must be received on
or before January 20, 2017.
ADDRESSES: You may submit comments
by any of the following methods:
• FDIC Web site: http://www.fdic.gov/
regulations/laws/federal/propose.html.
Follow instructions for submitting
comments on the agency Web site.
• FDIC Email: Comments@fdic.gov.
Include RIN #3064–AE49 on the subject
line of the message.
• FDIC Mail: Robert E. Feldman,
Executive Secretary, Attention:
Comments, Federal Deposit Insurance
Corporation, 550 17th Street NW.,
Washington, DC 20429.
• Hand Delivery to FDIC: 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.
Please include your name, affiliation,
address, email address, and telephone
number(s) in your comment. Where
appropriate, comments should include a
short Executive Summary consisting of
no more than five single-spaced pages.
All statements received, including
attachments and other supporting
materials, are part of the public record
and are subject to public disclosure.
You should submit only information
that you wish to make publicly
available.
Please note: All comments received will be
posted generally without change to http://
www.fdic.gov/regulations/laws/federal/
propose.html, including any personal
information provided. Paper copies of public
comments may be requested from the Public
Information Center by telephone at 1–877–
275–3342 or 1–703–562–2200.
FOR FURTHER INFORMATION CONTACT:
Martha L. Ellett, Counsel, Consumer
Compliance Section, Legal Division,
(202) 898–6765; John Jackwood, Sr.
Policy Analyst, Division of Depositor
and Consumer Protection, (202) 898–
3991.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Act
The Dodd-Frank Act 1 provided for a
substantial reorganization of the
regulation of State and Federal savings
associations and their holding
companies. Beginning July 21, 2011, the
transfer date established by section 311
of the Dodd-Frank Act, codified at 12
U.S.C. 5411, the powers, duties, and
functions formerly performed by the
OTS were divided among the FDIC, as
to State savings associations, the Office
of the Comptroller of the Currency
(‘‘OCC’’), as to Federal savings
associations, and the Board of
Governors of the Federal Reserve
System (‘‘FRB’’), as to savings and loan
holding companies. Section 316(b) of
the Dodd-Frank Act, codified at 12
U.S.C. 5414(b), provides the manner of
treatment for all orders, resolutions,
determinations, regulations, and
advisory materials that had been issued,
made, prescribed, or allowed to become
effective by the OTS. The section
provides that if such materials were in
effect on the day before the transfer
date, they continue to be in effect and
are enforceable by or against the
appropriate successor agency until they
are modified, terminated, set aside, or
superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
Section 316(c) of the Dodd-Frank Act,
codified at 12 U.S.C. 5414(c), further
directed the FDIC and the OCC to
consult with one another and to publish
a list of the continued OTS regulations
that would be enforced by the FDIC and
the OCC, respectively. On June 14, 2011,
the FDIC’s Board of Directors approved
a ‘‘List of OTS Regulations to be
enforced by the OCC and the FDIC
Pursuant to the Dodd-Frank Wall Street
Reform and Consumer Protection Act.’’
This list was published by the FDIC and
the OCC as a Joint Notice in the Federal
Register on July 6, 2011.2
Although section 312(b)(2)(B)(i)(II) of
the Dodd-Frank Act, codified at 12
U.S.C. 5412(b)(2)(B)(i)(II), granted the
OCC rulemaking authority relating to
both State and Federal savings
associations, nothing in the Dodd-Frank
Act affected the FDIC’s existing
authority to issue regulations under the
Federal Deposit Insurance Act (‘‘FDI
Act’’) and other laws as the ‘‘appropriate
Federal banking agency’’ or under
similar statutory terminology. Section
VerDate Sep<11>2014 17:51 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 E:\FR\FM\21NOP1.SGM 21NOP1
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010) (codified at 12 U.S.C. 5301 et seq.).
2 76 FR 39247 (July 6, 2011).
provide feedback on it as well.
Alternatively, if the regulatory basis
does not provide sufficient support for
a proposed rule, the NRC will publish
a Federal Register document
withdrawing this rulemaking activity
and addressing the public comments
received on the issues paper.
Dated at Rockville, Maryland, this 1st day
of November, 2016.
For the Nuclear Regulatory Commission.
Mark D. Lombard,
Director, Division of Spent Fuel Management.
[FR Doc. 2016–27944 Filed 11–18–16; 8:45 am]
BILLING CODE 7590–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 343 and 390
RIN 3064–AE49
Removal of Transferred OTS
Regulations Regarding Consumer
Protection in Sales of Insurance and
Amendments to FDIC Consumer
Protection in Sales of Insurance
Regulation
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Notice of proposed rulemaking.
SUMMARY: In this notice of proposed
rulemaking, the Federal Deposit
Insurance Corporation (‘‘FDIC’’)
proposes to rescind and remove from
the Code of Federal Regulations the
subpart entitled ‘‘Consumer Protection
in Sales of Insurance’’ (‘‘the subpart’’)
that was included in the regulations
transferred to the FDIC from the Office
of Thrift Supervision (‘‘OTS’’) on July
21, 2011 in connection with the
implementation of applicable provisions
of title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(‘‘Dodd-Frank Act’’). The requirements
for State savings associations in this
subpart are substantively similar to the
requirements in the FDIC’s part which
is also entitled ‘‘Consumer Protection in
Sales of Insurance’’ (‘‘the part’’) and is
applicable for all insured depository
institutions (‘‘IDIs’’) for which the FDIC
has been designated the appropriate
Federal banking agency.
The FDIC proposes to rescind in its
entirety the subpart and to modify the
scope of the part to include State
savings associations and their
subsidiaries to conform to and reflect
the scope of the FDIC’s current
supervisory responsibilities as the
appropriate Federal banking agency.
The FDIC also proposes to define
‘‘FDIC-supervised insured depository
institution or institution’’ and ‘‘State
savings association.’’ Finally, the FDIC
proposes to transfer an anticoercion and
antitying provision from the subpart
that is applicable to State savings
associations.
Upon removal of the subpart, the
Consumer Protection in Sales of
Insurance, regulations applicable for all
IDIs for which the FDIC has been
designated the appropriate Federal
banking agency will be found in the
part.
DATES: Comments must be received on
or before January 20, 2017.
ADDRESSES: You may submit comments
by any of the following methods:
• FDIC Web site: http://www.fdic.gov/
regulations/laws/federal/propose.html.
Follow instructions for submitting
comments on the agency Web site.
• FDIC Email: Comments@fdic.gov.
Include RIN #3064–AE49 on the subject
line of the message.
• FDIC Mail: Robert E. Feldman,
Executive Secretary, Attention:
Comments, Federal Deposit Insurance
Corporation, 550 17th Street NW.,
Washington, DC 20429.
• Hand Delivery to FDIC: 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.
Please include your name, affiliation,
address, email address, and telephone
number(s) in your comment. Where
appropriate, comments should include a
short Executive Summary consisting of
no more than five single-spaced pages.
All statements received, including
attachments and other supporting
materials, are part of the public record
and are subject to public disclosure.
You should submit only information
that you wish to make publicly
available.
Please note: All comments received will be
posted generally without change to http://
www.fdic.gov/regulations/laws/federal/
propose.html, including any personal
information provided. Paper copies of public
comments may be requested from the Public
Information Center by telephone at 1–877–
275–3342 or 1–703–562–2200.
FOR FURTHER INFORMATION CONTACT:
Martha L. Ellett, Counsel, Consumer
Compliance Section, Legal Division,
(202) 898–6765; John Jackwood, Sr.
Policy Analyst, Division of Depositor
and Consumer Protection, (202) 898–
3991.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Act
The Dodd-Frank Act 1 provided for a
substantial reorganization of the
regulation of State and Federal savings
associations and their holding
companies. Beginning July 21, 2011, the
transfer date established by section 311
of the Dodd-Frank Act, codified at 12
U.S.C. 5411, the powers, duties, and
functions formerly performed by the
OTS were divided among the FDIC, as
to State savings associations, the Office
of the Comptroller of the Currency
(‘‘OCC’’), as to Federal savings
associations, and the Board of
Governors of the Federal Reserve
System (‘‘FRB’’), as to savings and loan
holding companies. Section 316(b) of
the Dodd-Frank Act, codified at 12
U.S.C. 5414(b), provides the manner of
treatment for all orders, resolutions,
determinations, regulations, and
advisory materials that had been issued,
made, prescribed, or allowed to become
effective by the OTS. The section
provides that if such materials were in
effect on the day before the transfer
date, they continue to be in effect and
are enforceable by or against the
appropriate successor agency until they
are modified, terminated, set aside, or
superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
Section 316(c) of the Dodd-Frank Act,
codified at 12 U.S.C. 5414(c), further
directed the FDIC and the OCC to
consult with one another and to publish
a list of the continued OTS regulations
that would be enforced by the FDIC and
the OCC, respectively. On June 14, 2011,
the FDIC’s Board of Directors approved
a ‘‘List of OTS Regulations to be
enforced by the OCC and the FDIC
Pursuant to the Dodd-Frank Wall Street
Reform and Consumer Protection Act.’’
This list was published by the FDIC and
the OCC as a Joint Notice in the Federal
Register on July 6, 2011.2
Although section 312(b)(2)(B)(i)(II) of
the Dodd-Frank Act, codified at 12
U.S.C. 5412(b)(2)(B)(i)(II), granted the
OCC rulemaking authority relating to
both State and Federal savings
associations, nothing in the Dodd-Frank
Act affected the FDIC’s existing
authority to issue regulations under the
Federal Deposit Insurance Act (‘‘FDI
Act’’) and other laws as the ‘‘appropriate
Federal banking agency’’ or under
similar statutory terminology. Section
VerDate Sep<11>2014 17:51 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 E:\FR\FM\21NOP1.SGM 21NOP1
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
83175Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Proposed Rules
3 76 FR 47652 (Aug. 5, 2011).
4 Gramm-Leach-Bliley Act, Public Law 106–102,
113 Stat. 1338 (1999).
5 12 U.S.C. 1831x.
6 A ‘‘depository institution’’ in this context means
a national bank in the case of institutions
supervised by the OCC, a State member bank in the
case of the FRB, a State nonmember bank in the
case of the FDIC, and a savings association in the
case of the OTS. 65 FR 75822 fn. 1 (Dec. 4, 2000).
7 12 U.S.C. 1831x(a)(1)(A).
8 12 U.S.C. 1831x.
9 12 U.S.C. 1831x(a)(3).
10 65 FR 75822 (Dec. 4, 2000).
11 12 U.S.C. 1831x(a)(1).
12 12 U.S.C. 1831x(a)(3).
13 65 FR 75822 (Dec. 4, 2000).
14 65 FR 75822, 75824 (Dec. 4, 2000). A ‘‘covered
person’’ or ‘‘you’’ means ‘‘any depository institution
or any other person selling, soliciting, advertising,
or offering insurance products or annuities to a
consumer at an office of the institution or on behalf
of the institution. A ‘covered person’ includes any
person, including a subsidiary or other affiliate, if
that person or one of its employees sells, solicits,
advertises, or offers insurance products or annuities
at an office of an institution or on behalf of an
institution. 65 FR 75824 (Dec. 4, 2000). See also 12
CFR 343.20(j)(1) and 12 CFR 390.181.
15 Bank means an FDIC-insured, state-chartered
commercial or savings bank that is not a member
of the Federal Reserve System and for which the
FDIC is the appropriate federal banking agency
pursuant to section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)). 12 CFR
343.20(b).
16 12 CFR 343.10.
17 12 CFR 390.180(a)(1), (2).
18 See 65 FR 75822, 75823 (Dec. 4, 2000).
19 65 FR 75822, 75823 (Dec. 4, 2000) (footnote
omitted).
20 12 CFR 390.180(b).
21 12 CFR 343.10.
22 65 FR 75822, 75824 (Dec. 4, 2000) (italics
added).
312(c) of the Dodd-Frank Act amended
the definition of ‘‘appropriate Federal
banking agency’’ contained in section
3(q) of the FDI Act, 12 U.S.C. 1813(q),
to add State savings associations to the
list of entities for which the FDIC is
designated as the ‘‘appropriate Federal
banking agency.’’ As a result, when the
FDIC acts as the designated
‘‘appropriate Federal banking agency’’
(or under similar terminology) for State
savings associations, as it does here, the
FDIC is authorized to issue, modify and
rescind regulations involving such
associations, as well as for State
nonmember banks and insured branches
of foreign banks.
As noted, on June 14, 2011, pursuant
to this authority, the FDIC’s Board of
Directors reissued and redesignated
certain transferring regulations of the
former OTS. These transferred OTS
regulations were published as new FDIC
regulations in the Federal Register on
August 5, 2011.3 When it republished
the transferred OTS regulations as new
FDIC regulations, the FDIC specifically
noted that its staff would evaluate the
transferred OTS rules and might later
recommend incorporating the
transferred OTS regulations into other
FDIC rules, amending them, or
rescinding them, as appropriate.
One of the OTS rules transferred to
the FDIC governed OTS oversight of
consumer protections for depository
institution sales of insurance. The OTS
rule, formerly found at 12 CFR part 536,
was transferred to the FDIC with only
minor nonsubstantive changes and is
now found in the FDIC’s rules at part
390, subpart I, entitled ‘‘Consumer
Protection in Sales of Insurance.’’ Before
the transfer of the OTS rules and
continuing today, the FDIC’s rules
contained part 343, also entitled
‘‘Consumer Protection in Sales of
Insurance,’’ a rule governing FDIC
oversight of consumer protection
regulations that apply to retail sales
practices, solicitations, advertising, or
offers of any insurance product with
respect to IDIs for which the FDIC has
been designated the appropriate Federal
banking agency. After careful review
and comparison of part 390, subpart I,
and part 343, the FDIC proposes to
rescind part 390, subpart I, because, as
discussed below, it is substantively
redundant to existing part 343 and
simultaneously we propose to make
technical conforming edits to our
existing rule.
FDIC’s Existing 12 CFR Part 343 and
Former OTS’s Part 536 (Transferred, in
Part, to FDIC’s Part 390, Subpart I)
Section 305 of the Gramm-Leach-
Bliley Act (‘‘GLB Act’’) 4 added section
47 to the FDI Act,5 entitled ‘‘Insurance
Consumer Protections.’’ Section 47
applies to retail sales practices,
solicitations, advertising, or offers of
insurance products by depository
institutions 6 or persons engaged in
these activities at an office of the
institution or on behalf of the
institution.7 Section 47 directs the FDIC,
the OTS, the OCC, and the FRB
(collectively the ‘‘Federal banking
agencies’’) to include provisions
specifically relating to sales practices,
disclosures and advertising, the
physical separation of banking and
nonbanking activities, and domestic
violence discrimination.8 On December
4, 2000, pursuant to section 305 of the
GLB Act,9 the Federal banking agencies
published a joint final rule 10 to
implement consumer protection in sales
of insurance provisions of section 47 of
the FDI Act.
Section 47 of the FDI Act instructs the
Federal banking agencies to consult and
coordinate with one another and
prescribe and publish joint consumer
protection regulations that apply to
retail sales practices, solicitations,
advertising, or offers of insurance
products by depository institutions or
persons engaged in these activities at an
office of the institution or on behalf of
the institution.11 Section 47 also
requires the Federal banking agencies to
consult with the State insurance
regulators, as appropriate.12 The Federal
banking agencies consulted and
coordinated with respect to this
rulemaking and on an interagency basis
jointly issued rules that are
substantively identical with regard to
consumer protection in sales of
insurance requirements,13 including the
same definition of a ‘‘covered person’’
or ‘‘you.’’ 14
The scope of part 343 in the FDIC’s
regulations and of part 390, subpart I in
the OTS’s regulations is also
substantively similar. The FDIC
regulations apply to any bank 15 or any
other person that is engaged in such
activities at an office of the bank or on
behalf of the bank.16 Similarly, the OTS
regulations apply to any State savings
association or any other person that is
engaged in such activities at an office of
a State savings association or on behalf
of a State savings association.17 In the
FDIC’s scope provisions, any other
person includes subsidiaries 18 because
only subsidiaries that are selling
insurance products or annuities at an
office of the institution or acting on
behalf of the depository institution as
defined in the rules would be subject to
the requirements of the rules.19 The
OTS regulation specifically states that
its regulation applies to subsidiaries of
a State savings association only to the
extent that it sells, solicits, advertises, or
offers insurance products or annuities at
an office of a State savings association
or on behalf of a State savings
association.20 This OTS provision will
not be carried over to the FDIC’s part
343 because it is redundant and
unnecessary, since the FDIC scope
provision already includes subsidiaries
within its definition.21 The rule
specifically states that a covered person
(or you) includes any person including
a subsidiary or other affiliate if that
person or one of its employees sells,
solicits, advertises, or offers insurance
products or annuities at an office of an
institution or on behalf of an
institution.22
Accordingly, the portions of the OTS
regulations that applied to State savings
associations, their subsidiaries and their
affiliates, originally codified at 12 CFR
part 536 and subsequently transferred to
VerDate Sep<11>2014 17:51 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 E:\FR\FM\21NOP1.SGM 21NOP1
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
3 76 FR 47652 (Aug. 5, 2011).
4 Gramm-Leach-Bliley Act, Public Law 106–102,
113 Stat. 1338 (1999).
5 12 U.S.C. 1831x.
6 A ‘‘depository institution’’ in this context means
a national bank in the case of institutions
supervised by the OCC, a State member bank in the
case of the FRB, a State nonmember bank in the
case of the FDIC, and a savings association in the
case of the OTS. 65 FR 75822 fn. 1 (Dec. 4, 2000).
7 12 U.S.C. 1831x(a)(1)(A).
8 12 U.S.C. 1831x.
9 12 U.S.C. 1831x(a)(3).
10 65 FR 75822 (Dec. 4, 2000).
11 12 U.S.C. 1831x(a)(1).
12 12 U.S.C. 1831x(a)(3).
13 65 FR 75822 (Dec. 4, 2000).
14 65 FR 75822, 75824 (Dec. 4, 2000). A ‘‘covered
person’’ or ‘‘you’’ means ‘‘any depository institution
or any other person selling, soliciting, advertising,
or offering insurance products or annuities to a
consumer at an office of the institution or on behalf
of the institution. A ‘covered person’ includes any
person, including a subsidiary or other affiliate, if
that person or one of its employees sells, solicits,
advertises, or offers insurance products or annuities
at an office of an institution or on behalf of an
institution. 65 FR 75824 (Dec. 4, 2000). See also 12
CFR 343.20(j)(1) and 12 CFR 390.181.
15 Bank means an FDIC-insured, state-chartered
commercial or savings bank that is not a member
of the Federal Reserve System and for which the
FDIC is the appropriate federal banking agency
pursuant to section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)). 12 CFR
343.20(b).
16 12 CFR 343.10.
17 12 CFR 390.180(a)(1), (2).
18 See 65 FR 75822, 75823 (Dec. 4, 2000).
19 65 FR 75822, 75823 (Dec. 4, 2000) (footnote
omitted).
20 12 CFR 390.180(b).
21 12 CFR 343.10.
22 65 FR 75822, 75824 (Dec. 4, 2000) (italics
added).
312(c) of the Dodd-Frank Act amended
the definition of ‘‘appropriate Federal
banking agency’’ contained in section
3(q) of the FDI Act, 12 U.S.C. 1813(q),
to add State savings associations to the
list of entities for which the FDIC is
designated as the ‘‘appropriate Federal
banking agency.’’ As a result, when the
FDIC acts as the designated
‘‘appropriate Federal banking agency’’
(or under similar terminology) for State
savings associations, as it does here, the
FDIC is authorized to issue, modify and
rescind regulations involving such
associations, as well as for State
nonmember banks and insured branches
of foreign banks.
As noted, on June 14, 2011, pursuant
to this authority, the FDIC’s Board of
Directors reissued and redesignated
certain transferring regulations of the
former OTS. These transferred OTS
regulations were published as new FDIC
regulations in the Federal Register on
August 5, 2011.3 When it republished
the transferred OTS regulations as new
FDIC regulations, the FDIC specifically
noted that its staff would evaluate the
transferred OTS rules and might later
recommend incorporating the
transferred OTS regulations into other
FDIC rules, amending them, or
rescinding them, as appropriate.
One of the OTS rules transferred to
the FDIC governed OTS oversight of
consumer protections for depository
institution sales of insurance. The OTS
rule, formerly found at 12 CFR part 536,
was transferred to the FDIC with only
minor nonsubstantive changes and is
now found in the FDIC’s rules at part
390, subpart I, entitled ‘‘Consumer
Protection in Sales of Insurance.’’ Before
the transfer of the OTS rules and
continuing today, the FDIC’s rules
contained part 343, also entitled
‘‘Consumer Protection in Sales of
Insurance,’’ a rule governing FDIC
oversight of consumer protection
regulations that apply to retail sales
practices, solicitations, advertising, or
offers of any insurance product with
respect to IDIs for which the FDIC has
been designated the appropriate Federal
banking agency. After careful review
and comparison of part 390, subpart I,
and part 343, the FDIC proposes to
rescind part 390, subpart I, because, as
discussed below, it is substantively
redundant to existing part 343 and
simultaneously we propose to make
technical conforming edits to our
existing rule.
FDIC’s Existing 12 CFR Part 343 and
Former OTS’s Part 536 (Transferred, in
Part, to FDIC’s Part 390, Subpart I)
Section 305 of the Gramm-Leach-
Bliley Act (‘‘GLB Act’’) 4 added section
47 to the FDI Act,5 entitled ‘‘Insurance
Consumer Protections.’’ Section 47
applies to retail sales practices,
solicitations, advertising, or offers of
insurance products by depository
institutions 6 or persons engaged in
these activities at an office of the
institution or on behalf of the
institution.7 Section 47 directs the FDIC,
the OTS, the OCC, and the FRB
(collectively the ‘‘Federal banking
agencies’’) to include provisions
specifically relating to sales practices,
disclosures and advertising, the
physical separation of banking and
nonbanking activities, and domestic
violence discrimination.8 On December
4, 2000, pursuant to section 305 of the
GLB Act,9 the Federal banking agencies
published a joint final rule 10 to
implement consumer protection in sales
of insurance provisions of section 47 of
the FDI Act.
Section 47 of the FDI Act instructs the
Federal banking agencies to consult and
coordinate with one another and
prescribe and publish joint consumer
protection regulations that apply to
retail sales practices, solicitations,
advertising, or offers of insurance
products by depository institutions or
persons engaged in these activities at an
office of the institution or on behalf of
the institution.11 Section 47 also
requires the Federal banking agencies to
consult with the State insurance
regulators, as appropriate.12 The Federal
banking agencies consulted and
coordinated with respect to this
rulemaking and on an interagency basis
jointly issued rules that are
substantively identical with regard to
consumer protection in sales of
insurance requirements,13 including the
same definition of a ‘‘covered person’’
or ‘‘you.’’ 14
The scope of part 343 in the FDIC’s
regulations and of part 390, subpart I in
the OTS’s regulations is also
substantively similar. The FDIC
regulations apply to any bank 15 or any
other person that is engaged in such
activities at an office of the bank or on
behalf of the bank.16 Similarly, the OTS
regulations apply to any State savings
association or any other person that is
engaged in such activities at an office of
a State savings association or on behalf
of a State savings association.17 In the
FDIC’s scope provisions, any other
person includes subsidiaries 18 because
only subsidiaries that are selling
insurance products or annuities at an
office of the institution or acting on
behalf of the depository institution as
defined in the rules would be subject to
the requirements of the rules.19 The
OTS regulation specifically states that
its regulation applies to subsidiaries of
a State savings association only to the
extent that it sells, solicits, advertises, or
offers insurance products or annuities at
an office of a State savings association
or on behalf of a State savings
association.20 This OTS provision will
not be carried over to the FDIC’s part
343 because it is redundant and
unnecessary, since the FDIC scope
provision already includes subsidiaries
within its definition.21 The rule
specifically states that a covered person
(or you) includes any person including
a subsidiary or other affiliate if that
person or one of its employees sells,
solicits, advertises, or offers insurance
products or annuities at an office of an
institution or on behalf of an
institution.22
Accordingly, the portions of the OTS
regulations that applied to State savings
associations, their subsidiaries and their
affiliates, originally codified at 12 CFR
part 536 and subsequently transferred to
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