Document ID: SEC-2015-0906-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2015-05-27T04:00Z

[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)]
[Notices]
[Pages 30310-30311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12690]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75013; File No. SR-FINRA-2014-048]

Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Designation of a Longer Period for 
Commission Action on Proceedings To Determine Whether To Approve or 
Disapprove a Proposed Rule Change to Adopt FINRA Rule 2242 (Debt 
Research Analysts and Debt Research Reports)

May 20, 2015.

I. Introduction

    On November 14, 2014, 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 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule to adopt new FINRA Rule 2242 (Debt 
Research Analysts and Debt Research Reports) to address conflicts of 
interest relating to the publication and distribution of debt research 
reports. The proposal was published for comment in the Federal Register 
on November 24, 2014.\3\ The Commission received five comments on the 
proposal.\4\ On February 19, 2015, FINRA filed Amendment No. 1 
responding to the comments received to the proposal as well as to 
propose amendments in response to these comments. The proposal, as 
amended by Amendment No. 1, was published for comment in the Federal 
Register on March 18,

[[Page 30311]]

2015.\5\ On February 20, 2015, the Commission issued an order 
instituting proceedings pursuant to Section 19(b)(2)(B) of the Act \6\ 
to determine whether to approve or disapprove the proposal. The order 
was published for comment in the Federal Register on February 26, 
2015.\7\ The Commission received a further four comments regarding the 
proceedings or in response to Amendment No. 1,\8\ to which FINRA 
responded via letter on May 5, 2015.\9\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Exchange Act Release No. 73623 (Nov. 18, 2014); 79 FR 69905 
(Nov. 24, 2014). On January 6, 2015, FINRA consented to extending 
the time period for the Commission to either approve or disapprove 
the proposed rule change, or to institute proceedings to determine 
whether to approve or disapprove the proposed rule change, to 
February 20, 2015.
    \4\ Letter from Hugh D. Berkson, Executive Vice President and 
President-Elect, Public Investors Arbitration Bar Association, to 
Brent J. Fields, Secretary, SEC, dated Dec. 15, 2014; Letter from 
Kevin Zambrowicz, Associate General Counsel and Managing Director, 
and Sean Davy, Managing Director, Securities Industry and Financial 
Markets Association, to Brent J. Fields, Secretary, SEC, dated Dec. 
15, 2014; Letter from Yoon-Young Lee, Wilmer Cutler Pickering Hale 
and Dorr LLP, to Brent J. Fields, Secretary, SEC, dated Dec. 16, 
2014; Letter from William Beatty, President, North American 
Securities Administrators Association, Inc., Brent J. Fields, 
Secretary, SEC, dated Dec. 19, 2014; and Letter from Kurt N. 
Schacht, Managing Director, Standards and Financial Market 
Integrity, and Linda L. Rittenhouse, Director, Capital Markets 
Policy, CFA Institute, to Brent J. Fields, Secretary, SEC, dated 
Feb. 9, 2015.
    \5\ Exchange Act Release No. 74490 (Mar. 12, 2015); 80 FR 14198 
(Mar. 18, 2015).
    \6\ 15 U.S.C. 78s(b)(2)(B).
    \7\ Exchange Act Release No. 74340 (Feb. 20, 2015); 80 FR 10538 
(Feb. 26, 2015). Specifically, the Commission instituted proceedings 
to allow for additional analysis of the proposed rule change's 
consistency with Section 15A(b)(9) of the Act, which requires that 
FINRA's rules be designed to, among other things, promote just and 
equitable principles of trade, remove impediments to and perfect the 
mechanism of a free and open market and a national market system, 
and, in general, to protect investors and the public interest. See 
id.
    \8\ Letter from Stephanie R. Nicholas, WilmerHale, dated Apr. 6, 
2015, Letter from Kurt N. Schacht, Managing Director, Standards and 
Financial Market Integrity, and Linda L. Rittenhouse, Director, 
Capital Markets Policy, CFA Institute, to Brent J. Fields, 
Secretary, SEC, dated April 7, 2015, an anonymous comment dated Apr. 
8, 2015, and Letter from William Beatty, President and Washington 
(State) Securities Administrator, North American Securities 
Administrators Association, Inc., dated Apr. 17, 2015.
    \9\ Letter from Philip Shaikun, Vice President and Associate 
General Counsel, FINRA, dated May 5, 2015.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \10\ provides that, after initiating 
approval or disapproval proceedings, the Commission shall issue an 
order approving or disapproving the proposed rule change not later than 
180 days after the date of publication of notice of filing of the 
proposed rule change. The Commission may extend the period for issuing 
an order approving or disapproving the proposed rule change, however, 
by not more than 60 days if the Commission determines that a longer 
period is appropriate and publishes the reasons for such determination. 
The proposal was published for comment in the Federal Register on 
November 24, 2014.\11\ The 180th day after publication of the notice of 
the filing of the proposed rule change in the Federal Register is May 
23, 2015 and the 240th day after publication of the notice of the 
filing of the proposed rule change in the Federal Register is July 22, 
2015.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2).
    \11\ See supra note 3 and accompanying text.
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider the proposed 
rule change, including the matters raised in the comment letters to the 
proposed rule change.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\12\ designates July 22, 2015 as the date by which the Commission 
shall either approve or disapprove the proposed rule change (File No. 
SR-FINRA-2014-048).
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12690 Filed 5-26-15; 8:45 am]
 BILLING CODE 8011-01-P