|Subject:||Regulatory Burden Notice of Intent--Request for Comment|
|Date of Memorandum:||08/24/1998|
|Expiration Date:|| |
|Signed By:||McKenzie, Thomas|
|FCA Contact Person:||Coleman, Robert|
|List of Attachments:||Federal Register: 8/18/98|
August 21, 1998
To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit System Institutions
From: Thomas G. McKenzie, Director
Office of Policy and Analysis
Subject: Regulatory Burden Notice of Intent – Request for Comment
On August 11, 1998, the Farm Credit Administration (FCA or Agency) Board adopted a Regulatory Burden Notice of Intent and Request for Comment (Notice). Our efforts to improve FCA’s regulatory climate began in 1993, when we initiated a project seeking comments to reduce regulatory burden. As a result of the 1993 project, many regulatory requirements have since been eliminated or streamlined.
The 1998 Notice once again solicits comments from the public on the appropriateness of regulatory requirements that the Agency places on the Farm Credit System (FCS or System). The Notice is of particular significance as the Agency implements a newly adopted philosophy involving intra-System competition. The FCA Board specifically invites System directorate and management to review existing regulatory requirements and identify those that may impede the implementation of the new philosophy statement.
The FCA Board is also keenly interested in comments from FCS institutions about whether the Agency’s regulations and policies remain appropriate for today’s business environment and the dramatically changing financial services environment of the future. Based on these concerns, we are providing a hard copy of the Federal Register notice to you. This request for comments provides our primary customers an opportunity to thoroughly review the existing regulations and furnish the FCA advice on those that may impede business opportunities, duplicate other requirements, or impose burdens that are greater than the benefits received.
We hope you agree that the Notice meets your needs and the needs of other constituents of the FCA as agriculture and the FCS continually change. As this environment changes, the FCA wants regulations and policies that remain useful to the FCS without sacrificing safety and soundness.
Please take this opportunity to provide your comments on ways to improve the regulatory environment in which the FCS operates. Comments may be mailed or delivered to:
Patricia W. DiMuzio, Director
Regulation and Policy Division
Office of Policy and Analysis
Farm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090
We encourage comments to be submitted through the Pending Regulations section of the FCA's interactive website at "www.fca.gov," or via electronic mail to firstname.lastname@example.org. You may also send them by facsimile transmission to (703) 734-5784.
Questions pertaining to these documents should be directed to S. Robert Coleman, Senior Policy Analyst, Office of Policy and Analysis, at (703) 883-4498 or Richard A. Katz, Senior Attorney, Office of General Counsel, at (703) 883-4020.
[Federal Register: August 18, 1998 (Volume 63, Number 159)]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
FARM CREDIT ADMINISTRATION
12 CFR Chapter VI
Statement on Regulatory Burden
AGENCY: Farm Credit Administration.
ACTION: Notice of intent; request for comment.
SUMMARY: The Farm Credit Administration (FCA or Agency), through the FCA Board, is requesting commenters to identify regulations and policies that duplicate other requirements, are ineffective, or impose burdens that are greater than the benefits received. This action is being taken to improve the regulatory framework within which the Farm Credit System (FCS or System) operates.
DATES: Written comments should be received on or before November 20, 1998.
ADDRESSES: Comments may be mailed or delivered to Patricia W. DiMuzio, Director, Regulation and Policy Division, Office of Policy and Analysis, Farm Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102-5090 or sent by facsimile transmission to (703) 734-5784. Comments may also be submitted via electronic mail to "email@example.com" or through the Pending Regulations section of the FCA's interactive website at "www.fca.gov." Copies of all communications received will be available for review by interested parties in the Office of Policy and Analysis, Farm Credit Administration.
FOR FURTHER INFORMATION CONTACT:
S. Robert Coleman, Senior Policy Analyst, Regulation and Policy Division, Office of Policy and Analysis, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-4498,
Richard A. Katz, Senior Attorney, Regulatory Enforcement Division, Office of General Counsel, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-4020, TDD (703) 883-4444.
SUPPLEMENTARY INFORMATION: The FCA is the independent Federal agency in the executive branch of the government responsible for regulating FCS institutions. As a Government-sponsored enterprise, the FCS primarily provides loans to farmers, ranchers, aquatic producers and harvesters, agricultural cooperatives, and rural utilities.
The FCA is committed to continually updating its regulations and policies so they remain useful to the FCS and the public without sacrificing safety and soundness. Our efforts to reduce regulatory burdens on FCS institutions are consistent with the National Performance Review (NPR), which seeks to eliminate regulations that unnecessarily impede the ability of businesses to compete efficiently in the marketplace. Although independent Federal agencies are not required to comply with the NPR, the FCA voluntarily participates in this program because FCA subscribes to its primary objectives.
This initiative is designed to meet the needs of the System for effective regulation as agricultural credit markets continually change. Our efforts to remove unnecessary regulatory requirements on the System began in 1993 when we initiated a project seeking comments on regulatory burden. See 58 FR 34003 (June 23, 1993). Many regulatory requirements have been eliminated or streamlined during the past 5 years in response to the above-referenced 1993 publication. More specifically, a rulemaking project in 1995 repealed several regulations that prescribed unnecessarily detailed managerial or operational practices at FCS institutions, or required System institutions to obtain FCA approval before they engaged in certain activities. See 60 FR 2552 (January 10, 1995); 60 FR 20008 (April 24, 1995). On November 24, 1995, the FCA published a notice in the Federal Register that informed the public of those regulations that the FCA decided to retain without amendment because they were determined necessary to implement the Farm Credit Act of 1971, as amended (Act), or to protect the safety and soundness of the System. See 60 FR 57913. Another rulemaking made technical corrections by: (1) Repealing other FCA prior-approval requirements; (2) conforming several regulations to recent statutory amendments; and (3) abolishing other burdensome regulatory requirements. See 61 FR 67181 (December 20, 1996). Additionally, the FCA responded to comments about regulatory burden by amending many regulations and policies, including:
· Related Services. See 60 FR 34090 (June 30, 1995);
· Ten-Day Notification Requirements for Changes in Interest Rates. See 61 FR 11303 (March 20, 1996);
· Capital Adequacy and Customer Eligibility. See 62 FR 4429 (January 30, 1997);
· Quarterly Reports to Shareholders. See 62 FR 15089 (March 31, 1997);
· Loan Underwriting Standards. See 62 FR 51007 (September 30, 1997); and,
· General Financing Agreements. See 63 FR 5721 (February 4, 1998).
In its continuing effort to update its regulations and policies, the FCA is soliciting comments from the public as to any of its regulations and policies that may duplicate other governmental requirements, are not effective in achieving stated objectives, or create a burden that is perceived to be greater than the benefits received. Although the Agency will strive to minimize regulatory burden on the System, the FCA will ensure that safety and soundness is maintained and that its regulations and policies implement the Act.
Dated: August 11, 1998
Farm Credit Administration Board.