Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Broaden the Scope of the Licensing and Appointments Service and To Amend NSCC's Fee Structure, 38098-38099 [2014-15604]

Download as PDF 38098 Federal Register / Vol. 79, No. 128 / Thursday, July 3, 2014 / Notices 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 will also be available for inspection and copying at the principal office of the Exchange. 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– NASDAQ–2014–063 and should be submitted on or before July 24, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.31 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–15610 Filed 7–2–14; 8:45 am] BILLING CODE 8011–01–P (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 17, 2014, National Securities Clearing Corporation (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule changes as described in Items I, II and III below, which Items have been prepared primarily by NSCC. NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A) 3 of the Act and Rule 19b–4(f)(2) 4 and (4) 5 thereunder. The proposed rule change was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule changes from interested persons. I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule changes consist of amendments to the Rules & Procedures (‘‘Rules’’) of NSCC to broaden the scope of the Licensing and Appointments (‘‘L&A’’) service of the Insurance & Retirement Processing Services (‘‘I&RS’’) of NSCC and to amend Addendum A of NSCC’s Rules in connection therewith, as more fully described below. II. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION [Release No. 34–72488; File No. SR–NSCC– 2014–08] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Broaden the Scope of the Licensing and Appointments Service and To Amend NSCC’s Fee Structure In its filing with the Commission, NSCC included statements concerning the purpose of and basis for the proposed rule changes and discussed any comments it received on the proposed rule changes. The text of these statements may be examined at the places specified in Item IV below. NSCC has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. June 27, 2014. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ...................................................................................................... ...................................................................................................... ...................................................................................................... ...................................................................................................... 31 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(2). 5 17 CFR 240.19b–4(f)(4). 6 Securities Exchange Act Release No. 44635 (August 1, 2001), 66 FR 41287 (August 7, 2001) (SR–NSCC–2001–10). 7 A license is an authorization from a state insurance department permitting the licensee to sell tkelley on DSK3SPTVN1PROD with NOTICES 1 15 VerDate Mar<15>2010 16:53 Jul 02, 2014 Jkt 232001 1. Proposed Rule Changes In 2001, NSCC established the L&A service 6 as part of the I&RS suite of services. L&A allows users of the service to transmit data and information between themselves with respect to state licensing 7 and appointment 8 matters, which in general relate to insurance agents (‘‘Producers’’), and to settle payments between themselves in connection therewith. In light of recently implemented regulations pertaining to annuity product training for Producers under various state insurance laws,9 NSCC proposes to broaden L&A’s scope to specify that Licensing and Appointment authorizations and activities includes, but is not limited to, insurance-related training of a licensee or appointee. The proposed rule change will also specify that, in addition to the exchange of Licensing and Appointment information between users of L&A, users may also supply and access Licensing and Appointment information directly to and directly from NSCC, as the case may be. For example, with the proposed rule change, users of the L&A service will have access to a new feature, the Producer Management Portal, which is a repository of Producer related information (including, but not limited to Producer training completions) stored by NSCC for direct access by those L&A users that subscribe to the new feature. In connection with the addition of the new Producer Management Portal feature of L&A, the proposed rule change will also amend Addendum A to include the Producer Management Portal fees as follows: • For insurance carrier providers of Producer training completions: Number of active producers managed Band 1 2 3 4 A. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 0–999 1,000–9,999 10,000–49,999 50,000–99,999 Monthly fee $0. 1,000. 3,000. 4,000. insurance under the guidelines established by the insurance laws of that state (‘‘Licensing’’). 8 An appointment is an authorization from an insurance carrier permitting the appointee to sell the products of that particular carrier in a particular state (‘‘Appointment’’). 9 In 2010, the National Association of Insurance Commissioners adopted the 2010 Suitability in Annuity Transactions Model Regulation to set standards and procedures for suitable annuity recommendations of Producers, including among PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 other standards, that Producers have adequate insurance carrier-product specific training prior to soliciting an annuity product for such insurance carrier, as well as a one time, minimum four credit hour, general annuity training course offered by an approved education provider and approved by the applicable insurance department in accordance with applicable insurance education training laws or regulations. See, https://www.naic.org/store/free/ MDL-275.pdf. E:\FR\FM\03JYN1.SGM 03JYN1 Federal Register / Vol. 79, No. 128 / Thursday, July 3, 2014 / Notices Number of active producers managed Band 5 ...................................................................................................... 6 ...................................................................................................... • For inquiries: $1.25 per inquiry into the portal $6,000 per month for batch service (periodic file transmissions) 2. Statutory Basis NSCC believes that the proposed rule changes are consistent with the requirements of the Act, and the rules and regulations thereunder applicable to NSCC. In particular, the proposed rule changes are consistent with (i) Section 17A(b)(3)(F) 10 of the Act because they enhance NSCC members’ ability to access and retrieve Licensing and Appointment information in a standardized and automated form, fostering cooperation and coordination with persons engaged in the clearance and settlement of insurance transactions, and (ii) Section 17A(b)(3)(D) 11 of the Act because they establish fees in connection with use of an added feature to an existing NSCC service, providing for the equitable allocation of reasonable dues, fees and other charges among NSCC members. The proposed rule changes relate solely to an information service of NSCC, and therefore, implementation of the rule changes will not affect the safeguarding of securities or funds in NSCC’s custody or control or for which NSCC is responsible. B. Clearing Agency’s Statement on Burden on Competition NSCC does not believe that the proposed rule changes will have any impact, or impose any burden on competition. C. Clearing Agency’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others tkelley on DSK3SPTVN1PROD with NOTICES Written comments relating to the proposed rule changes have not yet been solicited or received. NSCC will notify the Commission of any written comments received by NSCC. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule changes have become effective pursuant to Section 100,000–249,999 250,000 + Monthly fee 5,000. $5,000, plus $0.018 per active Producer managed. 19(b)(3)(A) of the Act 12 and paragraph (f) of Rule 19b–4 13 thereunder. At any time within 60 days of the filing of the proposed rule changes, the Commission summarily may temporarily suspend such rule changes 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule changes are consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NSCC–2014–08 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–NSCC–2014–08. 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 (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule changes that are filed with the Commission, and all written communications relating to the proposed rule changes 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 the filing also will be available for inspection and copying at the principal office of NSCC and on NSCC’s Web site at (https://www.dtcc.com/legal/sec-rulefilings.aspx). 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–NSCC– 2014–08 and should be submitted on or before July 24, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–15604 Filed 7–2–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–72492; File No. SR–MIAX– 2014–30] Self-Regulatory Organizations: Notice of Filing of a Proposed Rule Change by Miami International Securities Exchange LLC To List and Trade Options on Shares of the iShare ETFs June 27, 2014. Pursuant to the provisions of 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 June 17, 2014, Miami International Securities Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 14 17 10 15 U.S.C. 78q–1(b)(3)(F). 11 15 U.S.C. 78q–1(b)(3)(D). VerDate Mar<15>2010 16:53 Jul 02, 2014 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f). Jkt 232001 PO 00000 Frm 00095 Fmt 4703 1 15 Sfmt 4703 38099 E:\FR\FM\03JYN1.SGM 03JYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 79, Number 128 (Thursday, July 3, 2014)]
[Notices]
[Pages 38098-38099]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15604]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72488; File No. SR-NSCC-2014-08]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Broaden the Scope of the Licensing and Appointments
Service and To Amend NSCC's Fee Structure

June 27, 2014.
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 June 17, 2014, National Securities Clearing Corporation (``NSCC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule changes as described in Items I, II and III below, which
Items have been prepared primarily by NSCC. NSCC filed the proposed
rule change pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule
19b-4(f)(2) \4\ and (4) \5\ thereunder. The proposed rule change was
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule changes from
interested persons.
---------------------------------------------------------------------------

\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
\5\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

The proposed rule changes consist of amendments to the Rules &
Procedures (``Rules'') of NSCC to broaden the scope of the Licensing
and Appointments (``L&A'') service of the Insurance & Retirement
Processing Services (``I&RS'') of NSCC and to amend Addendum A of
NSCC's Rules in connection therewith, as more fully described below.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

In its filing with the Commission, NSCC included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments it received on the proposed rule changes. The
text of these statements may be examined at the places specified in
Item IV below. NSCC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.

A. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

1. Proposed Rule Changes
In 2001, NSCC established the L&A service \6\ as part of the I&RS
suite of services. L&A allows users of the service to transmit data and
information between themselves with respect to state licensing \7\ and
appointment \8\ matters, which in general relate to insurance agents
(``Producers''), and to settle payments between themselves in
connection therewith.
---------------------------------------------------------------------------

\6\ Securities Exchange Act Release No. 44635 (August 1, 2001),
66 FR 41287 (August 7, 2001) (SR-NSCC-2001-10).
\7\ A license is an authorization from a state insurance
department permitting the licensee to sell insurance under the
guidelines established by the insurance laws of that state
(``Licensing'').
\8\ An appointment is an authorization from an insurance carrier
permitting the appointee to sell the products of that particular
carrier in a particular state (``Appointment'').
---------------------------------------------------------------------------

In light of recently implemented regulations pertaining to annuity
product training for Producers under various state insurance laws,\9\
NSCC proposes to broaden L&A's scope to specify that Licensing and
Appointment authorizations and activities includes, but is not limited
to, insurance-related training of a licensee or appointee. The proposed
rule change will also specify that, in addition to the exchange of
Licensing and Appointment information between users of L&A, users may
also supply and access Licensing and Appointment information directly
to and directly from NSCC, as the case may be. For example, with the
proposed rule change, users of the L&A service will have access to a
new feature, the Producer Management Portal, which is a repository of
Producer related information (including, but not limited to Producer
training completions) stored by NSCC for direct access by those L&A
users that subscribe to the new feature.
---------------------------------------------------------------------------

\9\ In 2010, the National Association of Insurance Commissioners
adopted the 2010 Suitability in Annuity Transactions Model
Regulation to set standards and procedures for suitable annuity
recommendations of Producers, including among other standards, that
Producers have adequate insurance carrier-product specific training
prior to soliciting an annuity product for such insurance carrier,
as well as a one time, minimum four credit hour, general annuity
training course offered by an approved education provider and
approved by the applicable insurance department in accordance with
applicable insurance education training laws or regulations. See,
https://www.naic.org/store/free/MDL-275.pdf.
---------------------------------------------------------------------------

In connection with the addition of the new Producer Management
Portal feature of L&A, the proposed rule change will also amend
Addendum A to include the Producer Management Portal fees as follows:
For insurance carrier providers of Producer training
completions:

--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of active
Band producers managed Monthly fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.............................................. 0-999 $0.
2.............................................. 1,000-9,999 1,000.
3.............................................. 10,000-49,999 3,000.
4.............................................. 50,000-99,999 4,000.

[[Page 38099]]

5.............................................. 100,000-249,999 5,000.
6.............................................. 250,000 + $5,000, plus $0.018 per active Producer managed.
--------------------------------------------------------------------------------------------------------------------------------------------------------

For inquiries:

$1.25 per inquiry into the portal
$6,000 per month for batch service (periodic file transmissions)
2. Statutory Basis
NSCC believes that the proposed rule changes are consistent with
the requirements of the Act, and the rules and regulations thereunder
applicable to NSCC. In particular, the proposed rule changes are
consistent with (i) Section 17A(b)(3)(F) \10\ of the Act because they
enhance NSCC members' ability to access and retrieve Licensing and
Appointment information in a standardized and automated form, fostering
cooperation and coordination with persons engaged in the clearance and
settlement of insurance transactions, and (ii) Section 17A(b)(3)(D)
\11\ of the Act because they establish fees in connection with use of
an added feature to an existing NSCC service, providing for the
equitable allocation of reasonable dues, fees and other charges among
NSCC members. The proposed rule changes relate solely to an information
service of NSCC, and therefore, implementation of the rule changes will
not affect the safeguarding of securities or funds in NSCC's custody or
control or for which NSCC is responsible.
---------------------------------------------------------------------------

\10\ 15 U.S.C. 78q-1(b)(3)(F).
\11\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

B. Clearing Agency's Statement on Burden on Competition

NSCC does not believe that the proposed rule changes will have any
impact, or impose any burden on competition.

C. Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others

Written comments relating to the proposed rule changes have not yet
been solicited or received. NSCC will notify the Commission of any
written comments received by NSCC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

The foregoing rule changes have become effective pursuant to
Section 19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4
\13\ thereunder. At any time within 60 days of the filing of the
proposed rule changes, the Commission summarily may temporarily suspend
such rule changes 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.
---------------------------------------------------------------------------

\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
changes are consistent with the Act. Comments may be submitted by any
of the following methods:

Electronic Comments

Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NSCC-2014-08 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-NSCC-2014-08. 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 (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule changes that are
filed with the Commission, and all written communications relating to
the proposed rule changes 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 the filing also will be available
for inspection and copying at the principal office of NSCC and on
NSCC's Web site at (https://www.dtcc.com/legal/sec-rule-filings.aspx).
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-NSCC-2014-08
and should be submitted on or before July 24, 2014.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-15604 Filed 7-2-14; 8:45 am]
BILLING CODE 8011-01-P

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