Federal Register / Vol. 87, No. 124 / Wednesday, June 29, 2022 / Notices 38803 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 94654 (April 8, 

2022), 87 FR 22264 (April 14, 2022) (File No. SR– 

FINRA–2022–009) (‘‘Notice’’). The Commission 

received one comment letter in connection with the 

Notice, which does not relate to the substance of the 

proposed rule change. 

4See Letter from Ilana Reid, Assistant General 

Counsel, OGC Regulatory Practice and Policy, 

FINRA (May 25, 2022) available at https://

www.finra.org/sites/default/files/2022-05/sr-finra2022-009-extension1.pdf. 

5See Notice at 22265. 

6See id. at 22264. See also Securities Exchange 

Act Release No. 88917 (May 20, 2020), 85 FR 31832 

(May 27, 2020) (Notice of Filing and Immediate 

Effectiveness of File No. SR–FINRA–2020–015); 

Securities Exchange Act Release No. 89055 (June 

12, 2020), 85 FR 36928 (June 18, 2020) (Notice of 

Filing and Immediate Effectiveness of File No. SR– 

FINRA–2020–017); Securities Exchange Act Release 

No. 89423 (July 29, 2020), 84 FR 47278 (August 4, 

2020) (Notice of Filing and Immediate Effectiveness 

of File No. SR–FINRA–2020–022); Securities 

Exchange Act Release No. 90619 (December 9, 

2020), 85 FR 81250 (December 15, 2020) (Notice of 

Filing and Immediate Effectiveness of File No. SR– 

FINRA–2020–042); Securities Exchange Act Release 

No. 91495 (April 7, 2021), 86 FR 19306 (April 13, 

2021) (Notice of Filing and Immediate Effectiveness 

of File No. SR–FINRA–2021–006); Securities 

Exchange Act Release No. 93758 (December 13, 

2021), 86 FR 71695 (December 17, 2021) (Notice of 

Filing and Immediate Effectiveness of File No. SR– 

FINRA–2021–031); and Securities Exchange Act 

Release No. 94430 (March 16, 2022), 87 FR 16262 

(March 22, 2022) (Notice of Filing and Immediate 

Effectiveness of File No. SR–FINRA–2022–004). 

7For ease of reference, and to be consistent with 

the language FINRA used in its filing, the prepandemic rules will be referred to herein as the 

‘‘original rules’’ and, as noted above, the temporary 

changes to the original rules will be referred to as 

the ‘‘temporary amendments.’’ See Notice at 22265 

n.7. Some of the original rules were amended while 

the temporary amendments were in effect. See, e.g., 

FINRA Rule 9321 (amended by SR–FINRA–2020– 

011, eff. April 15, 2021). As such, any prior 

amendments to the original rules have already been 

incorporated into the rule text of this proposed rule 

change, which is available on FINRA’s website. See 

FINRA website, File No. SR–FINRA–2022–009 

(Exhibit 5), available at https://www.finra.org/rulesguidance/rule-filings/sr-finra-2022-009. 

8See Notice at 22265. 

9See id. See also note 6 supra. As discussed in 

the Notice, FINRA’s temporary amendments did not 

permit electronic service of an initial complaint on 

a respondent due to what FINRA viewed as 

heightened fair process concerns. As such, FINRA 

states that the proposed rule change would also not 

permit electronic service of initial complaints. 

Under FINRA’s existing rule, the only permissible 

methods of serving the initial complaint are by 

hand, mail, or courier. See Notice at 22264–65. See 

also FINRA Rule 9134(a). 

10See Notice at 22265. 

11See id. 

12See id. See also FINRA Rules 6490(e), 9133(b), 

9146(l), 9524(a)(3), and 9559(h). 

13See Notice at 22265. 

14See id. 

15See id. 

16See id. at 22264, n.4. 

17See id. 

18See id. 

19See id. 

20See id. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95147; File No. SR–FINRA– 

2022–009] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving a 

Proposed Rule Change To Amend 

Certain FINRA Rules To Permit, and in 

Some Instances Require, Electronic 

Service and Filing of Documents in 

Disciplinary and Other Proceedings 

and Appeals 

June 23, 2022. 

I. Introduction 

On April 6, 2022, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Exchange Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to amend FINRA Rules 1012, 

1015, 6490, 9132, 9133, 9135, 9146, 

9321, 9341, 9349, 9351, 9522, 9524, 

9525, 9559 and 9630 to permit, and in 

some instances require, electronic 

service and filing of documents in 

disciplinary and other proceedings and 

appeals. The proposed rule change was 

published for comment in the Federal 

Register on April 14, 2022.3 On May 25, 

2022, FINRA consented to extend until 

July 13, 2022, the time period in which 

the Commission must approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

approve or disapprove the proposed 

rule change.4 This order approves the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

A. Background 

As discussed in the Notice, the FINRA 

Rule 1000, 6400, 9100, 9300, 9520, 

9550, and 9600 Series contain, among 

other things, rules regarding the method 

of service and filing of documents in 

disciplinary and other proceedings and 

appeals, as well as other procedural 

requirements.5 Several of FINRA’s rules 

regarding the method of service and 

filing have been amended temporarily to 

permit, and in some instances require, 

electronic filing and service during the 

period in which FINRA’s operations 

have been impacted by the COVID–19 

pandemic 6 (the ‘‘temporary 

amendments’’).7 The temporary 

amendments pertain to disciplinary 

proceedings before the Office of Hearing 

Officers (‘‘OHO’’), to appeals before the 

National Adjudicatory Council 

(‘‘NAC’’), as well as to other types of 

administrative proceedings.8 FINRA 

stated that the temporary amendments 

allowed, and in some cases required, 

FINRA (in its capacity as an 

Adjudicator) to serve certain documents 

on parties by electronic mail (‘‘email’’) 

and required parties to file or serve 

documents by email, unless the parties 

agreed to an alternative method of 

service.9 FINRA’s proposed rule change 

would make the temporary amendments 

regarding electronic service and filing 

permanent, with some modifications.10

More specifically, the proposed rule 

change would allow, and in some 

instances require, electronic service and 

filing unless another method of service 

is ordered by the Adjudicator.11 This 

approach differs from the temporary 

amendments, which required email 

service unless the parties agreed to an 

alternative method of service.12 As set 

forth in the Notice, FINRA has observed 

that it would be more effective to 

require email service unless the 

Adjudicator orders otherwise.13

Nevertheless, the proposed rule change 

would allow all parties who lack the 

ability to use or access email to request 

relief to use an alternative method of 

service upon a showing of good cause.14

But, unlike what had been permitted 

under the temporary amendments, the 

parties’ agreement to use an alternative 

method of service would be insufficient 

unless the parties also obtained an order 

from the Adjudicator permitting use of 

the alternative method of service.15

The temporary amendments also 

provided extensions of time to FINRA 

staff, respondents, and other parties in 

connection with certain adjudicatory 

and review processes that are not being 

adopted in this proposed rule change.16

For example, under the original rules, 

the time to appeal under FINRA Rule 

6490(e) was seven calendar days, and a 

subcommittee was required to convene 

once each calendar month to consider 

all appeals received during the prior 

month.17 Under the temporary 

amendments to FINRA Rule 6490(e), the 

time to appeal was temporarily 

extended to 30 calendar days, and the 

time for the subcommittee to convene 

was temporarily extended to once every 

90 calendar days.18 As discussed in the 

Notice, the timing requirements in 

FINRA Rule 6490(e) that were extended 

by the temporary amendments are not 

being adopted permanently by FINRA in 

this proposed rule change.19 Therefore, 

when this proposed rule change 

becomes effective, the timing 

requirements in FINRA Rule 6490(e) 

will revert back to the original rule.20


lotter on DSK11XQN23PROD with NOTICES1
38804 Federal Register / Vol. 87, No. 124 / Wednesday, June 29, 2022 / Notices 

21See id. at 22265. See also proposed Rule 

9135(d). 

22See Notice at 22265. FINRA also stated that, 

prior to the temporary amendments, FINRA 

permitted service by email under some of its 

original rules. For example, FINRA Rule 6490(d)(5) 

(Processing of Company-Related Actions; 

Procedures for Reviewing Submissions; Notice 

Issuance) permits a notice under the provision to 

be issued by facsimile or email, or pursuant to 

FINRA Rule 9134. As FINRA indicated in the 

Notice, FINRA Rule 9134 permits service on parties 

using the following methods: (1) personal service, 

(2) mail, or (3) courier. See id. at 22266. 

23See id. at 22264. 

24See id. at 22267. 

25See id. at 22267. 

26FINRA stated that it sometimes serves 

documents in its capacity as the Adjudicator, but 

FINRA may be a party in other instances, such as 

in its capacity as the Department of Enforcement. 

See id. at n.12. 

27See note 9 supra. As FINRA set forth in the 

Notice, when the FINRA Department of 

Enforcement files an initial complaint on a 

respondent, the Notice of Complaint tells the 

respondent how to file the answer and other 

documents with the OHO. See Notice at 22265, 

n.14. 

28See Notice at 22265. In addition to email, 

FINRA stated that various other methods of service 

would still be permitted, such as personal service, 

mail, and courier. See id. FINRA also stated that, 

as indicated in the proposed rule text, FINRA will 

consider service by email complete upon sending 

of the relevant document or other information. 

According to FINRA, this is consistent with the 

treatment of service by mail under the original rules 

and service by email under the temporary 

amendments. FINRA further stated that in most 

cases, it will already have information regarding the 

relevant party, or their counsel’s, preferred method 

of service since FINRA and the relevant party, or 

their counsel, will have already engaged in 

communications prior to service of documents or 

other information. See id. 

29See id. 

30See id. 

31See id. 

32See id. According to FINRA, once OHO 

receives an initial complaint, it sends a Code and 

Guide letter to each respondent to notify them of 

the complaint, along with instructions on how to 

file with OHO. See id. at n.14. 

33See id. 

34See id. at 22265, 22267. See also Amendments 

to the Commission’s Rules of Practice, Securities 

Exchange Act Release No. 90442 (Nov. 17, 2020), 

85 FR 86464 (File No. S7–18–15) (December 30, 

2020) (codified at 17 CFR 201 (2020)). 

35See Notice at 22265. See also FINRA Rule 1000 

Series. 

36See Notice at 22265. See also FINRA Rule 

1012(a), which governs the filing and service 

requirements for the Rule 1000 Series. See Notice 

at 22265, n.15. 

37See Notice at 22265. See also FINRA Rule 

1015(f). 

38See Notice at 22265. 

39See id. at n.17. 

40See id. 

41See id. at 22266. See also FINRA Rule 1012(a). 

FINRA is additionally proposing a non-substantive 

change to delete the word ‘‘electronic’’ from the 

description of the ‘‘alternative filing process’’ 

because it is superfluous. See Notice at 22266, n.18. 

In an effort to support the transition 

to email service and filing, the proposed 

rule change also would require parties 

in OHO proceedings to include their 

current email address and contact 

information at the first occurrence of 

filing a complaint, answer, or other 

paper, and to file and serve any change 

in email address or contact information 

on all other parties during the course of 

the proceeding as well as file it with the 

Adjudicator.21

B. Proposed Rule Change To Allow or 

Require Email Filing and Service 

FINRA stated that the original rules, 

with few exceptions, do not provide for 

service by email.22 However, in 

response to the COVID–19 pandemic, 

FINRA filed temporary amendments to 

permit, and in some instances require, 

electronic filing and service during the 

period in which FINRA’s operations 

have been impacted by the pandemic.23

FINRA stated that the proposed rule 

change is intended to make these 

temporary amendments, with some 

modifications, permanent considering 

FINRA’s positive experience with 

operating while the temporary 

amendments have been in effect, since 

May of 2020.24 As detailed more fully 

below, FINRA stated that technological 

advancements and their widespread use 

have made filing and service more 

efficient under the temporary 

amendments than under the original 

rules.25 The proposed rule change 

would permit, and in some instances 

require, FINRA to serve documents,26

other than an initial complaint,27 by 

email and to provide that service by 

email is deemed complete upon 

sending.28 Further, FINRA stated that if 

it has knowledge that the address used 

for service is not current or is not 

functional (i.e., FINRA receives a 

bounce-back or other message indicating 

there was a failure to deliver the email), 

FINRA will use other permissible 

methods of service until it can verify the 

party’s email address.29

As set forth in the Notice, FINRA 

believes that the proposed rule change 

will improve and modernize FINRA’s 

operations.30 Additionally, FINRA 

stated that, to the extent an applicant, 

respondent, or other party lacks the 

ability to use or access technology 

needed to file, serve, or accept service 

by email, FINRA intends to provide 

reasonable accommodations to them.31

According to FINRA, the process for 

requesting an alternative method of 

service or filing will be posted to 

FINRA’s website, as well as explained 

in the Notice of Complaint and in the 

Code and Guide letter.32 If a party 

shows good cause, the Adjudicator will 

order that filing or service occur by hard 

copy.33 In addition, FINRA stated that 

electronic methods of service and filing 

are common practice in the courts and 

with other regulatory agencies, noting 

that the Commission also amended its 

rules in November 2020 to require 

electronic filing and service of 

documents in its administrative 

proceedings.34

According to FINRA, the proposed 

rule change to amend the FINRA Rule 

1000, 6400, 9100, 9300, 9520, 9550, and 

9600 Series is substantially the same as 

the temporary amendments currently in 

effect unless otherwise noted below. 

FINRA Rule 1000 Series 

The FINRA Rule 1000 Series (Member 

Application and Associated Person 

Registration) governs, among other 

things, the process for (i) applying for 

FINRA membership; (ii) FINRA 

members seeking approval of a change 

in ownership, control, or business 

operations, and (iii) an applicant 

requesting that FINRA’s appellate body, 

the NAC, review a FINRA decision 

rendered under the Rule 1000 Series.35

As FINRA stated, applicants and FINRA 

are, in connection with these processes, 

required under the original rules to file 

or serve certain documents using the 

prescribed methods set forth in FINRA 

Rule 1012(a), which do not include 

email.36 The proposed rule change 

would amend Rule 1012(a)(4) to permit 

FINRA to serve documents under the 

Rule 1000 Series by email and amend 

Rule 1015(f)(1),37 which requires the 

NAC to serve a notice of a hearing 

before the NAC by facsimile or 

overnight courier, to also allow service 

of the notice by email.38 The proposed 

rule change would amend Rule 1015(a) 

to eliminate the requirement that the 

applicant also file, by first-class mail, a 

copy of the request for review to the 

district office where the applicant filed 

its application.39 FINRA indicated that 

it was proposing to eliminate this 

requirement from Rule 1015(a) in an 

effort to streamline processes and avoid 

duplication.40

The proposed rule change would also 

amend Rule 1012(a)(3) to require 

applicants to file an application or any 

document or information requested 

under the Rule 1000 Series by email 

except where FINRA has otherwise 

prescribed an alternative filing process, 

or as the FINRA Department of 

Enforcement and the Applicant 

otherwise agree.41

FINRA Rule 6400 Series 

FINRA Rule 6490 sets forth the 

requirements for issuers of a class of 

publicly traded securities to provide 

timely notice to FINRA, pursuant to 

requirements Exchange Act Rule 10b– 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 124 / Wednesday, June 29, 2022 / Notices 38805 

42See FINRA Rule 6490. For example, certain 

corporate actions that would require timely notice 

under this rule include dividend or other 

distribution of cash or securities, a stock split or 

reverse stock split, and rights or subscription 

offerings. See Notice at 22266. 

43See Notice at 22266. See also FINRA Rule 

6490(e). 

44See Notice at 22266. FINRA has also proposed 

several non-substantive, technical changes 

including, for instance, deleting the parenthetical 

references to the numerals ‘‘3’’ and ‘‘7,’’ which 

originally followed the words ‘‘three’’ and ‘‘seven’’ 

in FINRA Rule 6490(e). See id. at n.20. See also 

FINRA Rule 6490(e). Additionally, the time frames 

under the proposed rule change are reverting back 

to their original form, so the time to appeal and for 

appellate review under the proposed rule change 

are the same as they were under the original rule. 

See notes 6–7 supra. See also Notice at 22266 n.20. 

45See Notice at 22266. 

46The FINRA Rule 9000 Series, among other 

things, sets forth the procedure for FINRA 

proceedings for disciplining a member, associated 

person, or formerly associated person. See id. 

47See id. 

48See FINRA Rule 9100 Series. 

49See FINRA Rules 9132(b), 9133(b), and 9146(l). 

50See FINRA Rule 9134. See also Notice at 22266. 

51See Notice at 22266. 

52See id. 

53See FINRA Rule 9300 Series. See also Notice 

at 22266. 

54See FINRA Rules 9321, 9341(c), 9349(c), and 

9351(e). See also Notice at 22266. 

55See FINRA Rule 9134. As FINRA indicated in 

the Notice, FINRA Rule 9134 permits service on 

parties using the following methods: (1) personal 

service, (2) mail, or (3) courier. See Notice at 22266. 

56See FINRA Rule 9134. See also Notice at 22266. 

57See FINRA Rule 9520 Series. See also Notice 

at 22266. 

58See FINRA Rules 9522(a)(4), 9524(a)(3)(A) and 

(B), 9524(b)(3), and 9525(e). See also Notice at 

22266. 

59See Notice at 22266. FINRA is also making a 

non-substantive, technical change to replace the 

numeral ‘‘10’’ with the word ‘‘ten’’ in FINRA Rule 

9524(a)(3)(B). 

60See the FINRA Rule 9550 Series. See also 

Notice at 22266. 

61See FINRA Rule 9559(h)(2). See also Notice at 

22266. 

62See Notice at 22266. As set forth in the Notice, 

and described above in the context of the proposed 

rule change to amend FINRA Rule 1015(a), FINRA 

is also proposing to amend FINRA Rule 9559(h) to 

eliminate the requirements in 9559(h)(1) and (2) 

that, if the specified documents are served by 

facsimile or email, they must also be served by 

either overnight courier or personal delivery. See 

id. at n.34. 

63See FINRA Rules 9559(q)(2) and (5). See also 

Notice at 22266. 

64See Notice at 22266. 

17, of certain corporate actions.42

FINRA stated that it reviews related 

documentation accompanying such 

notifications and, under certain 

circumstances, the documentation may 

not be processed if it is deemed 

deficient, with Rule 6490(e) setting forth 

the process for appealing such a 

determination.43 As set forth in the 

Notice, the proposed rule change would, 

among other things,44 require a party 

appealing a deficiency determination to 

file the appeal by email unless an 

alternative method of service is ordered 

by the Adjudicator.45

FINRA Rule 9100 Series 

The FINRA Rule 9100 Series is of 

general applicability to all proceedings 

set forth in the FINRA Rule 9000 

Series,46 unless a rule specifically 

provides otherwise.47 More specifically, 

the FINRA Rule 9100 Series sets forth, 

among other things, requirements 

pertaining to service of orders, notices, 

and decisions under the FINRA Rule 

9000 Series, as well as requirements for 

filing of various papers, motions, and 

other related issues.48 As stated in the 

Notice, FINRA Rules 9132(b), 9133(b), 

and 9146(l) provide that the documents 

and other information governed by 

those rules must be served pursuant to 

FINRA Rule 9134, which permits 

service on the parties using the 

following methods: (1) personal service, 

(2) mail, or (3) courier.49 Since FINRA 

Rule 9134 does not permit service by 

email, the proposed rule change would 

amend FINRA Rule 9132(b) to allow 

FINRA to serve relevant documents or 

information by email, and amend 

FINRA Rules 9133(b) and 9146(l) to 

require parties to serve documents by 

email, unless an alternative method of 

service is ordered by the Adjudicator.50

In addition, in an effort to support the 

transition to email service and filing, the 

proposed rule change would amend 

FINRA Rule 9135 to add paragraph (d), 

which would require parties in OHO 

proceedings to file and serve the parties 

with their current email address and 

contact information at the first 

occurrence of filing a complaint, 

answer, or other paper, and to file and 

serve any changes in email address or 

contact information on all other parties 

during the course of the proceeding and 

file this information with the 

Adjudicator.51 This aspect of the 

proposed rule change was not part of 

the temporary amendments, but FINRA 

stated that it should help ensure that all 

documents are successfully sent from 

and received at a valid email address, 

while simultaneously helping to ensure 

that FINRA, applicants, respondents, 

and any other parties all have accurate 

contact information for each other.52

FINRA Rule 9300 Series 

The FINRA Rule 9300 Series sets forth 

the procedures for review of 

disciplinary proceedings by the NAC 

and FINRA Board and for applications 

for review of a final disciplinary action 

by the Commission.53 As stated in the 

Notice, FINRA Rules 9321, 9341(c), 

9349(c), and 9351(e) require that FINRA 

serve documents in connection with 

proceedings under those rules pursuant 

to FINRA Rule 9134.54 While FINRA 

Rule 9134 permits various methods of 

service,55 it is silent on email. The 

proposed rule change would amend 

FINRA Rule 9321, 9341(c), 9349(c), and 

9351(e) to allow for email as a method 

of service in connection with those 

specific rules.56

FINRA Rule 9520 Series 

The FINRA Rule 9520 Series sets forth 

the procedures for eligibility 

proceedings and review of those 

proceedings by the NAC and FINRA 

Board.57 As set forth in the Notice, 

FINRA Rules 9522(a)(4), 9524(a)(3)(A) 

and (B), 9524(b)(3), and 9525(e) require 

FINRA to serve documents in 

connection with those proceedings, but 

do not allow for email as a method of 

service.58 The proposed rule change 

would amend those rules to allow for 

email as a method of service, as well as 

amending FINRA Rule 9524(a)(3)(A) 

and (B) such that the disqualified 

member or sponsoring member under 

those rules would be required to serve 

documents and any exhibit and witness 

lists by email unless an alternative 

method of service is ordered by the 

Adjudicator.59

FINRA Rule 9550 Series 

The FINRA Rule 9550 Series sets forth 

the rules that govern certain expedited 

actions, and the ability of the NAC to 

call for review of a proposed decision 

prepared under the FINRA Rule 9550 

Series.60 As set forth in the Notice, 

FINRA Rule 9559(h)(2) sets forth the 

timing and method of service 

requirements for the parties’ exchange 

of proposed exhibit and witness lists in 

advance of an expedited proceeding.61

Even though FINRA Rule 9559(h)(2) 

allows for email as a method of service, 

the proposed rule change would amend 

FINRA Rule 9559(h)(2) to require 

FINRA to serve its exhibit and witness 

lists exclusively by email, unless an 

alternative method of service is ordered 

by the Adjudicator.62 The Notice and 

FINRA’s Rulebook also sets forth that 

FINRA Rule 9559(q)(2) requires the 

NAC to serve its decision when it issues 

one under the FINRA Rule 9550 Series, 

and FINRA Rule 9559(q)(5) requires the 

NAC to serve that decision on all the 

parties and all members with which the 

respondent is associated.63 Since FINRA 

Rules 9559(q)(2) and (5) do not allow for 

email as a method of service, the 

proposed rule change would amend 

these rules to allow for email as a 

method of service.64


lotter on DSK11XQN23PROD with NOTICES1
38806 Federal Register / Vol. 87, No. 124 / Wednesday, June 29, 2022 / Notices 

65See FINRA Rule 9600 Series. See also Notice 

at 22266. 

66See FINRA Rules 9630(e)(1) and (2). See also 

Notice at 22266. 

67See FINRA Rule 9134. See also Notice at 22266. 

68See Notice at 22266–67. 

69See id. at 22267–68. 

70See id. at 22265. 

71See id. at 22267, n.38. 

72See note 3 supra (explaining that the 

Commission received one comment letter in 

connection with the Notice, which does not relate 

to the substance of the proposed rule change). 

73 In approving this rule change, the Commission 

has considered the rule’s impact on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

74 15 U.S.C. 78o–3(b)(6). 

75See note 6 supra. 

76See Notice at 22267. See also note 34 supra and 

appended text. 

77See Notice at 22267–68. 

78See id. 

79 15 U.S.C. 78s(b)(2). 

FINRA Rule 9600 Series 

The FINRA Rule 9600 Series sets forth 

the procedures related to exemptive 

relief from a variety of FINRA rules, 

including appeals stemming from 

decisions under FINRA Rule 9620.65 As 

stated in the Notice and as set forth in 

FINRA’s Rulebook, FINRA Rules 

9630(e)(1) and (2) require the NAC to 

serve its decision as to an appeal issued 

under FINRA Rule 9620 pursuant to 

FINRA Rule 9134.66 Since FINRA Rule 

9134 does not allow for email as a 

method of service, the proposed rule 

change would amend FINRA Rule 

9630(e) to allow for email as a method 

of service.67

Purpose of the Proposed Rule Change 

FINRA stated that the proposed rule 

change to amend the FINRA Rule 1000, 

6400, 9100, 9300, 9520, 9550, and 9600 

Series would modernize the rules and 

make service and filing more efficient 

and effective.68 Specifically, FINRA 

stated that adopting permanent rules on 

electronic service and filing should, 

among other things, reduce reliance on 

paper documents in favor of more 

efficient electronic formats and may 

benefit member firms if there are 

situations where access to physical 

office locations is limited or otherwise 

restricted.69 FINRA also stated that its 

experience operating under the 

temporary amendments since May of 

2020 has demonstrated that electronic 

service and filing is beneficial for 

parties, OHO panelists, and FINRA 

staff.70

C. Effective Date 

If the Commission approves the 

proposed rule change, FINRA will 

announce the effective date of the 

proposed rule change in a Regulatory 

Notice to be published by FINRA. 

FINRA stated that it intends to avoid or, 

at least, minimize any gap between the 

expiration of the temporary 

amendments on electronic service and 

filing and the implementation date of 

this proposed rule change.71 However, 

FINRA also stated that if the temporary 

amendments are set to expire before the 

effective date, it may seek to extend the 

temporary amendments so that FINRA 

can provide continuity and avoid any 

lapse in the temporary amendments 

during the period before the effective 

date of the proposal. 

III. Discussion and Commission 

Findings 

After careful review of the proposed 

rule change, and considering that the 

Commission did not receive any 

comments that relate to the substance of 

the proposed rule change 72 or to the 

relevant aspects of the temporary 

amendments that are being made 

permanent in this proposal, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Exchange Act and 

the rules and regulations thereunder 

that are applicable to a national 

securities association.73 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

15A(b)(6) of the Exchange Act,74 which 

requires, among other things, that 

FINRA rules 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. 

As discussed in greater detail in the 

Notice and outlined in Section II above, 

the FINRA Rule 1000, 6400, 9100, 9300, 

9520, 9550, and 9600 Series contain 

filing, service and other procedural 

requirements, as described above. Since 

May of 2020, temporary amendments 

have been in effect that permit, and in 

some instances require, electronic filing 

and service connected to disciplinary 

proceedings before the OHO, appeal 

proceedings before the NAC, and other 

types of administrative proceedings. As 

noted above, the Commission has not 

received any comments in response to 

the notices issued in connection with 

the temporary amendments, and the 

extensions of the same, that address 

electronic service and filing.75 The 

proposed rule change would make the 

electronic service and filing aspects of 

the temporary amendments permanent, 

with some modifications, as also 

described above. As a result, the 

proposed rule change would permit, 

and in some instances require, FINRA to 

serve documents (other than an initial 

complaint by FINRA) by email and 

would also provide that service by email 

is deemed complete upon sending. The 

proposed rule change would also 

require parties to file or serve 

documents by email, unless the parties 

obtain an order from an Adjudicator 

permitting the use of an alternative 

method of service. 

The use of widely-available electronic 

methods of service and filing—like 

FINRA’s proposal to use email to serve 

and file certain documents—is common 

practice in the courts and at other 

regulatory agencies, including the 

Commission.76 The proposed rule 

change, among other things, is 

reasonably designed to protect investors 

and the public interest as it should 

make service and filing of certain 

documents in disciplinary and other 

proceedings and appeals more efficient 

and effective.77 In turn, the proposed 

rule change should help facilitate 

FINRA’s important role in sanctioning 

misconduct and preventing customer 

harm.78 Furthermore, the proposed rule 

change reasonably addresses issues of 

fairness and notice in connection with 

FINRA’s disciplinary and other 

proceedings and appeals by providing a 

mechanism for persons who lack the 

ability to use or access email or other 

necessary technology to request relief 

from their use and by continuing to 

require service of FINRA’s initial 

complaint by hand, mail, or courier. 

For these reasons, the Commission 

finds the proposed rule change is 

consistent with the protection of 

investors and in the public interest. 

IV. Conclusion 

It is therefore ordered pursuant to 

Section 19(b)(2) of the Exchange Act 79

that the proposed rule change (SR– 

FINRA–2022–009) be, and hereby is, 

approved. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13816 Filed 6–28–22; 8:45 am] 

BILLING CODE 8011–01–P 


lotter on DSK11XQN23PROD with NOTICES1