Proposed Agency Information Collection Activities; Comment Request (FED proposes to extend for three years, with revisions, the recordkeeping and disclosure requirements of Savings and Loan Holding Companies associated with „Regulation LL“)

The Board of Governors of the Federal Reserve System (FED) has published in the Federal Register its proposal to extend for three years, with revisions, the recordkeeping and disclosure requirements associated with „Regulation LL“ which requires Savings and Loan Holding Companies (SLHCs) to
– submit an annual capital plan to the Board;
– seek prior approval from the Board under specific circumstances before making any capital distributions;
– conduct company-run periodic stress tests;
– report the stress test results of their company-run stress tests to the Board;
– publicly disclose the stress test results;
– comply with certain other reporting and recordkeeping obligations.
Specifically, the Board proposes to extend the above noted recordkeeping and reporting requirements and make targeted changes to „account for several reporting provisions and one recordkeeping provision which have not been previously cleared by the Board under the Paperwork Reduction Act (PRA)“. In detail, the Board proposes to include the following:
– under 12 CFR Part 238, § 238.132, the filing obligation pertaining to a request of an SLHC with total consolidated assets of $100 billion or more to conduct stress tests on a less frequent basis than otherwise mandated by law;
– under 12 CFR Part 238, § 238.143, the filing obligation pertaining to a request of a large SLHC (total consolidated assets of more than $250 billion) to conduct stress test on a less frequent basis than otherwise mandated and the filing obligation pertaining to an appeal of additional stress test components; and
– under 12 CFR Part 238, § 238.134, the recordkeeping obligations of large SLHCs as defined above in relation to policies and procedures designed to ensure that „stress testing processes are effective in meeting the relevant requirements“.
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Comments on the proposed extension and revisions may be submitted to the FED up to November 27, 2023.