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), 30310-30311 [2015-12690]
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30310
Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices
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estimates, our staff estimates that the
total annual burden for all funds to
comply with rule 31a–2 is 692,120
hours at an estimated cost of
$49,832,640.7
The hour burden estimates for
retaining records under rule 31a–2 are
based on our experience with registrants
and our experience with similar
requirements under the Act and the
rules under the Act. The number of
burden hours may vary depending on,
among other things, the complexity of
the fund, the issues faced by the fund,
and the number of series and classes of
the fund. The estimated average burden
hours are made solely for purposes of
the Paperwork Reduction Act and are
not derived from quantitative,
comprehensive, or even representative
survey or study of the burdens
associated with our rules and forms.
Based on conversations with
representatives of the fund industry and
past estimates, our staff estimates that
the average cost of preserving books and
records required by rule 31a–2 is
approximately $74,782 annually per
fund.8 As discussed previously, there
are 3146 funds currently operating, for
a total cost of preserving records as
required by rule 31a–2 of approximately
$235,264,172 per year.9 Our staff
understands, however, based on
previous conversations with
representatives of the fund industry,
that even in the absence of rule 31a–2
funds would already spend
approximately half of this amount
($117,632,086) to preserve these same
books and records, as they are also
necessary to prepare financial
statements, meet various state reporting
2013, modified by Commission staff to account for
an 1800-hour work-year and multiplied by 2.93 to
account for bonuses, firm size, employee benefits
and overhead.
7 This estimate is based on the following
calculations: 3146 funds × 220 hours = 692,120 total
hours; 692,120 hours/2 = 346,060 hours; 346,060 ×
$57 rate per hour for a clerk = $19,725,420; 346,060
× $87 rate per hour for a computer operator =
$30,107,220; $19,725,420 + $30,107,220 =
$49,832,640 total cost.
8 This estimate is based on staff’s 2012 estimate
of costs of preserving books and records required
by rule 31a–2 ($70,000), adjusted for inflation to
January 2015 values using the Personal
Consumption Expenditures Chain-Type Price Index
(‘‘PCE Index’’). The values of the PCE Index are
available from the Bureau of Economic Analysis, a
bureau of the Department of Commerce. See Bureau
of Economic Analysis, Table 2.8.6. Real Personal
Consumption Expenditures by Major Type of
Product, Monthly, Chained Dollars (Last Revised on
March 2, 2015), available at https://www.bea.gov/
iTable/iTable.cfm?ReqID=9&step=1#reqid=9&step=
3&isuri=1&903=83. Thus, $70,000 (2012 estimate) ×
11,163.6 (Jan. 2015 PCE Index value)/10,449.7 (2012
PCE Index value) = $74,782 (Jan. 2015 inflation
adjusted estimate).
9 This estimate is based on the following
calculation: 3146 funds × $74,782 = $235,264,172.
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16:45 May 26, 2015
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requirements, and prepare their annual
federal and state income tax returns.
Therefore, we estimate that the total
annual cost burden for all funds as a
result of compliance with rule 31a–2 is
approximately $117,632,086 per year.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act, and is not
derived from a comprehensive or even
a representative survey or study of the
costs of Commission rules and forms.
The collection of information under
rule 31a–2 is mandatory for all funds.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless it
displays a currently valid control
number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden of the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Remi
Pavlik-Simon, 100 F Street NE.,
Washington, DC 20549; or send an email
to: PRA_Mailbox@sec.gov.
Dated: May 20, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–12684 Filed 5–26–15; 8:45 am]
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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,
1 15
U.S.C. 78s(b)(1).
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.
2 17
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Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
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
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.
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
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.
10 15 U.S.C. 78s(b)(2).
11 See supra note 3 and accompanying text.
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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).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–12690 Filed 5–26–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IC–31642; File No. 812–14469]
The Royal Bank of Scotland plc, et al.;
Notice of Application and Temporary
Order
May 20, 2015.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Temporary order and notice of
application for a permanent order under
section 9(c) of the Investment Company
Act of 1940 (‘‘Act’’).
AGENCY:
Applicants
have received a temporary order
(‘‘Temporary Order’’) exempting them
from section 9(a) of the Act, with
respect to a guilty plea entered on May
20, 2015, by the Royal Bank of Scotland
plc (‘‘RBS’’ or the ‘‘Settling Firm’’) in
the United States District Court for the
District of Connecticut (the ‘‘District
Court’’) in connection with a plea
agreement (‘‘Plea Agreement’’) between
the Settling Firm and the United States
Department of Justice (‘‘DOJ’’), until the
Commission takes final action on an
application for a permanent order (the
‘‘Permanent Order,’’ and with the
Temporary Order, the ‘‘Orders’’).
Applicants also have applied for a
Permanent Order.
APPLICANTS: RBS and Citizens
Investment Advisors (‘‘Citizens IA’’)
(each an ‘‘Applicant’’ and together, the
‘‘Applicants’’).
DATES: Filing Date: The application was
filed on May 20, 2015.
HEARING OR NOTIFICATION OF HEARING: An
order granting the application will be
issued unless the Commission orders a
hearing. Interested persons may request
a hearing by writing to the
Commission’s Secretary and serving
SUMMARY OF APPLICATION:
12 15
13 17
PO 00000
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(57).
Frm 00106
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30311
Applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on June 15, 2015, and
should be accompanied by proof of
service on Applicants, in the form of an
affidavit, or for lawyers, a certificate of
service. Pursuant to rule 0–5 under the
Act, hearing requests should state the
nature of the writer’s interest, any facts
bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090;
Applicants: RBS: RBS, Gogarburn, P.O.
Box 1000, Edinburgh, EH12 1HQ,
Scotland; Citizens IA: c/o Citizens Bank,
N.A., Mail Stop RC 03–30, One Citizens
Plaza, Providence, Rhode Island 02903.
FOR FURTHER INFORMATION CONTACT:
Parisa Haghshenas, Senior Counsel,
Vanessa M. Meeks, Senior Counsel, or
Holly Hunter-Ceci, Branch Chief, at
(202) 551–6825 (Division of Investment
Management, Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a temporary order and a
summary of the application. The
complete application may be obtained
via the Commission’s Web site by
searching for the file number, or an
applicant using the Company name box,
at https://www.sec.gov/search/
search.htm, or by calling (202) 551–
8090.
Applicants’ Representations
1. RBS is a company organized under
the laws of Scotland and is a whollyowned subsidiary of The Royal Bank of
Scotland Group plc (‘‘RBSG’’). RBS and
RBSG are international banking and
financial services companies that
provide a wide range of products and
services to customers around the world.
RBS and RBSG are both foreign banking
organizations for purposes of Section 8
of the International Banking Act of
1978, as amended, and Subpart B of
Regulation K, bank holding companies
for purposes of the Bank Holding
Company Act of 1956, as amended (the
‘‘BHC Act’’) and financial holding
companies for purposes of the BHC Act.
Citizens IA is a separately identifiable
department of Citizens Bank, N.A.,
which is an indirect subsidiary of RBSG
and bank subsidiary of Citizens
Financial Group, Inc.
2. Citizens IA is an investment adviser
registered under the Investment
Advisers Act of 1940, as amended.
Citizens IA serves as investment sub-
E:\FR\FM\27MYN1.SGM
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]]>Agencies
[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
