80 FR 15041 - 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 Refund Program Under FINRA Rule 3110.15 (Temporary Program To Address Underreported Form U4 Information)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 54 (March 20, 2015)

Page Range		15041-15042
FR Document		2015-06360
Federal Register, Volume 80 Issue 54 (Friday, March 20, 2015)
[Federal Register Volume 80, Number 54 (Friday, March 20, 2015)]
[Notices]
[Pages 15041-15042]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-06360]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74512; File No. SR-FINRA-2015-005]


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 Refund 
Program Under FINRA Rule 3110.15 (Temporary Program To Address 
Underreported Form U4 Information)

March 16, 2015.
    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 3, 2015, 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.
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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 amend FINRA Rule 3110.15 (Temporary Program 
to Address Underreported Form U4 Information) to extend the expiration 
date of the refund program under that rule, which currently is July 31, 
2015, until December 1, 2015.
    The text of the proposed rule change is available on FINRA's Web 
site at http://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
    On December 30, 2014, the SEC approved FINRA Rule 3110.15, which 
establishes a temporary refund program whereby FINRA will issue a 
refund to members of Late Disclosure Fees assessed for the late filing 
of responses to Question 14M (relating to unsatisfied judgments or 
liens) on the Form U4 (Uniform Application for Securities Industry 
Registration or Transfer), subject to specified conditions.\4\ The 
refund program under FINRA Rule 3110.15 is intended to incentivize 
members to disclose underreported information and save FINRA the time 
and regulatory resources expended in contacting firms and requesting 
that such information be reported. The refund program has a retroactive 
effective date of April 24, 2014,\5\ and it is currently scheduled to 
expire on July 31, 2015. FINRA understands that, following SEC approval 
of the rule, some firms have undertaken a wholesale review of their 
registrants to identify judgments and liens that may have been 
unreported, including those that meet the parameters of the refund 
program. Based on FINRA's experience to date, FINRA believes that a 
four-month extension of the program will more effectively achieve its 
intended purpose. Therefore, FINRA is proposing to amend FINRA Rule 
3110.15 to extend the sunset date of the refund program until December 
1, 2015, which will give firms adequate time to identify and report 
information to FINRA. FINRA is not proposing any changes to the other 
parameters of the refund program.
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    \4\ See Securities Exchange Act Release No. 73966 (December 30, 
2014), 80 FR 546 (January 6, 2015) (Order Approving File No. SR-
FINRA-2014-038).
    \5\ See FINRA Board Approves Amendment to Supervision Rule 
Requiring Firms to Conduct Background Checks on Registration 
Applicants, FINRA News Release, April 24, 2014, available at http://www.finra.org/Newsroom/NewsReleases/2014/P493588.
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    As proposed, FINRA Rule 3110.15 will provide that FINRA will issue 
a refund to firms of Late Disclosure Fees assessed for the late filing 
of responses to Form U4 Question 14M (unsatisfied judgments or liens) 
if the Form U4 amendment is filed between April 24, 2014, and December 
1, 2015, and one of the following conditions is met:
    (1) The judgment or lien has been satisfied, and at the time it was 
unsatisfied, it was under $5,000, and the date the judgment or lien was 
filed with a court (as reported on Form U4 Judgment/Lien DRP, Question 
4A) was on or before August 13, 2012; \6\ or
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    \6\ See Information Notice August 17, 2012 (Late Disclosure Fee 
Related to Reporting of Judgment/Lien Events), available at http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p152106.pdf.
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    (2) the unsatisfied judgment or lien was satisfied within 30 days 
after the individual learned of the judgment or lien (as reported on 
Form U4 Judgment/Lien DRP, Question 4.B.).
    The refund program will continue to have a retroactive effective 
date of April 24, 2014, but it will automatically sunset on December 1, 
2015, as proposed. Thus, firms will not be able to obtain a refund 
pursuant to the parameters established under the program after December 
1, 2015. While the program is in effect, FINRA will initially assess 
firms a Late Disclosure Fee and subsequently refund the fee in the 
firm's FINRA Flex-Funding Account if the firm can establish, or if 
FINRA otherwise determines, that the conditions of the program have 
been satisfied.
    FINRA has filed the proposed rule change for immediate 
effectiveness. The implementation date of the proposed

[[Page 15042]]

rule change will be July 31, 2015, which is the current expiration date 
of FINRA Rule 3110.15. The proposed rule change extends the expiration 
date of FINRA Rule 3110.15 until December 1, 2015. As proposed, FINRA 
Rule 3110.15 will have a retroactive effective date of April 24, 2014, 
and it will automatically expire on December 1, 2015.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\7\ 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 temporary refund program under 
FINRA Rule 3110.15 incentivizes members to disclose underreported 
information relating to judgments and liens and saves FINRA the time 
and regulatory resources expended in contacting firms and requesting 
that such information be reported and that extending the expiration 
date of the refund program will more effectively achieve that purpose.
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    \7\ 15 U.S.C. 78o-3(b)(6).
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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 temporary refund program under FINRA Rule 3110.15 encourages 
members to comply with their existing reporting obligations and allows 
them to receive a refund of Late Disclosure Fees if the conditions 
specified in FINRA Rule 3110.15 are satisfied. As such, FINRA does not 
believe that extending the expiration date of the temporary refund 
program will result in any burden on members.

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 \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-FINRA-2015-005 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2015-005. 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 Web site (http://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 Web site 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. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-FINRA-2015-005 and should be 
submitted on or before April 10, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-06360 Filed 3-19-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 54 / Friday, March 20, 2015 / Notices 15041

(b) the accuracy of the Commission’s the proposal effective upon receipt of is currently scheduled to expire on July
estimate of the burden of the proposed this filing by the Commission. The 31, 2015. FINRA understands that,
collection of information; (c) ways to Commission is publishing this notice to following SEC approval of the rule,
enhance the quality, utility, and clarity solicit comments on the proposed rule some firms have undertaken a wholesale
of the information on respondents; and change from interested persons. review of their registrants to identify
(d) ways to minimize the burden of the judgments and liens that may have been
I. Self-Regulatory Organization’s
collection of information on unreported, including those that meet
Statement of the Terms of Substance of
respondents, including through the use the parameters of the refund program.
the Proposed Rule Change
of automated collection techniques or Based on FINRA’s experience to date,
other forms of information technology. FINRA is proposing to amend FINRA FINRA believes that a four-month
Consideration will be given to Rule 3110.15 (Temporary Program to extension of the program will more
comments and suggestions submitted in Address Underreported Form U4 effectively achieve its intended purpose.
writing within 60 days of this Information) to extend the expiration Therefore, FINRA is proposing to amend
publication. date of the refund program under that FINRA Rule 3110.15 to extend the
An agency may not conduct or rule, which currently is July 31, 2015, sunset date of the refund program until
sponsor, and a person is not required to until December 1, 2015. December 1, 2015, which will give firms
respond to, a collection of information The text of the proposed rule change adequate time to identify and report
under the PRA unless it displays a is available on FINRA’s Web site at information to FINRA. FINRA is not
currently valid OMB control number. http://www.finra.org, at the principal proposing any changes to the other
Please direct your written comments office of FINRA and at the parameters of the refund program.
to: Pamela C. Dyson, Director/Chief Commission’s Public Reference Room. As proposed, FINRA Rule 3110.15
Information Officer, Securities and II. Self-Regulatory Organization’s will provide that FINRA will issue a
Exchange Commission, c/o Remi Pavlik- Statement of the Purpose of, and refund to firms of Late Disclosure Fees
Simon, 100 F Street NE., Washington, Statutory Basis for, the Proposed Rule assessed for the late filing of responses
DC 20549 or send an email to: PRA_ Change to Form U4 Question 14M (unsatisfied
Mailbox@sec.gov. judgments or liens) if the Form U4
In its filing with the Commission, amendment is filed between April 24,
Dated: March 16, 2015. FINRA included statements concerning 2014, and December 1, 2015, and one of
Brent J. Fields, the purpose of and basis for the the following conditions is met:
Secretary. proposed rule change and discussed any (1) The judgment or lien has been
[FR Doc. 2015–06358 Filed 3–19–15; 8:45 am] comments it received on the proposed satisfied, and at the time it was
BILLING CODE 8011–01–P rule change. The text of these statements unsatisfied, it was under $5,000, and the
may be examined at the places specified date the judgment or lien was filed with
in Item IV below. FINRA has prepared a court (as reported on Form U4
SECURITIES AND EXCHANGE summaries, set forth in sections A, B, Judgment/Lien DRP, Question 4A) was
COMMISSION and C below, of the most significant on or before August 13, 2012; 6 or
[Release No. 34–74512; File No. SR–FINRA–
aspects of such statements. (2) the unsatisfied judgment or lien
2015–005] A. Self-Regulatory Organization’s was satisfied within 30 days after the
Statement of the Purpose of, and individual learned of the judgment or
Self-Regulatory Organizations; Statutory Basis for, the Proposed Rule lien (as reported on Form U4 Judgment/
Financial Industry Regulatory Change Lien DRP, Question 4.B.).
Authority, Inc.; Notice of Filing and The refund program will continue to
Immediate Effectiveness of a Proposed 1. Purpose have a retroactive effective date of April
Rule Change To Extend the Expiration On December 30, 2014, the SEC 24, 2014, but it will automatically
Date of the Refund Program Under approved FINRA Rule 3110.15, which sunset on December 1, 2015, as
FINRA Rule 3110.15 (Temporary establishes a temporary refund program proposed. Thus, firms will not be able
Program To Address Underreported whereby FINRA will issue a refund to to obtain a refund pursuant to the
Form U4 Information) members of Late Disclosure Fees parameters established under the
assessed for the late filing of responses program after December 1, 2015. While
March 16, 2015.
to Question 14M (relating to unsatisfied the program is in effect, FINRA will
Pursuant to Section 19(b)(1) of the initially assess firms a Late Disclosure
judgments or liens) on the Form U4
Securities Exchange Act of 1934 Fee and subsequently refund the fee in
(Uniform Application for Securities
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 the firm’s FINRA Flex-Funding Account
Industry Registration or Transfer),
notice is hereby given that on March 3, if the firm can establish, or if FINRA
subject to specified conditions.4 The
2015, Financial Industry Regulatory otherwise determines, that the
Authority, Inc. (‘‘FINRA’’) filed with the refund program under FINRA Rule
3110.15 is intended to incentivize conditions of the program have been
Securities and Exchange Commission satisfied.
(‘‘SEC’’ or ‘‘Commission’’) the proposed members to disclose underreported
information and save FINRA the time FINRA has filed the proposed rule
rule change as described in Items I, II, change for immediate effectiveness. The
and III below, which Items have been and regulatory resources expended in
contacting firms and requesting that implementation date of the proposed
prepared by FINRA. FINRA has
such information be reported. The
mstockstill on DSK4VPTVN1PROD with NOTICES

designated the proposed rule change as Background Checks on Registration Applicants,
constituting a ‘‘non-controversial’’ rule refund program has a retroactive
FINRA News Release, April 24, 2014, available at
change under paragraph (f)(6) of Rule effective date of April 24, 2014,5 and it http://www.finra.org/Newsroom/NewsReleases/
2014/P493588.
19b–4 under the Act,3 which renders 4 See Securities Exchange Act Release No. 73966 6 See Information Notice August 17, 2012 (Late
(December 30, 2014), 80 FR 546 (January 6, 2015) Disclosure Fee Related to Reporting of Judgment/
1 15 U.S.C. 78s(b)(1). (Order Approving File No. SR–FINRA–2014–038). Lien Events), available at http://www.finra.org/web/
2 17 CFR 240.19b–4. 5 See FINRA Board Approves Amendment to groups/industry/@ip/@reg/@notice/documents/
3 17 CFR 240.19b–4(f)(6). Supervision Rule Requiring Firms to Conduct notices/p152106.pdf.

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15042 Federal Register / Vol. 80, No. 54 / Friday, March 20, 2015 / Notices

rule change will be July 31, 2015, which operative for 30 days from the date on Washington, DC 20549, on official
is the current expiration date of FINRA which it was filed, or such shorter time business days between the hours of 10
Rule 3110.15. The proposed rule change as the Commission may designate, it has a.m. and 3 p.m. Copies of such filing
extends the expiration date of FINRA become effective pursuant to Section also will be available for inspection and
Rule 3110.15 until December 1, 2015. 19(b)(3)(A) of the Act 8 and Rule 19b– copying at the principal office of
As proposed, FINRA Rule 3110.15 will 4(f)(6) thereunder.9 FINRA. All comments received will be
have a retroactive effective date of April At any time within 60 days of the posted without change; the Commission
24, 2014, and it will automatically filing of the proposed rule change, the does not edit personal identifying
expire on December 1, 2015. Commission summarily may information from submissions. You
temporarily suspend such rule change if should submit only information that
2. Statutory Basis it appears to the Commission that such you wish to make available publicly. All
FINRA believes that the proposed rule action is necessary or appropriate in the submissions should refer to File
change is consistent with the provisions public interest, for the protection of Number SR–FINRA–2015–005 and
of Section 15A(b)(6) of the Act,7 which investors, or otherwise in furtherance of should be submitted on or before April
requires, among other things, that the purposes of the Act. If the 10, 2015.
FINRA rules must be designed to Commission takes such action, the For the Commission, by the Division of
prevent fraudulent and manipulative Commission shall institute proceedings Trading and Markets, pursuant to delegated
acts and practices, to promote just and to determine whether the proposed rule authority.10
equitable principles of trade, and, in should be approved or disapproved. Brent J. Fields,
general, to protect investors and the Secretary.
public interest. FINRA believes that the IV. Solicitation of Comments
[FR Doc. 2015–06360 Filed 3–19–15; 8:45 am]
temporary refund program under FINRA Interested persons are invited to
BILLING CODE 8011–01–P
Rule 3110.15 incentivizes members to submit written data, views and
disclose underreported information arguments concerning the foregoing,
relating to judgments and liens and including whether the proposed rule SECURITIES AND EXCHANGE
saves FINRA the time and regulatory change is consistent with the Act. COMMISSION
resources expended in contacting firms Comments may be submitted by any of
and requesting that such information be the following methods: [Release No. 34–74511; File No. SR–OCC–
2015–006]
reported and that extending the Electronic Comments
expiration date of the refund program Self-Regulatory Organizations; the
will more effectively achieve that • Use the Commission’s Internet
comment form (http://www.sec.gov/ Options Clearing Corporation; Notice
purpose. of Filing of Proposed Rule Change
rules/sro.shtml); or
B. Self-Regulatory Organization’s • Send an email to rule-comments@ Concerning the Provision of Clearance
Statement on Burden on Competition sec.gov. Please include File Number SR– and Settlement Services for Energy
FINRA–2015–005 on the subject line. Futures and Options on Energy
FINRA does not believe that the Futures
proposed rule change will result in any Paper Comments
burden on competition that is not March 16, 2015.
necessary or appropriate in furtherance • Send paper comments in triplicate
Pursuant to Section 19(b)(1) of the
of the purposes of the Act. to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934
The temporary refund program under and Exchange Commission, 100 F Street (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
FINRA Rule 3110.15 encourages NE., Washington, DC 20549–1090. notice is hereby given that on March 2,
members to comply with their existing All submissions should refer to File 2015, The Options Clearing Corporation
reporting obligations and allows them to Number SR–FINRA–2015–005. This file (‘‘OCC’’) filed with the Securities and
receive a refund of Late Disclosure Fees number should be included on the Exchange Commission (‘‘Commission’’)
if the conditions specified in FINRA subject line if email is used. To help the the proposed rule change as described
Rule 3110.15 are satisfied. As such, Commission process and review your in Items I, II, and III below, which Items
FINRA does not believe that extending comments more efficiently, please use have been prepared primarily by OCC.
the expiration date of the temporary only one method. The Commission will The Commission is publishing this
refund program will result in any post all comments on the Commission’s notice to solicit comments on the
burden on members. Internet Web site (http://www.sec.gov/ proposed rule change from interested
rules/sro.shtml). Copies of the persons.
C. Self-Regulatory Organization’s submission, all subsequent
Statement on Comments on the amendments, all written statements I. Clearing Agency’s Statement of the
Proposed Rule Change Received From with respect to the proposed rule Terms of Substance of the Proposed
Members, Participants, or Others change that are filed with the Rule Change
Written comments were neither Commission, and all written The purpose of this proposed rule
solicited nor received. communications relating to the change by The Options Clearing
proposed rule change between the Corporation (‘‘OCC’’) is to provide
III. Date of Effectiveness of the Commission and any person, other than clearance and settlement services for
Proposed Rule Change and Timing for those that may be withheld from the energy futures contracts (‘‘Energy
Commission Action
mstockstill on DSK4VPTVN1PROD with NOTICES

public in accordance with the Futures’’) and options on Energy
Because the foregoing proposed rule provisions of 5 U.S.C. 552, will be Futures contracts. In order to do so,
change does not: (i) Significantly affect available for Web site viewing and OCC is proposing to add new risk
the protection of investors or the public printing in the Commission’s Public models to its STANS methodology as
interest; (ii) impose any significant Reference Room, 100 F Street NE.,
burden on competition; and (iii) become 10 17 CFR 200.30–3(a)(12).
8 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
7 15 U.S.C. 78o–3(b)(6). 9 17 CFR 240.19b–4(f)(6). 2 17 CFR 240.19b–4.

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Document Created: 2015-12-18 11:34:46
Document Modified: 2015-12-18 11:34:46
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 15041