Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Serving Electronically Written Decisions on Members Seeking Exemptive Relief Under NASD Rule 1070, 42850-42852 [2014-17266]
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42850
Federal Register / Vol. 79, No. 141 / Wednesday, July 23, 2014 / Notices
which any purchase in an Affiliated
Underwriting occurred, the first two
years in an easily accessible place, a
written record of each purchase of
securities in Affiliated Underwritings
once an investment by an Investing
Fund in the securities of a Fund exceeds
the limit in section 12(d)(1)(A)(i) of the
Act, setting forth the: (a) party from
whom the securities were acquired, (b)
identity of the underwriting syndicate’s
members, (c) terms of the purchase, and
(d) information or materials upon which
the Board’s determinations were made.
8. Before investing in shares of a Fund
in excess of the limits in section
12(d)(1)(A) of the Act, each Investing
Fund and Fund will execute a
Participation Agreement stating,
without limitation, that their Boards and
their investment advisers understand
the terms and conditions of the order
and agree to fulfill their responsibilities
under the order. At the time of its
investment in shares of a Fund in excess
of the limit in section 12(d)(1)(A)(i), an
Investing Fund will notify the Fund of
the investment. At such time, the
Investing Fund will also transmit to the
Fund a list of the names of each
Investing Fund Affiliate and
Underwriting Affiliate. The Investing
Fund will notify the Fund of any
changes to the list of the names as soon
as reasonably practicable after a change
occurs. The Fund and the Investing
Fund will maintain and preserve a copy
of the order, the Participation
Agreement, and the list with any
updated information for the duration of
the investment and for a period of not
less than six years thereafter, the first
two years in an easily accessible place.
9. Prior to approving any advisory
contract under section 15 of the Act, the
Board of each Investing Fund, including
a majority of the Independent Trustees,
will find that the advisory fees charged
under such advisory contracts are based
on services provided that will be in
addition to, rather than duplicative of,
services provided under the advisory
contract(s) of any Fund in which the
Investing Fund may invest. Such
finding and the basis upon which the
finding was made will be recorded fully
in the minute books of the appropriate
Investing Fund.
10. The Investing Fund Adviser will
waive fees otherwise payable to it by the
Investing Fund in an amount at least
equal to any compensation (including
fees received pursuant to a plan adopted
by a Fund under Rule 12b–1 under the
Act) received from a Fund by the
Investing Fund Adviser, or an affiliated
person of the Investing Fund Adviser,
other than any advisory fees paid to the
Investing Fund Adviser or its affiliated
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person by the Fund, in connection with
the investment by the Investing Fund in
the Fund. Any Investing Fund
Subadviser will waive fees otherwise
payable to the Investing Fund
Subadviser, directly or indirectly, by the
Investing Fund in an amount at least
equal to any compensation received
from a Fund by the Investing Fund
Subadviser, or an affiliated person of the
Investing Fund Subadviser, other than
any advisory fees paid to the Investing
Fund Subadviser or its affiliated person
by the Fund, in connection with the
investment by the Investing Fund in the
Fund made at the direction of the
Investing Fund Subadviser. In the event
that the Investing Fund Subadviser
waives fees, the benefit of the waiver
will be passed through to the Investing
Fund.
11. Any sales charges and/or service
fees charged with respect to shares of an
Investing Fund will not exceed the
limits applicable to a fund of funds as
set forth in NASD Conduct Rule 2830.
12. No Fund will acquire securities of
any investment company or company
relying on section 3(c)(1) or 3(c)(7) of
the Act in excess of the limits contained
in section 12(d)(1)(A) of the Act, except
to the extent permitted by exemptive
relief from the Commission permitting
the Fund to purchase shares of other
investment companies for short-term
cash management purposes.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Kevin O’Neill,
Deputy Secretary.
[FR Doc. 2014–17270 Filed 7–22–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72638; File No. SR–FINRA–
2014–033]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Serving
Electronically Written Decisions on
Members Seeking Exemptive Relief
Under NASD Rule 1070
July 17, 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 July 9,
2014, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
PO 00000
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00096
Fmt 4703
Sfmt 4703
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. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 9620 (Decision) to permit FINRA
staff to serve by an electronic method
written decisions on members seeking
exemptive relief from FINRA’s
qualification examination requirements
under NASD Rule 1070.
Below is the text of the proposed rule
change. Proposed new language is in
italics.
*
*
*
*
*
9000. CODE OF PROCEDURE
*
*
*
*
*
9600. PROCEDURES FOR
EXEMPTIONS
*
*
*
*
*
9620. Decision
After considering an application,
FINRA staff shall issue a written
decision setting forth its findings and
conclusions. The decision shall be
served on the Applicant pursuant to
Rules 9132 and 9134, except with
respect to written decisions for
exemptive relief under NASD Rule 1070
(Qualification Examinations and Waiver
of Requirements), which shall be served
on the Applicant electronically. After
the decision is served on the Applicant,
the application and decision may be
publicly available.
*
*
*
*
*
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.
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Federal Register / Vol. 79, No. 141 / Wednesday, July 23, 2014 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
FINRA is proposing to amend FINRA
Rule 9620 (Decision) permit [sic] FINRA
staff to serve by an electronic method
written decisions on members seeking
exemptive relief from FINRA’s
qualification examination requirements.
The NASD Rule 1000 Series specifies,
among other things, registration and
qualification requirements for registered
representatives and principals
associated with firms. NASD Rule
1070(d) authorizes FINRA, pursuant to
the FINRA Rule 9600 Series, in
exceptional cases and where good cause
is shown, to waive qualification
examinations (as specified in the NASD
Rule 1000 Series) and accept other
standards as evidence of an applicant’s
qualification for registration. Under the
FINRA Rule 9600 Series, an initial
application for relief under any FINRA
rule for which exemptive relief may be
granted, including qualification
examination waivers under NASD Rule
1070 (Qualification Examinations and
Waiver of Requirements), is filed with
the appropriate department or staff.
All applications for qualification
examination waivers under NASD Rule
1070 are filed by a member. As of
January 16, 2009, members have been
required to submit all applications for
qualification examination waivers to
FINRA’s Department of Member
Regulation (‘‘Department’’) through the
Firm Gateway, a comprehensive webbased tool that provides members with
consolidated access to FINRA regulatory
and filing applications.3 Each member
has a Firm Gateway account and an
account administrator who can apply
for a qualification examination waiver
electronically or can give entitlement
privileges to other firm personnel to file
the application electronically. In
connection with each qualification
examination waiver application, the
member contemporaneously provides,
among other things, an email address for
a contact person at the firm. Once
submitted, the Department examines the
merits of the application, determines
what action to take, and issues a
decision to the applicant that grants or
denies the application. Currently, the
Department serves the decision on the
applicant by U.S. mail in accordance
with FINRA Rules 9132 (Service of
Orders, Notices, and Decisions by
3 See
Adjudicator) and 9134 (Methods of,
Procedures for Service).
FINRA proposes that the Department
use the examination-waiver email
address provided by the applicant in
Firm Gateway to serve electronically a
written decision on the FINRA member
seeking exemptive relief from a FINRA
qualification examination. Serving
written decisions electronically on
applicants would allow the Department
to issue decisions and allow the
applicants to receive the decision more
expeditiously. It also would reduce
FINRA’s costs because of inefficiencies
and expenses associated with printing
and mailing hard copies of written
decisions and scanning hard copies of
written decisions for electronic storage.
In the event that the Department is
unable to serve electronically a decision
on a particular applicant because the
email address provided by the applicant
is no longer valid, the Department
would serve the decision on the
applicant by U.S. mail in accordance
with FINRA Rules 9132 and 9134.
FINRA has filed the proposed rule
change for immediate effectiveness. The
implementation date of the proposed
rule change will be August 18, 2014.
FINRA will announce the
implementation date of the proposed
rule change no later than 60 days
following Commission notice of the
filing of the proposed rule change for
immediate effectiveness.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,4 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 promote
efficiency because it will enable
members seeking relief under NASD
Rule 1070 to receive more expeditiously
a written decision regarding an
associated person’s request to waive a
qualification examination. It is in the
public interest, and consistent with the
Act’s purpose, that decisions concerning
an associated person’s qualifications for
registration are timely resolved.
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
Regulatory Notice 08–67 (November 2008).
VerDate Mar<15>2010
17:33 Jul 22, 2014
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PO 00000
4 15
U.S.C. 78o–3(b)(6).
Frm 00097
Fmt 4703
Sfmt 4703
42851
of the purposes of the Act. The
proposed rule change would not change
for any member the process of
submitting electronically a qualification
examination waiver application through
Firm Gateway. The proposed rule
change only would change the method
of serving the decision on applicants
seeking a qualification examination
waiver. FINRA believes the proposed
rule change would promote efficiency
because qualification examination
waiver applicants would receive
decisions more expeditiously. FINRA
further believes that members would not
be adversely affected because, in the
unlikely circumstance that the
Department is unable to serve
electronically a decision on the
applicant because the email address
provided by the applicant is no longer
valid, the Department would serve the
decision on the applicant in accordance
with FINRA Rules 9132 and 9134.
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 5 and Rule 19b–
4(f)(6) thereunder.6
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 necessary or appropriate in the
public interest, for the protection of
investors, or 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.
5 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. FINRA has satisfied this requirement.
6 17
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Federal Register / Vol. 79, No. 141 / Wednesday, July 23, 2014 / Notices
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:
[FR Doc. 2014–17266 Filed 7–22–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–
FINRA–2014–033 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
All submissions should refer to File
Number SR–FINRA–2014–033. 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
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
office 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–
2014–033 and should be submitted on
or before August 13, 2014.
[Release No. 34–72636; File No. SR–BATS–
2014–026]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing of
Proposed Rule Change To List and
Trade Shares of Certain Funds of the
Alpha Architect ETF Trust
July 17, 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 July 3,
2014, BATS Exchange, Inc. (‘‘Exchange’’
or ‘‘BATS’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to list and
trade shares of certain funds (the
‘‘Fund’’ when discussed individually or,
collectively, the ‘‘Funds’’) of the Alpha
Architect ETF Trust (the ‘‘Trust’’) under
BATS Rule 14.11(i) (‘‘Managed Fund
Shares’’). The shares of each Fund and
the shares of the Funds collectively, as
applicable, are referred to herein as the
‘‘Shares.’’
The text of the proposed rule addition
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, 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, the
Exchange 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
1 15
7 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
17:33 Jul 22, 2014
2 17
Jkt 232001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00098
Fmt 4703
Sfmt 4703
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to list and
trade the Shares under BATS Rule
14.11(i), which governs the listing and
trading of Managed Fund Shares on the
Exchange.3 The Funds will be actively
managed funds. The Exchange proposes
to list and trade Shares of the following
Funds: (i) ValueShares U.S. Quantitative
Value ETF; (ii) ValueShares
International Quantitative Value ETF;
(iii) MomentumShares U.S. Quantitative
Momentum ETF; and (iv)
MomentumShares International
Quantitative Momentum ETF. The
Shares will be offered by the Trust,
which was established as a Delaware
statutory trust on October 11, 2013. The
Trust is registered with the Commission
as an open-end investment company
and has filed a registration statement on
behalf of the Funds on Form N–1A
(‘‘Registration Statement’’) with the
Commission.4
Description of the Shares and the Funds
Empowered Funds, LLC is the
investment adviser (‘‘Adviser’’) to the
Funds.5 U.S. Bancorp Fund Services,
LLC is the administrator and transfer
agent (‘‘Administrator,’’ and ‘‘Transfer
Agent,’’ respectively) for the Trust. U.S.
Bank National Association is the
Custodian (‘‘Custodian’’) for the Trust.
Quasar Distributors, LLC (‘‘Distributor’’)
serves as the distributor for the Trust.
BATS Rule 14.11(i)(7) provides that, if
the investment adviser to the
investment company issuing Managed
Fund Shares is affiliated with a brokerdealer, such investment adviser shall
erect a ‘‘fire wall’’ between the
3 The Commission approved BATS Rule 14.11(i)
in Securities Exchange Act Release No. 65225
(August 30, 2011), 76 FR 55148 (September 6, 2011)
(SR–BATS–2011–018).
4 See Registration Statement on Form N–1A for
the Trust, dated April 25, 2014 (File Nos. 333–
195493 and 811–22961). The descriptions of the
Fund and the Shares contained herein are based, in
part, on information in the Registration Statement.
The Commission has issued an order granting
certain exemptive relief to the Company under the
Investment Company Act of 1940 (15 U.S.C. 80a–
1) (‘‘1940 Act’’) (the ‘‘Exemptive Order’’). See
Investment Company Act Release No. 31018 (April
16, 2014) (File No. 812–14245).
5 The Adviser is an indirect subsidiary of
Empirical Finance, LLC d/b/a Empiritrage, LLC.
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]]>Agencies
[Federal Register Volume 79, Number 141 (Wednesday, July 23, 2014)]
[Notices]
[Pages 42850-42852]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17266]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72638; File No. SR-FINRA-2014-033]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating To Serving Electronically Written
Decisions on Members Seeking Exemptive Relief Under NASD Rule 1070
July 17, 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 July 9, 2014, 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. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to amend FINRA Rule 9620 (Decision) to permit
FINRA staff to serve by an electronic method written decisions on
members seeking exemptive relief from FINRA's qualification examination
requirements under NASD Rule 1070.
Below is the text of the proposed rule change. Proposed new
language is in italics.
* * * * *
9000. CODE OF PROCEDURE
* * * * *
9600. PROCEDURES FOR EXEMPTIONS
* * * * *
9620. Decision
After considering an application, FINRA staff shall issue a written
decision setting forth its findings and conclusions. The decision shall
be served on the Applicant pursuant to Rules 9132 and 9134, except with
respect to written decisions for exemptive relief under NASD Rule 1070
(Qualification Examinations and Waiver of Requirements), which shall be
served on the Applicant electronically. After the decision is served on
the Applicant, the application and decision may be publicly available.
* * * * *
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.
[[Page 42851]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA is proposing to amend FINRA Rule 9620 (Decision) permit [sic]
FINRA staff to serve by an electronic method written decisions on
members seeking exemptive relief from FINRA's qualification examination
requirements.
The NASD Rule 1000 Series specifies, among other things,
registration and qualification requirements for registered
representatives and principals associated with firms. NASD Rule 1070(d)
authorizes FINRA, pursuant to the FINRA Rule 9600 Series, in
exceptional cases and where good cause is shown, to waive qualification
examinations (as specified in the NASD Rule 1000 Series) and accept
other standards as evidence of an applicant's qualification for
registration. Under the FINRA Rule 9600 Series, an initial application
for relief under any FINRA rule for which exemptive relief may be
granted, including qualification examination waivers under NASD Rule
1070 (Qualification Examinations and Waiver of Requirements), is filed
with the appropriate department or staff.
All applications for qualification examination waivers under NASD
Rule 1070 are filed by a member. As of January 16, 2009, members have
been required to submit all applications for qualification examination
waivers to FINRA's Department of Member Regulation (``Department'')
through the Firm Gateway, a comprehensive web-based tool that provides
members with consolidated access to FINRA regulatory and filing
applications.\3\ Each member has a Firm Gateway account and an account
administrator who can apply for a qualification examination waiver
electronically or can give entitlement privileges to other firm
personnel to file the application electronically. In connection with
each qualification examination waiver application, the member
contemporaneously provides, among other things, an email address for a
contact person at the firm. Once submitted, the Department examines the
merits of the application, determines what action to take, and issues a
decision to the applicant that grants or denies the application.
Currently, the Department serves the decision on the applicant by U.S.
mail in accordance with FINRA Rules 9132 (Service of Orders, Notices,
and Decisions by Adjudicator) and 9134 (Methods of, Procedures for
Service).
---------------------------------------------------------------------------
\3\ See Regulatory Notice 08-67 (November 2008).
---------------------------------------------------------------------------
FINRA proposes that the Department use the examination-waiver email
address provided by the applicant in Firm Gateway to serve
electronically a written decision on the FINRA member seeking exemptive
relief from a FINRA qualification examination. Serving written
decisions electronically on applicants would allow the Department to
issue decisions and allow the applicants to receive the decision more
expeditiously. It also would reduce FINRA's costs because of
inefficiencies and expenses associated with printing and mailing hard
copies of written decisions and scanning hard copies of written
decisions for electronic storage. In the event that the Department is
unable to serve electronically a decision on a particular applicant
because the email address provided by the applicant is no longer valid,
the Department would serve the decision on the applicant by U.S. mail
in accordance with FINRA Rules 9132 and 9134.
FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date of the proposed rule change will
be August 18, 2014. FINRA will announce the implementation date of the
proposed rule change no later than 60 days following Commission notice
of the filing of the proposed rule change for immediate effectiveness.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\4\ 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 promote
efficiency because it will enable members seeking relief under NASD
Rule 1070 to receive more expeditiously a written decision regarding an
associated person's request to waive a qualification examination. It is
in the public interest, and consistent with the Act's purpose, that
decisions concerning an associated person's qualifications for
registration are timely resolved.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
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 would
not change for any member the process of submitting electronically a
qualification examination waiver application through Firm Gateway. The
proposed rule change only would change the method of serving the
decision on applicants seeking a qualification examination waiver.
FINRA believes the proposed rule change would promote efficiency
because qualification examination waiver applicants would receive
decisions more expeditiously. FINRA further believes that members would
not be adversely affected because, in the unlikely circumstance that
the Department is unable to serve electronically a decision on the
applicant because the email address provided by the applicant is no
longer valid, the Department would serve the decision on the applicant
in accordance with FINRA Rules 9132 and 9134.
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 \5\ and Rule 19b-
4(f)(6) thereunder.\6\
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
FINRA has satisfied this requirement.
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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 necessary or
appropriate in the public interest, for the protection of investors, or
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.
[[Page 42852]]
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-FINRA-2014-033 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-2014-033. 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 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 office 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-2014-033 and should be
submitted on or before August 13, 2014.
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\7\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-17266 Filed 7-22-14; 8:45 am]
BILLING CODE 8011-01-P
