35582 Federal Register / Vol. 87, No. 112 / Friday, June 10, 2022 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4See Securities Exchange Act Release No. 92525 

(July 30, 2021), 86 FR 42925 (August 5, 2021) 

(Order Approving File No. SR–FINRA–2020–041, as 

Modified by Amendment Nos. 1 and 2) (‘‘SEC 

Order’’); see also Securities Exchange Act Release 

No. 92525 (July 30, 2021), 86 FR 49589 (September 

3, 2021) (Order Approving File No. SR–FINRA– 

2020–041, as Modified by Amendment Nos. 1 and 

2) (Correction). 

5See SEC Order, 86 FR 42925, 42926. 

6See SEC Order, 86 FR 42925, 42926; see also 

Rule 4111(i)(16) (defining ‘‘Restricted Firm’’). 

7See SEC Order, 86 FR 42925, 42927. 

8See Rule 4111(b). 

9See Rule 4111(b); Rule 4111(i)(9) (definition of 

‘‘Preliminary Criteria for Identification’’) and (i)(10) 

(definition of ‘‘Preliminary Identification Metrics’’). 

10See Rule 4111(i)(5). 

Statement for Purchase of Next 

Generation Delivery Vehicles, 86 FR 

12715 (Mar. 4, 2021). 

2. U.S. Postal Service, Notice of 

Availability of Draft Environmental 

Impact Statement for Purchase of 

Next Generation Delivery Vehicle, 

86 FR 47662 (Aug. 26, 2021). 

3. U.S. Environmental Protection 

Agency, Notice of Availability of 

EIS No. 20210129, Draft, USPS, DC, 

Next Generation Delivery Vehicle 

Acquisitions, 86 FR 49531 (Sept. 3, 

2021). 

4. U.S. Environmental Protection 

Agency, Notice of Availability of 

EIS No. 20220001, Final, USPS, DC, 

Next Generation Delivery Vehicle 

Acquisitions, 87 FR 964 (Jan. 7, 

2022). 

5. U.S. Postal Service, Notice of 

Availability of Final Environmental 

Impact Statement for Purchase of 

Next Generation Delivery Vehicles, 

87 FR 994 (Jan. 7, 2022). 

6. U.S. Postal Service, Notice of 

Availability of Record of Decision, 

87 FR 14588 (Mar. 15, 2022). 

Joshua J. Hofer, 

Attorney, Ethics and Legal Compliance. 

[FR Doc. 2022–12581 Filed 6–7–22; 4:15 pm] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

Sunshine Act Meetings 

TIME AND DATE: June 22, 2022, at 9:00 

a.m. 

PLACE: Atlanta, GA. 

STATUS: Closed. 

MATTERS TO BE CONSIDERED: 

Wednesday, June 22, 2022, at 9:00 a.m. 

1. Strategic Issues. 

2. Financial and Operational Issues. 

3. Executive Session. 

4. Administrative Items. 

GENERAL COUNSEL CERTIFICATION: The 

General Counsel of the United States 

Postal Service has certified that the 

meeting may be closed under the 

Government in the Sunshine Act. 

CONTACT PERSON FOR MORE INFORMATION: 

Michael J. Elston, Secretary of the Board 

of Governors, U.S. Postal Service, 475 

L’Enfant Plaza SW, Washington, DC 

20260–1000. Telephone: (202) 268– 

4800. 

Michael J. Elston, 

Secretary. 

[FR Doc. 2022–12628 Filed 6–8–22; 11:15 am] 

BILLING CODE 7710–12–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95048; File No. SR–FINRA– 

2022–014] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend FINRA Rules 

4111 (Restricted Firm Obligations) and 

9561 (Procedures for Regulating 

Activities Under Rule 4111) 

June 6, 2022. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on May 26, 

2022, the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to amend FINRA 

Rules 4111 and 9561 to make nonsubstantive and technical amendments. 

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On July 30, 2021, the Commission 

approved rules concerning firms with a 

significant history of misconduct, 

including new Rule 4111 (Restricted 

Firm Obligations), amendments to Rule 

9559 (Hearing Procedures for Expedited 

Proceedings Under the Rule 9550 

Series), and new Rule 9561 (Procedures 

for Regulating Activities Under Rule 

4111).4 The rules allow FINRA to 

impose obligations on broker-dealers 

with significantly higher levels of riskrelated disclosures than other similarly 

sized peers based on numeric, 

threshold-based criteria.5 Specifically, 

Rule 4111 requires members that are 

identified as ‘‘Restricted Firms’’ to 

deposit cash or qualified securities in a 

segregated account, adhere to specified 

conditions or restrictions, or comply 

with a combination of such obligations.6

The annual Rule 4111 process 

through which FINRA will determine 

which members are Restricted Firms, 

and the obligations to impose on them, 

has several steps and includes features 

that narrowly focus the obligations on 

the firms of most concern.7 The first 

step is the annual calculation.8

Specifically, for each member, the 

Department of Member Regulation 

(‘‘Department’’) will compute annually 

the member’s ‘‘Preliminary 

Identification Metrics’’ to determine if it 

meets the ‘‘Preliminary Criteria for 

Identification.’’ 9 The date, each 

calendar year, as of which the 

Department calculates the Preliminary 

Identification Metrics to determine if 

the member meets the Preliminary 

Criteria for Identification is the 

‘‘Evaluation Date.’’ 10

For a member that meets the 

Preliminary Criteria for Identification 

during the annual calculation, the 

Department will conduct an Initial 


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11See Rule 4111(c)(1). 

12See Rule 4111(c)(2). 

13See Rule 4111(c); 4111(d). 

14See Rule 4111(e). 

15See Rule 4111(e)(1). 

16See Rule 4111(e)(1)(B) and (C). 

17See Rule 4111(e)(1)(B) and (C); see also Rule 

4111(d)(1); Rule 4111(i)(15) (defining ‘‘Restricted 

Deposit Requirement’’). 

18See Rule 4111(e)(1) and (e)(2). 

19See SEC Order, 86 FR 42925, 42926. 

20See Rule 9561(b)(1) and (3). 

21See Regulatory Notice 21–34 (September 2021). 

22See Information Notice, February 1, 2022 

(FINRA Announces Rule 4111 (Restricted Firm 

Obligations) Evaluation Date). As FINRA explained 

in that Information Notice, FINRA plans to actually 

perform the annual calculation at least 30 days after 

the June 1, 2022 Evaluation Date, to account for the 

time between when relevant disclosure events 

occurred and when firms must report those events 

on the Uniform Registration Forms. See Rule 

4111(i)(17) (defining ‘‘Uniform Registration Forms’’ 

for purposes of Rule 4111). 

23See Rule 4111(i)(5). The Evaluation Date 

impacts numerous aspects of the annual Rule 4111 

calculation—including, among other things, the 

dates of the ‘‘Evaluation Period,’’ the ‘‘Preliminary 

Identification Metrics,’’ the number of ‘‘Registered 

Persons In-Scope,’’ and the number of ‘‘Registered 

Persons Associated with Previously Expelled 

Firms’’—and which firm-size ‘‘Preliminary 

Identification Metrics Thresholds’’ apply. See Rule 

4111(i)(6) (defining the ‘‘Evaluation Period’’); 

4111(i)(10) (defining ‘‘Preliminary Identification 

Metrics’’); 4111(i)(13) (defining ‘‘Registered Persons 

In-Scope’’); 4111(i)(4)(F) (defining ‘‘Registered 

Persons Associated with Previously Expelled 

Firms’’); 4111(i)(11) (defining the ‘‘Preliminary 

Identification Metrics Thresholds’’). 

24See Information Notice, February 1, 2022 

(FINRA Announces Rule 4111 (Restricted Firm 

Obligations) Evaluation Date). FINRA also has 

explained, both in Regulatory Notice 21–34 and 

Information Notice, February 1, 2022, that FINRA 

will evaluate whether future adjustments of the 

annual Evaluation Date are warranted and would 

announce any changes in such date sufficiently in 

advance. 

25See Rule 4111(d)(2). 

Department Evaluation.11 If the 

Department determines that the member 

warrants further review, and such 

member has met the Preliminary 

Criteria for the first time, the member 

will have a one-time staff-reduction 

opportunity to no longer meet the 

Preliminary Criteria for Identification.12

A member that still meets the 

Preliminary Criteria for Identification 

after the staff-reduction opportunity, or 

that does not have a one-time staffreduction opportunity available, will 

proceed to a Consultation.13

After the Consultation, the 

Department will issue a Department 

decision concerning the member.14 A 

Department decision will indicate 

whether the member is designated as a 

Restricted Firm.15 For a member that is 

designated as a Restricted Firm, the 

Department decision also will state the 

obligations that are imposed on that 

member.16 These obligations can 

include a ‘‘Restricted Deposit 

Requirement,’’ specified conditions or 

restrictions on the operations and 

activities of the member and its 

associated persons, or both.17 Rule 

4111(e) includes provisions concerning, 

in pertinent part, the Department’s 30- 

day deadline for rendering, and issuing 

notice of, its decision.18

To implement Rule 4111, FINRA 

created two new expedited 

proceedings.19 Rule 9561(a) governs a 

new expedited proceeding that allows a 

member to request a prompt review of 

the Department’s determinations. Rule 

9561(b) governs a new expedited 

proceeding to address a member’s 

failure to comply with any 

requirements, conditions or restrictions 

imposed on it pursuant to Rule 4111 

and Rule 9561(a). The procedures for 

the Rule 9561(b) expedited proceeding 

include, in pertinent part, provisions 

concerning the notices that the 

Department may issue to commence a 

Rule 9561(b) expedited proceeding and 

the contents of those notices.20 Rule 

9561(b) is expressly referenced in Rule 

4111(h), which concerns notices of a 

member’s failures to comply with a 

Restricted Deposit Requirement or 

conditions or restrictions imposed 

pursuant to Rule 4111. 

Rules 4111 and 9561, and the 

amendments to Rule 9559, became 

effective on January 1, 2022.21 The first 

Evaluation Date for Rule 4111 will be 

June 1, 2022.22

FINRA is proposing technical, nonsubstantive changes to Rules 4111 and 

9561, for clarity and consistency, and to 

avoid unintended consequences of the 

30-day deadline currently specified in 

Rule 4111(e). Specifically, FINRA is 

proposing amendments to: (1) Rule 

4111(b), which concerns the annual 

calculation of the Preliminary Criteria 

for Identification, to delete the reference 

to ‘‘on a calendar-year basis,’’ as the 

Evaluation Date establishes the 

operative time periods under the rule; 

(2) Rule 4111(e), to modify and clarify 

when the 30-day time period 

commences for the Department to 

render, and issue notice of, its 

decisions; (3) Rule 4111(h), to more 

closely align its description of the 

notices issued pursuant to Rule 9561(b) 

with the text of Rule 9561(b); (4) Rule 

9561(b)(3), to modify the second 

sentence to use the phrase ‘‘suspension 

or cancellation of membership,’’ to be 

consistent with how the phrase 

‘‘suspension or cancellation of 

membership’’ is used throughout Rule 

9561; and (5) Rules 4111(f)(3), (i)(2), and 

(i)(15), to remove the capitalization from 

the term ‘‘Associated Person,’’ to be 

consistent with how the term is used 

throughout the FINRA Rulebook. 

Proposed Amendments to Rule 4111(b) 

Rule 4111(b) currently provides that, 

for each member, the Department will 

compute ‘‘annually (on a calendar-year 

basis) the Preliminary Identification 

Metrics to determine if the member 

meets the Preliminary Criteria for 

Identification.’’ FINRA proposes to 

delete from Rule 4111(b) the words ‘‘on 

a calendar-year basis.’’ 

What establishes the relevant time 

periods for the Rule 4111 annual 

calculation is the Evaluation Date. The 

Evaluation Date is defined as ‘‘the date, 

each calendar year, as of which the 

Department calculates the Preliminary 

Identification Metrics to determine if 

the member meets the Preliminary 

Criteria for Identification.’’ 23 The first 

Evaluation Date under Rule 4111 will be 

June 1, 2022, and FINRA expects that, 

in subsequent years, the Evaluation 

Dates also will be on June 1.24 Because 

the Evaluation Date establishes the 

operative time periods for the Rule 4111 

annual calculation, FINRA is proposing 

to delete from Rule 4111(b) the words 

‘‘on a calendar-year basis.’’ 

Proposed Amendments to Rule 4111(e) 

FINRA is proposing to make 

technical, non-substantive changes to 

the provisions in Rule 4111(e) that 

concern the timing of the Department 

decisions, to modify and clarify when 

the 30-day time period commences for 

the Department to render, and issue 

notice of, its decisions. 

Currently, Rule 4111(e)(1) provides, 

in pertinent part, that ‘‘[f]ollowing the 

Consultation, but no later than 30 days 

from the date of the latest letter 

provided to the member under 

paragraph (d)(2) of this Rule, the 

Department shall render a Department 

Decision . . . .’’ Similarly, Rule 

4111(e)(2) provides, in pertinent part, 

that ‘‘[n]o later than 30 days following 

the latest letter provided to the member 

under paragraph (d)(2) of this Rule, the 

Department shall issue a notice of the 

Department’s decision pursuant to Rule 

9561(a) . . . .’’ The letters that FINRA 

can provide pursuant to Rule 4111(d)(2) 

include ones that schedule the 

Consultation and ones that postpone the 

commencement of the Consultation for 

good cause shown.25 Rule 4111(d)(2) 

requires that the Department provide 

the written Consultation scheduling 

letter to the member firm ‘‘at least seven 

days prior to the Consultation.’’ Rule 

4111(d)(2) further provides that 

‘‘[p]ostponements shall not exceed 30 

days unless the member establishes the 


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26See Rule 4111(d)(2). 

27 In Rule 9561, ‘‘the Rule 4111 Requirements’’ 

refer collectively to the requirements, conditions or 

restrictions to which a Restricted Firm is subject. 

See Rule 9561(a)(1). 

28See Rule 9561(b)(1) (titled ‘‘Notice of 

Suspension or Cancellation’’), 9561(b)(3) 

(explaining that the notice shall explain that a 

Hearing Officer ‘‘may approve or withdraw the 

suspension or cancellation of membership’’), 

9561(b)(4) (explaining the effective date of a 

‘‘suspension or cancellation’’), and 9561(b)(6) 

(explaining the effective date of a ‘‘suspension or 

cancellation’’ when no hearing is timely requested); 

see also Rule 9559(n)(6) (‘‘In any action brought 

under Rule 9561(b), the Hearing Officer may 

approve or withdraw the suspension or cancellation 

of membership . . . .’’). 

29See Rule 9561(b)(1). 

reasons a longer postponement is 

necessary.’’ 

FINRA’s intent was to provide the 

Department with a reasonable amount of 

time following the Consultation to 

evaluate the information that a member 

provides during the Consultation and 

prepare its decision. However, 

commencing the 30-day deadline period 

from the ‘‘date of the latest letter to the 

member under [Rule 4111(d)(2)]’’ could 

result in the Department having little to 

no time to prepare its decision after the 

Consultation, especially when the 

Department sends a written letter 

granting a postponement of a 

Consultation for good cause shown. 

When a postponement is granted, the 

amount of time the Department would 

have to prepare its decision would 

depend on how far in advance of the 

postponed Consultation the Department 

sends the letter granting the 

postponement request. In some cases, 

depending on how long a postponement 

is granted, postponement letters could 

be provided 30 days or more before a 

postponed Consultation, leaving the 

Department with no time to prepare a 

decision following the postponed 

Consultation or evaluate the information 

provided by the member during the 

Consultation.26

Commencing the 30-day decision 

deadline period from the ‘‘date of the 

latest letter provided to the member 

under [Rule 4111(d)(2)]’’ also could 

have other unintended impacts on the 

Rule 4111 process. Rule 4111(d)(2) 

requires the Department to provide a 

written letter scheduling the 

Consultation ‘‘at least seven days prior 

to the Consultation,’’ but the ‘‘latest 

letter’’ provisions in Rule 4111(e) could 

create a disincentive for the Department 

to provide more than seven days’ notice 

of the Consultation; each additional day 

of notice provided would translate into 

one less day for the Department to 

prepare its decision following the 

Consultation. Likewise, Rule 4111(d)(2) 

provides that postponements of 

Consultations ‘‘shall not exceed 30 days 

unless the member establishes the 

reasons a longer postponement is 

necessary,’’ but the ‘‘latest letter’’ 

provisions could create a disincentive 

for the Department to grant 

postponements of a length that would 

leave it with little or no time to prepare 

its decisions. 

FINRA is also seeking to provide 

clarity to members on when the 30-day 

decision deadline period would begin, 

because the ‘‘latest letter’’ provisions 

may create potential ambiguity as to 

what communication starts, or restarts, 

the 30-day clock. For example, there 

could be occasions when the 

Department, after sending an initial 

letter scheduling the Consultation, 

needs to send subsequent scheduling 

letters that revise minor scheduling 

details (e.g., adjustments to the day, 

starting time, or location of the 

Consultation; changes to audio or video 

conferencing details). In such situations, 

it may not be clear which scheduling 

letter would qualify as the ‘‘latest’’ letter 

from which the 30-day decision 

deadline period commences. 

For these reasons, FINRA is proposing 

to amend Rule 4111(e)(1) and (e)(2) to 

require that the Department decision be 

rendered, and that notice of that 

decision be issued, no later than 30 days 

from the Consultation. This would 

ensure that the Department always has 

a reasonable amount of time to evaluate 

the information provided by a member 

during, and prepare its decisions after, 

the Consultation, and clarify when the 

30-day decision deadline period begins. 

Proposed Amendments to Rule 4111(h) 

FINRA also is proposing nonsubstantive, technical changes to Rule 

4111(h), to more closely align its 

description of the notices issued 

pursuant to Rule 9561(b) with the text 

of Rule 9561(b). 

Currently, Rule 4111(h) provides that 

FINRA may issue a notice ‘‘pursuant to 

Rule 9561(b)’’ directing a member that 

is not in compliance with the Restricted 

Deposit Requirement or the conditions 

or restrictions imposed to ‘‘suspend all 

or a portion of its business.’’ The general 

description in Rule 4111(h) of the 

notices that may be issued pursuant to 

Rule 9561(b), however, does not align 

with how Rule 9561(b) describes them. 

In this regard, the phrase ‘‘suspension or 

cancellation of membership’’ (and, 

likewise, the phrase ‘‘suspension or 

cancellation’’) is used throughout Rule 

9561(b). For example, Rule 9561(b)(1) 

provides that if a member fails to 

comply with any Rule 4111 

Requirements imposed,27 the 

Department, after receiving 

authorization from FINRA’s Chief 

Executive Officer or such other 

executive officer as the Chief Executive 

Officer may designate, may issue a 

‘‘suspension or cancellation’’ notice to 

such member stating that the failure to 

comply with the Rule 4111 

Requirements within seven days of 

service of the notice will result in a 

‘‘suspension or cancellation of 

membership.’’ These phrases also are 

used in the title of Rule 9561(b)(1), as 

well as in Rule 9561(b)(3), (4), and (6).28

In addition, Rule 4111(h) does not 

currently describe how notices issued 

pursuant to Rule 9561(b) shall state that 

the failure to comply within seven days 

of service of the notice will result in a 

suspension or cancellation of 

membership.29

Rule 4111(h) was intended to be 

entirely consistent with Rule 9561(b), as 

reflected by the fact that Rule 4111(h) 

expressly provides that FINRA may 

issue a notice ‘‘pursuant to Rule 

9561(b).’’ Thus, for purposes of 

consistency and clarity, FINRA 

proposes to amend Rule 4111(h) to 

provide that, pursuant to the procedure 

set forth in Rule 9561(b), FINRA may 

issue a suspension or cancellation 

notice to a member that is not in 

compliance with a Restricted Deposit 

Requirement or conditions or 

restrictions imposed by Rule 4111, 

stating that the failure to comply within 

seven days of service of the notice will 

result in a suspension or cancellation of 

membership. 

Proposed Amendments to Rule 

9561(b)(3) 

FINRA also is proposing technical 

amendments to modify the second 

sentence of Rule 9561(b)(3) to use the 

phrase ‘‘suspension or cancellation of 

membership,’’ to be consistent with how 

the phrase ‘‘suspension or cancellation 

of membership’’ is used throughout 

Rule 9561. 

Rule 9561(b)(3) governs the contents 

of a Rule 9561(b)(1) notice of 

suspension or cancellation of 

membership. Currently, the second 

sentence of Rule 9561(b)(3) provides, in 

pertinent part, that ‘‘[t]he notice shall 

state when the suspension will take 

effect and explain what the respondent 

must do to avoid such suspension.’’ 

This use of the word ‘‘suspension’’ is 

inconsistent with how the phrase 

‘‘suspension or cancellation’’ (and, 

similarly, ‘‘suspension or cancellation of 

membership’’) is used throughout Rule 

9561(b), including in a later sentence in 


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30See Rule 9561(b)(1), (3), (4) and (6); see also 

Rule 9559(n)(6). 

31The capitalized term ‘‘Associated Persons’’ is in 

Rule 4111(f)(3) (concerning requests by Previously 

Designated Restricted Firms for withdrawals from a 

Restricted Deposit Requirement), (i)(2) (defining 

‘‘Covered Pending Arbitration Claim’’), and (i)(15) 

(defining ‘‘Restricted Deposit Requirement’’). 

32The definition of ‘‘Covered Pending Arbitration 

Claim’’ in Rule 4111(i)(2) was modeled on the 

definition of the same term in Rule 1011(c), which 

is in the Rule 1000 Series (Member Application and 

Associated Person Registration). See Securities 

Exchange Act Release No. 90527 (November 27, 

2020), 85 FR 78540, 78541–42 n.10 (December 4, 

2020) (Notice of Filing of SR–FINRA–2020–041). In 

Rule 1011(c), as well as in some other provisions 

in the Rule 1000 Series, the term ‘‘Associated 

Person’’ is capitalized. The Rule 1000 Series, 

however, has a specific definition of the term 

‘‘Associated Person’’ that applies specifically to the 

Rule 1000 Series. See Rule 1011(b). 

33FINRA notes that the proposed rule change 

would impact all members, including members that 

have elected to be treated as capital acquisition 

brokers (‘‘CABs’’), given that the CAB rule set 

incorporates the impacted FINRA rules by 

reference. The proposed rule change would not 

impact, however, member firms that are funding 

portals, because the Funding Portal rule set neither 

incorporates the impacted FINRA rules by reference 

nor contains parallel rule provisions. See Funding 

Portal Rule 900(a) (excepting FINRA Rule 9561 

from the application of the FINRA Rule 9000 Series 

to funding portals). 

34 15 U.S.C. 78o–3(b)(6). 

35 15 U.S.C. 78s(b)(3)(A). 

36 17 CFR 240.19b–4(f)(6). 37 17 CFR 200.30–3(a)(12). 

Rule 9561(b)(3).30 Accordingly, for 

consistency and clarity, FINRA 

proposes to modify the second sentence 

of Rule 9561(b)(3) to use the phrase 

‘‘suspension or cancellation of 

membership.’’ 

Other Technical, Non-Substantive 

Changes 

FINRA also proposes to amend 

various provisions in Rule 4111 to 

remove the capitalization of the term 

‘‘Associated Persons.’’ 31 This would be 

consistent with how, throughout the 

FINRA Rulebook, the term ‘‘associated 

person’’ is generally not capitalized.32

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, so FINRA can 

implement the proposed rule change 

immediately.33

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,34 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. The proposed rule 

change will make non-substantive, 

technical amendments that FINRA 

believes will provide greater clarity and 

consistency to its rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change brings clarity and 

consistency to FINRA rules without 

adding any burden on firms. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 35 and Rule 19b– 

4(f)(6) thereunder.36

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2022–014 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2022–014. This 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. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

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 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of FINRA. All comments received 

will be posted without change. Persons 

submitting comments are cautioned that 

we do not redact or edit personal 

identifying information from comment 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–FINRA– 

2022–014 and should be submitted on 

or before July 1, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.37

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12483 Filed 6–9–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–507, OMB Control No. 

3235–0563] 

Proposed Collection; Comment 

Request; Extension: Rule 17a–10 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 


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