Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Temporarily Amend FINRA Rules 1015, 9261, 9524 and 9830 To Permit Hearings Under Those Rules To Be Conducted by Video Conference, 55712-55717 [2020-19838]
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Federal Register / Vol. 85, No. 175 / Wednesday, September 9, 2020 / Notices
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposal should be approved or
disapproved by September 30, 2020.
Any person who wishes to file a rebuttal
to any other person’s submission must
file that rebuttal by October 14, 2020.
The Commission asks that commenters
address the sufficiency of the
Exchange’s statements in support of the
proposal, which are set forth in the
Notice,40 in addition to any other
comments they may wish to submit
about the proposed rule change.
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–
NASDAQ–2020–028 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–NASDAQ–2020–028. 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 (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 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 the
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
1975, Senate Comm. on Banking, Housing & Urban
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
(1975).
40 See Notice, supra note 3.
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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–NASDAQ–2020–028 and
should be submitted by September 30,
2020. Rebuttal comments should be
submitted by October 14, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.41
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–19841 Filed 9–8–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89737; File No. SR–FINRA–
2020–027]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Temporarily Amend
FINRA Rules 1015, 9261, 9524 and 9830
To Permit Hearings Under Those Rules
To Be Conducted by Video Conference
September 2, 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 August
31, 2020, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
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 selfregulatory organization. FINRA files the
proposed rule change as a ‘‘noncontroversial’’ 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.
41 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4. The Exchange provided the
Commission with 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
the proposed rule change as required by Rule 19b–
4(f)(6)(iii). 17 CFR 240.19b–4(f)(6)(iii).
1 15
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to temporarily
amend FINRA Rules 1015, 9261, 9524
and 9830 to grant FINRA’s Office of
Hearing Officers (‘‘OHO’’) and the
National Adjudicatory Council (‘‘NAC’’)
authority 5 to conduct hearings in
connection with appeals of Membership
Application Program decisions,
disciplinary actions, eligibility
proceedings and temporary and
permanent cease and desist orders by
video conference, if warranted by the
current COVID–19-related public health
risks posed by an in-person hearing. As
proposed, these temporary amendments
would be in effect through December 31,
2020.6
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
The outbreak of COVID–19 has
disrupted critical adjudicatory functions
nationwide due to the serious public
health risks it poses in connection with
conducting traditional, in-person
hearings. In order to comply with the
guidance of public health authorities
and to ensure the safety and well-being
5 For OHO hearings under FINRA Rules 9261 and
9830, the proposed rule change temporarily grants
authority to the Chief or Deputy Chief Hearing
Officer to order that a hearing be conducted by
video conference. For NAC hearings under FINRA
Rules 1015 and 9524, this temporary authority is
granted to the NAC or relevant Subcommittee.
6 If FINRA requires temporary relief from the rule
requirements identified in this proposal beyond
December 31, 2020, FINRA may submit a separate
rule filing to extend the expiration date of the
temporary amendments under these rules. The
amended FINRA rules will revert back to their
current state at the conclusion of the temporary
relief period and any extension thereof.
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of parties, counsel, adjudicators and
FINRA personnel, FINRA has
administratively postponed in-person
OHO and NAC hearings for over four
months now—starting on March 16,
2020, with in-person hearings currently
postponed through October 2, 2020. The
result is an expanding backlog of cases,
which if left unchecked, will
compromise FINRA’s ability to provide
timely adjudicatory processes and fulfill
its statutory obligations to protect
investors and maintain fair and orderly
markets.
In order to proactively address this
backlog of cases, and mitigate the
consequences of a stalled adjudicatory
system, FINRA is proposing this
temporary rule change to grant OHO
and the NAC the authority to conduct
hearings by video conference, if
warranted by the current COVID–19related public health risks posed by an
in-person hearing. This proposed rule
change would allow OHO and the NAC
to order that a hearing proceed by video
conference over the objection of a
party.7 As discussed in further detail
below, FINRA will evaluate whether
current COVID–19-related public health
risks warrant a hearing by video
conference based on an assessment of
critical data and criteria and guidance
from its outside health and security
consultant.8
FINRA’s protocol for conducting
hearings by video conference will
ensure that such hearings maintain fair
process for the parties. FINRA will,
among other things, use a high quality,
secure and user-friendly video
conferencing service and provide
thorough instructions, training and
technical support to all hearing
participants.9 In addition, FINRA has
experience conducting numerous
hearings and oral arguments utilizing
video conferencing technology in
similar contexts.10
7 Currently, if the parties jointly agree, OHO and
the NAC will proceed with a hearing by video
conference. As of August 21, 2020, OHO has
conducted three days of video conference hearings
in connection with a disciplinary matter and
scheduled hearings in 5 other disciplinary matters
to proceed by video conference, per joint agreement
of the parties.
8 See infra Assessment of Public Health Risks—
Data and Criteria Used.
9 FINRA plans to conduct video conference
hearings using Zoom, a program that has been
vetted by FINRA’s information technology staff.
FINRA may consider alternate video conferencing
services, if those services have features and
capabilities analogous to those available through
Zoom.
10 From the postponement of in-person hearings
starting on March 16, 2020, through August 21,
2020, 43 FINRA arbitration cases have proceeded
with one or more video conference hearings
conducted via Zoom. Of those 43 cases, 23
conducted one or more video conference hearings
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While FINRA’s ultimate goal is to
resume in-person hearings, doing so in
a manner that is compliant with the
current guidance of public health
authorities is a complex, challenging
and time-consuming process that
presents numerous logistical challenges.
Among other things, FINRA will need
detailed procedures and related
participant training on physical
distancing and otherwise minimizing
physical contact during in-person
hearings, preparing spaces and
providing protective equipment to
protect the safety of hearing participants
(including parties, counsel, adjudicators
and FINRA personnel) and to address
numerous other aspects of in-person
hearings that pose a risk of COVID–19
transmission.11 Even with the ability to
put those protections in place, FINRA
cannot conduct an in-person hearing
where the hearing participants cannot
safely travel to the hearing location.
Furthermore, even if hearing
participants are able to travel to a
hearing location, state and local
quarantining requirements may pose
significant impediments to their ability
to participate in person.
With the assistance of its outside
health and security consultant, FINRA
is actively working to develop such a
protocol for in-person hearings that
takes into consideration the various
health and safety considerations at play.
Settling on a protocol for in-person
hearings, however, continues to be a
moving target, with public health
guidance being continually updated and
local and state transmission rates,
government public health orders and
other localized considerations in a
constant state of flux. FINRA believes
that permitting the Chief or Deputy
Chief Hearing Officer or the NAC or
relevant Subcommittee to exercise their
judgment to conduct OHO and NAC
hearings, respectively, by video
conference 12 on a temporary basis is a
pursuant to the parties’ joint motion. As of August
21, 2020, the NAC, through the relevant
Subcommittee, has conducted 3 oral arguments by
video conference using Zoom in connection with
appeals of FINRA disciplinary proceedings
pursuant to FINRA Rule 9341(d), as temporarily
amended. See infra note 22.
11 See, e.g., Conducting Jury Trials and Convening
Grand Juries During the Pandemic (June 4, 2020)
(Outlining the ‘‘multitude of issues’’ courts need to
consider before resuming jury selection and jury
trials during the pandemic, including, among other
things, reconfiguring courtrooms, the presentation
and handling of evidence to reduce transmission
risks, restricting access to physical spaces such as
common areas and deciding when jurors will be
permitted to leave the premises) available at https://
www.uscourts.gov/sites/default/files/combined_
jury_trial_post_covid_doc_6.10.20.pdf.
12 FINRA currently conducts certain hearing and
pre-hearing conferences by remote means. Pursuant
to FINRA Rule 9241(b) (Pre-hearing Conference;
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55713
reasonable interim solution to allow
FINRA’s critical adjudicatory processes
to continue to function in these
extraordinary times—enabling FINRA to
fulfill its statutory obligations to protect
investors and maintain fair and orderly
markets—while protecting the health
and safety of hearing participants.13
(a) Background
FINRA’s adjudicatory functions
performed by OHO and the NAC are
essential to investor protection and
market integrity. This proposed rule
change would provide OHO and the
NAC with temporary authority to order
that OHO hearings for disciplinary
matters and temporary and permanent
cease and desist orders and NAC
hearings for appeals of Membership
Application Program (‘‘MAP’’) decisions
and eligibility proceedings, take place
by video conference, if warranted by the
current COVID–19-related public health
risks posed by an in-person hearing. As
proposed, this temporary rule change
would be in effect through December 31,
2020.
(1) OHO Hearings
OHO conducts disciplinary hearings
in-person at venues across the country
before three-person hearing panels
composed of one hearing officer and
two industry members.14 Depending on
the size and complexity of the case,
OHO schedules the hearing for four to
ten months after the filing of the
complaint. OHO, on average, conducts
19 disciplinary cases a year.15 FINRA
Rule 9261(b) 16 states that if a
disciplinary hearing is held, a party
shall be entitled to be heard in-person,
by counsel, or by the party’s
Procedure), pre-hearing conferences conducted in
connection with FINRA disciplinary proceedings
can be conducted with one or more persons
participating by telephone or ‘‘other remote
means.’’ Pursuant to FINRA Rule 9559(d)(5)
(Hearing Procedures for Expedited Proceedings
Under the Rule 9550 Series), hearings in connection
with expedited proceedings under the Rule 9550
Series are held by telephone conference, unless the
Hearing Officer orders otherwise for good cause
shown.
13 FINRA notes that, in response to COVID-related
risks, federal agencies such as the United States
Patent and Trademark Office (USPTO) are also
conducting a variety of meetings and hearings
remotely, including trademark examining attorney
interviews and oral hearings, until further notice.
See USPTO Update on In-Person Meetings (March
13, 2020) available at https://www.uspto.gov/aboutus/news-updates/uspto-update-person-meetings.
14 In limited circumstances, a hearing may
proceed with a Hearing Officer and one panelist,
which is permitted under FINRA rules.
15 This number is based on an average of the
hearings from the three-year period from January
2017 to December 2019.
16 FINRA Rule 9261(b) (Disciplinary Proceedings;
Hearing and Decision; Evidence and Procedure in
Hearing; Party’s Right to be Heard).
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Federal Register / Vol. 85, No. 175 / Wednesday, September 9, 2020 / Notices
representative. Absent an agreement by
all parties to proceed in another
manner, OHO conducts disciplinary
hearings in-person.
OHO also conducts hearings for
temporary and permanent cease and
desist orders (‘‘TCDOs’’ and ‘‘PCDOs’’).
Pursuant to FINRA Rule 9810,17
FINRA’s Department of Enforcement
(‘‘Enforcement’’) initiates a TCDO or
PCDO proceeding by filing a written
notice with OHO and must
simultaneously file a disciplinary
complaint with the initiation of a TCDO
or PCDO proceeding. These proceedings
provide a mechanism to take necessary
remedial action against a member or
associated person where there is a
significant risk that the alleged
misconduct could cause continuing
harm to the investing public, if not
addressed expeditiously.18
After OHO receives a notice initiating
a TCDO or PCDO, it must hold a full
evidentiary hearing before a threeperson hearing panel within 15 days.19
As with standard disciplinary matters,
OHO typically conducts these
proceedings in person, absent consent
by all parties to proceed otherwise, at
various venues across the country.
FINRA Rule 9830 outlines the
requirements for a TCDO or PCDO
hearing, however, it does not specify
that a party shall be entitled to be heard
in-person, by counsel, or by the party’s
representative.20
The proposed rule change would
temporarily amend FINRA Rules 9261
and 9830 to grant OHO’s Chief or
Deputy Chief Hearing Officer temporary
authority to order, upon consideration
of the current COVID–19-related public
health risks presented by an in-person
17 FINRA Rule 9810 (Code of Procedure;
Temporary and Permanent Cease and Desist Orders;
Initiation of Proceeding).
18 Pursuant to FINRA Rule 9810(a), Enforcement
may initiate a TCDO proceeding based on alleged
violations of (i) Section 10(b) of the Exchange Act
and SEA Rule 10b–5 thereunder; (ii) SEA Rules
15g–1 through 15g–9; (iii) FINRA Rule 2010
(Standards of Commercial Honor and Principles of
Trade), if the alleged violation is unauthorized
trading, or misuse or conversion of customer assets,
or based on violations of Section 17(a) of the
Securities Act; (iv) FINRA Rule 2020 (Use of
Manipulative, Deceptive or Other Fraudulent
Devices); or (v) FINRA Rule 4330 (Customer
Protection—Permissible Use of Customers’
Securities), if the alleged violation is misuse or
conversion of customer assets. Enforcement may
initiate a PCDO proceeding pursuant to 9810(a)
based on alleged violations of Supplemental
Material .03 to FINRA Rule 5210 (Disruptive
Quoting and Trading Activity Prohibited) for
certain types of quoting and trading activity that are
deemed to be disruptive and need to be resolved on
an expedited basis.
19 FINRA Rule 9830(a) (Code of Procedure;
Temporary and Permanent Cease and Desist Orders;
Hearing; When Held).
20 See supra note 19.
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hearing, that a hearing under those rules
be conducted by video conference. This
will allow OHO to make an assessment,
based on critical COVID–19 data and
criteria and the guidance of its outside
health and security consultant, as to
whether an in-person hearing would
compromise the health and safety of the
hearing participants such that the
hearing should proceed by video
conference.21
(2) NAC Hearings
The NAC is FINRA’s appellate body,
which reviews initial decisions issued
by OHO and—through Subcommittees—
holds evidentiary hearings for MAP
decision appeals and eligibility
proceedings.22 The proposed rule
change would grant the NAC or relevant
Subcommittee temporary authority to
order, upon consideration of the current
COVID–19-related public health risks
presented by an in-person hearing, that
a hearing in connection with a MAP
decision or eligibility proceeding under
Rule 1015 or 9524 be conducted by
video conference.
(a) Membership Proceedings
When a firm applies to become a
FINRA member or seeks to make certain
changes to its ownership, control or
business operations, the firm files a
membership application—a New
Member Application (‘‘Form NMA’’) or
Continuing Membership Application
(‘‘CMA’’)—with FINRA’s Department of
Member Supervision (‘‘Department’’).
The Department evaluates the
application pursuant to FINRA Rule
1014 or 1017, depending on the type of
application. FINRA Rule 1015 governs
the process by which an applicant for
21 The SEC’s Rules of Practice pertaining to
temporary cease-and-desist orders provide that
parties and witnesses may participate by telephone
or, in the Commission’s discretion, through the use
of alternative technologies that allow remote access,
such as a video link. See SEC Rule of Practice
511(d)(3); Comment (d).
22 FINRA Rule 9341(d) (Oral Argument;
Attendance Required) provides that oral arguments
made in connection with the review of a FINRA
disciplinary proceeding take place before a
Subcommittee of the NAC and requires all members
of the relevant Subcommittee to be present for the
oral argument. FINRA has temporarily amended
FINRA Rule 9341(d) such that oral arguments made
in connection with the review of FINRA
disciplinary proceedings can be conducted by video
conference. See Securities Exchange Act Release
No. 88917 (May 20, 2020), 85 FR 31832 (May 27,
2020) (Notice of Filing and Immediate Effectiveness
File No. SR–FINRA–2020–015); Securities
Exchange Act Release No. 89423 (July 29, 2020), 85
FR 47278 (August 4, 2020) (Notice of Filing and
Immediate Effectiveness File No. SR–FINRA–2020–
022) (Further extending the expiration date of the
temporary amendments in SR–FINRA–2020–15
from July 31, 2020, to a date to be specified in a
public notice issued by FINRA, which date will be
at least two weeks from the date of the notice, and
no later than December 31, 2020).
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new or continuing membership can
appeal a decision rendered by the
Department under FINRA Rule 1014 or
1017 and request a hearing.23 If a
hearing is requested, a Subcommittee of
the NAC conducts the hearing. Rule
1015(f) does not require an in-person
hearing, however, hearings are typically
conducted in-person.24
(b) Eligibility Proceedings
Pursuant to FINRA’s By-Laws, a
member firm subject to a statutory
disqualification that wishes to retain
their membership must file a Form MC–
400A (‘‘MC–400A’’) application. If an
associated person is subject to a
statutory disqualification, a firm can
sponsor the association of the
disqualified person by filing a Form
MC–400 application (‘‘MC–400’’). The
Department is responsible for evaluating
MC–400A and MC–400 applications and
making recommendations either to
approve or deny the application to the
NAC.25
FINRA Rule 9524 governs the process
by which a statutorily disqualified
member firm or associated person can
appeal the Department’s
recommendation to deny a firm or
sponsoring firm’s MC–400A or MC–400
application to the NAC.26 If the
Department recommends denial of an
application, the applicant can request
an evidentiary hearing before a hearing
panel, which routinely consists of two
members of the NAC Statutory
Disqualification Committee.27 FINRA
Rule 9524(a)(4) states that the parties are
entitled to be heard in-person and
represented by an attorney.
The proposed rule change would
temporarily amend FINRA Rules 1015(f)
and 9524(a)(4) to grant the NAC or
Subcommittee (or Review
Subcommittee) temporary authority to
order, upon consideration of the current
COVID–19-related public health risks
presented by an in-person hearing, that
a hearing under those rules be
conducted by video conference. As with
the OHO hearings discussed above, this
temporary proposed rule change will
allow the NAC or relevant
Subcommittee to make an assessment,
based on critical COVID–19 data and
criteria and the guidance of its outside
health and security consultant, as to
23 See FINRA Rule 1015(a) (Review by National
Adjudicatory Council; Initiation of Review by
Applicant).
24 See FINRA Rule 1015(f) (Review by National
Adjudicatory Council; Hearing).
25 See FINRA Rule 9522 (Initiation of Eligibility
Proceeding; Member Regulation Consideration).
26 See FINRA Rule 9524 (National Adjudicatory
Council Consideration).
27 See FINRA Rules 9522(e)(3) and 9524.
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whether an in-person hearing would
compromise the health and safety of the
hearing participants such that the
hearing should proceed by video
conference.
(3) Assessment of Public Health Risks—
Data and Criteria Used
In light of the COVID–19 outbreak,
determining the health and safety risks
of a given in-person activity requires a
complex facts and circumstances
analysis and is a moving target. Public
health guidance on how to minimize the
risk of transmission is continually
updated and localized considerations
evolve rapidly. In order to assist FINRA
through this challenging process, FINRA
has engaged a health and security
consultant to provide guidance on the
multitude of issues that will need to be
addressed in order to safely resume inperson activities.
For purposes of this proposed
temporary rule change, FINRA plans to
rely on the guidance of its health and
safety consultant, in conjunction with
COVID–19 data and guidance issued by
public health authorities, to determine
whether the current public health risks
presented by an in-person hearing may
warrant a hearing by video conference.
The following criteria, among others,
will be considered in order to make this
determination: (i) State and county virus
trends and hospitalization rates at or
around the hearing location; (ii)
national, state and local orders
addressing COVID–19; (iii) risks posed
by requiring hearing participants to
travel by air, use public transportation
and stay in hotels; and (iv) the increased
risk of exposure based on the length of
the hearing or number of hearing
participants. FINRA will also take into
consideration any other relevant health,
safety or similar concerns raised by the
hearing participants.28
(4) Platform and Procedures for
Conducting Video Conference Hearings
FINRA has adopted a detailed and
thorough protocol to ensure that
28 In addition to an assessment of the public
health risks, OHO’s Chief or Deputy Chief Hearing
Officer, or the NAC or relevant Subcommittee, may
consider other factors in determining whether to
schedule a video conference hearing. A nonexhaustive list of these factors includes a hearing
participant’s individual health concerns and access
to the connectivity and technology necessary to
participate in a video conference hearing. Moreover,
as discussed infra, OHO and the NAC will have
several means of addressing a hearing participant’s
access issues, including providing a hearing
participant with the technology or hardware
necessary to participate in a video conference or
permitting a witness, for example, to participate by
telephone to address connectivity issues. A FINRA
case administrator will also participate in each
video conference hearing to ensure participants
have adequate technical support.
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hearings conducted by video conference
will maintain fair process for the
parties.29 As an initial matter, FINRA
will use a high quality, secure and userfriendly video conferencing service.30
FINRA has provided a step-by-step
breakdown of the enhanced security
features that will be provided for video
conference hearings.31 In addition,
FINRA will use available video
conferencing features to parallel an inperson hearing experience such as
waiting rooms to ensure that no party
has time alone with the hearing panel
and breakout rooms to allow for
confidential communications. FINRA
has also developed comprehensive
guidelines for how video conference
hearings will be conducted, including
how objections and the introduction of
new documents will be handled.32
These guidelines ensure that
participants know what to expect during
a video conference hearing and can
prepare accordingly.
FINRA will also provide assistance to
participants to ensure that they are
adequately prepared to use the video
conferencing software by conducting a
mock hearing for the parties in advance
of the hearing date. During the mock
hearing, hearing participants will learn
how to share documents and use other
software features that allow participants
to perform tasks typically done during
in-person hearings, such as a
highlighting feature that the parties can
use to focus a witness on particular
portions of a document during witness
questioning. Further, FINRA will have a
case administrator participate in each
video conference hearing to ensure
participants have adequate technical
support during the hearing. These
29 The temporary proposed rule change will not
alter the Chief or Deputy Chief Hearing Officer’s, or
the NAC or relevant Subcommittee’s, existing
discretion to allow a party or witness to participate
by telephone, if necessary to address, among other
things, impediments to a hearing participant’s use
of video conferencing technology such as
connectivity issues. FINRA also notes that, to the
extent feasible, it may, among other things, lend
hearing participants the hardware necessary to
participate in a video conference hearing (e.g., a
video camera).
30 As indicated above, FINRA has used video
conferencing technology in other contexts to
conduct hearings and oral arguments and take
testimony. See supra notes 7 and 10.
31 See Zoom Process for Disciplinary Hearings
with the Office of Hearing Officers, available at
https://www.finra.org/rules-guidance/key-topics/
covid-19/hearings/zoom-office-hearing-officers. The
enhanced securities features include randomlygenerated meeting IDs and passwords for
admittance, the use of a ‘‘waiting room’’ for all
participants who join the hearing, the ability to
‘‘lock’’ the ‘‘hearing room’’ so that no one else can
enter, even if they have a password, and FINRA’s
Zoom process is restricted to Zoom’s U.S. data
centers only.
32 See supra note 31.
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55715
procedures and resources, among
others, will provide fair process for all
hearing participants.
FINRA has filed the temporary
proposed rule change for immediate
effectiveness. The implementation date
will be 30 days after the date of filing.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,33 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 that the
proposed rule change is also consistent
with Section 15A(b)(8) of the Act,34
which requires, among other things, that
FINRA rules provide a fair procedure for
the disciplining of members and
persons associated with members and
the denial of membership of any person
seeking membership.
The underpinning of FINRA’s
regulatory purpose is to protect
investors and safeguard the integrity of
the securities markets. FINRA cannot
accomplish these objectives in an
effective manner without the ability to
timely conduct hearings in connection
with its core adjudicatory functions.
The temporary proposed rule change
will allow FINRA’s core adjudicatory
functions to operate effectively without
protracted delays. For example, the
temporary proposed rule change
allowing TCDO hearings to be
conducted by video conference is vitally
important, as it will enable FINRA to
take immediate action to stop
significant, ongoing customer harm.
With respect to eligibility
proceedings, members and disqualified
individuals who file an MC–400A or
MC–400 application are permitted, in
certain circumstances, to continue
operations as a FINRA member and
continue to work in the industry,
respectively, while their application
remains pending. Allowing hearings on
these applications to proceed by video
conference will prevent extended delays
and allow members and disqualified
individuals to receive an approval or
denial of their applications.
Accordingly, the proposed rule change,
which would grant OHO and the NAC
temporary authority to conduct hearings
by video conference, is in the public
interest and consistent with the Act’s
purpose.
33 15
34 15
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U.S.C. 78o–3(b)(6).
U.S.C. 78o–3(b)(8).
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Further, the proposed rule change
will continue to provide fair process in
connection with OHO and NAC
hearings.35 Conducting hearings via
video conference will give the parties
and adjudicators simultaneous visual
and oral communication,36 but without
the risks of individuals being physically
close to one another. FINRA will use
high quality, secure video conferencing
technology with features that will allow
the parties to reasonably approximate
those tasks that are typically performed
at an in-person hearing, such as sharing
documents, marking documents, and
utilizing breakout rooms. FINRA will
also provide training for participants on
how to use the video conferencing
platform and detailed guidance on the
procedures that will govern such
hearings. Moreover, as noted above, the
Chief or Deputy Chief Hearing Officer,
or the NAC or relevant Subcommittee,
may take into consideration, among
other things, a hearing participant’s
access to connectivity and technology in
scheduling a video conference hearing
and can also, at their discretion, allow
a party or witness to participate by
telephone, if necessary, to address such
access issues.
In addition, temporarily permitting
the OHO and NAC hearings for FINRA
disciplinary matters to proceed by video
conference maintains fair process by
providing respondents a timely
opportunity to address and potentially
resolve any allegations of misconduct.
With respect to applicants who receive
an adverse MAP decision, they will
have a timely opportunity to challenge
the denial of their application. The
temporary proposed rule change strikes
an appropriate balance, providing fair
process and enabling FINRA to fulfill its
statutory obligations to protect investors
and maintain fair and orderly markets
while taking into consideration the
significant health and safety risks of inperson hearings stemming from the
outbreak of COVID–19.
35 FINRA notes that, in interpreting the fair
procedure requirement under Section 15A(b)(8) of
the Act, the Commission has emphasized that
FINRA and its predecessor organization (NASD)
have proceedings that are less formal than federal
court proceedings. See, e.g., Sumner B. Cotzin, 45
SEC. 575, 579–80 (1974) (‘‘When Congress provided
for self-regulatory associations of securities dealers
such as the NASD, it clearly did not intend to create
formalistic tribunals akin to the courts or even to
this Commission. Self-regulation or cooperative
regulation necessarily calls for informality.’’). See
also David A. Gingras, 50 SEC. 1286, 1293 n.20
(1992) (‘‘NASD’s proceedings are informal and do
not resemble those of law courts.’’).
36 See Jeremy Graboyes, Admin. Conf. of U.S.,
Legal Considerations for Remote Hearings in
Agency Adjudications at 12 (June 16, 2020),
available at https://www.acus.gov/report/legalconsiderations-remote-hearings-agencyadjudications.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
have been delayed as a result of the
pandemic.
FINRA does not believe that the
temporary 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 is intended
solely to provide temporary relief given
the impacts of the COVID–19 outbreak.
As a result of the temporary nature of
the proposed relief, an abbreviated
economic impact assessment is
appropriate.
(c) Economic Impact
The proposed rule change is intended
solely to provide a temporary
mechanism for FINRA to allow its
critical adjudicatory functions to
proceed while COVID–19 continues to
pose health and safety risks for
traditional, in-person hearings. The
proposed rule change is necessary to
temporarily rebalance the attendant
benefits and costs of the obligations
under FINRA Rules 1015, 9261, 9524
and 9830 in response to the impacts of
the COVID–19 pandemic.
1. Economic Impact Assessment
(a) Regulatory Objective
FINRA is proposing this temporary
relief to address the public health risks
and corresponding challenges of inperson hearings during the COVID–19
crisis. Social distancing, quarantining
and other similar requirements to
promote the health and safety of citizens
make it exceedingly difficult to conduct
in-person hearings. In recognition of
these extraordinary times, the proposed
rule change would temporarily grant
OHO’s Chief or Deputy Chief Hearing
Officer, or the NAC or relevant
Subcommittee, discretion to conduct
OHO and NAC hearings, respectively,
by video conference, if warranted by the
current COVID–19-related public health
risks posed by an in-person hearing.
(b) Economic Baseline
The obligations under FINRA Rules
1015, 9261, 9524 and 9830 are described
above. OHO conducts approximately 19
regular disciplinary hearings per year.37
Since January 1, 2017, the NAC has held
nine hearings. One hearing was
conducted in connection with an appeal
of a Membership Application Program
decision and eight hearings related to
eligibility proceedings. Under current
FINRA rules, hearings conducted in
connection with appeals of Membership
Application Program decisions,
disciplinary actions, eligibility
proceedings and temporary and
permanent cease and desist orders are
typically conducted in person. In order
to comply with the guidance of public
health authorities relating to the
COVID–19 pandemic and to ensure the
safety of all participants and
stakeholders, FINRA has
administratively postponed in-person
OHO and NAC hearings since March 16,
2020. To date, at least eight hearings
37 OHO also conducts hearings for TCDO and
PCDO proceedings. OHO has not conducted a
TCDO or PCDO hearing in the last three calendar
years.
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(1) Anticipated Benefits
The benefits of the temporary
proposed rule change will accrue to
participants and stakeholders of
hearings that are conducted by video
conference rather than delayed until inperson hearings can be conducted
safely. A benefit of the temporary
proposed rule change will be reducing
the potential costs associated with
delayed proceedings resulting from the
COVID–19 pandemic, as discussed in
Item 3(b) above. The flexibility provided
by this temporary proposed rule
change—to conduct hearings by video
conference as warranted by COVIDrelated public health risks—will also
benefit hearing participants and other
stakeholders by allowing them to avoid
the health and safety risks associated
with in-person hearings. In addition,
hearing participants will benefit from
the elimination of travel time and travel
costs.
(2) Anticipated Costs
As previously stated, the public
health risks stemming from the COVID–
19 outbreak have increased the costs
associated with in-person hearings.
Conducting hearings by video
conference, however, presents some
potential drawbacks. These may include
technological challenges such as
bandwidth or connectivity issues for
participants, cybersecurity concerns or
concerns related to the ability of hearing
participants to represent themselves in
a manner equivalent to an in-person
hearing.
FINRA’s approach to video
conference hearings, however, which
includes, among other things, the use of
high quality, secure technology that
allows hearing participants to perform
tasks typically done during in-person
hearings should mitigate the potential
costs. As noted above, FINRA is
currently conducting hearings using
video conferencing technology in
similar contexts. Moreover, the
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Federal Register / Vol. 85, No. 175 / Wednesday, September 9, 2020 / Notices
temporary proposed rule change
permits, but does not mandate that
hearings be conducted by video
conference. Therefore, OHO and the
NAC will use the discretion permitted
under the temporary proposed rule
change to balance the costs of delaying
a hearing with the public health risks of
requiring an in-person hearing, and the
costs associated with conducting
hearings by video conference.
Furthermore, the temporary proposed
rule change will not alter the Chief or
Deputy Chief Hearing Officer’s, or the
NAC or relevant Subcommittee’s,
discretion to consider other factors
affecting an individual’s ability to
participate or allow a party or witness
to participate by telephone, if necessary
to address, among other things,
impediments to a hearing participant’s
ability to use video conferencing
technology such as connectivity issues,
reducing the potential costs.
Additionally, the proposed rule change
is limited in time, providing temporary
relief through December 31, 2020, or
until the conclusion of any extension
thereof.
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 38 and Rule 19b–
4(f)(6) thereunder.39
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.
38 15
39 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
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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:
• 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–2020–027 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–2020–027. 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 (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 website viewing and
printing in the Commission’s Public
Reference Room, on business days
between the hours of 10:00 a.m. and
3:00 p.m., located at 100 F Street NE,
Washington, DC 20549. 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. 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–FINRA–2020–027 and
should be submitted on or before
September 30, 2020.
Frm 00082
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.40
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–19838 Filed 9–8–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
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[Release No. 34–89743; File No. SR–CBOE–
2020–034]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Designation
of a Longer Period for Commission
Action on a Proposed Rule Change To
Authorize for Trading Flexible
Exchange Options on Full-Value
Indexes With a Contract Multiplier of
One
September 2, 2020.
On June 30, 2020, Cboe Exchange, Inc.
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to authorize for trading flexible
exchange options on full-value indexes
with a contract multiplier of one. The
Commission published notice of the
proposed rule change in the Federal
Register on July 20, 2020.3
Section 19(b)(2) of the Act 4 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is September 3,
2020. The Commission is extending this
45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
40 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 34–
89308 (July 14, 2020), 85 FR 43923. Comments
received on the proposed rule change are available
on the Commission’s website at: https://
www.sec.gov/comments/sr-cboe-2020-034/
srcboe2020034.htm.
4 15 U.S.C. 78s(b)(2).
1 15
E:\FR\FM\09SEN1.SGM
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Agencies
[Federal Register Volume 85, Number 175 (Wednesday, September 9, 2020)]
[Notices]
[Pages 55712-55717]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19838]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89737; File No. SR-FINRA-2020-027]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Temporarily Amend FINRA Rules 1015, 9261, 9524
and 9830 To Permit Hearings Under Those Rules To Be Conducted by Video
Conference
September 2, 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 August 31, 2020, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') 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 self-regulatory
organization. FINRA files the proposed rule change 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4. The Exchange provided the Commission with
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 the proposed
rule change as required by Rule 19b-4(f)(6)(iii). 17 CFR 240.19b-
4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to temporarily amend FINRA Rules 1015, 9261,
9524 and 9830 to grant FINRA's Office of Hearing Officers (``OHO'') and
the National Adjudicatory Council (``NAC'') authority \5\ to conduct
hearings in connection with appeals of Membership Application Program
decisions, disciplinary actions, eligibility proceedings and temporary
and permanent cease and desist orders by video conference, if warranted
by the current COVID-19-related public health risks posed by an in-
person hearing. As proposed, these temporary amendments would be in
effect through December 31, 2020.\6\
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\5\ For OHO hearings under FINRA Rules 9261 and 9830, the
proposed rule change temporarily grants authority to the Chief or
Deputy Chief Hearing Officer to order that a hearing be conducted by
video conference. For NAC hearings under FINRA Rules 1015 and 9524,
this temporary authority is granted to the NAC or relevant
Subcommittee.
\6\ If FINRA requires temporary relief from the rule
requirements identified in this proposal beyond December 31, 2020,
FINRA may submit a separate rule filing to extend the expiration
date of the temporary amendments under these rules. The amended
FINRA rules will revert back to their current state at the
conclusion of the temporary relief period and any extension thereof.
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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
The outbreak of COVID-19 has disrupted critical adjudicatory
functions nationwide due to the serious public health risks it poses in
connection with conducting traditional, in-person hearings. In order to
comply with the guidance of public health authorities and to ensure the
safety and well-being
[[Page 55713]]
of parties, counsel, adjudicators and FINRA personnel, FINRA has
administratively postponed in-person OHO and NAC hearings for over four
months now--starting on March 16, 2020, with in-person hearings
currently postponed through October 2, 2020. The result is an expanding
backlog of cases, which if left unchecked, will compromise FINRA's
ability to provide timely adjudicatory processes and fulfill its
statutory obligations to protect investors and maintain fair and
orderly markets.
In order to proactively address this backlog of cases, and mitigate
the consequences of a stalled adjudicatory system, FINRA is proposing
this temporary rule change to grant OHO and the NAC the authority to
conduct hearings by video conference, if warranted by the current
COVID-19-related public health risks posed by an in-person hearing.
This proposed rule change would allow OHO and the NAC to order that a
hearing proceed by video conference over the objection of a party.\7\
As discussed in further detail below, FINRA will evaluate whether
current COVID-19-related public health risks warrant a hearing by video
conference based on an assessment of critical data and criteria and
guidance from its outside health and security consultant.\8\
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\7\ Currently, if the parties jointly agree, OHO and the NAC
will proceed with a hearing by video conference. As of August 21,
2020, OHO has conducted three days of video conference hearings in
connection with a disciplinary matter and scheduled hearings in 5
other disciplinary matters to proceed by video conference, per joint
agreement of the parties.
\8\ See infra Assessment of Public Health Risks--Data and
Criteria Used.
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FINRA's protocol for conducting hearings by video conference will
ensure that such hearings maintain fair process for the parties. FINRA
will, among other things, use a high quality, secure and user-friendly
video conferencing service and provide thorough instructions, training
and technical support to all hearing participants.\9\ In addition,
FINRA has experience conducting numerous hearings and oral arguments
utilizing video conferencing technology in similar contexts.\10\
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\9\ FINRA plans to conduct video conference hearings using Zoom,
a program that has been vetted by FINRA's information technology
staff. FINRA may consider alternate video conferencing services, if
those services have features and capabilities analogous to those
available through Zoom.
\10\ From the postponement of in-person hearings starting on
March 16, 2020, through August 21, 2020, 43 FINRA arbitration cases
have proceeded with one or more video conference hearings conducted
via Zoom. Of those 43 cases, 23 conducted one or more video
conference hearings pursuant to the parties' joint motion. As of
August 21, 2020, the NAC, through the relevant Subcommittee, has
conducted 3 oral arguments by video conference using Zoom in
connection with appeals of FINRA disciplinary proceedings pursuant
to FINRA Rule 9341(d), as temporarily amended. See infra note 22.
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While FINRA's ultimate goal is to resume in-person hearings, doing
so in a manner that is compliant with the current guidance of public
health authorities is a complex, challenging and time-consuming process
that presents numerous logistical challenges. Among other things, FINRA
will need detailed procedures and related participant training on
physical distancing and otherwise minimizing physical contact during
in-person hearings, preparing spaces and providing protective equipment
to protect the safety of hearing participants (including parties,
counsel, adjudicators and FINRA personnel) and to address numerous
other aspects of in-person hearings that pose a risk of COVID-19
transmission.\11\ Even with the ability to put those protections in
place, FINRA cannot conduct an in-person hearing where the hearing
participants cannot safely travel to the hearing location. Furthermore,
even if hearing participants are able to travel to a hearing location,
state and local quarantining requirements may pose significant
impediments to their ability to participate in person.
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\11\ See, e.g., Conducting Jury Trials and Convening Grand
Juries During the Pandemic (June 4, 2020) (Outlining the ``multitude
of issues'' courts need to consider before resuming jury selection
and jury trials during the pandemic, including, among other things,
reconfiguring courtrooms, the presentation and handling of evidence
to reduce transmission risks, restricting access to physical spaces
such as common areas and deciding when jurors will be permitted to
leave the premises) available at https://www.uscourts.gov/sites/default/files/combined_jury_trial_post_covid_doc_6.10.20.pdf.
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With the assistance of its outside health and security consultant,
FINRA is actively working to develop such a protocol for in-person
hearings that takes into consideration the various health and safety
considerations at play. Settling on a protocol for in-person hearings,
however, continues to be a moving target, with public health guidance
being continually updated and local and state transmission rates,
government public health orders and other localized considerations in a
constant state of flux. FINRA believes that permitting the Chief or
Deputy Chief Hearing Officer or the NAC or relevant Subcommittee to
exercise their judgment to conduct OHO and NAC hearings, respectively,
by video conference \12\ on a temporary basis is a reasonable interim
solution to allow FINRA's critical adjudicatory processes to continue
to function in these extraordinary times--enabling FINRA to fulfill its
statutory obligations to protect investors and maintain fair and
orderly markets--while protecting the health and safety of hearing
participants.\13\
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\12\ FINRA currently conducts certain hearing and pre-hearing
conferences by remote means. Pursuant to FINRA Rule 9241(b) (Pre-
hearing Conference; Procedure), pre-hearing conferences conducted in
connection with FINRA disciplinary proceedings can be conducted with
one or more persons participating by telephone or ``other remote
means.'' Pursuant to FINRA Rule 9559(d)(5) (Hearing Procedures for
Expedited Proceedings Under the Rule 9550 Series), hearings in
connection with expedited proceedings under the Rule 9550 Series are
held by telephone conference, unless the Hearing Officer orders
otherwise for good cause shown.
\13\ FINRA notes that, in response to COVID-related risks,
federal agencies such as the United States Patent and Trademark
Office (USPTO) are also conducting a variety of meetings and
hearings remotely, including trademark examining attorney interviews
and oral hearings, until further notice. See USPTO Update on In-
Person Meetings (March 13, 2020) available at https://www.uspto.gov/about-us/news-updates/uspto-update-person-meetings.
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(a) Background
FINRA's adjudicatory functions performed by OHO and the NAC are
essential to investor protection and market integrity. This proposed
rule change would provide OHO and the NAC with temporary authority to
order that OHO hearings for disciplinary matters and temporary and
permanent cease and desist orders and NAC hearings for appeals of
Membership Application Program (``MAP'') decisions and eligibility
proceedings, take place by video conference, if warranted by the
current COVID-19-related public health risks posed by an in-person
hearing. As proposed, this temporary rule change would be in effect
through December 31, 2020.
(1) OHO Hearings
OHO conducts disciplinary hearings in-person at venues across the
country before three-person hearing panels composed of one hearing
officer and two industry members.\14\ Depending on the size and
complexity of the case, OHO schedules the hearing for four to ten
months after the filing of the complaint. OHO, on average, conducts 19
disciplinary cases a year.\15\ FINRA Rule 9261(b) \16\ states that if a
disciplinary hearing is held, a party shall be entitled to be heard in-
person, by counsel, or by the party's
[[Page 55714]]
representative. Absent an agreement by all parties to proceed in
another manner, OHO conducts disciplinary hearings in-person.
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\14\ In limited circumstances, a hearing may proceed with a
Hearing Officer and one panelist, which is permitted under FINRA
rules.
\15\ This number is based on an average of the hearings from the
three-year period from January 2017 to December 2019.
\16\ FINRA Rule 9261(b) (Disciplinary Proceedings; Hearing and
Decision; Evidence and Procedure in Hearing; Party's Right to be
Heard).
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OHO also conducts hearings for temporary and permanent cease and
desist orders (``TCDOs'' and ``PCDOs''). Pursuant to FINRA Rule
9810,\17\ FINRA's Department of Enforcement (``Enforcement'') initiates
a TCDO or PCDO proceeding by filing a written notice with OHO and must
simultaneously file a disciplinary complaint with the initiation of a
TCDO or PCDO proceeding. These proceedings provide a mechanism to take
necessary remedial action against a member or associated person where
there is a significant risk that the alleged misconduct could cause
continuing harm to the investing public, if not addressed
expeditiously.\18\
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\17\ FINRA Rule 9810 (Code of Procedure; Temporary and Permanent
Cease and Desist Orders; Initiation of Proceeding).
\18\ Pursuant to FINRA Rule 9810(a), Enforcement may initiate a
TCDO proceeding based on alleged violations of (i) Section 10(b) of
the Exchange Act and SEA Rule 10b-5 thereunder; (ii) SEA Rules 15g-1
through 15g-9; (iii) FINRA Rule 2010 (Standards of Commercial Honor
and Principles of Trade), if the alleged violation is unauthorized
trading, or misuse or conversion of customer assets, or based on
violations of Section 17(a) of the Securities Act; (iv) FINRA Rule
2020 (Use of Manipulative, Deceptive or Other Fraudulent Devices);
or (v) FINRA Rule 4330 (Customer Protection--Permissible Use of
Customers' Securities), if the alleged violation is misuse or
conversion of customer assets. Enforcement may initiate a PCDO
proceeding pursuant to 9810(a) based on alleged violations of
Supplemental Material .03 to FINRA Rule 5210 (Disruptive Quoting and
Trading Activity Prohibited) for certain types of quoting and
trading activity that are deemed to be disruptive and need to be
resolved on an expedited basis.
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After OHO receives a notice initiating a TCDO or PCDO, it must hold
a full evidentiary hearing before a three-person hearing panel within
15 days.\19\ As with standard disciplinary matters, OHO typically
conducts these proceedings in person, absent consent by all parties to
proceed otherwise, at various venues across the country. FINRA Rule
9830 outlines the requirements for a TCDO or PCDO hearing, however, it
does not specify that a party shall be entitled to be heard in-person,
by counsel, or by the party's representative.\20\
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\19\ FINRA Rule 9830(a) (Code of Procedure; Temporary and
Permanent Cease and Desist Orders; Hearing; When Held).
\20\ See supra note 19.
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The proposed rule change would temporarily amend FINRA Rules 9261
and 9830 to grant OHO's Chief or Deputy Chief Hearing Officer temporary
authority to order, upon consideration of the current COVID-19-related
public health risks presented by an in-person hearing, that a hearing
under those rules be conducted by video conference. This will allow OHO
to make an assessment, based on critical COVID-19 data and criteria and
the guidance of its outside health and security consultant, as to
whether an in-person hearing would compromise the health and safety of
the hearing participants such that the hearing should proceed by video
conference.\21\
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\21\ The SEC's Rules of Practice pertaining to temporary cease-
and-desist orders provide that parties and witnesses may participate
by telephone or, in the Commission's discretion, through the use of
alternative technologies that allow remote access, such as a video
link. See SEC Rule of Practice 511(d)(3); Comment (d).
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(2) NAC Hearings
The NAC is FINRA's appellate body, which reviews initial decisions
issued by OHO and--through Subcommittees--holds evidentiary hearings
for MAP decision appeals and eligibility proceedings.\22\ The proposed
rule change would grant the NAC or relevant Subcommittee temporary
authority to order, upon consideration of the current COVID-19-related
public health risks presented by an in-person hearing, that a hearing
in connection with a MAP decision or eligibility proceeding under Rule
1015 or 9524 be conducted by video conference.
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\22\ FINRA Rule 9341(d) (Oral Argument; Attendance Required)
provides that oral arguments made in connection with the review of a
FINRA disciplinary proceeding take place before a Subcommittee of
the NAC and requires all members of the relevant Subcommittee to be
present for the oral argument. FINRA has temporarily amended FINRA
Rule 9341(d) such that oral arguments made in connection with the
review of FINRA disciplinary proceedings can be conducted by video
conference. See Securities Exchange Act Release No. 88917 (May 20,
2020), 85 FR 31832 (May 27, 2020) (Notice of Filing and Immediate
Effectiveness File No. SR-FINRA-2020-015); Securities Exchange Act
Release No. 89423 (July 29, 2020), 85 FR 47278 (August 4, 2020)
(Notice of Filing and Immediate Effectiveness File No. SR-FINRA-
2020-022) (Further extending the expiration date of the temporary
amendments in SR-FINRA-2020-15 from July 31, 2020, to a date to be
specified in a public notice issued by FINRA, which date will be at
least two weeks from the date of the notice, and no later than
December 31, 2020).
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(a) Membership Proceedings
When a firm applies to become a FINRA member or seeks to make
certain changes to its ownership, control or business operations, the
firm files a membership application--a New Member Application (``Form
NMA'') or Continuing Membership Application (``CMA'')--with FINRA's
Department of Member Supervision (``Department''). The Department
evaluates the application pursuant to FINRA Rule 1014 or 1017,
depending on the type of application. FINRA Rule 1015 governs the
process by which an applicant for new or continuing membership can
appeal a decision rendered by the Department under FINRA Rule 1014 or
1017 and request a hearing.\23\ If a hearing is requested, a
Subcommittee of the NAC conducts the hearing. Rule 1015(f) does not
require an in-person hearing, however, hearings are typically conducted
in-person.\24\
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\23\ See FINRA Rule 1015(a) (Review by National Adjudicatory
Council; Initiation of Review by Applicant).
\24\ See FINRA Rule 1015(f) (Review by National Adjudicatory
Council; Hearing).
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(b) Eligibility Proceedings
Pursuant to FINRA's By-Laws, a member firm subject to a statutory
disqualification that wishes to retain their membership must file a
Form MC-400A (``MC-400A'') application. If an associated person is
subject to a statutory disqualification, a firm can sponsor the
association of the disqualified person by filing a Form MC-400
application (``MC-400''). The Department is responsible for evaluating
MC-400A and MC-400 applications and making recommendations either to
approve or deny the application to the NAC.\25\
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\25\ See FINRA Rule 9522 (Initiation of Eligibility Proceeding;
Member Regulation Consideration).
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FINRA Rule 9524 governs the process by which a statutorily
disqualified member firm or associated person can appeal the
Department's recommendation to deny a firm or sponsoring firm's MC-400A
or MC-400 application to the NAC.\26\ If the Department recommends
denial of an application, the applicant can request an evidentiary
hearing before a hearing panel, which routinely consists of two members
of the NAC Statutory Disqualification Committee.\27\ FINRA Rule
9524(a)(4) states that the parties are entitled to be heard in-person
and represented by an attorney.
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\26\ See FINRA Rule 9524 (National Adjudicatory Council
Consideration).
\27\ See FINRA Rules 9522(e)(3) and 9524.
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The proposed rule change would temporarily amend FINRA Rules
1015(f) and 9524(a)(4) to grant the NAC or Subcommittee (or Review
Subcommittee) temporary authority to order, upon consideration of the
current COVID-19-related public health risks presented by an in-person
hearing, that a hearing under those rules be conducted by video
conference. As with the OHO hearings discussed above, this temporary
proposed rule change will allow the NAC or relevant Subcommittee to
make an assessment, based on critical COVID-19 data and criteria and
the guidance of its outside health and security consultant, as to
[[Page 55715]]
whether an in-person hearing would compromise the health and safety of
the hearing participants such that the hearing should proceed by video
conference.
(3) Assessment of Public Health Risks--Data and Criteria Used
In light of the COVID-19 outbreak, determining the health and
safety risks of a given in-person activity requires a complex facts and
circumstances analysis and is a moving target. Public health guidance
on how to minimize the risk of transmission is continually updated and
localized considerations evolve rapidly. In order to assist FINRA
through this challenging process, FINRA has engaged a health and
security consultant to provide guidance on the multitude of issues that
will need to be addressed in order to safely resume in-person
activities.
For purposes of this proposed temporary rule change, FINRA plans to
rely on the guidance of its health and safety consultant, in
conjunction with COVID-19 data and guidance issued by public health
authorities, to determine whether the current public health risks
presented by an in-person hearing may warrant a hearing by video
conference. The following criteria, among others, will be considered in
order to make this determination: (i) State and county virus trends and
hospitalization rates at or around the hearing location; (ii) national,
state and local orders addressing COVID-19; (iii) risks posed by
requiring hearing participants to travel by air, use public
transportation and stay in hotels; and (iv) the increased risk of
exposure based on the length of the hearing or number of hearing
participants. FINRA will also take into consideration any other
relevant health, safety or similar concerns raised by the hearing
participants.\28\
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\28\ In addition to an assessment of the public health risks,
OHO's Chief or Deputy Chief Hearing Officer, or the NAC or relevant
Subcommittee, may consider other factors in determining whether to
schedule a video conference hearing. A non-exhaustive list of these
factors includes a hearing participant's individual health concerns
and access to the connectivity and technology necessary to
participate in a video conference hearing. Moreover, as discussed
infra, OHO and the NAC will have several means of addressing a
hearing participant's access issues, including providing a hearing
participant with the technology or hardware necessary to participate
in a video conference or permitting a witness, for example, to
participate by telephone to address connectivity issues. A FINRA
case administrator will also participate in each video conference
hearing to ensure participants have adequate technical support.
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(4) Platform and Procedures for Conducting Video Conference Hearings
FINRA has adopted a detailed and thorough protocol to ensure that
hearings conducted by video conference will maintain fair process for
the parties.\29\ As an initial matter, FINRA will use a high quality,
secure and user-friendly video conferencing service.\30\ FINRA has
provided a step-by-step breakdown of the enhanced security features
that will be provided for video conference hearings.\31\ In addition,
FINRA will use available video conferencing features to parallel an in-
person hearing experience such as waiting rooms to ensure that no party
has time alone with the hearing panel and breakout rooms to allow for
confidential communications. FINRA has also developed comprehensive
guidelines for how video conference hearings will be conducted,
including how objections and the introduction of new documents will be
handled.\32\ These guidelines ensure that participants know what to
expect during a video conference hearing and can prepare accordingly.
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\29\ The temporary proposed rule change will not alter the Chief
or Deputy Chief Hearing Officer's, or the NAC or relevant
Subcommittee's, existing discretion to allow a party or witness to
participate by telephone, if necessary to address, among other
things, impediments to a hearing participant's use of video
conferencing technology such as connectivity issues. FINRA also
notes that, to the extent feasible, it may, among other things, lend
hearing participants the hardware necessary to participate in a
video conference hearing (e.g., a video camera).
\30\ As indicated above, FINRA has used video conferencing
technology in other contexts to conduct hearings and oral arguments
and take testimony. See supra notes 7 and 10.
\31\ See Zoom Process for Disciplinary Hearings with the Office
of Hearing Officers, available at https://www.finra.org/rules-guidance/key-topics/covid-19/hearings/zoom-office-hearing-officers.
The enhanced securities features include randomly-generated meeting
IDs and passwords for admittance, the use of a ``waiting room'' for
all participants who join the hearing, the ability to ``lock'' the
``hearing room'' so that no one else can enter, even if they have a
password, and FINRA's Zoom process is restricted to Zoom's U.S. data
centers only.
\32\ See supra note 31.
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FINRA will also provide assistance to participants to ensure that
they are adequately prepared to use the video conferencing software by
conducting a mock hearing for the parties in advance of the hearing
date. During the mock hearing, hearing participants will learn how to
share documents and use other software features that allow participants
to perform tasks typically done during in-person hearings, such as a
highlighting feature that the parties can use to focus a witness on
particular portions of a document during witness questioning. Further,
FINRA will have a case administrator participate in each video
conference hearing to ensure participants have adequate technical
support during the hearing. These procedures and resources, among
others, will provide fair process for all hearing participants.
FINRA has filed the temporary proposed rule change for immediate
effectiveness. The implementation date will be 30 days after the date
of filing.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\33\ 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 that the proposed rule change is also
consistent with Section 15A(b)(8) of the Act,\34\ which requires, among
other things, that FINRA rules provide a fair procedure for the
disciplining of members and persons associated with members and the
denial of membership of any person seeking membership.
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\33\ 15 U.S.C. 78o-3(b)(6).
\34\ 15 U.S.C. 78o-3(b)(8).
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The underpinning of FINRA's regulatory purpose is to protect
investors and safeguard the integrity of the securities markets. FINRA
cannot accomplish these objectives in an effective manner without the
ability to timely conduct hearings in connection with its core
adjudicatory functions. The temporary proposed rule change will allow
FINRA's core adjudicatory functions to operate effectively without
protracted delays. For example, the temporary proposed rule change
allowing TCDO hearings to be conducted by video conference is vitally
important, as it will enable FINRA to take immediate action to stop
significant, ongoing customer harm.
With respect to eligibility proceedings, members and disqualified
individuals who file an MC-400A or MC-400 application are permitted, in
certain circumstances, to continue operations as a FINRA member and
continue to work in the industry, respectively, while their application
remains pending. Allowing hearings on these applications to proceed by
video conference will prevent extended delays and allow members and
disqualified individuals to receive an approval or denial of their
applications. Accordingly, the proposed rule change, which would grant
OHO and the NAC temporary authority to conduct hearings by video
conference, is in the public interest and consistent with the Act's
purpose.
[[Page 55716]]
Further, the proposed rule change will continue to provide fair
process in connection with OHO and NAC hearings.\35\ Conducting
hearings via video conference will give the parties and adjudicators
simultaneous visual and oral communication,\36\ but without the risks
of individuals being physically close to one another. FINRA will use
high quality, secure video conferencing technology with features that
will allow the parties to reasonably approximate those tasks that are
typically performed at an in-person hearing, such as sharing documents,
marking documents, and utilizing breakout rooms. FINRA will also
provide training for participants on how to use the video conferencing
platform and detailed guidance on the procedures that will govern such
hearings. Moreover, as noted above, the Chief or Deputy Chief Hearing
Officer, or the NAC or relevant Subcommittee, may take into
consideration, among other things, a hearing participant's access to
connectivity and technology in scheduling a video conference hearing
and can also, at their discretion, allow a party or witness to
participate by telephone, if necessary, to address such access issues.
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\35\ FINRA notes that, in interpreting the fair procedure
requirement under Section 15A(b)(8) of the Act, the Commission has
emphasized that FINRA and its predecessor organization (NASD) have
proceedings that are less formal than federal court proceedings.
See, e.g., Sumner B. Cotzin, 45 SEC. 575, 579-80 (1974) (``When
Congress provided for self-regulatory associations of securities
dealers such as the NASD, it clearly did not intend to create
formalistic tribunals akin to the courts or even to this Commission.
Self-regulation or cooperative regulation necessarily calls for
informality.''). See also David A. Gingras, 50 SEC. 1286, 1293 n.20
(1992) (``NASD's proceedings are informal and do not resemble those
of law courts.'').
\36\ See Jeremy Graboyes, Admin. Conf. of U.S., Legal
Considerations for Remote Hearings in Agency Adjudications at 12
(June 16, 2020), available at https://www.acus.gov/report/legal-considerations-remote-hearings-agency-adjudications.
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In addition, temporarily permitting the OHO and NAC hearings for
FINRA disciplinary matters to proceed by video conference maintains
fair process by providing respondents a timely opportunity to address
and potentially resolve any allegations of misconduct. With respect to
applicants who receive an adverse MAP decision, they will have a timely
opportunity to challenge the denial of their application. The temporary
proposed rule change strikes an appropriate balance, providing fair
process and enabling FINRA to fulfill its statutory obligations to
protect investors and maintain fair and orderly markets while taking
into consideration the significant health and safety risks of in-person
hearings stemming from the outbreak of COVID-19.
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the temporary 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 is intended solely to provide temporary relief given the
impacts of the COVID-19 outbreak. As a result of the temporary nature
of the proposed relief, an abbreviated economic impact assessment is
appropriate.
1. Economic Impact Assessment
(a) Regulatory Objective
FINRA is proposing this temporary relief to address the public
health risks and corresponding challenges of in-person hearings during
the COVID-19 crisis. Social distancing, quarantining and other similar
requirements to promote the health and safety of citizens make it
exceedingly difficult to conduct in-person hearings. In recognition of
these extraordinary times, the proposed rule change would temporarily
grant OHO's Chief or Deputy Chief Hearing Officer, or the NAC or
relevant Subcommittee, discretion to conduct OHO and NAC hearings,
respectively, by video conference, if warranted by the current COVID-
19-related public health risks posed by an in-person hearing.
(b) Economic Baseline
The obligations under FINRA Rules 1015, 9261, 9524 and 9830 are
described above. OHO conducts approximately 19 regular disciplinary
hearings per year.\37\ Since January 1, 2017, the NAC has held nine
hearings. One hearing was conducted in connection with an appeal of a
Membership Application Program decision and eight hearings related to
eligibility proceedings. Under current FINRA rules, hearings conducted
in connection with appeals of Membership Application Program decisions,
disciplinary actions, eligibility proceedings and temporary and
permanent cease and desist orders are typically conducted in person. In
order to comply with the guidance of public health authorities relating
to the COVID-19 pandemic and to ensure the safety of all participants
and stakeholders, FINRA has administratively postponed in-person OHO
and NAC hearings since March 16, 2020. To date, at least eight hearings
have been delayed as a result of the pandemic.
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\37\ OHO also conducts hearings for TCDO and PCDO proceedings.
OHO has not conducted a TCDO or PCDO hearing in the last three
calendar years.
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(c) Economic Impact
The proposed rule change is intended solely to provide a temporary
mechanism for FINRA to allow its critical adjudicatory functions to
proceed while COVID-19 continues to pose health and safety risks for
traditional, in-person hearings. The proposed rule change is necessary
to temporarily rebalance the attendant benefits and costs of the
obligations under FINRA Rules 1015, 9261, 9524 and 9830 in response to
the impacts of the COVID-19 pandemic.
(1) Anticipated Benefits
The benefits of the temporary proposed rule change will accrue to
participants and stakeholders of hearings that are conducted by video
conference rather than delayed until in-person hearings can be
conducted safely. A benefit of the temporary proposed rule change will
be reducing the potential costs associated with delayed proceedings
resulting from the COVID-19 pandemic, as discussed in Item 3(b) above.
The flexibility provided by this temporary proposed rule change--to
conduct hearings by video conference as warranted by COVID-related
public health risks--will also benefit hearing participants and other
stakeholders by allowing them to avoid the health and safety risks
associated with in-person hearings. In addition, hearing participants
will benefit from the elimination of travel time and travel costs.
(2) Anticipated Costs
As previously stated, the public health risks stemming from the
COVID-19 outbreak have increased the costs associated with in-person
hearings. Conducting hearings by video conference, however, presents
some potential drawbacks. These may include technological challenges
such as bandwidth or connectivity issues for participants,
cybersecurity concerns or concerns related to the ability of hearing
participants to represent themselves in a manner equivalent to an in-
person hearing.
FINRA's approach to video conference hearings, however, which
includes, among other things, the use of high quality, secure
technology that allows hearing participants to perform tasks typically
done during in-person hearings should mitigate the potential costs. As
noted above, FINRA is currently conducting hearings using video
conferencing technology in similar contexts. Moreover, the
[[Page 55717]]
temporary proposed rule change permits, but does not mandate that
hearings be conducted by video conference. Therefore, OHO and the NAC
will use the discretion permitted under the temporary proposed rule
change to balance the costs of delaying a hearing with the public
health risks of requiring an in-person hearing, and the costs
associated with conducting hearings by video conference. Furthermore,
the temporary proposed rule change will not alter the Chief or Deputy
Chief Hearing Officer's, or the NAC or relevant Subcommittee's,
discretion to consider other factors affecting an individual's ability
to participate or allow a party or witness to participate by telephone,
if necessary to address, among other things, impediments to a hearing
participant's ability to use video conferencing technology such as
connectivity issues, reducing the potential costs. Additionally, the
proposed rule change is limited in time, providing temporary relief
through December 31, 2020, or until the conclusion of any extension
thereof.
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 \38\ and Rule 19b-
4(f)(6) thereunder.\39\
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\38\ 15 U.S.C. 78s(b)(3)(A).
\39\ 17 CFR 240.19b-4(f)(6).
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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.
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 [email protected]. Please include
File Number SR-FINRA-2020-027 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-2020-027. 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 (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 website viewing and printing in
the Commission's Public Reference Room, on business days between the
hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street NE,
Washington, DC 20549. 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. 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-FINRA-2020-027 and
should be submitted on or before September 30, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\40\
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\40\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-19838 Filed 9-8-20; 8:45 am]
BILLING CODE 8011-01-P