Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Expiration Date of the Temporary Amendments Set Forth in SR-FINRA-2020-015 and SR-FINRA-2020-027, 16262-16265 [2022-05981]
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Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices
POSTAL SERVICE
Sunshine Act Meetings
TIME AND DATE:
March 30, 2022, at 9:00
a.m.
PLACE:
Washington, DC.
Closed.
STATUS:
MATTERS TO BE CONSIDERED:
Wednesday, March 30, 2022, at 9:00
a.m.
1. Strategic Issues.
2. Financial and Operational Issues.
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4. Administrative Items.
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Michael J. Elston,
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[FR Doc. 2022–06144 Filed 3–18–22; 4:15 pm]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94430; File No. SR–FINRA–
2022–004]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Expiration
Date of the Temporary Amendments
Set Forth in SR–FINRA–2020–015 and
SR–FINRA–2020–027
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March 16, 2022.
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 March 7,
2022, the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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this filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to extend the
expiration date of the temporary
amendments set forth in SR–FINRA–
2020–015 and SR–FINRA–2020–027
from March 31, 2022, to July 31, 2022.4
The proposed rule change would not
make any changes to the text of FINRA
rules.
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
In response to the COVID–19 global
health crisis and the corresponding
need to restrict in-person activities,
FINRA filed proposed rule changes, SR–
FINRA–2020–015 and SR–FINRA–
2020–027, which respectively provide
temporary relief from some timing,
method of service and other procedural
requirements in FINRA rules and allow
FINRA’s Office of Hearing Officers
(‘‘OHO’’) and the National Adjudicatory
Council (‘‘NAC’’) to conduct hearings,
on a temporary basis, by video
conference, if warranted by the current
COVID–19-related public health risks
posed by an in-person hearing. In
December 2021, FINRA filed a proposed
rule change, SR–FINRA–2021–031, to
4 If FINRA seeks to provide additional temporary
relief from the rule requirements identified in this
proposed rule change beyond July 31, 2022, FINRA
will submit a separate rule filing to further extend
the temporary extension of time. The amended
FINRA rules will revert to their original form at the
conclusion of the temporary relief period and any
extension thereof.
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extend the expiration date of the
temporary amendments in both SR–
FINRA–2020–015 and SR–FINRA–
2020–027 from December 31, 2021, to
March 31, 2022.5
While there are material signs of
improvement, uncertainty still remains
for the coming months. The continued
presence of COVID–19 variants,
dissimilar vaccination rates throughout
the United States, and the current
medium to high COVID–19 community
levels in many states indicate that
COVID–19 remains an active and real
public health concern.6 Due to the
uncertainty and the lack of a clear
timeframe for a sustained and
widespread abatement of COVID–19related health concerns and
corresponding restrictions,7 FINRA
believes there is a continued need for
temporary relief beyond March 31,
2022. Accordingly, FINRA proposes to
extend the expiration date of the
temporary rule amendments in SR–
FINRA–2020–015 and SR–FINRA–
2020–027 from March 31, 2022, to July
31, 2022.8
i. SR–FINRA–2020–015
As stated in its previous filings,
FINRA proposed, and subsequently
extended, the changes set forth in SR–
5 See Securities Exchange Act Release No. 93758
(December 13, 2021), 86 FR 71695 (December 17,
2021) (Notice of Filing and Immediate Effectiveness
of File No. SR–FINRA–2021–031).
6 For example, on February 18, 2022, President
Joe Biden continued the national emergency
concerning COVID–19 beyond March 1, 2022,
because COVID–19 ‘‘continues to cause significant
risk to the public health and safety’’ of the United
States. See Continuation of the National Emergency
Concerning the Coronavirus Disease 2019 (COVID–
19) Pandemic, 87 FR 10289 (February 23, 2022).
7 For instance, the Centers for Disease Control and
Prevention (‘‘CDC’’) recommends that people wear
a mask in public indoor settings in areas with a
high COVID–19 community level regardless of
vaccination status or individual risk. See https://
www.cdc.gov/coronavirus/2019-ncov/preventgetting-sick/about-face-coverings.html.
Furthermore, numerous states currently have
COVID–19 restrictions in place. Hawaii requires
most people to wear masks in indoor public places
regardless of vaccination status and several other
states have mask mandates in certain settings, such
as healthcare and correctional facilities.
8 As a further basis for extending the expiration
date to July 31, 2022, FINRA notes that its Board
has approved the submission of a rule proposal to
the Commission to make permanent the temporary
service and filing rules originally set forth in SR–
FINRA–2020–015. See https://www.finra.org/about/
governance/finra-board-governors/meetings/
update-finra-board-governors-meeting-december2021. FINRA contemplates filing the rule proposal
with the Commission in the near future and the
extension of the temporary rule amendments would
help to avoid the rules reverting to their original
form before the permanent rules, if approved by the
Commission, become effective. FINRA notes that
the proposal approved by its Board does not
include the temporary rule amendments pertaining
to video conference hearings originally set forth in
SR–FINRA–2020–027.
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Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices
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FINRA–2020–015 to temporarily amend
some timing, method of service and
other procedural requirements in FINRA
rules during the period in which
FINRA’s operations are impacted by the
outbreak of COVID–19.9 Among other
things, the need for FINRA staff, with
limited exceptions, to work remotely
and restrict in-person activities–
consistent with the recommendations of
public health officials–have made it
challenging to meet some procedural
requirements and perform some
functions required under FINRA rules.
For example, working remotely makes it
difficult to send and receive hard copy
documents and conduct in-person oral
arguments. The temporary amendments
have addressed these concerns by easing
logistical and other issues and providing
FINRA with needed flexibility for its
operations during the COVID–19
outbreak, allowing FINRA to continue
critical adjudicatory and review
processes in a reasonable and fair
manner and meet its critical investor
protection goals, while also following
best practices with respect to the health
and safety of its staff.
FINRA staff, with limited exceptions,
continue to work remotely to protect
their health and safety. As indicated in
its previous filings, FINRA has
established a COVID–19 task force to
develop a data-driven, staged plan for
FINRA staff to safely return to working
in FINRA office locations and resume
other in-person activities. Based on its
assessment of current COVID–19
conditions, FINRA does not believe the
COVID–19-related health concerns
necessitating this relief will
meaningfully subside by March 31,
2022, and therefore proposes to extend
the expiration date of the temporary rule
amendments originally set forth in SR–
9 See Securities Exchange Act Release No. 88917
(May 20, 2020), 85 FR 31832 (May 27, 2020) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2020–015); Securities Exchange Act
Release No. 89055 (June 12, 2020), 85 FR 36928
(June 18, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR–FINRA–2020–017);
Securities Exchange Act Release No. 89423 (July 29,
2020), 85 FR 47278 (August 4, 2020) (Notice of
Filing and Immediate Effectiveness of File No. SR–
FINRA–2020–022); Securities Exchange Act Release
No. 90619 (December 9, 2020), 85 FR 81250
(December 15, 2020) (Notice of Filing and
Immediate Effectiveness of File No. SR–FINRA–
2020–042); Securities Exchange Act Release No.
91495 (April 7, 2021), 86 FR 19306 (April 13, 2021)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2021–006); Securities
Exchange Act Release No. 92685 (August 17, 2021),
86 FR 47169 (August 23, 2021) (Notice of Filing and
Immediate Effectiveness of File No. SR–FINRA–
2021–019); supra note 5.
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FINRA–2020–015 10 from March 31,
2022, to July 31, 2022.11
ii. SR–FINRA–2020–027
The same public health concerns and
restrictions, along with a corresponding
backlog of disciplinary cases,12 led
FINRA to file, and subsequently extend
to March 31, 2022, SR–FINRA–2020–
027 to temporarily amend FINRA Rules
1015, 9261, 9524, and 9830 to grant
OHO and the NAC authority 13 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
COVID–19-related public health risks
posed by an in-person hearing.14
As set forth in the previous filings,
FINRA also relies 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.15 Based on
that guidance and data, FINRA does not
believe the COVID–19-related health
10 See
supra note 9 (outlining the filing history of
SR–FINRA–2020–015 and its prior extensions).
11 As noted above, FINRA plans to submit a rule
proposal to the Commission to make permanent the
temporary service and filing rules originally set
forth in SR–FINRA–2020–015. See supra note 8.
12 For example, FINRA began temporarily
postponing in-person hearings as a result of the
COVID–19 impacts on March 16, 2020.
13 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 the relevant
Subcommittee.
14 See Securities Exchange Act Release No. 89739
(September 2, 2020), 85 FR 55712 (September 9,
2020) (Notice of Filing and Immediate Effectiveness
of File No. SR–FINRA–2020–027); Securities
Exchange Act Release No. 90619 (December 9,
2020), 85 FR 81250 (December 15, 2020) (Notice of
Filing and Immediate Effectiveness of File No. SR–
FINRA–2020–042); Securities Exchange Act Release
No. 91495 (April 7, 2021), 86 FR 19306 (April 13,
2021) (Notice of Filing and Immediate Effectiveness
of File No. SR–FINRA–2021–006); Securities
Exchange Act Release No. 92685 (August 17, 2021),
86 FR 47169 (August 23, 2021) (Notice of Filing and
Immediate Effectiveness of File No. SR–FINRA–
2021–019); supra note 5.
15 As noted in SR–FINRA–2020–027, the
temporary proposed rule change grants discretion to
OHO and the NAC to order a video conference
hearing. In deciding whether to schedule a hearing
by video conference, OHO and the NAC may
consider a variety of other factors in addition to
COVID–19 trends. In SR–FINRA–2020–027, FINRA
provided a non-exhaustive list of other factors OHO
and the NAC may take into consideration, including
a hearing participant’s individual health concerns
and access to the connectivity and technology
necessary to participate in a video conference
hearing.
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16263
concerns necessitating this relief will
meaningfully subside by March 31,
2022, and believes there will be a
continued need for this temporary relief
beyond that date.16 Accordingly, FINRA
proposes to extend the expiration date
of the temporary rule amendments
originally set forth in SR–FINRA–2020–
027 from March 31, 2022, to July 31,
2022.17 The extension of these
temporary amendments allowing for
specified OHO and NAC hearings to
proceed by video conference will allow
FINRA’s critical adjudicatory functions
to continue to operate effectively in
these extraordinary circumstances–
enabling FINRA to fulfill its statutory
obligations to protect investors and
maintain fair and orderly markets–while
also protecting the health and safety of
hearing participants.18
FINRA has filed the proposed rule
change for immediate effectiveness and
has requested that the SEC waive the
requirement that the proposed rule
change not become operative for 30 days
after the date of the filing, so FINRA can
implement the proposed rule change
immediately.
16 FINRA notes that the proposed extension of the
temporary amendments does not mean a video
conference hearing will be ordered in every case.
FINRA strives to hold in-person hearings when it
is safe to do so and began to hold such hearings at
a single location last year. Specifically, FINRA held
its first in-person hearing since the temporary rule
change was implemented in July 2021. A
subsequent surge in case numbers for the Delta
variant of the COVID–19 virus caused FINRA’s
outside health and safety consultant to recommend
in early August against in-person hearings.
Accordingly, the Chief Hearing Officer converted
hearings scheduled after mid-September from inperson to video conference on a case-by-case basis.
In addition to creating a safe environment in which
an in-person hearing may be held, as mentioned
above, a number of other considerations inform
whether any given case will be held in-person or
by video conference.
17 See supra note 5.
18 Since the temporary amendments were
implemented, OHO and the NAC have conducted
several hearings by video conference. As of
February 24, 2022, OHO has conducted 15
disciplinary hearings by video conference
(decisions have been issued in 11 of these cases).
In five of these disciplinary hearings, all of the
parties agreed to proceed by video conference; the
other 10 were ordered to proceed by video
conference by the Chief Hearing Officer. OHO
currently has hearings scheduled in seven
additional disciplinary matters. OHO has ordered
that four proceed by video conference. No
determination has yet been made regarding whether
the other hearings will be in-person or by video
conference. Also, as of February 23, 2022, the NAC,
through the relevant Subcommittee, has conducted
14 oral arguments by video conference in
connection with appeals of FINRA disciplinary
proceedings pursuant to FINRA Rule 9341(d), as
temporarily amended. Furthermore, the NAC has
conducted via video conference a one-day
evidentiary hearing in a membership application
proceeding pursuant to FINRA Rule 1015, as
temporarily amended.
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2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,19 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,20
which requires, among other things, that
FINRA rules provide a fair procedure for
the disciplining of members and
persons associated with members.
The proposed rule change, which
extends the expiration date of the
temporary amendments to FINRA rules
set forth in SR–FINRA–2020–015, will
continue to provide FINRA, and in some
cases another party to a proceeding,
temporary modifications to its
procedural requirements in order to
allow FINRA to maintain fair processes
and protect investors while operating in
a remote work environment and with
corresponding restrictions on its
activities. It is in the public interest, and
consistent with the Act’s purpose, for
FINRA to operate pursuant to this
temporary relief. The temporary
amendments allow FINRA to specify
filing and service methods, extend
certain time periods, and modify the
format of oral argument for FINRA
disciplinary and eligibility proceedings
and other review processes to cope with
the current pandemic conditions. In
addition, extending this temporary relief
will further support FINRA’s
disciplinary and eligibility proceedings
and other review processes that serve a
critical role in providing investor
protection and maintaining fair and
orderly markets.
The proposed rule change, which also
extends the expiration date of the
temporary amendments to FINRA rules
set forth in SR–FINRA–2020–027, will
continue to aid FINRA’s efforts to timely
conduct hearings in connection with its
core adjudicatory functions. Given the
current and frequently changing
COVID–19 conditions and the
uncertainty around when those
conditions will see meaningful,
widespread and sustained
improvement, without this relief
allowing OHO and NAC hearings to
proceed by video conference, FINRA
might be required to postpone some or
almost all hearings indefinitely. FINRA
must be able to perform its critical
19 15
20 15
U.S.C. 78o–3(b)(6).
U.S.C. 78o–3(b)(8).
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adjudicatory functions to fulfill its
statutory obligations to protect investors
and maintain fair and orderly markets.
As such, this relief is essential to
FINRA’s ability to fulfill its statutory
obligations and allows hearing
participants to avoid the serious
COVID–19-related health and safety
risks associated with in-person hearings.
Among other things, this relief will
allow OHO to conduct temporary cease
and desist proceedings by video
conference so that FINRA can take
immediate action to stop ongoing
customer harm and will allow the NAC
to timely provide members, disqualified
individuals and other applicants an
approval or denial of their applications.
As set forth in detail in the original
filing, this temporary relief allowing
OHO and NAC hearings to proceed by
video conference accounts for fair
process considerations and will
continue to provide fair process while
avoiding the COVID–19-related public
health risks for hearing participants.
Accordingly, the proposed rule change
extending this temporary relief is in the
public interest and consistent with the
Act’s purpose.
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.
As set forth in SR–FINRA–2020–015
and SR–FINRA–2020–027, the proposed
rule change is intended solely to extend
temporary relief necessitated by the
continued impacts of the COVID–19
outbreak and the related health and
safety risks of conducting in-person
activities. FINRA believes that the
proposed rule change will prevent
unnecessary impediments to FINRA’s
operations, including its critical
adjudicatory processes, and its ability to
fulfill its statutory obligations to protect
investors and maintain fair and orderly
markets that would otherwise result if
the temporary amendments were to
expire on March 31, 2022.
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
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Fmt 4703
Sfmt 4703
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 21 and Rule 19b–
4(f)(6) thereunder.22
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii), the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. As
FINRA requested in connection with
SR–FINRA–2020–015 and related
extensions,23 FINRA has also asked the
Commission to waive the 30-day
operative delay so that this proposed
rule change may become operative
immediately upon filing.
FINRA has indicated that extending
the relief provided originally in SR–
FINRA–2020–015 and SR–FINRA–
2020–027 will continue to ease
logistical and other issues by providing
FINRA with needed flexibility for its
operations during the COVID–19
outbreak. Importantly, extending the
relief provided in these prior rule
changes immediately upon filing and
without a 30-day operative delay will
allow FINRA to continue critical
adjudicatory and review processes in a
reasonable and fair manner and meet its
critical investor protection goals, while
also following best practices with
respect to the health and safety of its
employees.24 The Commission also
notes that this proposal, like SR–
FINRA–2020–015 and SR–FINRA–
2020–027, provides only temporary
relief during the period in which
FINRA’s operations are impacted by
COVID–19. As proposed, the changes
would be in place through July 31,
2022.25 FINRA also noted in both SR–
FINRA–2020–015 and SR–FINRA–
2020–027 that the amended rules will
revert back to their original state at the
21 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
23 See SR–FINRA–2020–015, 85 FR at 31836.
Although FINRA did not request that the
Commission waive the 30-day operative delay for
SR–FINRA–2020–027, FINRA did request that the
Commission waive the 30-day operative delay for
SR–FINRA–2020–042, FINRA–2021–006, FINRA–
2021–019, and FINRA–2021–031, which extended
the expiration date of the temporary amendments
originally set forth in SR–FINRA–2020–027.
24 See supra Item II.A.1; see also SR–FINRA–
2020–015, 85 FR at 31833.
25 As noted above, see supra note 4, FINRA stated
that if it requires temporary relief from the rule
requirements identified in this proposal beyond
July 31, 2022, it may submit a separate rule filing
to extend the effectiveness of the temporary relief
under these rules.
22 17
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Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices
conclusion of the temporary relief
period unless, if applicable, there is any
extension thereof,26 or, as FINRA notes
in this filing, it proposes to make any
amended rule permanent in connection
with a separate proposed rule change
filing.27 For these reasons, the
Commission believes that waiver of the
30-day operative delay for this proposal
is consistent with the protection of
investors and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.28
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 rule-comments@
sec.gov. Please include File Number SR–
FINRA–2022–004 on the subject line.
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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–2022–004. 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
26 See SR–FINRA–2020–015, 85 FR at 31833; see
also SR–FINRA–2020–027, 85 FR at 55712.
27 Any such proposed rule change to make an
amended rule permanent would require notice and
comment, as well as Commission approval, before
becoming effective. See supra note 8.
28 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
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18:24 Mar 21, 2022
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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 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–
2022–004 and should be submitted on
or before April 12, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–05981 Filed 3–21–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94428; File No. SR–FINRA–
2022–005]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Pilot
Period Related to FINRA Rule 6121.02
(Market-Wide Circuit Breakers in NMS
Stocks)
March 16, 2022.
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 March 10,
2022, the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
29 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
II below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to extend the
pilot period related to FINRA Rule
6121.02 (Market-wide Circuit Breakers
in NMS Stocks) to the close of business
on April 18, 2022.
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
FINRA proposes to extend the pilot
related to the market-wide circuit
breaker in Rule 6121.02 to the close of
business on April 18, 2022.
Background
The Market-Wide Circuit Breaker
(‘‘MWCB’’) rules, including FINRA Rule
6121.02, provide an important,
automatic mechanism that is invoked to
promote stability and investor
confidence during periods of significant
stress when cash equities securities
experience extreme market-wide
declines. The MWCB rules are designed
to slow the effects of extreme price
declines through coordinated trading
halts across both cash equity and equity
options securities markets.
1 15
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CFR 240.19b–4(f)(6).
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]]>Agencies
[Federal Register Volume 87, Number 55 (Tuesday, March 22, 2022)]
[Notices]
[Pages 16262-16265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05981]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94430; File No. SR-FINRA-2022-004]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Expiration Date of the Temporary
Amendments Set Forth in SR-FINRA-2020-015 and SR-FINRA-2020-027
March 16, 2022.
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 March 7, 2022, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. FINRA has designated
the proposed rule change as constituting a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ which
renders the proposal effective upon receipt of this filing by the
Commission. 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\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to extend the expiration date of the temporary
amendments set forth in SR-FINRA-2020-015 and SR-FINRA-2020-027 from
March 31, 2022, to July 31, 2022.\4\ The proposed rule change would not
make any changes to the text of FINRA rules.
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\4\ If FINRA seeks to provide additional temporary relief from
the rule requirements identified in this proposed rule change beyond
July 31, 2022, FINRA will submit a separate rule filing to further
extend the temporary extension of time. The amended FINRA rules will
revert to their original form 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
In response to the COVID-19 global health crisis and the
corresponding need to restrict in-person activities, FINRA filed
proposed rule changes, SR-FINRA-2020-015 and SR-FINRA-2020-027, which
respectively provide temporary relief from some timing, method of
service and other procedural requirements in FINRA rules and allow
FINRA's Office of Hearing Officers (``OHO'') and the National
Adjudicatory Council (``NAC'') to conduct hearings, on a temporary
basis, by video conference, if warranted by the current COVID-19-
related public health risks posed by an in-person hearing. In December
2021, FINRA filed a proposed rule change, SR-FINRA-2021-031, to extend
the expiration date of the temporary amendments in both SR-FINRA-2020-
015 and SR-FINRA-2020-027 from December 31, 2021, to March 31, 2022.\5\
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\5\ See Securities Exchange Act Release No. 93758 (December 13,
2021), 86 FR 71695 (December 17, 2021) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2021-031).
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While there are material signs of improvement, uncertainty still
remains for the coming months. The continued presence of COVID-19
variants, dissimilar vaccination rates throughout the United States,
and the current medium to high COVID-19 community levels in many states
indicate that COVID-19 remains an active and real public health
concern.\6\ Due to the uncertainty and the lack of a clear timeframe
for a sustained and widespread abatement of COVID-19-related health
concerns and corresponding restrictions,\7\ FINRA believes there is a
continued need for temporary relief beyond March 31, 2022. Accordingly,
FINRA proposes to extend the expiration date of the temporary rule
amendments in SR-FINRA-2020-015 and SR-FINRA-2020-027 from March 31,
2022, to July 31, 2022.\8\
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\6\ For example, on February 18, 2022, President Joe Biden
continued the national emergency concerning COVID-19 beyond March 1,
2022, because COVID-19 ``continues to cause significant risk to the
public health and safety'' of the United States. See Continuation of
the National Emergency Concerning the Coronavirus Disease 2019
(COVID-19) Pandemic, 87 FR 10289 (February 23, 2022).
\7\ For instance, the Centers for Disease Control and Prevention
(``CDC'') recommends that people wear a mask in public indoor
settings in areas with a high COVID-19 community level regardless of
vaccination status or individual risk. See https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/about-face-coverings.html. Furthermore, numerous states currently have COVID-19
restrictions in place. Hawaii requires most people to wear masks in
indoor public places regardless of vaccination status and several
other states have mask mandates in certain settings, such as
healthcare and correctional facilities.
\8\ As a further basis for extending the expiration date to July
31, 2022, FINRA notes that its Board has approved the submission of
a rule proposal to the Commission to make permanent the temporary
service and filing rules originally set forth in SR-FINRA-2020-015.
See https://www.finra.org/about/governance/finra-board-governors/meetings/update-finra-board-governors-meeting-december-2021. FINRA
contemplates filing the rule proposal with the Commission in the
near future and the extension of the temporary rule amendments would
help to avoid the rules reverting to their original form before the
permanent rules, if approved by the Commission, become effective.
FINRA notes that the proposal approved by its Board does not include
the temporary rule amendments pertaining to video conference
hearings originally set forth in SR-FINRA-2020-027.
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i. SR-FINRA-2020-015
As stated in its previous filings, FINRA proposed, and subsequently
extended, the changes set forth in SR-
[[Page 16263]]
FINRA-2020-015 to temporarily amend some timing, method of service and
other procedural requirements in FINRA rules during the period in which
FINRA's operations are impacted by the outbreak of COVID-19.\9\ Among
other things, the need for FINRA staff, with limited exceptions, to
work remotely and restrict in-person activities-consistent with the
recommendations of public health officials-have made it challenging to
meet some procedural requirements and perform some functions required
under FINRA rules. For example, working remotely makes it difficult to
send and receive hard copy documents and conduct in-person oral
arguments. The temporary amendments have addressed these concerns by
easing logistical and other issues and providing FINRA with needed
flexibility for its operations during the COVID-19 outbreak, allowing
FINRA to continue critical adjudicatory and review processes in a
reasonable and fair manner and meet its critical investor protection
goals, while also following best practices with respect to the health
and safety of its staff.
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\9\ See Securities Exchange Act Release No. 88917 (May 20,
2020), 85 FR 31832 (May 27, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2020-015); Securities Exchange
Act Release No. 89055 (June 12, 2020), 85 FR 36928 (June 18, 2020)
(Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-
2020-017); Securities Exchange Act Release No. 89423 (July 29,
2020), 85 FR 47278 (August 4, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2020-022); Securities Exchange
Act Release No. 90619 (December 9, 2020), 85 FR 81250 (December 15,
2020) (Notice of Filing and Immediate Effectiveness of File No. SR-
FINRA-2020-042); Securities Exchange Act Release No. 91495 (April 7,
2021), 86 FR 19306 (April 13, 2021) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2021-006); Securities Exchange
Act Release No. 92685 (August 17, 2021), 86 FR 47169 (August 23,
2021) (Notice of Filing and Immediate Effectiveness of File No. SR-
FINRA-2021-019); supra note 5.
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FINRA staff, with limited exceptions, continue to work remotely to
protect their health and safety. As indicated in its previous filings,
FINRA has established a COVID-19 task force to develop a data-driven,
staged plan for FINRA staff to safely return to working in FINRA office
locations and resume other in-person activities. Based on its
assessment of current COVID-19 conditions, FINRA does not believe the
COVID-19-related health concerns necessitating this relief will
meaningfully subside by March 31, 2022, and therefore proposes to
extend the expiration date of the temporary rule amendments originally
set forth in SR-FINRA-2020-015 \10\ from March 31, 2022, to July 31,
2022.\11\
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\10\ See supra note 9 (outlining the filing history of SR-FINRA-
2020-015 and its prior extensions).
\11\ As noted above, FINRA plans to submit a rule proposal to
the Commission to make permanent the temporary service and filing
rules originally set forth in SR-FINRA-2020-015. See supra note 8.
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ii. SR-FINRA-2020-027
The same public health concerns and restrictions, along with a
corresponding backlog of disciplinary cases,\12\ led FINRA to file, and
subsequently extend to March 31, 2022, SR-FINRA-2020-027 to temporarily
amend FINRA Rules 1015, 9261, 9524, and 9830 to grant OHO and the NAC
authority \13\ 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 COVID-19-related public
health risks posed by an in-person hearing.\14\
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\12\ For example, FINRA began temporarily postponing in-person
hearings as a result of the COVID-19 impacts on March 16, 2020.
\13\ 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 the relevant
Subcommittee.
\14\ See Securities Exchange Act Release No. 89739 (September 2,
2020), 85 FR 55712 (September 9, 2020) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2020-027); Securities
Exchange Act Release No. 90619 (December 9, 2020), 85 FR 81250
(December 15, 2020) (Notice of Filing and Immediate Effectiveness of
File No. SR-FINRA-2020-042); Securities Exchange Act Release No.
91495 (April 7, 2021), 86 FR 19306 (April 13, 2021) (Notice of
Filing and Immediate Effectiveness of File No. SR-FINRA-2021-006);
Securities Exchange Act Release No. 92685 (August 17, 2021), 86 FR
47169 (August 23, 2021) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2021-019); supra note 5.
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As set forth in the previous filings, FINRA also relies 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.\15\ Based on
that guidance and data, FINRA does not believe the COVID-19-related
health concerns necessitating this relief will meaningfully subside by
March 31, 2022, and believes there will be a continued need for this
temporary relief beyond that date.\16\ Accordingly, FINRA proposes to
extend the expiration date of the temporary rule amendments originally
set forth in SR-FINRA-2020-027 from March 31, 2022, to July 31,
2022.\17\ The extension of these temporary amendments allowing for
specified OHO and NAC hearings to proceed by video conference will
allow FINRA's critical adjudicatory functions to continue to operate
effectively in these extraordinary circumstances-enabling FINRA to
fulfill its statutory obligations to protect investors and maintain
fair and orderly markets-while also protecting the health and safety of
hearing participants.\18\
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\15\ As noted in SR-FINRA-2020-027, the temporary proposed rule
change grants discretion to OHO and the NAC to order a video
conference hearing. In deciding whether to schedule a hearing by
video conference, OHO and the NAC may consider a variety of other
factors in addition to COVID-19 trends. In SR-FINRA-2020-027, FINRA
provided a non-exhaustive list of other factors OHO and the NAC may
take into consideration, including a hearing participant's
individual health concerns and access to the connectivity and
technology necessary to participate in a video conference hearing.
\16\ FINRA notes that the proposed extension of the temporary
amendments does not mean a video conference hearing will be ordered
in every case. FINRA strives to hold in-person hearings when it is
safe to do so and began to hold such hearings at a single location
last year. Specifically, FINRA held its first in-person hearing
since the temporary rule change was implemented in July 2021. A
subsequent surge in case numbers for the Delta variant of the COVID-
19 virus caused FINRA's outside health and safety consultant to
recommend in early August against in-person hearings. Accordingly,
the Chief Hearing Officer converted hearings scheduled after mid-
September from in-person to video conference on a case-by-case
basis. In addition to creating a safe environment in which an in-
person hearing may be held, as mentioned above, a number of other
considerations inform whether any given case will be held in-person
or by video conference.
\17\ See supra note 5.
\18\ Since the temporary amendments were implemented, OHO and
the NAC have conducted several hearings by video conference. As of
February 24, 2022, OHO has conducted 15 disciplinary hearings by
video conference (decisions have been issued in 11 of these cases).
In five of these disciplinary hearings, all of the parties agreed to
proceed by video conference; the other 10 were ordered to proceed by
video conference by the Chief Hearing Officer. OHO currently has
hearings scheduled in seven additional disciplinary matters. OHO has
ordered that four proceed by video conference. No determination has
yet been made regarding whether the other hearings will be in-person
or by video conference. Also, as of February 23, 2022, the NAC,
through the relevant Subcommittee, has conducted 14 oral arguments
by video conference in connection with appeals of FINRA disciplinary
proceedings pursuant to FINRA Rule 9341(d), as temporarily amended.
Furthermore, the NAC has conducted via video conference a one-day
evidentiary hearing in a membership application proceeding pursuant
to FINRA Rule 1015, as temporarily amended.
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FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, so FINRA can implement the proposed rule change
immediately.
[[Page 16264]]
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\19\ 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,\20\ which requires, among
other things, that FINRA rules provide a fair procedure for the
disciplining of members and persons associated with members.
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\19\ 15 U.S.C. 78o-3(b)(6).
\20\ 15 U.S.C. 78o-3(b)(8).
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The proposed rule change, which extends the expiration date of the
temporary amendments to FINRA rules set forth in SR-FINRA-2020-015,
will continue to provide FINRA, and in some cases another party to a
proceeding, temporary modifications to its procedural requirements in
order to allow FINRA to maintain fair processes and protect investors
while operating in a remote work environment and with corresponding
restrictions on its activities. It is in the public interest, and
consistent with the Act's purpose, for FINRA to operate pursuant to
this temporary relief. The temporary amendments allow FINRA to specify
filing and service methods, extend certain time periods, and modify the
format of oral argument for FINRA disciplinary and eligibility
proceedings and other review processes to cope with the current
pandemic conditions. In addition, extending this temporary relief will
further support FINRA's disciplinary and eligibility proceedings and
other review processes that serve a critical role in providing investor
protection and maintaining fair and orderly markets.
The proposed rule change, which also extends the expiration date of
the temporary amendments to FINRA rules set forth in SR-FINRA-2020-027,
will continue to aid FINRA's efforts to timely conduct hearings in
connection with its core adjudicatory functions. Given the current and
frequently changing COVID-19 conditions and the uncertainty around when
those conditions will see meaningful, widespread and sustained
improvement, without this relief allowing OHO and NAC hearings to
proceed by video conference, FINRA might be required to postpone some
or almost all hearings indefinitely. FINRA must be able to perform its
critical adjudicatory functions to fulfill its statutory obligations to
protect investors and maintain fair and orderly markets. As such, this
relief is essential to FINRA's ability to fulfill its statutory
obligations and allows hearing participants to avoid the serious COVID-
19-related health and safety risks associated with in-person hearings.
Among other things, this relief will allow OHO to conduct temporary
cease and desist proceedings by video conference so that FINRA can take
immediate action to stop ongoing customer harm and will allow the NAC
to timely provide members, disqualified individuals and other
applicants an approval or denial of their applications. As set forth in
detail in the original filing, this temporary relief allowing OHO and
NAC hearings to proceed by video conference accounts for fair process
considerations and will continue to provide fair process while avoiding
the COVID-19-related public health risks for hearing participants.
Accordingly, the proposed rule change extending this temporary relief
is in the public interest and consistent with the Act's purpose.
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. As set forth in
SR-FINRA-2020-015 and SR-FINRA-2020-027, the proposed rule change is
intended solely to extend temporary relief necessitated by the
continued impacts of the COVID-19 outbreak and the related health and
safety risks of conducting in-person activities. FINRA believes that
the proposed rule change will prevent unnecessary impediments to
FINRA's operations, including its critical adjudicatory processes, and
its ability to fulfill its statutory obligations to protect investors
and maintain fair and orderly markets that would otherwise result if
the temporary amendments were to expire on March 31, 2022.
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 \21\ and Rule 19b-
4(f)(6) thereunder.\22\
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\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
pursuant to Rule 19b-4(f)(6)(iii), the Commission may designate a
shorter time if such action is consistent with the protection of
investors and the public interest. As FINRA requested in connection
with SR-FINRA-2020-015 and related extensions,\23\ FINRA has also asked
the Commission to waive the 30-day operative delay so that this
proposed rule change may become operative immediately upon filing.
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\23\ See SR-FINRA-2020-015, 85 FR at 31836. Although FINRA did
not request that the Commission waive the 30-day operative delay for
SR-FINRA-2020-027, FINRA did request that the Commission waive the
30-day operative delay for SR-FINRA-2020-042, FINRA-2021-006, FINRA-
2021-019, and FINRA-2021-031, which extended the expiration date of
the temporary amendments originally set forth in SR-FINRA-2020-027.
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FINRA has indicated that extending the relief provided originally
in SR-FINRA-2020-015 and SR-FINRA-2020-027 will continue to ease
logistical and other issues by providing FINRA with needed flexibility
for its operations during the COVID-19 outbreak. Importantly, extending
the relief provided in these prior rule changes immediately upon filing
and without a 30-day operative delay will allow FINRA to continue
critical adjudicatory and review processes in a reasonable and fair
manner and meet its critical investor protection goals, while also
following best practices with respect to the health and safety of its
employees.\24\ The Commission also notes that this proposal, like SR-
FINRA-2020-015 and SR-FINRA-2020-027, provides only temporary relief
during the period in which FINRA's operations are impacted by COVID-19.
As proposed, the changes would be in place through July 31, 2022.\25\
FINRA also noted in both SR-FINRA-2020-015 and SR-FINRA-2020-027 that
the amended rules will revert back to their original state at the
[[Page 16265]]
conclusion of the temporary relief period unless, if applicable, there
is any extension thereof,\26\ or, as FINRA notes in this filing, it
proposes to make any amended rule permanent in connection with a
separate proposed rule change filing.\27\ For these reasons, the
Commission believes that waiver of the 30-day operative delay for this
proposal is consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\28\
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\24\ See supra Item II.A.1; see also SR-FINRA-2020-015, 85 FR at
31833.
\25\ As noted above, see supra note 4, FINRA stated that if it
requires temporary relief from the rule requirements identified in
this proposal beyond July 31, 2022, it may submit a separate rule
filing to extend the effectiveness of the temporary relief under
these rules.
\26\ See SR-FINRA-2020-015, 85 FR at 31833; see also SR-FINRA-
2020-027, 85 FR at 55712.
\27\ Any such proposed rule change to make an amended rule
permanent would require notice and comment, as well as Commission
approval, before becoming effective. See supra note 8.
\28\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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-2022-004 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-2022-004. 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 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-2022-004 and should be submitted
on or before April 12, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
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\29\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-05981 Filed 3-21-22; 8:45 am]
BILLING CODE 8011-01-P
