75753Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules
1 80 FR 65907 (Oct. 28, 2015).
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.).
requests feedback on: (1) The estimated
number of fans per HVACR equipment;
(2) the distribution of HVACR fans
across fan subcategory by fan
application; and (3) the share of
standalone fans purchased and
incorporated in HVACR equipment.
14. DOE seeks feedback and input on
the distribution of fan selections by
power bin and subcategory for
standalone fans and embedded fans as
presented in the ‘‘LCC sample
Description’’ worksheet of the LCC
spreadsheet.
15. DOE seeks feedback and inputs on
the fan operating hours.
16. DOE seeks feedback and inputs on
the fan load profiles used in the energy
use calculation and on the percentage of
fans used in variable load applications.
17. DOE seeks feedback and inputs on
the fan lifetimes.
The purpose of this NODA is to notify
industry, manufacturers, consumer
groups, efficiency advocates,
government agencies, and other
stakeholders of the publication of an
analysis of potential energy
conservation standards for commercial
and industrial fans and blowers.
Stakeholders should contact DOE for
any additional information pertaining to
the analyses performed for this NODA.
Issued in Washington, DC, on October 19,
2016.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy
Efficiency, Energy Efficiency and Renewable
Energy.
[FR Doc. 2016–26341 Filed 10–31–16; 8:45 am]
BILLING CODE 6450–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 326 and 391
RIN 3064–AE47
Removal of Transferred OTS
Regulations Regarding Minimum
Security Procedures Amendments to
FDIC Regulations
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Notice of proposed rulemaking.
SUMMARY: In this notice of proposed
rulemaking (‘‘NPR’’ or ‘‘Proposed
Rule’’), the Federal Deposit Insurance
Corporation (‘‘FDIC’’) proposes to
rescind and remove a part from the
Code of Federal Regulations entitled
‘‘Security Procedures’’ and to amend
FDIC regulations to make the removed
Office of Thrift Supervision (‘‘OTS’’)
regulations applicable to state savings
associations.
DATES: Comments must be received on
or before January 3, 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–AE47 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:
Lauren Whitaker, Attorney, Consumer
Compliance Section, Legal Division
(202) 898–3872; Martha L. Ellett,
Counsel, Consumer Compliance
Section, Legal Division, (202) 898–6765;
Karen Jones Currie, Senior Examination
Specialist, Division of Risk Management
and Supervision (202) 898–3981.
SUPPLEMENTARY INFORMATION: Part 391,
subpart A was included in the
regulations that were 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’’). With the exception of one
provision (§ 391.5) the requirements for
State savings associations in part 391,
subpart A are substantively identical to
the requirements in the FDIC’s 12 CFR
part 326 (‘‘part 326’’), which is entitled
‘‘Minimum Security Procedures.’’ The
one exception directs savings
associations to comply with appendix B
to subpart B of Interagency Guidelines
Establishing Information Security
Standards (Interagency Guidelines)
contained in FDIC rules at part 364,
appendix B. The FDIC previously
revised part 364 to make the Interagency
Guidelines applicable to both state
nonmember banks and state savings
associations.1
The FDIC proposes to rescind in its
entirety part 391, subpart A and to
modify the scope of part 326 to include
state savings associations 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.’’ Upon removal of
part 391, subpart A, the Security
Procedures, regulations applicable for
all insured depository institutions for
which the FDIC has been designated the
appropriate Federal banking agency will
be found at 12 CFR part 326.
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.
VerDate Sep<11>2014 18:29 Oct 31, 2016 Jkt 241001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\01NOP1.SGM 01NOP1
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
1 80 FR 65907 (Oct. 28, 2015).
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.).
requests feedback on: (1) The estimated
number of fans per HVACR equipment;
(2) the distribution of HVACR fans
across fan subcategory by fan
application; and (3) the share of
standalone fans purchased and
incorporated in HVACR equipment.
14. DOE seeks feedback and input on
the distribution of fan selections by
power bin and subcategory for
standalone fans and embedded fans as
presented in the ‘‘LCC sample
Description’’ worksheet of the LCC
spreadsheet.
15. DOE seeks feedback and inputs on
the fan operating hours.
16. DOE seeks feedback and inputs on
the fan load profiles used in the energy
use calculation and on the percentage of
fans used in variable load applications.
17. DOE seeks feedback and inputs on
the fan lifetimes.
The purpose of this NODA is to notify
industry, manufacturers, consumer
groups, efficiency advocates,
government agencies, and other
stakeholders of the publication of an
analysis of potential energy
conservation standards for commercial
and industrial fans and blowers.
Stakeholders should contact DOE for
any additional information pertaining to
the analyses performed for this NODA.
Issued in Washington, DC, on October 19,
2016.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy
Efficiency, Energy Efficiency and Renewable
Energy.
[FR Doc. 2016–26341 Filed 10–31–16; 8:45 am]
BILLING CODE 6450–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 326 and 391
RIN 3064–AE47
Removal of Transferred OTS
Regulations Regarding Minimum
Security Procedures Amendments to
FDIC Regulations
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Notice of proposed rulemaking.
SUMMARY: In this notice of proposed
rulemaking (‘‘NPR’’ or ‘‘Proposed
Rule’’), the Federal Deposit Insurance
Corporation (‘‘FDIC’’) proposes to
rescind and remove a part from the
Code of Federal Regulations entitled
‘‘Security Procedures’’ and to amend
FDIC regulations to make the removed
Office of Thrift Supervision (‘‘OTS’’)
regulations applicable to state savings
associations.
DATES: Comments must be received on
or before January 3, 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–AE47 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:
Lauren Whitaker, Attorney, Consumer
Compliance Section, Legal Division
(202) 898–3872; Martha L. Ellett,
Counsel, Consumer Compliance
Section, Legal Division, (202) 898–6765;
Karen Jones Currie, Senior Examination
Specialist, Division of Risk Management
and Supervision (202) 898–3981.
SUPPLEMENTARY INFORMATION: Part 391,
subpart A was included in the
regulations that were 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’’). With the exception of one
provision (§ 391.5) the requirements for
State savings associations in part 391,
subpart A are substantively identical to
the requirements in the FDIC’s 12 CFR
part 326 (‘‘part 326’’), which is entitled
‘‘Minimum Security Procedures.’’ The
one exception directs savings
associations to comply with appendix B
to subpart B of Interagency Guidelines
Establishing Information Security
Standards (Interagency Guidelines)
contained in FDIC rules at part 364,
appendix B. The FDIC previously
revised part 364 to make the Interagency
Guidelines applicable to both state
nonmember banks and state savings
associations.1
The FDIC proposes to rescind in its
entirety part 391, subpart A and to
modify the scope of part 326 to include
state savings associations 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.’’ Upon removal of
part 391, subpart A, the Security
Procedures, regulations applicable for
all insured depository institutions for
which the FDIC has been designated the
appropriate Federal banking agency will
be found at 12 CFR part 326.
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.
VerDate Sep<11>2014 18:29 Oct 31, 2016 Jkt 241001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\01NOP1.SGM 01NOP1
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
75754 Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules
2 76 FR 39247 (July 6, 2011).
3 76 FR 47652 (Aug. 5, 2011).
4 12 U.S.C. 1882.
5 34 FR 618 (January 16, 1969); 34 FR 621
(January 16, 1969).
6 56 FR 29565 (June 28, 1991); 56 FR 13579 (April
3, 1991).
7 66 FR 8616 (Feb. 1, 2001).
8 Id. at footnote 2.
9 80 FR 65903 (October 28, 2015).
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
FDI Act and other laws as the
‘‘appropriate Federal banking agency’’
or under similar statutory terminology.
Section 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
minimum security devices and
procedures for state savings
associations. The OTS rule, formerly
found at 12 CFR part 568, was
transferred to the FDIC with only
nominal changes and is now found in
the FDIC’s rules at part 391, subpart A,
entitled ‘‘Security Procedures.’’ Before
the transfer of the OTS rules and
continuing today, the FDIC’s rules
contained part 326, subpart A entitled
‘‘Minimum Security Procedures,’’ a rule
governing FDIC oversight of security
devices and procedures to discourage
burglaries, robberies and larcenies and
assist law enforcement in the
identification and apprehension of those
who commit such crimes with respect to
insured depository institutions for
which the FDIC has been designated the
appropriate Federal banking agency.
One provision in part 391, subpart A
(391.5) is not contained in part 326,
subpart A. It directs savings associations
and certain subsidiaries to comply with
the Interagency Guidelines Establishing
Information Security Standards which
were adopted jointly by the OTS and the
FDIC and other banking agencies and
are contained in appendix B to part 364
in FDIC regulations.
After careful review and comparison
of part 391, subpart A, and part 326, the
FDIC proposes to rescind part 391,
subpart A, because, as discussed below,
it is substantively redundant to existing
part 326 and simultaneously proposes to
make technical conforming edits to the
FDIC’s existing rule.
FDIC’s Existing 12 CFR Part 326 and
Former OTS’s Part 568 (Transferred to
FDIC’s Part 391, Subpart A)
Section 3 of the Bank Protection Act
of 1968 directed the appropriate federal
banking agencies and the OTS’
predecessor, the Federal Home Loan
Bank Board (‘‘FHLBB’’) to establish
minimum security standards for banks
and savings associations, at reasonable
cost, to serve as a deterrent to robberies,
burglaries, and larcenies and to assist
law enforcement in identifying and
prosecuting persons who commit such
acts.4 In the initial rulemakings, the
agencies consulted and cooperated with
each other to promote a goal of
uniformity where practicable. The
initial minimum security rules were
simultaneously issued in January 1969
and were substantively the same.5
In 1991, the minimum security rules
were substantially revised to reduce
unnecessary specificity, remove
obsolete requirements and place greater
responsibility on the boards of directors
of insured financial institutions for
establishing and ensuring the
implementation and maintenance of
security programs and procedures. The
former FHLBB rules at 12 CFR part 563a
were redesignated as 12 CFR part 568 by
the OTS. The OTS rules remained
substantively the same as the FDIC’s
rules in part 326, subpart A.6
In 2001, the FDIC and other federal
banking agencies and the OTS issued
Interagency Guidelines for Safeguarding
Customer Information pursuant to
section 501 of the Gramm Leach Bliley
Act (‘‘Protection of Nonpublic Personal
Information’’).7 At the same time, the
OTS also added a provision at the end
of its security procedures rules at
section 568.5 directing saving
associations and certain subsidiaries to
comply with appendix B to the
Interagency Guidelines. In a preamble
footnote, the OTS indicated that the
reason for the additional provision to its
minimum security rules was ‘‘[b]ecause
information security guidelines are
similar to physical security
procedures.’’ 8 In 2004, following
enactment of the Fair and Accurate
Credit Transactions Act (FACT Act), the
OTS, FDIC and other banking agencies
revised the Interagency Guidelines for
Safeguarding Customer Information and
renamed them the Interagency
Guidelines for Establishing Information
Security Standards. The Interagency
Guidelines were located in the FDIC
rules at part 364. In 2015, the FDIC
amended part 364 to, among other
reasons, make it applicable to State
savings associations.9 After careful
comparison of the FDIC’s part 326,
subpart A with the transferred OTS rule
in part 391, subpart A, the FDIC has
concluded that the transferred OTS
rules governing minimum security
procedures are substantively redundant.
Based on the foregoing, the FDIC
proposes to rescind and remove from
the Code of Federal Regulations the
transferred OTS rules located at part
391, subpart A, and to make technical
amendments to part 326, subpart A to
incorporate State savings associations.
II. The Proposal
Regarding the functions of the former
OTS that were transferred to the FDIC,
section 316(b)(3) of the Dodd-Frank Act,
12 U.S.C. 5414(b)(3), in pertinent part,
provides that the former OTS’s
regulations will be enforceable by the
FDIC until they are modified,
terminated, set aside, or superseded in
accordance with applicable law. After
reviewing the rules currently found in
part 391, subpart A, the FDIC proposes
VerDate Sep<11>2014 19:54 Oct 31, 2016 Jkt 241001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\01NOP1.SGM 01NOP1
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
2 76 FR 39247 (July 6, 2011).
3 76 FR 47652 (Aug. 5, 2011).
4 12 U.S.C. 1882.
5 34 FR 618 (January 16, 1969); 34 FR 621
(January 16, 1969).
6 56 FR 29565 (June 28, 1991); 56 FR 13579 (April
3, 1991).
7 66 FR 8616 (Feb. 1, 2001).
8 Id. at footnote 2.
9 80 FR 65903 (October 28, 2015).
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
FDI Act and other laws as the
‘‘appropriate Federal banking agency’’
or under similar statutory terminology.
Section 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
minimum security devices and
procedures for state savings
associations. The OTS rule, formerly
found at 12 CFR part 568, was
transferred to the FDIC with only
nominal changes and is now found in
the FDIC’s rules at part 391, subpart A,
entitled ‘‘Security Procedures.’’ Before
the transfer of the OTS rules and
continuing today, the FDIC’s rules
contained part 326, subpart A entitled
‘‘Minimum Security Procedures,’’ a rule
governing FDIC oversight of security
devices and procedures to discourage
burglaries, robberies and larcenies and
assist law enforcement in the
identification and apprehension of those
who commit such crimes with respect to
insured depository institutions for
which the FDIC has been designated the
appropriate Federal banking agency.
One provision in part 391, subpart A
(391.5) is not contained in part 326,
subpart A. It directs savings associations
and certain subsidiaries to comply with
the Interagency Guidelines Establishing
Information Security Standards which
were adopted jointly by the OTS and the
FDIC and other banking agencies and
are contained in appendix B to part 364
in FDIC regulations.
After careful review and comparison
of part 391, subpart A, and part 326, the
FDIC proposes to rescind part 391,
subpart A, because, as discussed below,
it is substantively redundant to existing
part 326 and simultaneously proposes to
make technical conforming edits to the
FDIC’s existing rule.
FDIC’s Existing 12 CFR Part 326 and
Former OTS’s Part 568 (Transferred to
FDIC’s Part 391, Subpart A)
Section 3 of the Bank Protection Act
of 1968 directed the appropriate federal
banking agencies and the OTS’
predecessor, the Federal Home Loan
Bank Board (‘‘FHLBB’’) to establish
minimum security standards for banks
and savings associations, at reasonable
cost, to serve as a deterrent to robberies,
burglaries, and larcenies and to assist
law enforcement in identifying and
prosecuting persons who commit such
acts.4 In the initial rulemakings, the
agencies consulted and cooperated with
each other to promote a goal of
uniformity where practicable. The
initial minimum security rules were
simultaneously issued in January 1969
and were substantively the same.5
In 1991, the minimum security rules
were substantially revised to reduce
unnecessary specificity, remove
obsolete requirements and place greater
responsibility on the boards of directors
of insured financial institutions for
establishing and ensuring the
implementation and maintenance of
security programs and procedures. The
former FHLBB rules at 12 CFR part 563a
were redesignated as 12 CFR part 568 by
the OTS. The OTS rules remained
substantively the same as the FDIC’s
rules in part 326, subpart A.6
In 2001, the FDIC and other federal
banking agencies and the OTS issued
Interagency Guidelines for Safeguarding
Customer Information pursuant to
section 501 of the Gramm Leach Bliley
Act (‘‘Protection of Nonpublic Personal
Information’’).7 At the same time, the
OTS also added a provision at the end
of its security procedures rules at
section 568.5 directing saving
associations and certain subsidiaries to
comply with appendix B to the
Interagency Guidelines. In a preamble
footnote, the OTS indicated that the
reason for the additional provision to its
minimum security rules was ‘‘[b]ecause
information security guidelines are
similar to physical security
procedures.’’ 8 In 2004, following
enactment of the Fair and Accurate
Credit Transactions Act (FACT Act), the
OTS, FDIC and other banking agencies
revised the Interagency Guidelines for
Safeguarding Customer Information and
renamed them the Interagency
Guidelines for Establishing Information
Security Standards. The Interagency
Guidelines were located in the FDIC
rules at part 364. In 2015, the FDIC
amended part 364 to, among other
reasons, make it applicable to State
savings associations.9 After careful
comparison of the FDIC’s part 326,
subpart A with the transferred OTS rule
in part 391, subpart A, the FDIC has
concluded that the transferred OTS
rules governing minimum security
procedures are substantively redundant.
Based on the foregoing, the FDIC
proposes to rescind and remove from
the Code of Federal Regulations the
transferred OTS rules located at part
391, subpart A, and to make technical
amendments to part 326, subpart A to
incorporate State savings associations.
II. The Proposal
Regarding the functions of the former
OTS that were transferred to the FDIC,
section 316(b)(3) of the Dodd-Frank Act,
12 U.S.C. 5414(b)(3), in pertinent part,
provides that the former OTS’s
regulations will be enforceable by the
FDIC until they are modified,
terminated, set aside, or superseded in
accordance with applicable law. After
reviewing the rules currently found in
part 391, subpart A, the FDIC proposes
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