Product Change-Priority Mail Negotiated Service Agreement, 64609 [2018-27189]
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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
POSTAL SERVICE
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice:
December 17, 2018.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 11,
2018, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Contract 492 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2019–43, CP2019–46.
SUMMARY:
Elizabeth Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2018–27189 Filed 12–14–18; 8:45 am]
BILLING CODE 7710–12–P
FINRA is proposing to amend
paragraph (a)(3) of FINRA Rule 4512
(Customer Account Information) to
permit the use of electronic signatures
and to clarify the scope of the rule.
The text of the proposed rule change
is available on FINRA’s website at
https://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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84788; File No. SR–FINRA–
2018–040]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change Relating to
FINRA Rule 4512 (Customer Account
Information)
amozie on DSK3GDR082PROD with NOTICES1
December 11, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘SEA,’’ ‘‘Act’’ or ‘‘Exchange Act’’) 1 and
Rule 19b–4 thereunder,2 notice is
hereby given that on November 28,
2018, 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
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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With respect to a discretionary
customer account maintained by a
member, FINRA Rule 4512(a)(3)
requires the firm to obtain the manual
dated signature of each named, natural
person authorized to exercise discretion
in the account. Because the rule only
applies to discretionary accounts
maintained by a member, the named
natural person would inevitably be an
associated person of the firm.3
Currently, to comply with the rule,
members must obtain the associated
person’s ‘‘wet’’ signature or a copy of
his or her wet signature, such as a
scanned or faxed copy of the wet
signature.4 The rule also requires
3 There is a corresponding requirement under
NASD Rule 2510 (Discretionary Accounts)
prohibiting members and their registered
representatives from exercising any discretionary
power in a customer’s account unless the customer
has given prior written authorization to a stated
individual or individuals, and the account has been
accepted by the firm as evidenced in writing by the
firm or a designated partner, officer or manager of
the firm. These signatures need not be manual. In
addition, SEA Rule 17a–3(a)(17)(ii) requires that, for
discretionary accounts with a natural person,
broker-dealers maintain a record containing the
dated signature of each natural person to whom
discretionary authority was granted. This signature
also need not be manual.
4 The terms ‘‘manual’’ and ‘‘wet’’ are used
interchangeably in this proposed rule change.
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64609
members to maintain and preserve a
record of the signature for at least six
years after the date the account is
closed.5 The purpose of the signature is
to validate that the authorized
associated person is who he or she
purports to be. In light of the industry’s
shift towards automated and electronic
processes, members have requested that
FINRA reevaluate the need for wet
signatures under the rule.
In general, members have stated that
the requirement to obtain wet signatures
raises operational and cost concerns
without providing meaningful investor
protection benefits. In addition, some
members have noted that the
requirement puts them at a competitive
disadvantage over investment advisers
because investment advisers are allowed
to obtain electronic signatures. Finally,
members that have adopted automated
and electronic processes have stated
that the current requirement results in
significant administrative inefficiencies,
particularly because all other account
documentation, including the customer
authorization form, and related
recordkeeping may be completed
electronically through a streamlined
process.6
Given technological advances relating
to electronic signatures, including with
respect to authentication and security,
FINRA believes that the requirement
under Rule 4512(a)(3) that members
obtain an associated person’s wet
signature has become obsolete.
Therefore, FINRA is proposing to amend
the rule to permit the use of electronic
signatures. The proposed rule change is
consistent with the Electronic
Signatures in Global and National
Commerce Act (‘‘E-Sign Act’’), which
facilitates the use of electronic
signatures. The proposed rule change is
also consistent with the requirements of
SEA Rule 17a–3(a)(17)(ii),7 which does
not prescribe the type of signature that
must be obtained from an authorized
individual. While FINRA Rule
4512(a)(3) would continue to require
members to obtain the signature of an
associated person, it would provide
5 For retention purposes, members may choose to
maintain and preserve the signature record on any
of the acceptable media specified in SEA Rule 17a–
4, including electronic storage media consistent
with SEA Rule 17a–4(f).
6 To comply with FINRA Rule 4512(a)(3), most of
these firms currently print a paper copy of the
account record and require that the authorized
associated person physically sign it. They then
convert the paper record to an electronic record for
retention on electronic storage media. These firms
have stated that this two-step process creates
unnecessary inefficiencies and administrative
burdens.
7 17 CFR 240.17a–3(a)(17)(ii).
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]]>Agencies
[Federal Register Volume 83, Number 241 (Monday, December 17, 2018)]
[Notices]
[Page 64609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27189]
[[Page 64609]]
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POSTAL SERVICE
Product Change--Priority Mail Negotiated Service Agreement
AGENCY: Postal ServiceTM.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Postal Service gives notice of filing a request with the
Postal Regulatory Commission to add a domestic shipping services
contract to the list of Negotiated Service Agreements in the Mail
Classification Schedule's Competitive Products List.
DATES: Date of required notice: December 17, 2018.
FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202-268-3179.
SUPPLEMENTARY INFORMATION: The United States Postal Service[supreg]
hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on
December 11, 2018, it filed with the Postal Regulatory Commission a
USPS Request to Add Priority Mail Contract 492 to Competitive Product
List. Documents are available at www.prc.gov, Docket Nos. MC2019-43,
CP2019-46.
Elizabeth Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2018-27189 Filed 12-14-18; 8:45 am]
BILLING CODE 7710-12-P
