Document ID: SEC-2015-1306-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes:Financial Industry Regulatory Authority, Inc.
Posted Date: 2015-08-05T04:00Z

[Federal Register Volume 80, Number 150 (Wednesday, August 5, 2015)]
[Notices]
[Pages 46630-46631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19130]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75560; File No. SR-FINRA-2015-027]

Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change to Update Rule Cross-References and Make Non-
Substantive Technical Changes to Certain FINRA Rules

July 30, 2015.
    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 July 22, 2015, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    FINRA is proposing to update cross-references and make other non-
substantive changes within FINRA rules, primarily as the result of 
approval of new consolidated FINRA rules.
    The text of the proposed rule change is available on FINRA's Web 
site 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
    FINRA is in the process of developing a consolidated rulebook 
(``Consolidated FINRA Rulebook'').\4\ That process involves FINRA 
submitting to the Commission for approval a series of proposed rule 
changes over time to adopt rules in the Consolidated FINRA Rulebook. 
The phased adoption and implementation of those rules necessitates 
periodic amendments to update rule cross-references and other non-
substantive changes in the Consolidated FINRA Rulebook.
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    \4\ The current FINRA rulebook consists of (1) FINRA Rules; (2) 
NASD Rules; and (3) rules incorporated from NYSE (``Incorporated 
NYSE Rules'') (together, the NASD Rules and Incorporated NYSE Rules 
are referred to as the ``Transitional Rulebook''). While the NASD 
Rules generally apply to all FINRA members, the Incorporated NYSE 
Rules apply only to those members of FINRA that are also members of 
the NYSE (``Dual Members''). The FINRA Rules apply to all FINRA 
members, unless such rules have a more limited application by their 
terms. For more information about the rulebook consolidation 
process, see Information Notice, March 12, 2008 (Rulebook 
Consolidation Process).
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    The proposed rule change would make such changes, as well as other 
non-substantive changes unrelated to the adoption of rules in the 
Consolidated FINRA Rulebook.
    First, the proposed rule change would update rule cross-references 
to reflect the adoption of new consolidated rules regarding payments to 
unregistered persons. On December 30, 2014, the SEC approved a proposed 
rule change to adopt new FINRA Rules 0190 (Effective Date of 
Revocation, Cancellation, Expulsion, Suspension or Resignation) and 
2040 (Payments to Unregistered Persons). As part of that proposed rule 
change, FINRA adopted the requirements of NASD IM-2420-1(a) (Non-
members of the Association), as FINRA Rule 0190. FINRA also deleted in 
their entirety NASD Rule 1060(b), NASD Rule 2410, NASD Rule 2420, NASD 
IM-2420-1, NASD IM-2420-2, Incorporated NYSE Rule 353, and Incorporated 
NYSE Rule Interpretations 345(a)(i)/01 through/03.\5\ The new rules 
will be implemented on August 24, 2015. As such, the proposed rule 
change would update references to new Rule 0190 in FINRA Rule 6630 
(Applicability of FINRA Rules to Securities Previously Designated as 
PORTAL Securities).
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    \5\ See Securities Exchange Act Release No. 73954 (December 30, 
2014, 80 FR 553 (January 6, 2015) (Order Approving File No. SR-
FINRA-2014-037).
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    Second, the proposed rule change would make technical changes to 
FINRA Rules 6282.03, 6380A.03, 6380B.03, and 6720(c)(1) (Alternative 
Trading Systems) to reflect FINRA Manual style convention changes.
    Finally, FINRA is proposing to make non-substantive changes to 
FINRA Rule 9217 (Violations Appropriate for Disposition Under Plan 
Pursuant to SEA Rule 19d-1(c)(2)) to update cross-references resulting 
from previous amendments to the Municipal Securities Rulemaking Board 
(``MSRB'') Rules A-12, A-14, G-3, G-38, and G-40.\6\ FINRA also is 
proposing to update the cross-

[[Page 46631]]

references in Sections 4 (Fees) and 12 (Application and Annual Fees for 
Member Firms with Statutorily Disqualified Individuals) of Schedule A 
to the FINRA By-Laws to reflect the renumbering of the Rule 9640 Series 
as the 9520 Series pursuant to SR-NASD-97-28.\7\
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    \6\ See Securities Exchange Act Release No. 52278 (August 17, 
2005), 70 FR 49342 (August 23, 2005) (Order Approving File No. SR-
MSRB-2005-04) (Deleted MSRB Rule G-38); Securities Exchange Act 
Release No. 71616 (February 26, 2014), 79 FR 12254 (March 4, 2014) 
(Order Approving File No. SR-MSRB-2013-09) (Deleted MSRB Rules A-14 
and G-40, and incorporated the provisions of these rules into Rule 
A-12); and Securities Exchange Act Release No. 74384 (February 26, 
2015), 80 FR 11706 (March 4, 2015) (Order Approving File No. SR-
MSRB-2014-08) (Renumbeed MSRB Rule G-3(h) as G-3(i)).
    \7\ See Securities Exchange Act Release No. 38908 (August 7, 
1997), 62 FR 43385 (August 13, 1997) (Order Approving File No. SR-
NASD-97-28).
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    FINRA has filed the proposed rule change for immediate 
effectiveness. The implementation date for the proposed rule change 
will be August 24, 2015, to coincide with the implementation date of 
FINRA Rule 0190.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\8\ 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. FINRA believes the proposed rule change will provide 
greater clarity to members and the public regarding FINRA's rules.
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    \8\ 15 U.S.C. 78o-3(b)(6).
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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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    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: (i) 
necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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-2015-027 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-2015-027. 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 Web site (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 Web site 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 offices of FINRA. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-FINRA-2015-027, and should 
be submitted on or before August 26, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-19130 Filed 8-4-15; 8:45 am]
 BILLING CODE 8011-01-P