Intention To Cancel Registration Pursuant to Section 203(H) of the Investment Advisers Act of 1940, 31245-31246 [2020-11031]

Download as PDF Federal Register / Vol. 85, No. 100 / Friday, May 22, 2020 / Notices This may further contribute to fair competition among exchanges for multiply listed options. The proposed changes to the names and symbols of certain ETFs will have no impact on competition as they are not designed to address any competitive issues but rather are designed to remedy minor non-substantive issues and provide added clarity to the rule text of Exchange Rules 307 and 309. In addition, the Exchange does not believe the proposal will impose any burden on inter-market competition as the proposal does not address any competitive issues and is intended to protect investors by providing further clarity regarding the Exchange’s rules. 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 39 and Rule 19b– 4(f)(6) thereunder.40 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 41 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6)(iii) 42 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposed rule change may become operative upon filing. The Exchange states that waiver of the operative delay would be consistent with the protection of investors and the public interest because it would allow the Exchange to immediately increase its position and 39 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of 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. The Exchange has satisfied this requirement. 41 17 CFR 240.19b–4(f)(6). 42 17 CFR 240.19b–4(f)(6)(iii). 40 17 VerDate Sep<11>2014 18:07 May 21, 2020 Jkt 250001 31245 exercise limits for the products subject to this proposal to those of Cboe, which the Exchange believes will ensure fair competition among exchanges and provide consistency and uniformity among members of both Cboe and MIAX by subjecting members of both exchanges to the same position and exercise limits for these multiply-listed options classes. For this reason, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal as operative upon filing.43 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 change should be approved or disapproved. 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 website 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 the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–MIAX–2020–10, and should be submitted on or before June 12, 2020. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.44 J. Matthew DeLesDernier, Assistant Secretary. Electronic Comments • Use the Commission’s internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– MIAX–2020–10 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–MIAX–2020–10. 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 website (http://www.sec.gov/ rules/sro.shtml). Copies of the 43 For purposes only of waiving the 30-day operative delay, the Commission also has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 [FR Doc. 2020–11040 Filed 5–21–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. IA–5504] Intention To Cancel Registration Pursuant to Section 203(H) of the Investment Advisers Act of 1940 May 18, 2020. Notice is given that the Securities and Exchange Commission (the ‘‘Commission’’) intends to issue an order, pursuant to Section 203(h) of the Investment Advisers Act of 1940 (the ‘‘Act’’), cancelling the registration of Strategic Options, LLC [File No. 801– 106576], hereinafter referred to as the ‘‘registrant.’’ Section 203(h) provides, in pertinent part, that if the Commission finds that any person registered under Section 203, or who has pending an application for registration filed under that section, is no longer in existence, is not engaged in business as an investment adviser, or is prohibited from registering as an 44 17 E:\FR\FM\22MYN1.SGM CFR 200.30–3(a)(12). 22MYN1 31246 Federal Register / Vol. 85, No. 100 / Friday, May 22, 2020 / Notices investment adviser under section 203A, the Commission shall by order, cancel the registration of such person. The registrant indicated on its initial and its most recent Form ADV filings that it is relying on rule 203A–2(e) to register with the Commission, which provides an exemption from the prohibition on registration for an adviser that provides investment advice to all of its clients exclusively through the adviser’s interactive website, except that the adviser may advise fewer than 15 clients through other means during the preceding 12 months.1 The Commission believes, based on the facts it has, that the registrant did not at the time of the Form ADV filings and thereafter, advise clients through an interactive website as defined under the rule,2 and that it is therefore prohibited from registering as an investment adviser under section 203A of the Act. Accordingly, the Commission believes that reasonable grounds exist for a finding that this registrant is no longer eligible to be registered with the Commission as an investment adviser and that the registration should be cancelled pursuant to section 203(h) of the Act. Notice is also given that any interested person may, by June 12, 2020, at 5:30 p.m., submit to the Commission in writing a request for a hearing on the cancellation, accompanied by a statement as to the nature of his or her interest, the reason for such request, and the issues, if any, of fact or law 1 Section 203A of the Act generally prohibits an investment adviser from registering with the Commission unless it meets certain requirements. Rule 203A–2 provides exemptions from the prohibition on Commission registration in section 203A of the Act. Rule 203A–2(e) exempts from the prohibition on Commission registration certain investment advisers that provide advisory services through the internet, as described above. See Exemption for Certain Investment Advisers Operating Through the Internet, Investment Advisers Act Release No. 2091 (December 12, 2002), available at https://www.sec.gov/rules/final/ia2091.htm (‘‘Internet Adviser Exemption Adopting Release’’). Effective September 19, 2011, rule 203A– 2(f) was renumbered as rule 203A–2(e). See Rules Implementing Amendments to the Investment Advisers Act of 1940, Investment Advisers Act Release No. 3221 (June 22, 2011), available at http://www.sec.gov/rules/final/2011/ia-3221.pdf. 2 Rule 203A–2(e) defines ‘‘interactive website’’ as a website in which computer software-based models or applications provide investment advice to clients based on personal information provided by each client through the website. An adviser relying on the exemption may not use its advisory personnel to elaborate or expand upon the investment advice provided by its interactive website, or otherwise provide investment advice to its internet clients, except as permitted by the rule’s de minimis exception. Such exception permits an adviser relying on the rule to advise clients through means other than its interactive website, so long as the adviser had fewer than 15 of these non-internet clients during the preceding 12 months. See internet Adviser Exemption Adopting Release, id. VerDate Sep<11>2014 18:07 May 21, 2020 Jkt 250001 proposed to be controverted, and he or she may request that he or she be notified if the Commission should order a hearing thereon. Any such communication should be emailed to the Commission’s Secretary at Secretarys-Office@sec.gov. At any time after June 12, 2020, the Commission may issue an order cancelling the registration, upon the basis of the information stated above, unless an order for a hearing on the cancellation shall be issued upon request or upon the Commission’s own motion. Persons who requested a hearing, or who requested to be advised as to whether a hearing is ordered, will receive any notices and orders issued in this matter, including the date of the hearing (if ordered) and any postponements thereof. Any adviser whose registration is cancelled under delegated authority may appeal that decision directly to the Commission in accordance with rules 430 and 431 of the Commission’s rules of practice (17 CFR 201.430 and 431). ADDRESSES: The Commission: Secretarys-Office@sec.gov. FOR FURTHER INFORMATION CONTACT: Juliet Han, Senior Counsel at 202–551– 6999; SEC, Division of Investment Management, Investment Adviser Regulation Office, 100 F Street NE, Washington, DC 20549–8549. For the Commission, by the Division of Investment Management, pursuant to delegated authority.3 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–11031 Filed 5–21–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–88898; File No. SR– CboeBZX–2020–040] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Certain Rules in Connection With the Exchange’s Disciplinary Process May 18, 2020. 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 May 8, 2020, Cboe BZX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ‘‘non-controversial’’ proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder.4 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 Cboe BZX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) proposes to amend certain rules in connection with the Exchange’s disciplinary process. The text of the proposed rule change is provided in Exhibit 5. The text of the proposed rule change is also available on the Exchange’s website (http://markets.cboe.com/us/ equities/regulation/rule_filings/bzx/), at the Exchange’s Office of the Secretary, 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 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 aspects 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 amend Rule 8.8 in connection with the timing before which an offer of settlement becomes final, to amend Rule 8.10 in connection with the Board’s review of offers of settlement, and to amend Rule 8.11 to be consistent with the corresponding rules of the Exchange’s affiliated exchanges, Cboe Exchange, Inc. (‘‘Cboe Options’’) and Cboe C2 Exchange, Inc. (‘‘C2’’).5 3 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 5 See Cboe Options Rule 13.11. The Exchange notes that C2 incorporates Cboe Options Disciplinary rules by reference. 4 17 3 17 CFR 200.30–5(e)(2). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\22MYN1.SGM 22MYN1

Agencies

[Federal Register Volume 85, Number 100 (Friday, May 22, 2020)]
[Notices]
[Pages 31245-31246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11031]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. IA-5504]


Intention To Cancel Registration Pursuant to Section 203(H) of 
the Investment Advisers Act of 1940

May 18, 2020.
    Notice is given that the Securities and Exchange Commission (the 
``Commission'') intends to issue an order, pursuant to Section 203(h) 
of the Investment Advisers Act of 1940 (the ``Act''), cancelling the 
registration of Strategic Options, LLC [File No. 801-106576], 
hereinafter referred to as the ``registrant.''
    Section 203(h) provides, in pertinent part, that if the Commission 
finds that any person registered under Section 203, or who has pending 
an application for registration filed under that section, is no longer 
in existence, is not engaged in business as an investment adviser, or 
is prohibited from registering as an

[[Page 31246]]

investment adviser under section 203A, the Commission shall by order, 
cancel the registration of such person.
    The registrant indicated on its initial and its most recent Form 
ADV filings that it is relying on rule 203A-2(e) to register with the 
Commission, which provides an exemption from the prohibition on 
registration for an adviser that provides investment advice to all of 
its clients exclusively through the adviser's interactive website, 
except that the adviser may advise fewer than 15 clients through other 
means during the preceding 12 months.\1\ The Commission believes, based 
on the facts it has, that the registrant did not at the time of the 
Form ADV filings and thereafter, advise clients through an interactive 
website as defined under the rule,\2\ and that it is therefore 
prohibited from registering as an investment adviser under section 203A 
of the Act. Accordingly, the Commission believes that reasonable 
grounds exist for a finding that this registrant is no longer eligible 
to be registered with the Commission as an investment adviser and that 
the registration should be cancelled pursuant to section 203(h) of the 
Act.
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    \1\ Section 203A of the Act generally prohibits an investment 
adviser from registering with the Commission unless it meets certain 
requirements. Rule 203A-2 provides exemptions from the prohibition 
on Commission registration in section 203A of the Act. Rule 203A-
2(e) exempts from the prohibition on Commission registration certain 
investment advisers that provide advisory services through the 
internet, as described above. See Exemption for Certain Investment 
Advisers Operating Through the Internet, Investment Advisers Act 
Release No. 2091 (December 12, 2002), available at https://www.sec.gov/rules/final/ia-2091.htm (``Internet Adviser Exemption 
Adopting Release''). Effective September 19, 2011, rule 203A-2(f) 
was renumbered as rule 203A-2(e). See Rules Implementing Amendments 
to the Investment Advisers Act of 1940, Investment Advisers Act 
Release No. 3221 (June 22, 2011), available at http://www.sec.gov/rules/final/2011/ia-3221.pdf.
    \2\ Rule 203A-2(e) defines ``interactive website'' as a website 
in which computer software-based models or applications provide 
investment advice to clients based on personal information provided 
by each client through the website. An adviser relying on the 
exemption may not use its advisory personnel to elaborate or expand 
upon the investment advice provided by its interactive website, or 
otherwise provide investment advice to its internet clients, except 
as permitted by the rule's de minimis exception. Such exception 
permits an adviser relying on the rule to advise clients through 
means other than its interactive website, so long as the adviser had 
fewer than 15 of these non-internet clients during the preceding 12 
months. See internet Adviser Exemption Adopting Release, id.
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    Notice is also given that any interested person may, by June 12, 
2020, at 5:30 p.m., submit to the Commission in writing a request for a 
hearing on the cancellation, accompanied by a statement as to the 
nature of his or her interest, the reason for such request, and the 
issues, if any, of fact or law proposed to be controverted, and he or 
she may request that he or she be notified if the Commission should 
order a hearing thereon. Any such communication should be emailed to 
the Commission's Secretary at [email protected].
    At any time after June 12, 2020, the Commission may issue an order 
cancelling the registration, upon the basis of the information stated 
above, unless an order for a hearing on the cancellation shall be 
issued upon request or upon the Commission's own motion. Persons who 
requested a hearing, or who requested to be advised as to whether a 
hearing is ordered, will receive any notices and orders issued in this 
matter, including the date of the hearing (if ordered) and any 
postponements thereof. Any adviser whose registration is cancelled 
under delegated authority may appeal that decision directly to the 
Commission in accordance with rules 430 and 431 of the Commission's 
rules of practice (17 CFR 201.430 and 431).

ADDRESSES:  The Commission: [email protected].

FOR FURTHER INFORMATION CONTACT:  Juliet Han, Senior Counsel at 202-
551-6999; SEC, Division of Investment Management, Investment Adviser 
Regulation Office, 100 F Street NE, Washington, DC 20549-8549.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.\3\
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    \3\ 17 CFR 200.30-5(e)(2).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-11031 Filed 5-21-20; 8:45 am]
 BILLING CODE 8011-01-P