Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend Temporary Supplementary Material .17 (Temporary Relief To Allow Remote Inspections for Calendar Years 2020, 2021, 2022, and 2023) Under FINRA Rule 3110 (Supervision) To Include Calendar Year 2024, 68258-68261 [2023-21785]
Download as PDF
<![CDATA[
68258
Federal Register / Vol. 88, No. 190 / Tuesday, October 3, 2023 / Notices
proposed rule change (SR–ICEEU–2023–
019), be, and hereby is, approved.20
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–21794 Filed 10–2–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98560; File No. SR–FINRA–
2023–012]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend Temporary
Supplementary Material .17
(Temporary Relief To Allow Remote
Inspections for Calendar Years 2020,
2021, 2022, and 2023) Under FINRA
Rule 3110 (Supervision) To Include
Calendar Year 2024
September 27, 2023.
ddrumheller on DSK120RN23PROD with NOTICES1
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
September 22, 2023, 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, II, and
III 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
temporary Supplementary Material .17
(Temporary Relief to Allow Remote
Inspections for Calendar Years 2020,
2021, 2022, and 2023) under FINRA
Rule 3110 (Supervision) to include
calendar year 2024 inspection
20 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
21 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
VerDate Sep<11>2014
20:04 Oct 02, 2023
Jkt 262001
obligations through the earlier of the
effective date of the remote inspections
pilot program proposed in File No. SR–
FINRA–2023–007, if approved, or June
30, 2024 within the scope of the
supplementary material.4 FINRA is
proposing to extend Rule 3110.17 to
provide member firms continuity
related to conducting inspections as part
of satisfying the obligations of Rule
3110(c) (Internal Inspections) at offices
and locations requiring inspection
during the first half of calendar year
2024.5 By statute, the Commission has
until the end of December 2023 to
approve or disapprove the Remote
Inspections Pilot Program Proposal.6
Given the uncertainty as to whether the
Commission will approve or disapprove
the Remote Inspections Pilot Program
Proposal by the end of calendar year
2023, FINRA believes that the proposed
extension is necessary to provide firms
the time to prepare for either the
resumption of on-site inspections if the
Commission disapproves the Remote
Inspections Pilot Program Proposal, or
alternatively, the implementation of the
proposed remote inspections pilot
program (‘‘Pilot Program’’) if the
Commission approves the Remote
Inspections Pilot Program Proposal.
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are
bracketed.
*
*
*
*
*
4 See Securities Exchange Act Release No. 97398
(April 28, 2023), 88 FR 28620 (May 4, 2023) (Notice
of Filing of File No. SR–FINRA–2023–007) and
Securities Exchange Act Release No. 98046 (August
2, 2023), 88 FR 53569 (August 8, 2023) (Notice of
Filing of Amendment No. 1 and Order Instituting
Proceedings To Determine Whether To Approve or
Disapprove File No. SR–FINRA–2023–007)
(‘‘Remote Inspections Pilot Program Proposal’’).
5 SEC staff and FINRA have stated in guidance
that inspections must include a physical, on-site
review component. See SEC National Examination
Risk Alert, Volume I, Issue 2 (November 30, 2011)
and Regulatory Notice 11–54 (November 2011)
(joint SEC and FINRA guidance stating, a ‘‘brokerdealer must conduct on-site inspections of each of
its office locations; [OSJs] and non-OSJ branches
that supervise non-branch locations at least
annually, all non-supervising branch offices at least
every three years; and non-branch offices
periodically.’’) (footnote defining an OSJ omitted).
See also SEC Division of Market Regulation, Staff
Legal Bulletin No. 17: Remote Office Supervision
(March 19, 2004) (stating, in part, that brokerdealers that conduct business through
geographically dispersed offices have not
adequately discharged their supervisory obligations
where there are no on-site routine or ‘‘for cause’’
inspections of those offices).
6 15 U.S.C. 78s(b)(2); see also note 4, supra.
PO 00000
Frm 00165
Fmt 4703
Sfmt 4703
3000. SUPERVISION AND
RESPONSIBILITES RELATING TO
ASSOCIATED PERSONS
3100. SUPERVISORY
RESPONSIBILITIES
3110. Supervision
(a) through (f) No Change.
• • • Supplementary Material:
—————
.01 through .16 No Change.
.17 Temporary Relief to Allow Remote
Inspections for Calendar Years 2020,
2021, 2022, [and] 2023, and Through
the Earlier of the Effective Date of the
Remote Inspections Pilot Program, if
Approved, or June 30, 2024.
(a) Use of Remote Inspections. Each
member obligated to conduct an
inspection of an office of supervisory
jurisdiction, branch office or non-branch
location in the calendar years specified
in this supplementary material pursuant
to, as applicable, paragraphs (c)(1)(A),
(B) and (C) under Rule 3110 may,
subject to the requirements of this Rule
3110.17, satisfy such obligation by
conducting the applicable inspection
remotely, without an on-site visit to the
office or location. In accordance with
Rule 3110.16, inspections for calendar
year 2020 must [be]have been
completed on or before March 31, 2021.
Inspections for calendar year 2021 must
[be]have been completed on or before
December 31, 2021, [and inspections]
for calendar year 2022, [must be
completed] on or before December 31,
2022, and for calendar year 2023, on or
before December 31, 2023. With respect
to a member’s obligation to conduct an
inspection of an office or location in
calendar year [2023]2024, a member has
the option to conduct those inspections
remotely through the earlier of the
effective date of the Remote Inspections
[p]Pilot [p]Program proposed in File No.
[SR–FINRA–2022–021]SR–FINRA–
2023–007, if approved, or [December 31,
2023]June 30, 2024. Notwithstanding
Rule 3110.17, a member shall remain
subject to the other requirements of Rule
3110(c).
(b) No Change.
(c) Effective Supervisory System. The
requirement to conduct inspections of
offices and locations is one part of the
member’s overall obligation to have an
effective supervisory system and
therefore, the member must continue
with its ongoing review of the activities
and functions occurring at all offices
and locations, whether or not the
member conducts inspections remotely.
A member’s use of a remote inspection
of an office or location will be held to
the same standards for review as set
forth under Rule 3110.12. Where a
E:\FR\FM\03OCN1.SGM
03OCN1
Federal Register / Vol. 88, No. 190 / Tuesday, October 3, 2023 / Notices
member’s remote inspection of an office
or location identifies any indicators of
irregularities or misconduct (i.e., ‘‘red
flags’’), the member may need to impose
additional supervisory procedures for
that office or location or may need to
provide for more frequent monitoring of
that office or location, including
potentially a subsequent physical, onsite visit on an announced or
unannounced basis [when the member’s
operational difficulties associated with
COVID–19 abate, nationally or locally as
relevant, and the challenges a member
is facing in light of the public health
and safety concerns make such on-site
visits feasible using reasonable best
efforts]. The temporary relief provided
by this Rule 3110.17 does not extend to
a member’s inspection requirements
beyond the earlier of the effective date
of the Remote Inspections [p]Pilot
[p]Program proposed in File No. [SR–
FINRA–2022–021]SR–FINRA–2023–007,
if approved, or [December 31, 2023]June
30, 2024, and such inspections must be
conducted in compliance with Rule
3110(c).
(d) No Change.
*
*
*
*
*
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.
ddrumheller on DSK120RN23PROD with NOTICES1
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 provided temporary relief to
member firms from certain regulatory
requirements, including those set forth
under Rule 3110. To help alleviate the
attendant logistical challenges member
firms were encountering to satisfy the
inspection component of their Rule
3110(c) requirements, FINRA adopted
Rule 3110.16 (Temporary Extension of
Time to Complete Office Inspections) to
extend the time by which member firms
were required to complete their
calendar year 2020 inspection
VerDate Sep<11>2014
20:04 Oct 02, 2023
Jkt 262001
obligations under Rule 3110(c) to March
31, 2021 with the expectation that the
extension did not relieve firms from the
on-site portion of the inspections of
their offices and locations,7 and
subsequently adopted Rule 3110.17 to
provide member firms the option,
subject to specified requirements under
the supplementary material, to complete
remotely specified calendar year
inspection obligations without an onsite visit to the office or location.8 Rule
3110.17 has been extended and is
currently set to end on December 31,
2023.9
The pandemic accelerated the
industry’s adoption of a broad remote
work environment and FINRA
recognizes that the pandemic has
profoundly changed attitudes on where
work can occur. As a result of this
change many firms have adopted, in
varying scale, hybrid work models
involving personnel who are working at
least part time from alternative work
locations (e.g., private residences). As
part of FINRA’s overall efforts to
modernize FINRA rules to reflect
evolving technologies and business
models, in April 2023, FINRA filed the
Remote Inspections Pilot Program
Proposal with the Commission to
establish a voluntary, three-year remote
inspections pilot program that would
allow eligible firms to conduct
inspections of all or some offices or
locations, remotely, subject to the
specified terms therein.10
If the Commission approves the
Remote Inspections Pilot Proposal, the
proposed extension of Rule 3110.17
would allow both FINRA and the firms
that are planning to participate in the
proposed Pilot Program additional time
to develop the technology and processes
that will be essential to operationalize
compliance with the Pilot Program’s
requirements. For example, firms will
7 See Securities Exchange Act Release No. 89188
(June 30, 2020), 85 FR 40713 (July 7, 2020) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2020–019).
8 See Securities Exchange Act Release No. 90454
(November 18, 2020), 85 FR 75097 (November 24,
2020) (Notice of Filing and Immediate Effectiveness
of File No. SR–FINRA–2020–040).
9 See Securities Exchange Act Release No. 96241
(November 4, 2022), 87 FR 67969 (November 10,
2022) (Notice of Filing and Immediate Effectiveness
of File No. SR–FINRA–2022–030) (extending the
relief through December 31, 2023); see also
Securities Exchange Act Release No. 94018 (January
20, 2022), 87 FR 4072 (January 26, 2022) (Notice of
Filing and Immediate Effectiveness of File No. SR–
FINRA–2022–001) (extending the relief through
December 31, 2022) and Securities Exchange Act
Release No. 93002 (September 15, 2021), 86 FR
52508 (September 21, 2021) (Notice of Filing and
Immediate Effectiveness of File No. SR–FINRA–
2021–023) (extending the relief through June 30,
2022).
10 See note 4, supra.
PO 00000
Frm 00166
Fmt 4703
Sfmt 4703
68259
need to conduct an eligibility review,
and conduct and document a risk
assessment for each office and location
that they elect to inspect remotely, and
implement technology to collect and
report the required data and information
to FINRA. Further, FINRA guidance will
be needed to guide implementation in
various circumstances.11 Firms that do
not elect to participate or would be
excluded from participating in the
proposed Pilot Program will also be
impacted and would need additional
time to staff, schedule, and resume onsite inspections of offices or locations 12
within the context of some lingering
health concerns and fluid work
locations.13. If the Commission
disapproves the Remote Inspections
Pilot Program Proposal, all firms would
be impacted and would need additional
time to staff, schedule and resume
conducting on-site inspections of offices
or locations.14
In sum, as calendar year 2024 is
approaching its fourth quarter, the
proposed extension of Rule 3110.17
would provide firms continuity in
meeting their inspection obligations
after the end of the Commission’s
statutory deadline to approve or
disapprove the Remote Inspections Pilot
Proposal. If the Commission approves
the Remote Inspections Pilot Proposal,
the proposed additional time would
allow FINRA to operationalize the Pilot
Program. Relatedly, the proposed
11 As part of the implementation process, FINRA
intends to publish a Regulatory Notice or other
guidance about the operational aspects of the
proposed Pilot Program.
12 See note 5, supra.
13 While the World Health Organization declared
an end to COVID–19 as a public health emergency,
COVID–19 remains an ongoing public health
problem. See WHO Director-General, Opening
Remarks at the Media Briefing on COVID–19 (May
5, 2023) (stating, in part, that the ‘‘virus is here to
stay. It is still killing, and it’s still changing. The
risk remains of new variants emerging that cause
new surges in cases and deaths.’’), https://
www.who.int/news-room/speeches/item/whodirector-general-s-opening-remarks-at-the-mediabriefing-5-may-2023; see also Benjamin J. Silk, et
al., COVID–19 Surveillance After Expiration of the
Public Health Emergency Declaration—United
States, May 11, 2023 (stating, among other things,
that ‘‘[a]lthough COVID–19 no longer poses the
societal emergency that it did when it first emerged
in late 2019, COVID–19 remains an ongoing public
health challenge. By April 26, 2023, more than 104
million U.S. COVID–19 cases, 6 million related
hospitalizations, and 1.1 million COVID–19–
associated deaths were reported to CDC[.]’’), 72
MMWR Morb Mortal Wkly Rep, 523–528 (2023),
https://www.cdc.gov/mmwr/volumes/72/wr/pdfs/
mm7219e1-H.pdf. Recent data on hospitalizations
from the CDC indicate that the number of
hospitalizations is up 7.7% (as of September 3 to
September 9, 2023). See Centers for Disease Control
and Prevents (‘‘CDC’’), COVID Data Tracker, Data
Update for the United States, https://covid.cdc.gov/
covid-data-tracker/#datatracker-home (last visited
September 22, 2023).
14 See note 5, supra.
E:\FR\FM\03OCN1.SGM
03OCN1
ddrumheller on DSK120RN23PROD with NOTICES1
68260
Federal Register / Vol. 88, No. 190 / Tuesday, October 3, 2023 / Notices
extension would give time for: (1) firms
that are planning to participate in the
proposed Pilot Program to implement
the processes needed to comply with
the proposed terms therein; and (2)
firms that are not planning to participate
or are excluded from participating in the
proposed Pilot Program, to prepare to
resume conducting on-site inspections
of their offices and locations as part of
satisfying the obligations of Rule
3110(c).
FINRA is not proposing to amend the
other conditions of the temporary rule.
The current conditions of the
supplementary material for firms that
elect to conduct remote inspections
would remain unchanged: such firms
must amend or supplement their written
supervisory procedures for remote
inspections, use remote inspections as
part of an effective supervisory system,
and maintain the required
documentation. FINRA continues to
believe this temporary remote
inspection option is a reasonable
alternative for firms to fulfill their Rule
3110(c) obligations under the current
circumstances described above. This
proposed extension is designed to
maintain the investor protection
objectives of the inspection
requirements under these
circumstances. As part of those
objectives, firms should consider
whether, under their particular
operating conditions, continued reliance
on Rule 3110.17 to conduct remote
inspections would be reasonable under
the circumstances. For example, firms
with offices that are open to the public
or that are otherwise doing business as
usual should consider whether some inperson inspections would be feasible
and add value to the firms’ supervisory
program. FINRA emphasizes that the
inspection requirement is one aspect of
a firm’s overall supervisory system, and
that the inspection, whether done
remotely under Rule 3110.17 or in
accordance with the proposed Pilot
Program, or on-site, would be held to
the existing standards of review under
Rule 3110.12 (Standards for Reasonable
Review).15
FINRA has filed the proposed rule
change for immediate effectiveness.
FINRA is proposing to make the
proposed rule change operative on
January 1, 2024.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
15 Those standards provide, in part, that based on
the factors set forth under that supplementary
material, members ‘‘may need to provide for more
frequent review of certain locations.’’
VerDate Sep<11>2014
20:04 Oct 02, 2023
Jkt 262001
of Section 15A(b)(6) of the Act,16 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. The proposed rule
change is intended to provide firms
certainty now as they plan their
upcoming calendar year 2024 inspection
program. This temporary proposed
supplementary material does not relieve
firms from meeting the core regulatory
obligation to establish and maintain a
system to supervise the activities of
each associated person that is
reasonably designed to achieve
compliance with applicable securities
laws and regulations, and with
applicable FINRA rules that directly
serve investor protection. In light of the
planning associated with firms
resuming on-site visits to offices and
locations to satisfy Rule 3110(c)(1), if
the Commission disapproves the
Remote Inspections Pilot Program
Proposal, and the significant planning
requirements that the proposed Pilot
Program, if approved, would entail for
FINRA and the firms that elect to
participate, FINRA believes that the
proposed rule change provides sensibly
tailored relief, while continuing to serve
and promote the protection of investors
and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The potential
economic impacts of Rule 3110.17 as
described in File No. SR–FINRA–2020–
040 continue to have applicability to the
proposed rule change herein. The
proposed rule change would extend the
temporary relief that provides firms
with the option to fulfill their
inspection obligations remotely. The
proposed extension would include
calendar year 2024 inspection
obligations through the earlier of the
effective date of the Remote Inspections
Pilot Program Proposal, if approved, or
June 30, 2024 within the scope of the
supplementary material without making
substantive changes to the other aspects
of the provision. In addition, the
proposed extension would provide
firms certainty for the reasons stated
above. FINRA believes that this limited
extension in temporary relief, together
with the requirements for using the
temporary relief in Rule 3110.17, would
not diminish investor protection.
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 17 and Rule 19b–
4(f)(6) thereunder.18
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–2023–012 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–2023–012. 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
17 15
16 15
PO 00000
U.S.C. 78o–3(b)(6).
Frm 00167
Fmt 4703
18 17
Sfmt 4703
E:\FR\FM\03OCN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
03OCN1
Federal Register / Vol. 88, No. 190 / Tuesday, October 3, 2023 / Notices
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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to File
Number SR–FINRA–2023–012 and
should be submitted on or before
October 24, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–21785 Filed 10–2–23; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #18205 and #18206;
TENNESSEE Disaster Number TN–00151]
Administrative Declaration of a
Disaster for the State of Tennessee
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of Tennessee dated 09/27/
2023.
Incident: Severe Storms and Flooding.
Incident Period: 08/14/2023 through
08/15/2023.
DATES: Issued on 09/27/2023.
Physical Loan Application Deadline
Date: 11/27/2023.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/27/2024.
ddrumheller on DSK120RN23PROD with NOTICES1
SUMMARY:
19 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
20:04 Oct 02, 2023
Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
ADDRESSES:
Alan Escobar, Office of Disaster
Recovery & Resilience, U.S. Small
Business Administration, 409 3rd Street
SW, Suite 6050, Washington, DC 20416,
(202) 205–6734.
Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
SUPPLEMENTARY INFORMATION:
Primary Counties: Monroe.
Contiguous Counties:
Tennessee: Blount, Loudon, McMinn,
Polk.
North Carolina: Cherokee, Graham.
The Interest Rates are:
Percent
2.500
8.000
4.000
2.375
2.375
4.000
2.375
The number assigned to this disaster
for physical damage is 18205 6 and for
economic injury is 18206 0.
The States which received an EIDL
Declaration # are North Carolina,
Tennessee.
Isabella Guzman,
Administrator.
[FR Doc. 2023–21748 Filed 10–2–23; 8:45 am]
BILLING CODE 8026–09–P
Jkt 262001
5.000
(Catalog of Federal Domestic Assistance
Number 59008)
PO 00000
Frm 00168
Fmt 4703
Sfmt 4703
DEPARTMENT OF STATE
[Public Notice: 12196]
Diversity Visa Instructions for DV–2025
Notice of Diversity Visa Program
for fiscal year 2025.
ACTION:
FOR FURTHER INFORMATION CONTACT:
For Physical Damage:
Homeowners With Credit Available Elsewhere ......................
Homeowners Without Credit
Available Elsewhere ..............
Businesses With Credit Available Elsewhere ......................
Businesses Without Credit
Available Elsewhere ..............
Non-Profit Organizations With
Credit Available Elsewhere ...
Non-Profit Organizations Without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
Non-Profit Organizations Without Credit Available Elsewhere .....................................
68261
This public notice provides
information on how to apply for the
DV–2025 Program and is issued
pursuant to the Immigration and
Nationality Act.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Program Overview
The Department of State annually
administers the statutorily created
Diversity Immigrant Visa Program.
Section 203(c) of the Immigration and
Nationality Act (INA) provides for a
class of immigrants known as ‘‘diversity
immigrants’’ from countries with
historically low rates of immigration to
the United States. For fiscal year 2025,
up to 55,000 Diversity Visas (DVs) will
be available. There is no cost to register
for the DV program, but selectees who
are scheduled for an interview will be
required to pay a visa application fee
prior to making their formal visa
application where a consular officer will
determine whether they qualify for the
visa.
Applicants who are selected in the
program (selectees) must meet simple
but strict eligibility requirements to
qualify for aDV. The Department of
State determines selectees through a
randomized computer drawing. The
Department of State distributes diversity
visas among six geographic regions, and
no single country may receive more
than seven percent of the available DVs
in any one year.
For DV–2025, natives of the following
countries and areas are not eligible to
apply, because more than 50,000 natives
of these countries immigrated to the
United States in the previous five years:
Bangladesh, Brazil, Canada, The
People’s Republic of China (including
mainland and Hong Kong born),
Colombia, Dominican Republic, El
Salvador, Haiti, Honduras, India,
Jamaica, Mexico, Nigeria, Pakistan,
Philippines, Republic of Korea (South
Korea), Venezuela, and Vietnam.
Natives of Macau SAR and Taiwan are
eligible.
With the exception of the United
Kingdom and its dependent territories,
which are now eligible for DV–2025,
there were no changes in eligibility from
the previous fiscal year.
Eligibility
Requirement One: Natives of
countries with historically low rates of
E:\FR\FM\03OCN1.SGM
03OCN1
]]>Agencies
[Federal Register Volume 88, Number 190 (Tuesday, October 3, 2023)]
[Notices]
[Pages 68258-68261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21785]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98560; File No. SR-FINRA-2023-012]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend Temporary Supplementary Material .17
(Temporary Relief To Allow Remote Inspections for Calendar Years 2020,
2021, 2022, and 2023) Under FINRA Rule 3110 (Supervision) To Include
Calendar Year 2024
September 27, 2023.
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 September 22, 2023, 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, II, and III 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to extend temporary Supplementary Material .17
(Temporary Relief to Allow Remote Inspections for Calendar Years 2020,
2021, 2022, and 2023) under FINRA Rule 3110 (Supervision) to include
calendar year 2024 inspection obligations through the earlier of the
effective date of the remote inspections pilot program proposed in File
No. SR-FINRA-2023-007, if approved, or June 30, 2024 within the scope
of the supplementary material.\4\ FINRA is proposing to extend Rule
3110.17 to provide member firms continuity related to conducting
inspections as part of satisfying the obligations of Rule 3110(c)
(Internal Inspections) at offices and locations requiring inspection
during the first half of calendar year 2024.\5\ By statute, the
Commission has until the end of December 2023 to approve or disapprove
the Remote Inspections Pilot Program Proposal.\6\ Given the uncertainty
as to whether the Commission will approve or disapprove the Remote
Inspections Pilot Program Proposal by the end of calendar year 2023,
FINRA believes that the proposed extension is necessary to provide
firms the time to prepare for either the resumption of on-site
inspections if the Commission disapproves the Remote Inspections Pilot
Program Proposal, or alternatively, the implementation of the proposed
remote inspections pilot program (``Pilot Program'') if the Commission
approves the Remote Inspections Pilot Program Proposal.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 97398 (April 28,
2023), 88 FR 28620 (May 4, 2023) (Notice of Filing of File No. SR-
FINRA-2023-007) and Securities Exchange Act Release No. 98046
(August 2, 2023), 88 FR 53569 (August 8, 2023) (Notice of Filing of
Amendment No. 1 and Order Instituting Proceedings To Determine
Whether To Approve or Disapprove File No. SR-FINRA-2023-007)
(``Remote Inspections Pilot Program Proposal'').
\5\ SEC staff and FINRA have stated in guidance that inspections
must include a physical, on-site review component. See SEC National
Examination Risk Alert, Volume I, Issue 2 (November 30, 2011) and
Regulatory Notice 11-54 (November 2011) (joint SEC and FINRA
guidance stating, a ``broker-dealer must conduct on-site inspections
of each of its office locations; [OSJs] and non-OSJ branches that
supervise non-branch locations at least annually, all non-
supervising branch offices at least every three years; and non-
branch offices periodically.'') (footnote defining an OSJ omitted).
See also SEC Division of Market Regulation, Staff Legal Bulletin No.
17: Remote Office Supervision (March 19, 2004) (stating, in part,
that broker-dealers that conduct business through geographically
dispersed offices have not adequately discharged their supervisory
obligations where there are no on-site routine or ``for cause''
inspections of those offices).
\6\ 15 U.S.C. 78s(b)(2); see also note 4, supra.
---------------------------------------------------------------------------
Below is the text of the proposed rule change. Proposed new
language is in italics; proposed deletions are bracketed.
* * * * *
3000. SUPERVISION AND RESPONSIBILITES RELATING TO ASSOCIATED PERSONS
3100. SUPERVISORY RESPONSIBILITIES
3110. Supervision
(a) through (f) No Change.
Supplementary Material: ----------
.01 through .16 No Change.
.17 Temporary Relief to Allow Remote Inspections for Calendar Years
2020, 2021, 2022, [and] 2023, and Through the Earlier of the Effective
Date of the Remote Inspections Pilot Program, if Approved, or June 30,
2024.
(a) Use of Remote Inspections. Each member obligated to conduct an
inspection of an office of supervisory jurisdiction, branch office or
non-branch location in the calendar years specified in this
supplementary material pursuant to, as applicable, paragraphs
(c)(1)(A), (B) and (C) under Rule 3110 may, subject to the requirements
of this Rule 3110.17, satisfy such obligation by conducting the
applicable inspection remotely, without an on-site visit to the office
or location. In accordance with Rule 3110.16, inspections for calendar
year 2020 must [be]have been completed on or before March 31, 2021.
Inspections for calendar year 2021 must [be]have been completed on or
before December 31, 2021, [and inspections] for calendar year 2022,
[must be completed] on or before December 31, 2022, and for calendar
year 2023, on or before December 31, 2023. With respect to a member's
obligation to conduct an inspection of an office or location in
calendar year [2023]2024, a member has the option to conduct those
inspections remotely through the earlier of the effective date of the
Remote Inspections [p]Pilot [p]Program proposed in File No. [SR-FINRA-
2022-021]SR-FINRA-2023-007, if approved, or [December 31, 2023]June 30,
2024. Notwithstanding Rule 3110.17, a member shall remain subject to
the other requirements of Rule 3110(c).
(b) No Change.
(c) Effective Supervisory System. The requirement to conduct
inspections of offices and locations is one part of the member's
overall obligation to have an effective supervisory system and
therefore, the member must continue with its ongoing review of the
activities and functions occurring at all offices and locations,
whether or not the member conducts inspections remotely. A member's use
of a remote inspection of an office or location will be held to the
same standards for review as set forth under Rule 3110.12. Where a
[[Page 68259]]
member's remote inspection of an office or location identifies any
indicators of irregularities or misconduct (i.e., ``red flags''), the
member may need to impose additional supervisory procedures for that
office or location or may need to provide for more frequent monitoring
of that office or location, including potentially a subsequent
physical, on-site visit on an announced or unannounced basis [when the
member's operational difficulties associated with COVID-19 abate,
nationally or locally as relevant, and the challenges a member is
facing in light of the public health and safety concerns make such on-
site visits feasible using reasonable best efforts]. The temporary
relief provided by this Rule 3110.17 does not extend to a member's
inspection requirements beyond the earlier of the effective date of the
Remote Inspections [p]Pilot [p]Program proposed in File No. [SR-FINRA-
2022-021]SR-FINRA-2023-007, if approved, or [December 31, 2023]June 30,
2024, and such inspections must be conducted in compliance with Rule
3110(c).
(d) No Change.
* * * * *
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 provided
temporary relief to member firms from certain regulatory requirements,
including those set forth under Rule 3110. To help alleviate the
attendant logistical challenges member firms were encountering to
satisfy the inspection component of their Rule 3110(c) requirements,
FINRA adopted Rule 3110.16 (Temporary Extension of Time to Complete
Office Inspections) to extend the time by which member firms were
required to complete their calendar year 2020 inspection obligations
under Rule 3110(c) to March 31, 2021 with the expectation that the
extension did not relieve firms from the on-site portion of the
inspections of their offices and locations,\7\ and subsequently adopted
Rule 3110.17 to provide member firms the option, subject to specified
requirements under the supplementary material, to complete remotely
specified calendar year inspection obligations without an on-site visit
to the office or location.\8\ Rule 3110.17 has been extended and is
currently set to end on December 31, 2023.\9\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 89188 (June 30,
2020), 85 FR 40713 (July 7, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2020-019).
\8\ See Securities Exchange Act Release No. 90454 (November 18,
2020), 85 FR 75097 (November 24, 2020) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2020-040).
\9\ See Securities Exchange Act Release No. 96241 (November 4,
2022), 87 FR 67969 (November 10, 2022) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2022-030) (extending
the relief through December 31, 2023); see also Securities Exchange
Act Release No. 94018 (January 20, 2022), 87 FR 4072 (January 26,
2022) (Notice of Filing and Immediate Effectiveness of File No. SR-
FINRA-2022-001) (extending the relief through December 31, 2022) and
Securities Exchange Act Release No. 93002 (September 15, 2021), 86
FR 52508 (September 21, 2021) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2021-023) (extending the relief
through June 30, 2022).
---------------------------------------------------------------------------
The pandemic accelerated the industry's adoption of a broad remote
work environment and FINRA recognizes that the pandemic has profoundly
changed attitudes on where work can occur. As a result of this change
many firms have adopted, in varying scale, hybrid work models involving
personnel who are working at least part time from alternative work
locations (e.g., private residences). As part of FINRA's overall
efforts to modernize FINRA rules to reflect evolving technologies and
business models, in April 2023, FINRA filed the Remote Inspections
Pilot Program Proposal with the Commission to establish a voluntary,
three-year remote inspections pilot program that would allow eligible
firms to conduct inspections of all or some offices or locations,
remotely, subject to the specified terms therein.\10\
---------------------------------------------------------------------------
\10\ See note 4, supra.
---------------------------------------------------------------------------
If the Commission approves the Remote Inspections Pilot Proposal,
the proposed extension of Rule 3110.17 would allow both FINRA and the
firms that are planning to participate in the proposed Pilot Program
additional time to develop the technology and processes that will be
essential to operationalize compliance with the Pilot Program's
requirements. For example, firms will need to conduct an eligibility
review, and conduct and document a risk assessment for each office and
location that they elect to inspect remotely, and implement technology
to collect and report the required data and information to FINRA.
Further, FINRA guidance will be needed to guide implementation in
various circumstances.\11\ Firms that do not elect to participate or
would be excluded from participating in the proposed Pilot Program will
also be impacted and would need additional time to staff, schedule, and
resume on-site inspections of offices or locations \12\ within the
context of some lingering health concerns and fluid work
locations.\13\. If the Commission disapproves the Remote Inspections
Pilot Program Proposal, all firms would be impacted and would need
additional time to staff, schedule and resume conducting on-site
inspections of offices or locations.\14\
---------------------------------------------------------------------------
\11\ As part of the implementation process, FINRA intends to
publish a Regulatory Notice or other guidance about the operational
aspects of the proposed Pilot Program.
\12\ See note 5, supra.
\13\ While the World Health Organization declared an end to
COVID-19 as a public health emergency, COVID-19 remains an ongoing
public health problem. See WHO Director-General, Opening Remarks at
the Media Briefing on COVID-19 (May 5, 2023) (stating, in part, that
the ``virus is here to stay. It is still killing, and it's still
changing. The risk remains of new variants emerging that cause new
surges in cases and deaths.''), https://www.who.int/news-room/speeches/item/who-director-general-s-opening-remarks-at-the-media-briefing-5-may-2023; see also Benjamin J. Silk, et al., COVID-19
Surveillance After Expiration of the Public Health Emergency
Declaration--United States, May 11, 2023 (stating, among other
things, that ``[a]lthough COVID-19 no longer poses the societal
emergency that it did when it first emerged in late 2019, COVID-19
remains an ongoing public health challenge. By April 26, 2023, more
than 104 million U.S. COVID-19 cases, 6 million related
hospitalizations, and 1.1 million COVID-19-associated deaths were
reported to CDC[.]''), 72 MMWR Morb Mortal Wkly Rep, 523-528 (2023),
https://www.cdc.gov/mmwr/volumes/72/wr/pdfs/mm7219e1-H.pdf. Recent
data on hospitalizations from the CDC indicate that the number of
hospitalizations is up 7.7% (as of September 3 to September 9,
2023). See Centers for Disease Control and Prevents (``CDC''), COVID
Data Tracker, Data Update for the United States, https://covid.cdc.gov/covid-data-tracker/#datatracker-home (last visited
September 22, 2023).
\14\ See note 5, supra.
---------------------------------------------------------------------------
In sum, as calendar year 2024 is approaching its fourth quarter,
the proposed extension of Rule 3110.17 would provide firms continuity
in meeting their inspection obligations after the end of the
Commission's statutory deadline to approve or disapprove the Remote
Inspections Pilot Proposal. If the Commission approves the Remote
Inspections Pilot Proposal, the proposed additional time would allow
FINRA to operationalize the Pilot Program. Relatedly, the proposed
[[Page 68260]]
extension would give time for: (1) firms that are planning to
participate in the proposed Pilot Program to implement the processes
needed to comply with the proposed terms therein; and (2) firms that
are not planning to participate or are excluded from participating in
the proposed Pilot Program, to prepare to resume conducting on-site
inspections of their offices and locations as part of satisfying the
obligations of Rule 3110(c).
FINRA is not proposing to amend the other conditions of the
temporary rule. The current conditions of the supplementary material
for firms that elect to conduct remote inspections would remain
unchanged: such firms must amend or supplement their written
supervisory procedures for remote inspections, use remote inspections
as part of an effective supervisory system, and maintain the required
documentation. FINRA continues to believe this temporary remote
inspection option is a reasonable alternative for firms to fulfill
their Rule 3110(c) obligations under the current circumstances
described above. This proposed extension is designed to maintain the
investor protection objectives of the inspection requirements under
these circumstances. As part of those objectives, firms should consider
whether, under their particular operating conditions, continued
reliance on Rule 3110.17 to conduct remote inspections would be
reasonable under the circumstances. For example, firms with offices
that are open to the public or that are otherwise doing business as
usual should consider whether some in-person inspections would be
feasible and add value to the firms' supervisory program. FINRA
emphasizes that the inspection requirement is one aspect of a firm's
overall supervisory system, and that the inspection, whether done
remotely under Rule 3110.17 or in accordance with the proposed Pilot
Program, or on-site, would be held to the existing standards of review
under Rule 3110.12 (Standards for Reasonable Review).\15\
---------------------------------------------------------------------------
\15\ Those standards provide, in part, that based on the factors
set forth under that supplementary material, members ``may need to
provide for more frequent review of certain locations.''
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness. FINRA is proposing to make the proposed rule change
operative on January 1, 2024.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\16\ 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. The proposed rule change is intended to provide firms
certainty now as they plan their upcoming calendar year 2024 inspection
program. This temporary proposed supplementary material does not
relieve firms from meeting the core regulatory obligation to establish
and maintain a system to supervise the activities of each associated
person that is reasonably designed to achieve compliance with
applicable securities laws and regulations, and with applicable FINRA
rules that directly serve investor protection. In light of the planning
associated with firms resuming on-site visits to offices and locations
to satisfy Rule 3110(c)(1), if the Commission disapproves the Remote
Inspections Pilot Program Proposal, and the significant planning
requirements that the proposed Pilot Program, if approved, would entail
for FINRA and the firms that elect to participate, FINRA believes that
the proposed rule change provides sensibly tailored relief, while
continuing to serve and promote the protection of investors and the
public interest.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The potential economic impacts
of Rule 3110.17 as described in File No. SR-FINRA-2020-040 continue to
have applicability to the proposed rule change herein. The proposed
rule change would extend the temporary relief that provides firms with
the option to fulfill their inspection obligations remotely. The
proposed extension would include calendar year 2024 inspection
obligations through the earlier of the effective date of the Remote
Inspections Pilot Program Proposal, if approved, or June 30, 2024
within the scope of the supplementary material without making
substantive changes to the other aspects of the provision. In addition,
the proposed extension would provide firms certainty for the reasons
stated above. FINRA believes that this limited extension in temporary
relief, together with the requirements for using the temporary relief
in Rule 3110.17, would not diminish investor protection.
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 \17\ and Rule 19b-
4(f)(6) thereunder.\18\
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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-2023-012 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-2023-012. 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
[[Page 68261]]
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 a.m. and 3
p.m. Copies of such filing also will be available for inspection and
copying at the principal office of FINRA. Do not include personal
identifiable information in submissions; you should submit only
information that you wish to make available publicly. We may redact in
part or withhold entirely from publication submitted material that is
obscene or subject to copyright protection. All submissions should
refer to File Number SR-FINRA-2023-012 and should be submitted on or
before October 24, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-21785 Filed 10-2-23; 8:45 am]
BILLING CODE 8011-01-P
