59818 Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Proposed Rules 

(1) The requirements specified in 

paragraphs (1) and (2) of EASA AD 2022– 

0135 do not apply to this AD. 

(2) Paragraph (3) of EASA AD 2022–0135 

specifies revising ‘‘the approved AMP’’ 

within 12 months after its effective date, but 

this AD requires revising the existing 

maintenance or inspection program, as 

applicable, within 90 days after April 18, 

2023 (the effective date of AD 2023–04–18). 

(3) The initial compliance time for doing 

the tasks specified in paragraph (3) of EASA 

AD 2022–0135 is at the applicable 

‘‘limitations’’ and ‘‘associated thresholds’’ as 

incorporated by the requirements of 

paragraph (3) of EASA AD 2022–0135, or 

within 90 days after April 18, 2023 (the 

effective date of AD 2023–04–18), whichever 

occurs later. 

(4) The provisions specified in paragraphs 

(4) and (5) of EASA AD 2022–0135 do not 

apply to this AD. 

(5) The ‘‘Remarks’’ section of EASA AD 

2022–0135 does not apply to this AD. 

(i) Retained No Alternative Actions or 

Intervals With a New Exception 

This paragraph restates the requirements of 

paragraph (l) of AD 2023–04–18, with a new 

exception. Except as required by paragraph 

(j) of this AD, after the existing maintenance 

or inspection program has been revised as 

required by paragraph (g) of this AD, no 

alternative actions (e.g., inspections) or 

intervals may be used unless they are 

approved as specified in the provisions of the 

‘‘Ref. Publications’’ section of EASA AD 

2022–0135. 

(j) New Maintenance or Inspection Program 

Revision 

Except as specified in paragraph (k) of this 

AD: Comply with all required actions and 

compliance times specified in, and in 

accordance with, EASA AD 2023–0099, 

dated May 11, 2023 (EASA AD 2023–0099). 

Accomplishing the maintenance or 

inspection program revision required by this 

paragraph terminates the requirements of 

paragraph (g) of this AD. 

(k) Exceptions to EASA AD 2023–0099 

(1) This AD does not adopt the 

requirements specified in paragraphs (1) and 

(2) of EASA AD 2023–0099. 

(2) Paragraph (3) of EASA AD 2023–0099 

specifies revising ‘‘the approved AMP’’ 

within 12 months after its effective date, but 

this AD requires revising the existing 

maintenance or inspection program, as 

applicable, within 90 days after the effective 

date of this AD. 

(3) The initial compliance time for doing 

the tasks specified in paragraph (3) of EASA 

AD 2023–0099 is at the applicable 

‘‘limitations’’ and ‘‘associated thresholds’’ as 

incorporated by the requirements of 

paragraph (3) of EASA AD 2023–0099, or 

within 90 days after the effective date of this 

AD, whichever occurs later. 

(4) This AD does not adopt the provisions 

specified in paragraphs (4) and (5) of EASA 

AD 2023–0099. 

(5) This AD does not adopt the ‘‘Remarks’’ 

section of EASA AD 2023–0099. 

(l) New Provisions for Alternative Actions 

and Intervals 

After the existing maintenance or 

inspection program has been revised as 

required by paragraph (j) of this AD, no 

alternative actions (e.g., inspections), and 

intervals are allowed unless they are 

approved as specified in the provisions of the 

‘‘Ref. Publications’’ section of EASA AD 

2023–0099. 

(m) Terminating Action for Certain 

Requirements in AD 2010–26–05 

Accomplishing the actions required by 

paragraphs (g) or (j) of this AD terminates the 

requirements of paragraph (g) of AD 2010– 

26–05 for Model FALCON 2000 airplanes 

only. 

(n) Additional AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Validation Branch, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or 

responsible Flight Standards Office, as 

appropriate. If sending information directly 

to the International Validation Branch, send 

it to the attention of the person identified in 

paragraph (o) of this AD. Information may be 

emailed to: 9-AVS-AIR-730-AMOC@faa.gov. 

Before using any approved AMOC, notify 

your appropriate principal inspector, or 

lacking a principal inspector, the manager of 

the responsible Flight Standards Office. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain instructions 

from a manufacturer, the instructions must 

be accomplished using a method approved 

by the Manager, International Validation 

Branch, FAA; or EASA; or Dassault 

Aviation’s EASA Design Organization 

Approval (DOA). If approved by the DOA, 

the approval must include the DOAauthorized signature. 

(o) Additional Information 

For more information about this AD, 

contact Tom Rodriguez, Aviation Safety 

Engineer, FAA, 1600 Stewart Avenue, Suite 

410, Westbury, NY 11590; telephone 206– 

231–3226; email tom.rodriguez@faa.gov. 

(p) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless this AD specifies otherwise. 

(3) The following service information was 

approved for IBR on [DATE 35 DAYS AFTER 

PUBLICATION OF THE FINAL RULE]. 

(i) European Union Aviation Safety Agency 

(EASA) AD 2023–0099, dated May 11, 2023. 

(ii) [Reserved] 

(4) The following service information was 

approved for IBR on April 18, 2023 (88 FR 

15607, March 14, 2023). 

(i) European Union Aviation Safety Agency 

(EASA) AD 2022–0135, dated July 6, 2022. 

(ii) [Reserved] 

(5) For EASA ADs 2023–0099 and 2022– 

0135, contact EASA, Konrad-Adenauer-Ufer 

3, 50668 Cologne, Germany; telephone +49 

221 8999 000; email ADs@easa.europa.eu; 

website easa.europa.eu. You may find these 

EASA ADs on the EASA website at 

ad.easa.europa.eu. 

(6) You may view this service information 

at the FAA, Airworthiness Products Section, 

Operational Safety Branch, 2200 South 216th 

St., Des Moines, WA. For information on the 

availability of this material at the FAA, call 

206–231–3195. 

(7) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

email fr.inspection@nara.gov, or go to: 

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued on August 24, 2023. 

Victor Wicklund, 

Deputy Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2023–18692 Filed 8–29–23; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Parts 275 and 279 

[Release No. IA–6384; File No. S7–04–23] 

RIN 3235–AM32 

Safeguarding Advisory Client Assets; 

Reopening of Comment Period 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Proposed rule; reopening of 

comment period. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’) is 

reopening the comment period for its 

proposal, Safeguarding Advisory Client 

Assets, Release No. IA–6240 (Feb. 15, 

2023) (‘‘Proposal’’), which proposed a 

new rule under the Investment Advisers 

Act of 1940 (‘‘Advisers Act’’ or ‘‘Act’’) 

that would redesignate and amend the 

current custody rule. In light of the 

adoption of the private fund adviser 

audit rule, which generally requires a 

registered investment adviser to obtain 

an annual financial statement audit of 

each private fund it advises in 

accordance with the audit provision of 

the current custody rule, reopening the 

comment period will allow interested 

persons additional time to assess the 

proposed amendments to the current 

custody rule’s audit provision in light of 

the private fund adviser audit rule. 

DATES: The comment period for the 

proposed rule published in the Federal 

Register on March 9, 2023, at 88 FR 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Proposed Rules 59819 

1See Safeguarding Advisory Client Assets, 

Investment Advisers Act Release No. 6240 (Feb. 15, 

2023), [88 FR 14672 (Mar. 9, 2023)] (‘‘Safeguarding 

Advisory Client Assets Release’’). 2As discussed below, the safeguarding rule 

would expand the availability of the audit provision 

from pooled investment vehicle clients to any 

advisory client entity whose financial statements 

are able to be audited in accordance with the rule. 

See proposed 17 CFR 275.223–1(b)(4) (‘‘rule 223– 

1(b)(4)’’). 

3The safeguarding rule would expand the scope 

of the current custody rule’s application to cover 

not only client funds and securities, but also client 

‘‘assets’’, which is defined in the proposed 

safeguarding rule as, ‘‘funds, securities, or other 

positions held in the client’s account.’’ See 

proposed 17 CFR 275.223–1(d)(1). 

4See proposed rule 223–1(b)(4). See also 

Safeguarding Advisory Client Assets Release, supra 

footnote 1, at section II.G.1.a. (explaining the 

elements of the audit provision under the proposed 

safeguarding rule). 

5Compare rule 206(4)–2(b)(4) with proposed rule 

223–1(b)(4). See also Safeguarding Advisory Client 

Assets Release, supra footnote 1, at section II.G.1.a. 

6See Private Fund Advisers; Documentation of 

Registered Investment Adviser Compliance 

Reviews, Investment Advisers Act Release No. 6383 

(Aug. 23, 2023). 

7Title 17 section 275.206(4)–10(b) also references 

the current custody rule’s audit provision, 

providing an exception from the requirement to 

obtain an audit for funds and advisers that are not 

in a control relationship, and instead requiring an 

adviser to take ‘‘all reasonable steps’’ to cause the 

private fund (other than a securitized asset fund) to 

undergo a financial statement audit that satisfies the 

requirements set forth in paragraph (b)(4) of the 

current custody rule and to deliver audited 

financial statements in accordance with paragraph 

(c) of the current custody rule. 

8 If the Commission adopts the proposed 

safeguarding rule, the Commission could amend 

rule 206(4)–10 at that time to redesignate references 

to rule 206(4)–2 in rule 206(4)–10 as references to 

rule 223–1. 

14672, is reopened. Comments should 

be received on or before October 30, 

2023. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/submitcomments.htm); or 

• Send an email to rule-comments@

sec.gov. Please include File Number S7– 

04–23 on the subject line. 

Paper Comments 

• Send paper comments to Secretary, 

Securities and Exchange Commission, 

100 F Street NE, Washington, DC 

20549–1090. 

All submissions should refer to File 

Number S7–04–23. The file number 

should be included on the subject line 

if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method of submission. The 

Commission will post all comments on 

the Commission’s website (https://

www.sec.gov/rules/proposed.shtml). 

Comments also are available for website 

viewing and printing in the 

Commission’s Public Reference Room, 

100 F Street NE, Washington, DC 20549, 

on official business days between the 

hours of 10 a.m. and 3 p.m. Operating 

conditions may limit access to the 

Commission’s Public Reference Room. 

Do not include personal identifiable 

information in submissions; you should 

submit only information that you wish 

to make available publicly. We may 

redact in part or withhold entirely from 

publication submitted material that is 

obscene or subject to copyright 

protection. 

Studies, memoranda, or other 

substantive items may be added by the 

Commission or staff to the comment file 

during this rulemaking. A notification of 

the inclusion in the comment file of any 

such materials will be made available 

on the Commission’s website. To ensure 

direct electronic receipt of such 

notifications, sign up through the ‘‘Stay 

Connected’’ option at www.sec.gov to 

receive notifications by email. 

FOR FURTHER INFORMATION CONTACT: 

Janet Jun, Senior Counsel; Christopher 

Staley, Branch Chief; or Melissa Roverts 

Harke, Assistant Director, Investment 

Adviser Regulation Office, Division of 

Investment Management, (202) 551– 

6787 or IArules@sec.gov, Securities and 

Exchange Commission, 100 F Street NE, 

Washington, DC 20549. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Commission proposed 17 CFR 

275.223–1 under the Advisers Act (‘‘rule 

223–1’’ or ‘‘safeguarding rule’’) on 

February 15, 2023, to address how 

advisers safeguard client assets and 

enhance investor protections.1 The 

Proposal also would renumber 17 CFR 

275.206(4)–2 (‘‘rule 206(4)–2’’ or 

‘‘current custody rule’’) to redesignate it 

as rule 223–1 and amend certain of its 

provisions, including 17 CFR 

275.206(4)–2(b)(4) (‘‘rule 206(4)–2(b)(4)’’ 

or ‘‘audit provision’’). The original 

comment period for the Proposal closed 

on May 8, 2023. 

Title 17 section 275.206(4)–2(a)(4) of 

the current custody rule requires the 

client funds and securities of which an 

adviser has custody to be verified by 

actual examination at least once during 

each calendar year by an independent 

public accountant. An adviser is 

deemed to have complied with this 

annual surprise examination 

requirement with respect to the 

accounts of certain pooled investment 

vehicles,2 provided that such vehicles’ 

audited financial statements are 

obtained and delivered in accordance 

with the elements of the current custody 

rule’s audit provision, as set forth in 

paragraphs (b)(4)(i) through (b)(4)(iii) of 

the current custody rule. Similar to the 

current custody rule, the proposed 

safeguarding rule generally would 

require an adviser with custody of client 

assets 3 to obtain a similar annual 

surprise examination. Again, like the 

current custody rule, the proposed 

safeguarding rule also contains an audit 

provision that, when satisfied, would 

allow an adviser to be deemed in 

compliance with the proposed 

safeguarding rule’s surprise examination 

requirement with respect to certain 

client accounts.4

While the elements of the proposed 

safeguarding rule’s audit provision 

remain largely unchanged from those of 

the current custody rule, the Proposal 

includes some key modifications; 

namely, (1) expanding the audit 

provision’s availability from ‘‘pooled 

investment vehicle’’ clients to ‘‘any 

other entity’’; (2) requiring the audited 

financial statements of non-U.S. clients 

to contain information substantially 

similar to statements prepared in 

accordance with U.S. GAAP and 

material differences with U.S. GAAP to 

be reconciled; and (3) requiring that the 

adviser or the entity enter into a written 

agreement with the auditor requiring the 

auditor to notify the Commission in the 

event of the auditor’s termination or 

issuance of a modified opinion.5

On August 23, 2023, the Commission 

adopted new rules designed to protect 

investors who invest in private funds.6

Among them was 17 CFR 275.206(4)–10 

under the Act (‘‘rule 206(4)–10’’ or 

‘‘private fund adviser audit rule’’), 

which generally requires a registered 

investment adviser to cause each of the 

private funds it advises (other than a 

securitized asset fund, as defined in 17 

CFR 275.211(h)(1)–1 (‘‘securitized asset 

fund’’)) to undergo a financial statement 

audit (as defined in 17 CFR 210.1–02(d)) 

that satisfies the requirements set forth 

in paragraph (b)(4) of the current 

custody rule, as well as to deliver each 

such audited financial statement in 

accordance with paragraph (c) of the 

current custody rule.7

II. Reopening of Comment Period 

Because compliance with the private 

fund adviser audit rule is predicated in 

part on an adviser complying with the 

current custody rule’s audit provision, 

the proposed modifications to the audit 

provision as set forth in the proposed 

safeguarding rule, if adopted, would 

apply to advisers subject to the private 

fund adviser audit rule.8 The 


lotter on DSK11XQN23PROD with PROPOSALS1
59820 Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Proposed Rules 

Commission is therefore reopening the 

comment period for the safeguarding 

rule proposal so that commenters may 

consider the proposed modifications to 

the audit provision in light of rule 

206(4)–10. The Commission is 

reopening the comment period for 

Release No. IA–6240 Safeguarding 

Advisory Client Assets until October 30, 

2023. 

By the Commission. 

Dated: August 23, 2023. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2023–18667 Filed 8–29–23; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2023–0007; Notice No. 

225] 

RIN 1513–AD03 

Proposed Establishment of the San 

Luis Rey Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) proposes to 

establish the 97,733-acre ‘‘San Luis 

Rey’’ American viticultural area (AVA) 

in San Diego County, California. The 

proposed AVA is located entirely within 

the existing South Coast AVA. TTB 

designates viticultural areas to allow 

vintners to better describe the origin of 

their wines and to allow consumers to 

better identify wines they may 

purchase. TTB invites comments on 

these proposals. 

DATES: TTB must receive your 

comments on or before October 30, 

2023. 

ADDRESSES: You may electronically 

submit comments to TTB on this 

proposal and view copies of this 

document, its supporting materials, and 

any comments TTB receives on it within 

Docket No. TTB–2023–0007 as posted 

on Regulations.gov (https://

www.regulations.gov), the Federal erulemaking portal. Please see the 

‘‘Public Participation’’ section of this 

document below for full details on how 

to comment on this proposal via 

Regulations.gov or U.S. mail, and for 

full details on how to obtain copies of 

this document, its supporting materials, 

and any comments related to this 

proposal. 

FOR FURTHER INFORMATION CONTACT: 

Karen A. Thornton, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW, Box 12, Washington, DC 20005; 

phone 202–453–1039, ext. 175. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), 27 

U.S.C. 205(e), authorizes the Secretary 

of the Treasury to prescribe regulations 

for the labeling of wine, distilled spirits, 

and malt beverages. The FAA Act 

provides that these regulations should, 

among other things, prohibit consumer 

deception and the use of misleading 

statements on labels and ensure that 

labels provide the consumer with 

adequate information as to the identity 

and quality of the product. The Alcohol 

and Tobacco Tax and Trade Bureau 

(TTB) administers the FAA Act 

provisions pursuant to section 1111(d) 

of the Homeland Security Act of 2002, 

as codified at 6 U.S.C. 531(d). In 

addition, the Secretary of the Treasury 

has delegated certain administrative and 

enforcement authorities to TTB through 

Treasury Order 120–01. 

Part 4 of the TTB regulations (27 CFR 

part 4) authorizes TTB to establish 

definitive viticultural areas and regulate 

the use of their names as appellations of 

origin on wine labels and in wine 

advertisements. Part 9 of the TTB 

regulations (27 CFR part 9) sets forth 

standards for the preparation and 

submission of petitions for the 

establishment or modification of 

American viticultural areas (AVAs) and 

lists the approved AVAs. 

Definition 

Section 4.25(e)(1)(i) of the TTB 

regulations (27 CFR 4.25(e)(1)(i)) defines 

a viticultural area for American wine as 

a delimited grape-growing region having 

distinguishing features as described in 

part 9 of the regulations and, once 

approved, a name and a delineated 

boundary codified in part 9 of the 

regulations. These designations allow 

vintners and consumers to attribute a 

given quality, reputation, or other 

characteristic of a wine made from 

grapes grown in an area to the wine’s 

geographic origin. The establishment of 

AVAs allows vintners to describe more 

accurately the origin of their wines to 

consumers and helps consumers to 

identify wines they may purchase. 

Establishment of an AVA is neither an 

approval nor an endorsement by TTB of 

the wine produced in that area. 

Requirements 

Section 4.25(e)(2) of the TTB 

regulations (27 CFR 4.25(e)(2)) outlines 

the procedure for proposing an AVA 

and allows any interested party to 

petition TTB to establish a grapegrowing region as an AVA. Section 9.12 

of the TTB regulations (27 CFR 9.12) 

prescribes standards for petitions to 

establish or modify AVAs. Petitions to 

establish an AVA must include the 

following: 

• Evidence that the area within the 

proposed AVA boundary is nationally 

or locally known by the AVA name 

specified in the petition; 

• An explanation of the basis for 

defining the boundary of the proposed 

AVA; 

• A narrative description of the 

features of the proposed AVA that affect 

viticulture, such as climate, geology, 

soils, physical features, and elevation, 

that make the proposed AVA distinctive 

and distinguish it from adjacent areas 

outside the proposed AVA boundary; 

• The appropriate United States 

Geological Survey (USGS) map(s) 

showing the location of the proposed 

AVA, with the boundary of the 

proposed AVA clearly drawn thereon; 

• If the proposed AVA is to be 

established within, or overlapping, an 

existing AVA, an explanation that both 

identifies the attributes of the proposed 

AVA that are consistent with the 

existing AVA and explains how the 

proposed AVA is sufficiently distinct 

from the existing AVA and therefore 

appropriate for separate recognition; 

and 

• A detailed narrative description of 

the proposed AVA boundary based on 

USGS map markings. 

Petition To Establish the San Luis Rey 

AVA 

TTB received a petition from Rebecca 

Wood, managing member of Premium 

Vintners, LLC, proposing to establish 

the ‘‘San Luis Rey’’ AVA. Premium 

Vintners, LLC, operates Fallbrook 

Winery and farms several vineyards 

within the proposed AVA. The petition 

was submitted on behalf of Fallbrook 

Winery and other local vineyard owners 

and winemakers. The proposed AVA is 

located in San Diego County, California, 

and is entirely within the existing South 

Coast AVA (27 CFR 9.104). Within the 

proposed AVA, there are approximately 

44 commercial vineyards, which cover a 

total of approximately 256 acres, as well 

as an additional 29 acres of planned 

vineyards. There are also 23 wineries 

within the proposed AVA. The 


lotter on DSK11XQN23PROD with PROPOSALS1